Subject: File No. S7-25-99
From: Lawrence I. Grossman, CFP, AIF, MBA, CLU
Affiliation: registered investment advisor certified financial planner

September 8, 2004

I urge the Commission to withdraw the rule exempting broker-dealers from the Investment Advisers Act of 1940 when offering fee-based brokerage programs.

I believe that the rule is anti-competitive by creating two standards of conduct for persons offering financial planning services: one for registered investment advisers and one under NASD suitability rules. I also believe that it is anti-consumer, because it permits non-disclosure of conflicts of interest by registered representatives.

I have been a registered representative and am no longer one, precisely because of the conflicts of interest inherent to that role.