Subject: File No. S7-25-99
From: Leon Khersonsky

August 23, 2004

In my opinion rule exempting broker-dealers from the Investment Advisers Act of 1940 when offering fee-based brokerage programs should be WITHDAWN and not amended.
I am sure that the rule is harmful to consumers by creating two different standards of conduct for persons offering financial planning services: a higher fiduciary standard for registered investment advisers and a lower one under NASD suitability rules. The rule should not exempt brokers from being required to disclose conflicts of interest in connection with the offer of financial planning services, brokers should disclose all conflicts of interest in all transactions.