Subject: File No. S7-25-99
From: Larry Pierce, CFP
Affiliation: Financial Advisor, Waddell Reed

February 10, 2005

I strongly oppose the broker-dealer exemption to the Investment Adviser Act of 1940. I believe this exemption would allow brokers to operate under reduced standards from that of advisors, while not properly informing the public of the differences.

I feel that anyone holding out to be a financial planner should be subject to the same standards of professional conduct. In my opinion, this exemption allows allows brokers to present themselves to clients as thought they operate under the same professional standards called for in the Advisers Act.

The required broker-dealer disclosures to allow the exemption are either not being presented, or the public does not grasp the meaning. None of the people I deal with come close to realizing the difference between brokers who operate under broker-dealer suitability rules and the fiduciary rules under the umbrella of the Investment Adviser Act. They are considered to be the same.

Please reconsider this proposed rule.