Subject: File No. S7-25-99
From: Marilyn E Pierson, CFP

August 24, 2004

I urge you to withdraw the controversial proposed rule exempting broker-dealers from the Investment Act of 1940, even though they offer fee-based brokerage programs.

It would create two standards of conduct, one for the registered representative and the other for the financial advisor who is governed by NASD suitability rules.

Furthermore, it permits non-disclosure of conflicts of interest by the registered representative.

This proposed rule is obviously not in the best interests of the consumer. I note that the Consumer Federation of America and the AARP strongly object to this proposed rule also.

It reflects poorly on the SEC that you would even consider such an anti-consumer rule at a time when the American public wants and needs full disclosure and equal suitability rules for all financial advisors. Please withdraw this Rule.