Subject: File No. S7-25-99
From: Michael Packard

July 23, 2004

Re: File No. S7-25-99, Certain Broker-Dealers Deemed Not To Be Investment Advisers.

I just read about your proposed rule to clarify the exception brokers have from the definition of investment advisor. I certainly think it is an important distinction when your "advisor" is primarily a sales agent. I agree with the Financial Planning Association that this rule would significantly blur the lines and allow broker-dealers to avoid the fiduciary and disclosure standards of the Investment Advisers Act of 1940, while actually acting as investment advisers and offering financial planning services.

Why don't you make anyone who offers advice about secirities be covered by the Advisors Act? If anything, you should be making impropriety of any sort harder rather making it easier for brokerages to market themselves.