Subject: File No. S7-25-99
From: Paul B Macchia, Esq., MBA, RFC
Affiliation: Member of the Bar NY, NJ and DC, Registered Financial Consultant

August 23, 2004

After careful consideration of this Rule and various professional commentaries both pro and con, I support the permanent adoption of this proposed rule. At its core, the Rule will make it clear that arrangements which are essentially traditional brokerage relationships will not be deemed to be investment advisory activities solely because they utilize a non-commission-based compensation methodology. The same would be true where the components of a traditional brokerage relationship are merely unbundled. The SEC has done a good job of crafting a rule that will accommodate new forms of broker-dealer compensation arrangements which pose no harm to consumers, and without compromising the integrity of the Advisors Act.