Subject: File No. S7-25-99
From: Paul E. James, CFP/NBE
Affiliation: US Treasury retired

August 23, 2004

Re: rule exempting broker-dealers from the Investment Advisers Act of 1940 when offering fee-based brokerage programs.

Request: I urge you to adhere to the FPA position reject that of the Securities industry lobbys. We urge you to WITHDRAW, not amend, the rule proposal. We believe 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 also exempts, in effect, brokers from being required to disclose conflicts of interest in connection with the offer of financial planning services.

Now go do the right thing. Respectfully, Paul James