Subject: File No. S7-25-99
From: Steven P Cariati, CFP

September 8, 2004

Please rescind this rule
I always take the side/perspective of the consumer. You know that a Fiduciary has an obligation to put their client first and I always practice this and so should the SEC-Clients first.

The SEC should withdraw its rule exempting broker-dealers from the Investment Advisors Act of 1940 when offering fee-based brokerage programs. Why?

Take a look at the Wirehouse websites/advertising budgets and their content:

Careful planning

Your life in total

Financial Advisor will evaluate your situation

Puts all the pieces together.

They are not spending their advertising budgets to let the public know they are Brokers-they want the public to feel they are dealing with a trusted advisor.

Ok, then call their bogus advertising bluff/deception and hold them to a Fiduciary duty. They should not have it both ways:tell the public we are consultants but convince the SEC to exempt us. Hello, anybody home?

What absolutely amazes me is that the SEC needs to be told what is going on-use your common sense and your own eyes and ears. This is not complicated if you are trying to make things clear for the consumer.

Would you like your Mom planning her estate with a broker who she thinks puts all the pieces together?

Who would you use to counsel your parents or indeed yourself-a broker whose firm tells you they are Financial Advisors or a real Advisor who is and acts like a Fiduciary and is held to such by the appropriate regulatory bodies?

Apply your own Momma Rule and the answer is obvious-apply lots of wirehouse talk and legalese and you lose the Momma for all the trees.

Please wake up and see the real situation.
I can be reached by phone in Albany if you want to know how someone in the field who practices everyday for the last 18 years as a fiduciary really feels.