Subject: File No. S7-25-99
From: William R. Anderson, Chief Compliance Officer and Portfolio Manager
Affiliation: The Proper Analysis Corporation
September 10, 2004
I wish to comment on the "Exemption" both for the Registered Investment Advisor for which I work, The Proper Analysis Corp. and personally.
I believe that this ruling completely contradicts the spirit and purpose of the 1933, 1934 and 1940 Acts. If planning services are to be provided by the brokerage industry (and compensation for such services are received), the brokerage industry should be subject to the same disclosure rules as to conflicts of interest and compensation as an Advisor.
This Exemption, if left to stand, will only further limit transparency for the majority of the investment public and it will further widespread abusive practices such as the selling of variable annuity products. Such brokerage practices cause tremendous pain for the innocents whose savings are pilfered and in time such goings on will further erode investor confidence in the American Financial Markets.
If it waddles like a duck, quacks like a duck, and has the appearance of a duck, it is a duck and should be regulated as such.
William R. Anderson
Chief Compliance Officer and Portfolio Manager
The Proper Analysis Corporation
25550 Chagrin Blvd., Suite 310
Beachwood, OH 44122