The following comment on Letter Type I,
or variations thereof, was submitted by
2 individuals or entities on S7-27-03.

Letter Type I:

Senator Gordon Smith
121 SW Salmon Street, # 1250
Portland, OR 97204

Dear Senator Smith:

I'm writing to protect mutual fund shareholders in the state of Oregon.

The Securities and Exchange Commission ("SEC") has proposed a regulation that would prohibit a mutual fund from processing any transaction that it does not receive by 4:00 P.M. EST; commonly referred to as a "hard 4:00 P.M close." The stated purpose of this legislation is to prevent late trading, i.e., accepting trades after the close of a market. However, if imposed, this requirement will:

1. disadvantage shareholders in time zones other than Eastern even more than they are today. Shareholders in the Pacific, Mountain and Central are already disadvantaged by the 4:00 P.M. ET market close due to time zone differences. The hard close will magnify the disadvantage by hours.
   
2. disadvantage most, if not all shareholders who invest through intermediary, such as a 401k plan or broker/dealer, compared to shareholders who purchase shares directly from a mutual fund. Intermediaries typically need several hours to aggregate orders to forward to mutual funds.
   
3. create a multitude of deadlines for investors.
   
4. be very expensive to change for the industry.
   
5. ignore easier, more practical and less expensive solutions such as mandatory certifications by financial intermediaries that they comply with the law.

As a financial advisor in Oregon, I Request that you help encourage the SEC to adopt a more practical solution by opposing the "hard 4:00 P.M.close."

Sincerely, -

http://www.sec.gov/rules/proposed/s72703/s72703typei.htm