Date:    05/19/2000  3:09 PM

Subject: Certain Broker Dealers Deemed not to be Investment Advisors.

Dear Commissioner Levitt
     
I have read some of the comments made by other independent representatives. 
They focus on the idea of a "level playing field."  I agree that it is an 
issue in this case but with all due respect I believe that a much larger 
issue is at stake here.  It is the issue of misrepresentation which runs 
rampant in our industry.  This in turn deals with the basic concept of 
honesty, trust and accountability.  Your licensing rules make it very clear 
how one can represent oneself to the public.   You created those rules to 
protect the consumer and now you want to do away with them?
     
I know that it is difficult to enforce the rules but we depend on you to do 
just that. Is it because it is difficult that you now want to make a change? 
I have watched you in the press.  I have a great deal of respect for you. 
Somehow I can not picture you bending to the large brokerages and discount 
houses  just to make enforcement easier.  I cannot see you making it easier 
for certain people to brush aside honesty, truth and accountability under 
the guise of competition or profitability or changing times or whatever 
rationale they chose to hide behind.  Why should we not all be held 
accountable for the same licensing.  For the same rules.  Instead of just 
some.
     
I have successfully completed testing for my series 63, 65, 6 and 7 so that 
I can legally, and with the sanction of the SEC, call myself a Financial 
Planner, Financial Advisor, or a Registered Investment Advisor under 
ASKAR/FFP, my Broker/Dealer.  As you and I and many others already know 
there are large groups of people who do not have the licensing that would 
allow them to title themselves as planners, advisors, or RIA's.  As one 
example, I have personally heard Arthur Anderson managers represent 
themselves as Financial Planners and Financial Advisors along with 
announcing themselves to be licensed for series 63 and 6.  I do not believe 
your rules allow for this.  Please let me be quick to state that they are 
not the only house that does this as you well know.  Not everyone is smart 
enough or talented enough to qualify to be a Financial Planner, or Advisor, 
or an RIA.  That is why the testing.  That is why the rules.  This is a 
profession not just a job.
     
I am already moving to a fee based position.  I have believed in this for a 
long time as being more equitable for my clients.  I am in the service 
business not the product business.  I am in the business of helping people 
establish goals, set up a plan and stick to the plan.  And while I use 
products to assist in the client's plan I am not a product pusher.  My 
interest is solely what will benefit the client.  And, as a fee based 
Financial Advisor I have even more of a responsibility to disclose 
everything to my clients not less.  To be sure that my licensing matches the 
level of my title.  That compliance is strictly followed.  These are basics 
in our industry.  This is a system that ultimately works.  Please do not 
undermine it because some want to take the easy way out.  Thank you for your 
attention to this matter and God's speed in your task.
     
Sincerely,
     
Michelle H. Harrington
Registered Investment Advisor, ASKAR/FFP