July 19, 2007

I am a financial consultant assisting people with their holistic planning in the areas of insurance, investments, and risk management.

I will cut to the chase - my business model is to work with, and see the same 150 clients over and over, year after year. In that manner, I can provide value through deeper relationships, continuity in planning, and focused professionalism.

If the institutional powers deflect "trail" or 12b-1 revenues, my business model becomes endagered and will be forced to adapt. I am now forced to spend time finding new clients, developing new cases in order to repace revenue I was generating from servicing the same book of clients.

Time and energy are subsequently sacrificed in regards to the ongoing planning with existing clients. The ones that suffer the worst are the working class with smaller amounts of assets under management - they ultimately will get less professional assistance. Gratis cases will also be reduced.

In closing - the very people the SEC is trying to protect are the ones that will encounter the most harm from a change to the current mutual fund compensation structure. "If its not broke, don't fix it" - Yogi Berra.