July 19, 2007

Ms. Morris, I am a licensed securities representative, licensed insurance agent, and a CFP practitioner. I believe that the elimination of 12B-1 compensation to registered securities reps would lead to a mass amount of mutual fund switching as reps try to recover the income lost without their 12B-1 compensation, and I see no way for that to be healthy for the consumer or the industry. I also believe that it would push more money into fee-based products and accounts, which I have no problem with, but there are plenty of reps out there who do not yet believe in that system and I don't think it's right "herd" them in that direction.