September 1, 2010
Regarding the SEC vote to rescind the existing structure of 12b1 fees.
I think the new proposal will not be to the benefit of clients because as an Independent Fiancial Planner, My job is to provide annual meetings, quarterly balance sheets and be available to my client as the needs arise.
Trail fees allow me to provide the level of service to my clients that is necessary in this kind of business. There are so many moving parts now with complicated tax laws, a unstable market and the clients many changing needs that we have to be in a ongoing relationship.
If the client had to be billed for this service then they would not avail themselves and only look for help when they felt it was necessary which in this industry is too late.
The current system has and is working well for my clients and me and to reduce Our compensation will only lead to churning on clients portfolio to allow the advisor to be compensated.
Please do not change the existing structure of 12b1fees.
Sincerely,
Mike Long CFP