October 29, 2010
I have been a Reg. Rep. for eight years and work in a rural market area. I support the change from the SEC rule 12b-1 to the new 12b-2 with the 25 basis points to cover marketing and service fees. However, I am strongly opposed to allowing mutual fund companies the ability to create new share classes which would have the broker/dealer set their own amounts for service, marketing, and commisions. This competitive environment would have an adverse consequence for my clients. I deal mainly with middle and smaller account clients who cannot afford to have an advisor who works on assets-under-management arrangements. Therefore, they could lose the ongoing guidance and service given to them now by their representives at this time. The people the SEC is trying to protect, middle and lower market investors, are the ones who would suffer the most under this change.
PLEASE RECONSIDER THIS MOVE
Jim Leggott, Registered Rep