From: Bizhawkeye@aol.com
Sent: Sunday, January 25, 2004 8:21 PM
To: rule-comments@sec.gov
Subject: S7-04-04:
I think the SEC, people that sell mutual funds and politicians are all in bed 
with each other. The only thing that will stop this rape of the investor is 
information and stiff penalties for failure to provide the information. The 
code of ethics is worthless and so is the so called, creation of a compliance 
officer at mutual fund companies.  

Here's what the so called seller of the mutual fund needs to answer for the 
fund investor.

1. How has the fund family performed relative to the Lipper average over the 
last 1-3-5 and 10 year periods? Quantify the under performance in dollars for 
a typical investor. 

2. How much in fines and penalties has the fund family and the financial adviser  
paid to the SEC and other government entities for unethical business practices. 
List dates, cause and dollar amount.

3. Will the fund family post a copy of all SEC deficiency letters at it's web 
site. If not, why not?

4. How many funds out of the fund family were started and terminated over the 
last ten years? How many funds in the family have ten year track records and 
how much more money did they make compared to the same amount invested at the 
so called "prime rate"?

5. How does the fund family allocate IPO's to individual funds?

6. How much do you (the so called financial advisor) have invested in the funds? 
Provide purchase info.

7. Have you sold any of the funds your recommending to me during the last five 
years? Provide dates, number of shares and unit price. 

8. How much money do you make selling these funds? Will you provide the dollar 
amount ever year on my fund statement? If not why not?

9. If the fund expense is higher than 1.0 %., what will the total excess cost be 
for me if I invest $10,000 and the annual return is 10.0%. for a 30 year period. 

10. Has the manager of the fund been selected as manager of the year during the 
last 10 years by Morningstar?

11. What is the compensation of the fund manager? Provide a detailed description 
of the incentive or bonus plan. 

Now, here's additional information that should be made available by the fund 
companies.

1. How much did portfolio turnover cost the fund?

2. If you hide fund cost using the soft money ploy, provide the detail, i.e., 
how much did that cost me, the investor.

3.  When do you change fund managers. What criteria is used to determine if he 
is not performing?

4.  Will you pay investor friendly companies an amount equal to what you 
currently pay to support the ICI..another bed partner for the politicians, fund 
companies and the SEC. If not why, not?

5. How much money does the fund manager have in the fund? What is this amount 
compared to his net worth?

6. Will the fund manager immediately reveal his buys and sells at the website 
and release the same info to the business press?

7. How much money did the fund, fund managers donate to politicians during the 
last 12 months. List payee and amount. 
In the future, will the fund obtain approval for investors money that flows to 
politicians, and the ICI?

8. How is the Board compensated? Translate the annual cost into cost per hour. 

I hope somebody at the SEC reads this and implements those regulations that 
don't burden the invester with needless cost. So, far it looks like the ICI and 
fund companys are calling the shots. Thank God Spitzer is doing his job. 
Personally his actions make the SEC folks look like a bunch of  toothless amatuers 
trying to whistle Dixie on the Ted Mack show. The SEC has the opportuity to perform 
for the invester. Your on stage and you only have two choices, get out or put out. 

Lee Nepple