April 1, 2005
The proposed SEC new rule File number S7-06-04 that will require broker/dealers to provide customers with targeted information, at the point of sale and in transaction confirmation, regarding the costs and conflicts of interest that arise from the distribution of mutual fund shares, 529 college savings plan interests, and variable insurance products. Is not fair
The adoption of these proposed rules may have substantial unintended consequences for independent broker/dealers and their registered representatives. Of primary concern is that complying with the proposed rules - principally the creation and maintenance of the point of sale disclosure - will be so extremely burdensome and costly that broker/dealers will be forced to limit significantly the number of Covered Securities approved for sale.
I feel that we have not had a substantial opportunity to review the proposal and would like the comment period extended for an additional 30 days.