March 3, 2004
Please consider extending the comment period for the proposed rules regarding 12b-1 rules and other related mutual fund disclosure. As a manner of rule, my broker dealer currently has mutual fund disclosure forms that cover fees regarding the mutual funds. The 12b-1 fees I collect allow me to service my existing client base on an ongoing basis. If not for the 12b-1 fees, it would be necessary for me to charge my existing clients additional fees. It is more cost effective to the client under the current system. Mutual funds were created with the middle class in mind and are the best and most practical investment vehicles for a majority of Americans. 12b-1 fees allow me to service my middle class clients in a cost effective way. This business is based on trust and I look for mutual fund companies such as the American Funds to do the right thing on behalf of its shareholders. Look to them as a model for the whole industry. Below average costs and and a focus on managing risk. Be careful in your scrutiny not to raise costs for the people you are trying to protect.