MessageFrom: Steven R Waller [steve@stresslessinvesting.com] Sent: Saturday, May 08, 2004 10:14 AM To: rule-comments@sec.gov Cc: seth21@mindspring.com Subject: Comment on File No. S7-11-04. Jonathan G. Katz, Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. I want to express my concern over the consideration of implementing mandatory redemption fees on mutual funds. As an independent asset manager, I am an advocate to my clients, not to the financial services industry. I do not believe that redemption fees will eliminate the specific problem of abusive trading because that trading is being done by traders that will simply find a new way to cheat the system. Not by individual honest investors. Too many rules that get made in this industry end up being of more benefit to the industry than to the investor that you are trying to protect. I believe strongly this is the case here. Funds already have the ability to impose fees if they have abusive trading and they can implement specific internal policies, including fair value pricing, to eliminate the problem. I do not run an active trading program but I don't believe it is right to create a policy that would force me to make a decision for a client based on mandatory redemption fees rather than the best interest and protection of their investments. The SEC has led the way in lowering costs for investors and this policy would go against what investors look to the SEC for. The mutual fund industry is in favor of this proposal because it is better for them, not the investor. I ask you to prevent them from creating another unfair advantage for them against the honest individual investor. Thank you for your consideration of this vital matter. Steven R Waller Stress-Less Wealth Strategies "Managing Your Portfolio Like A Successful Business" Phone: Reno: (775) 560-5511 Las Vegas: (702) 641-4001 Toll Free: (800) 641-7904 Fax: (800) 397-6258 steve@stresslessinvesting.com www.StresslessWealthStrategies.com