From: Fred Arnold [ftarnold@bresnan.net]
Sent: Saturday, December 13, 2003 10:52 AM
To: rule-comments@sec.gov
Subject: File No. S7-27-03

As a retiree with virtually all of his retirement income derived from 
mutual funds, I have followed this issue with interest.  Hedge funds, 
individual investors, transfer agents, even the funds companies 
themselves have treated long-term investors in mutual funds as "chickens 
to be plucked".  The recent investigations that have unearthed these 
loathesome and unethical practices have given us an opportunity to end, 
once and for all, the practice of late-trading, and I am wholly in 
support of the proposed rule.  I want a hard-and-fast rule, though, not 
one that grants exceptions to fund intermediaries if they provide a 
laundry list of protections to prevent late trading.  Granting 
exceptions to intermediaries will, I fear, simply allow the practice of  
late-trading to continue, albeit in a more sophisticated manner.  
Finally, let us not lose track of who we're trying to protect.  Without 
mutual fund investors there would be no need for a mutual fund industry.

Thank you for the opportunity to comment on the proposed rule, File No. 
S7-27-03.

Fred Arnold