Subject: S7-5-99 Comments Author: Date: 4/7/99 6:40 PM MASF.net 1710 E. Division St. Evansville, IN 47711 Jonathan Katz Secretary, Securities and Exchange Commission Mail stop 6-9 450 Fifth street, NW Washington, DC 20549 April 6, 1999 Re: Subject File No. S7-5-99 Dear Mr. Katz: I support the proposed amendment to Rule 15c-211, however I would like to make following suggestions: 1) Instead of requiring broker-dealers to make issuer information available to anyone who request it, the burden of providing issuer information should be on the issuers and not the broker-dealers. For OTC B/B securities, the public already have access to the EDGAR. By requiring broker-dealers to provide print copy of EDGAR filings to the public or to other broker- deals, broker-dealers will incur unnecessary cost. For Pink Sheet securities, the new rule should require the issuers provide required information (copy of 15c-2-11 and two years of financial statement - to be updated on quarterly basis) to the public, who made written request to them. Ideally, these required information can be published on the EDGAR for public access. Currently, for non-reporting companies, the public can not even obtain total number of shares outstanding or most recent financial statements from any independent source other than the issuer. Fraud can be prevented only if the public have access to these important information from a reliable source such as the EDGAR. Any issuer involved in fraudulent activities is unlikely to provide accurate information to the broker-dealers. 2) I believe that the microcap fraud problem is primarily a retail sales abuse by broker-dealers and by company promoters disseminating false and misleading information. Therefore, it make sense to require all broker- dealers to conduct due diligence before making a price quotation because broker-dealers may be able to discover potential fraudulent activities. The new rule should require broker-dealers report fraudulent activities that they discover to the State Securities Commissions, the NASD and or the SEC. 3) The annual review should apply only to non-reporting companies, most of which will be traded on the Pink Sheet, because information for reporting companies is available on EDGAR. Sincerely, Aaron Tsai President