Subject: 'File Number S7-09-09'

July 2, 2009

Dear Sirs,

My firm is a registered investment advisor since 1995. I have personally been in the financial services business since 1981. As you can see below and from our website we have enjoyed a lot of national third party recognition because we do right by our clients each and every day. I realize that there have been a lot of Ponzi schemes lately and that everyone seems to be interested in greater regulation from the government to “protect the consumer”. At the end of the day no matter the regulation or the regulator there will be those like me who are above board, honest, forthright and exercise fiduciary care and then there will be those who do not conduct themselves with integrity in anything that they do in life.

The question I have for you to consider is this. Why should someone like me – a person that plays by the rules – be effectively “penalized” by having to pay $8,000 or more for a surprise annual audit when I am not doing anything wrong. Would it not make more sense to initiate rules that not only carry prison time for convicted offenders but huge fines as well? You could then use the fines recovered to “reimburse” firms like mine for an audit in when the firm being investigated is clean and in compliance. Perhaps you will even give compliant firms something like a “good house keeping seal of approval” so consumers might stand a better chance of steering clear of questionable firms.

This way you won’t force firms like mine to increase their fees to cover the higher cost of doing business. Because after all – it seems like consumer whom you are trying to protect will ultimately pay the price in higher fees due to higher operating costs for advisors.

I am available for testimony or for commentary and I am willing to offer my time by coming to the district since I am an hour away. Thank you for considering my comments for this important regulation.


Patrick J. Horan, CFP®, ChFC
President and CEO
Senior Financial Advisor