July 17, 2009
To whom it may concern:
I strongly believe that the proposed Rule should apply ONLY to those Investment Advisers who -- like Mr. Madoff -- do not use a qualified independent account custodian. I think it's rather obvious that it is the issue of self-custody that introduces the potential for abuse and fraud therefore, extending the proposed Rule to ALL Advisers will not only water down the intended consumer protection but also create an unnecessary and costly burden for those Advisers whose clients can readily verify all account activity and balances by looking at their third-party custodian's statements.
In short, I believe it shouldn't be an issue of fee debiting, but rather a simple question of who holds clients' assets and produces their periodic statements.
Peter T. Palion, CFP(R)