Subject: File No. S7-09-09
From: Dave Lough, cPA-CFP

May 22, 2009

Re: The SEC new proposals to have surprise audit of RIAs.

Once again we have the Government taking a sledge hammer on the rest of us because of the Madoff's that didn't follow their rules to begin with.

Collecting fees should not be part of this overkill proposal.
Perhaps a simple cap of custodians cannot pay fees exceeding
x percent of the assets at the custodians a year would make alot more sense. With x like 2% or so...

The surprise audit also is overkill, it would be alot easier to make this applicable only to those that don't custody assets with an independent custodian.

The Chinese seem to be alot more pro business than the US
government is with it's recent actions. Their stimulus plan was also alot more appropriate. The mainline Chinese are now
free enterprise and the SEC is now Communist autocrats?