Subject: File No. S7-09-09
From: Justin C. Waller

June 30, 2009

To whom it may concern:
I am an FPA member and I am opposed to this regulation.

The proposed surprise audit appears to be more of a political reaction to public criticism of the SEC and congressional pressure after the Madoff scandal than an effective regulatory response as it is pointed at the wrong infrastructure.

The Ponzi schemes uncovered by the SEC had nothing to do with fees deducted by investment advisers. As far as I am aware, there have been no systemic problems in this area and these additional audits are unnecessary, costly and burdensome, particularly for small, independent investment advisers. This will increase the cost affiliated with my business and I will ultimately have to pass on these costs to clients for unnecessary and unwarranted regulation.

I would support the SEC appropriating funds to allow for the training of more investigators and increase their audit cycles.

Justin C. Waller