June 30, 2009
Greetings,
I am a NAPFA member, an FPA member, and SEC-registered investment advisor.
I am opposed to the requirement in the proposed amendments to the custody rule that would subject investment advisers to a surprise audit by an accounting firm.
This does not make sense. The witch hunt is in the wrong area. It seems you are looking for problems right under the street light just because that is where the light is!
The SEC has resolved the custody rule but they haven’t enforced the current rules.
Eliminate FINRA or somehow hold it accountable for Madoff.
Fees deducted by investment advisers aren’t the problem.
The new surprise audit requirement will add additional costs to my business that will ultimately be passed on but more importantly, will only add light regulation to those that follow the rules, and the spirit of the rules, already.