Subject: File No. 4-606
From: Duane M Toney, CPA
Affiliation: AICPA, NAIFA, Society of FSP, MDRT,

August 24, 2010

I hold Series 7, 66 and life, accident and health insurance licences. There are times I am working as an Investment Advisor Representative and times I am working as a Registerd Representative and times I am working as an Insurance Producer. I am an independent advisor. I shop for my clients. I am OK with the fiduciary and suitabilty standards now applied to my current licenses. I work very hard to well serve my clients. I am careful that my services offered under the fiduciary standard of an Investment Advisor Representative are the very best I can provide and meet the standards of fudiciary care. In fact, I manage my money, and my parents's money through the same process and systems I use for my clients using this fee-based investment environment. I prefer to work as an Investment Advisor Representative. To meet the fiduciary standard however, I must limit my services to only those I can tightly control. But all my clients' needs cannot be fully served in this environment.

My clients span ages and needs that cannot be well served under a fiduciary standard. To apply the fudiciary standard to the Registered Representative part of my business would make compliance impossible. Because this is not the primary part of my services, I do not have the time to scour the nation comparing companies and products. I stop my search when I find suitable products. "Good Enough" is not "Suitable". I try to really make sure the products are suitable. But, there are simply too many companies and products to have any hope to reach a defensible level of compliance. There will always be companies and products which, in the eye of a beholder, might be better than what I suggest. The fudiciary standard applied to the Registerd Representative world will clog the court system and reduce needed product selection.

There are simply some services best rendered on a fee basis as an Investment Advisor Representative and those best rendered as a Registered Representative.

Please do not recommend applying the fiduciary standard to Registered Representatives.


Duane Toney
CPA/Personal Financial Specialist
Investment Advisor Representative
Registered Representative
Life, Accident and Health Insurance Producer