Subject: File No. S7-09-09
From: Jill D Hollander

July 1, 2009

Clients have the option to permit their accounts to be debited for fees. It is not a requirement. In some cases, their ongoing cash flow cannot support the service and they can't withdraw money to pay fees from a retirement account.

In our case, and I think this should be required, the client receives a copy of the invoice. In addition, our custodian reflects the debit on the monthly statement sent directly to the client. The client may change his/her mind at any time.

To designate this activity as custody, goes against a client request significantly increases the cost to small firms not to mention increase labor and seems to take a hammer to an ant. This is not the major issue that brings about abuse.

It seems more appropriate for the regulation to require an invoice copy be sent to the client and possibly the custodian or perhaps require the client to renew their agreement to this option periodically.