Subject: File No. S7-09-09
From: D.A. Barfield

July 1, 2009

Investment advisors who only bill their accounts for fees have no custody of client funds. There have been no instances of malfeasance in these situations and there cannot be when operating through an independent custodian. To subject advisors who only bill fees through the actual custodian to annual independent audit is waste of resources that only harms consumers. We need to be devoted to investment review, analysis, and selection to work to the best interests of our clients. Focus SEC resources on advisors who truly have custody of client funds - this is where all the malfeasance has occured.

This proposal will reduce the number of the most ethical advisors in the marketplace and limit access to one of the most secure avenues through which consumers can invest, by placing needless additional requirements of those who have already protected their clients by use of an independent custodian.