Subject: Number S7-09-09'

July 2, 2009

To whom it may concern:

It is my understanding of the proposal, that investment advisors who follow the rules and have their clientís assets held at independent custodians will be unfairly burdened with the cost of surprize audits because they have the ability to deduct the quarterly managemnet fees from the clients account. This proposal is not in the best interest of our industry or our clients. The smaller sized fee based advisory firms will be devastated by this additional expense. The audit of third party custodians such as Schwab & TD Ameritrade already addresses this concern. The fees are disclosed on the clientís monthly statements.

I believe is proper rules and regulations for our industry. Letís get rid of the crooks without punishing those who play by the rules and are ethical.

Richard LaFargue, President
LaFargue Financial Group