Subject: File No. S7-09-09
From: William Muhs, Ph.D.

July 6, 2009

I strongly oppose the Proposed Custody Rule (IA-2876). As a small SEC regulated independent RIA, I see absolutely no need for this legislation. My clients give me explicit contractual permission to deduct management fees (in arrears) from their custodial brokerage accounts. In addition, my custodian requires similar permission from my clients. These are the ONLY funds that I can withdraw from a client's account without additional legal instructions. Yes, I can request funds to be dispersed to the CLIENT but any other payee requires a written Letter of Instruction to the custodian. Perhaps the SEC can do its own audit of randomly selected clients and simply verify that the fees have been correctly and legally deducted. A surprise audit will be an additional expense that I would have to pay that will accomplish nothing. The cost of such an audit is an expense I should not incur to simply pacify the political demands of Madoff type scandals. Thank you for reading this.