Subject: File No. S7-09-09
From: Roger E Klein, Ph.D.

July 17, 2009

I have been an SEC Registered Investment Advisor for 27 years. I am writing to express my opposition to the proposed amendment by the SEC to rule IA-2876. Specifically, I am opposed to the required annual surprise audit, by an independent CPA, of investment advisors that use a third party custodian to deduct management fees from clients' accounts.

Clients request that the management fees be deducted directly from their investment accounts. We notify the client by a mailed statement when the deduction is made and the deduction appears on the monthly statement provided by our firm and by the independent custodian. If a client does not want their managemnt fees to be paid in this manner, they can pay them directly. The client makes the decision.

So, what is the purpose of the independent audit except to provide employment for 11,000 CPAs. The SEC can make its own surprise audits at any time. It is my understanding that SEC examiners already look at the deduction of fees to make sure that it is being done in a manner that protects the client when the SEC does its regular examination.

An annual surprise audit by an independent CPA would be costly and burdensome to our firm and would offer no additional protection for the client. Therefore, we oppose the proposed amendment as it pertains to the deduction of fees by third party custodians.

Thank you.

Roger Klein, President
Timing Strategies Corporation