Subject: 'File Number S7-09-09'

July 23, 2009


I am a member of the FPA of Massachusetts and I am writing to you that I am opposed to the requirement in the proposed amendments to the custory rule that would subject investment advisors to a surprise audit by an accounting firm. This is a gross overreaction to the Madoff scandal. There are already enough rules in place to properly supervise investment advisors. However, my observation has been that the budget of the SEC has been eviscerated through the years. The training of the SEC staff needs to be upgraded and supported.

I view compliance as a very important part of my business. There should be a healthy balance between compliance and advisors. It is clear that the pendulum swung too far in one direction. Oversight was diminished. Donít overcompensate and punish the vast majority of ethical advisors because criminals went undetected by examiners. That will only drive good people out of the business and ultimately hurt the public.

Thank you for your consideration.

John F. McAvoy, CFP, AIF
Waterstone Retirement Services