At the end of the day, if you are talking about a blatant fraud, registration is not gong to prevent it. What it does do is put (managers) on the map. Investment advisers are subject to regular inspections of their internal controls. So by registering, they do have an obligation to make sure their internal controls are much more solid than they would be if they were not registered. It doesn't prevent outright fraud, but it does add a deterrent. Jason Lee