February 9, 2011 Sent Via Email – e-ORI@dol.gov 11:00AM Eastern Standard Time 

“Fiduciary Definition Hearing” 

Request for Larry R Cook to Present Testimony and Answer Questions

 Public Hearing - March 1, 2011 

To: Department of Labor 

From: Larry R Cook, CPA, ABV, CFF, CBA 

Dear Sir or Madam; 

Please accept this writing as my request to present testimony and answer questions at the public hearing on 

the subject of “Fiduciary Definition Hearing” – proposed rule. I will speak as a representative of the 

following: 

• Larry R Cook & Associates, PC – Financial Valuation & Business Advisors– Houston, TX, 

<http://www.LCook.com>, email – Larry@LCook.Com: Phone: 281-893-2255 

• Loren D Stark Company – Pension Actuaries – Houston, TX, <http://www.LDSCO.com> 

• The Financial Consulting Group – FCG – National Valuation Organization – Atlanta, GA 

<http://www.GOFCG.org> 

Qualifications of Larry R Cook to Present at Public Hearing 

I have spent my professional career (38 years) providing financial advisory services to private businesses, much in an 

ESOP environment: 

• Officer of a private company that sponsored an ESOP (7 years), 

• Administrator of an ESOP (7 years), 

• Administrator of a profit sharing plan(10 years), 

• Trustee of my firm’s 401K Plan (28 years), 

• Participant of an ESOP, fully vesting and receiving full distribution upon my termination from the company 

and the plan (7 years), 

• Financial advisor to ESOPs (28 years), 

• Author of a technical book on the valuation of ESOP shares, published by John Wiley & Sons, titled “Financial 

Valuation of Employee Stock Ownership Plan Shares” (published in 2005), 

• Coauthor of a technical book, writing the chapter on valuation of ESOP shares, published by John Wiley & 

Sons, titled “Financial Valuations – Applications and Models”, now in its third edition, 

• Guest lecturer on the topic of ESOPs at national business valuation conferences, 

• Author of articles on the topic of ESOPs, 

• Past President of the Financial Consulting Group (FCG), a national member organization specifically for 

valuation professionals, 

• Member of numerous committees and subcommittees for national professional associations (AICPA, FCG, 

Institute of Business Appraisers), 

• Preparer of valuations of ESOPs in leveraged, non-leveraged, minority and control environments, 

• Advisor in all aspects of ESOP plans; from feasibility study, plan design, management, sponsorship, 

transactions, participant accounts, and debt structure for leveraged transactions. 
Outline of Presentation Points

“Fiduciary Definition Hearing” 

Request for Larry R Cook to Present Testimony and Answer Questions

 Public Hearing - March 1, 2011 

Introduction – A Personal Observation of ESOPs and their importance as a retirement plan: 

Impact of Proposed Definition of Fiduciary – based upon direct personal knowledge from the following 

perspectives: 

• Sponsors, 

• Participants, 

• Administrators, 

• Trustees, 

• Financial Advisors, 

• Appraisers, 

• Authors 

Appraisers as fiduciary; inconsistency in duties: 

• Responsibility, 

• Exposure, 

• Risk, 

• Cost, 

• Liability, 

• Professionalism, 

• Benefit of Participants to Plan 

Conclusion: 

• Proposal defining fiduciary - well intended, results in negative consequences, 

• Suggestions for troubled appraisals of ESOPs, 

• Final Comments 

Questions: