Subject: File No. S7-14-08
From: Cordell A Harley

September 1, 2008

Dear Sir or Madam

It is my opinion that fixed indexed annuities should not be regulated as a security for two reasons.

First,fixed indexed annuities have no market risk. Both the principle and earnings are guarenteed. Clients simply cannot lose money as long as they don't surrender the policy early.

I believe the definition of a security must include market risk and anything which does not include market risk should not be regulated as a security.

Second, I believe this is a protectionist move lobbied for by securities reps who do not want competion for investment dollars from insurance agents. In a free capitalist society it is morally repugnant for a regulatory authority to enact regulations whose sole purpose is to protect one group of people from free and open competition.

Thank you