Subject: File No. S7-14-08
From: John P Anderson, Mr.
Affiliation: BA History, BA Political Science Rutgers University

September 2, 2008

The proposed rule is ridiculous. It is quite clear that Fixed Indexed annuities are not securities. There is no investment by the annuity holder in any stock, index, mutual fund, or security of any kind. The principal is guaranteed by the issuer and by the state guarantee associations. The Insurance industry already regulates these annuities very closely with strict compliance on suitability issues monitored to a tee. Perhaps the securities industry should police it's own back yard when it comes to sales practices. I have held a series 7, series 24. series 63 and series 8 licensure and have been working exclusively in the insurance industry for the last 9 years.
I know from experience that the abuses in the securities industry are flagrant and widespread. They are also poorly policed. The Insurance industry is far more effective in preventing sales abuses and practices then the securities industry is now or ever has been in the last 28 years.