Subject: File No. S7-14-08
From: Tony Layson, EA
Affiliation: Accredited Tax Advisor, Fraternal Insurance Counselor, Retirement Income Specialist

September 3, 2008

I would ask you not to adopt S7-14-08.
This is a move that would actually hurt consomers. I will not go into all the fines that have been paid by SEC regulated Brokers across the country, you are more aware of those actions than I am. I will address what an investment in the market has done since 1999 for those who are close to retirement. They have been subject to losses they may never recover from in light of the fact that they are now in their draw down period. A fixed index account would have suffered no losses with potential for gain. Guarantee of pricipal is important for these investors. They also would like the oppurtunity to have market gains. Fixed incomed annuties offer that and are not an investment in the market only credited based on a market index or a fixed rate (hence their name)with no downside potential. They are an option for a % of the investors porfolio. They do have limits on withdrawls and surrender charges so review the options carefully. We already have our state insurance department to regulate the insuracne industry and they are doing a good job. The consumer will not benefit from more regulation that will add to cost of protection. The consumer already has the standard Nonfofeiture Law for protection in addition to state regulators.