Subject: File No. S7-14-08
From: Richard T Smith, Jr.
Affiliation: Enrolled Agent to Practice before the IRS

September 5, 2008

I am an independent financial advisor and have been in the business for almost 15 years. I began using Indexed Annuities along with Mutual funds to a assist my clients in protecting thier assets over ten years ago. At that time the market was making money hand over fist for anyone who could trhow a dart and hit a stock. I began using Indexed Annuities to offer a safe haven for clients to protect what they had made. This concept has worked out well and have many very happy and retired clients thanks to INdexed Annuities. They are not a security and fall under the definition of a Fixed Annuity Becasue of their safety of principal. A Variable Annuity, however, falls into the category of a security related investment because one can lose principal value as well as gains. (Unlike a Fixed Indexed Annuity that cannot lose it gains or its principal)

If you change this rule you will be effecting the livelyhood of many agents that have provided these products to people in which they are suitable for. You will also create a turmoil in the public sector because individuals will be scrambling to find agents that are also securities licensed.

I myself am securities licensed and hold a Series 6,63, 65,7,22 and 24 and do not find in any way that a Fixed Indexed Annuity could be considered a securities product. i feel that this is just an attempt for the Brokerage Firms to get thier hands in the pot. Don't you think we have enough hands in the pot by allowing banks to get involved in the securities business? I have numerous clients that have come to me that have been associated with banks simply because they thought the products were FDIC insured because it was purchased at a bank. And the Registered Representative never said a word against the possibility of it losing value. I applaud the efforts of the SEC and would do anything in my power to relieve the industry of its "bad apples", however, I feel this rule is an unncessary attempt for Brokerage Firms to get in on the action. Please, lets not have another deregulation and create more problems for the industry. Let Banks bank, let Insurance Companys handle Insurance Contract and let Brokerage Firms handle securities.