September 6, 2008
Regarding the Proposed Rule Change in Rule Section 151A please note my opposition to this action for the following reasons:
1. The rule is overly broad and over-reaching in nature and overlooks years of safe habor and protective laws.
2. This is not a security at all and there is no market risk with this product since the principal and interest of the consumer is guaranteed by the insurance company once it is credited to the fixed index annuity.
3. One more layer of authority would confuse the consumer about the nature of the product.
4. The definition whether this indexed annuity should be considered a security will be very confusing for all concerned. The Supreme Court lower courts have already ruled on this issue and the matter would be challenged if the rule is changed costing huge amounts of money and time. The right of the states to regulate this matter as presumably others would be abridged or encroached upon.