Subject: File No. S7-14-08
From: Audley L Hyman
Affiliation: CSFP, CEA

September 10, 2008

The Insurance Industry has taken all steps necessary to ensure that Fixed Index Annuities are the right "fit" for our clients. We are NOW required to complete Suitability Forms (much better that delivering a prospectus written in legalese) that clearly spells out to the client the workings of the Fixed Index Annuity and the client is require to sign the form showing their understanding of its contents. The client is required to answer questions posed in a Needs Analysis and sign to his/her answers in the Needs Analysis. We are required to furnish the client with company brochures about each product of interest to the client - brochures written in laymen language that the client can easily understand. It is very unlikely that with all that have been put into place, a client will be missled by an agent or the brochures he/she receives, or fail to understand the details surrounding a particular Fixed Index Annuity product.

In my opinion, you the SEC is trying to wrestle the Fixed Index Annuity from us (insurance agents) because, frankly, the Fixed Indexed Annuity has been used to replace billions of dollars of worthless Variable Annuity products - those that you receive money from. You are clearly upset at this trend, and seek to get back the money you lost by seizing control of the object that has caused you so much pain. Obviously, you will tack on a new level of fees and charges on the Fixed Index Annuity to satisfy your need and/or your failure to regulate the funds/products you already control in such a manner that they are profitable to you. By tacking on your fees to Fixed Index Annuities, you will cause: (1) loss of bonus and other interest for the client (2) loss of commissions for the agents (3) great difficulties for agents to conduct their other businesses because of reporting to Broker Dealers and the NASD - something that many of us became tired of why we caused our Series 6 and 7 to lapse (4) a new level of difficulty for the client to access their money with the ease they were able to so prior to your intervention (5) an additional layer of CE's or Firm Elements that we (insurance agents without Securities Licenses) DON'T WANT.

You are seeking to make life extremely difficult for us and you have NO GOOD REASON to do so - NO GOOD REASON I can't speak for all insurance agents, but from my stand point, I will NEVER sell another Fixed Index Annuity if I'm forced to regain my Series 6 license. And I'm sure, that if many insurance agents like myself shoud take this stand, there will be a severe drop in the number of policies sold. If that were to happen, I wouldn't be surprised if many insurance companies would not DROP these products, and what would you do then? In my opinion, you ought to leave well enough alone. Concentrate on managing that which you already have which might not be working for you, but in a manner that it will produce the reveue you seek.

Audley Hyman