Subject: File No. S7-14-08
From: Stephen L Franklin, MBA, CFP
Affiliation: Registered Principal, LPL Financial Services

September 22, 2008

I cannot urge you strongly enough to proceed with regulating the equity indexed annuity as a security. The abusive sales tactics that I have seen are indescribable. The unsuitable sales that have taken place are countless, and they apply primarily to the nation's seniors, a group that deserves better.
This product is created and supported by some of the most advanced derivitate strategies in the financial market place, and yet it is frequently put into the hands of those who have no capactity to understand the complexity due to their lack of licensure and/or education and experience. It is being sold in many cases very differently than what it truly is, and promises are being made that can never work out mathematically. You haven't even begun to see the backlash that will occur as these things come to light Regulating the product will help to change this reality for the better.
Declaring the product a security will not eliminate the product from those occassional settings in which it is appropriate, but will better assure a higher standard of due dilligence, training, supervision, and consistency that is more characteristic of the regulated enviornment. It will also force an army of unqualified individuals to either "belly up to the bar" and subject themselves to reasonable levels of testing and supervision, or it will force them into other (potentially less damaging) lines of work. The big winner will be the nation's seniors and investing public.
I realize that the insurance lobby is huge and will certainly oppose this step and take it into the courts. You must be willing to fight this battle for the good of the American citizen and those of us in the industry that want high standards upheld.
My best to you as you tackle this very, very difficult issue. If you need anything further, please let me know and I will be happy to help in any way possible.

Sincerely,
Steve Franklin
Louisville, KY

PS I don't see a spell checker on your site, so forgive the typos that I'm sure you will run across.