Subject: File No. S7-14-08
From: Paul G. Toub

October 14, 2008

While index annuities may credit an interest payment based on the performance of a particular index the principal of an annuity buyer is NEVER put at risk. And, with contractual guaranteed minimum rates of return the ultimate risk remains with the annuity issuer, not the annuity buyer. Therefore, by definition, an index annuity is an insurance product, not a securities product, and should remain under the sole jurisdiction to state insurance departments and the NAIC not the SEC.

As with many inovative products there have been abuses however the INSURANCE industry and it's regulators have aggressively moved to address these issues. I honestly view this effort as nothing more than a power grab by FINRA and B/D's to increase income.

Given the recent track record of the securities industry of securitizing sub-prime mortgages which created the most recent economic crisis I would STONGLY suggest that the timing for an initiative such as this is not now. The United States of America has been the most prosperous nation on earth for the past decade because of the ability of consumers to choose. Enactment of this rule would certainly serve to limit choices of the consumer. Ultimately, it is my belief that this entire initiative is a result of consumers hedging their interest income with an option strategy rather than direct participation in the equity market....something abhorent to the securities industry.