Subject: File No. S7-14-08
From: PHILLIP C LYONS
Affiliation: INSURANCE AGENT

October 16, 2008

I would like my thoughts to be known to the lawmakers of our country on the issue of Fixed Indexed Annuities.To me this it a very simple to understand that the indexed part of a Fixed Annuity is not a SEC issue, first there is no risk,second the money is not actually placed into Securities and all though most Insurance carriers use the words that your money if so chosen can be placed inside a Fixed Indexed Annuities into other accounts including a account that is linked to the performance of for example the SP in fact it is not actually linked the insurance carrier is merely using the numbers from the SP as way to credit money to the account thus providing you with the ability to earn more than the SET fixed account inside most FIA'S or worst case scenario you earn nothing that particular year if the SP actually was negative or flat lined and that is if the owner had not placed any of the money into the fixed account attached to most FIA'S,i want to know where the risk is in this investment.I also don't believe anyone that places money into a annuity is buying anything i believe they are depositing money that will earn interest not shares of a company.I'm sure you smart people have thought about this but if I'm not mistaken there are Indexed Certificates of Deposits,what are you going to classify these accounts as if you make a FIA's a Security what will you do with Index Universal Life insurance.
I actually believe that the only reason that the SEC wants these classified as a security is greed as I read one columnist some 123 billion has come been placed into FIA'S and they want to get it and CONTROL something that is simply a ingenious way for conservative people to earn more than they would have and protect them from loses they might have incurred in the market as we see so many people losing their retirement at the advise of Registered Rep's.

Now lets say you did pass a law that made them SEC REGULATED item all you would do is force a educated insurance agent to get his series 7 or 63 depending on how they registered the account,its not like we couldn't pass that test.Most of the agents I know are well educated and could do this easily and one of the reasons we do FIA'S AND MYGA'S Multi Year Guaranteed Annuities is because we can always know our clients are never going to lose a dime they can only gain we never tell them they will set the world on fire depositing their money into either of these accounts but we do point out other features this is not just a how much you can make,this is also a way to protect your money from creditors if your lucky enough to live in a state that allows it,to by pass probate,to have minimum guarantees and although we cant say it we know their money is insured and the guidelines of a insurance carrier are more stringent than any other industry providing unmatched safety of there retirement funds.

I ask all lawmakers to be upstanding and to act with Honesty and Integrity just as my grandfather would have the late great E.A."SQUATTY" LYONS(County Commissioner for Harris County for 48 yrs in Houston Texas) when addressing the proposed SEC151a and to not let politics get in the way or influence the logic involved in weather these accounts meet the guidelines as a SECURITY.

What we need to do is in act more stringent guild lines for both Insurance Producers and Registered Representatives and have only the good guys educating the public on which accounts best fits their needs and not throw a obvious insurance product into something governed by the SEC.

Best Regards

Phil C. Lyons