Subject: File No. S7-14-08
From: Stephen W Cohen
Affiliation: Owner: Steve Cohen Financial Marketing

October 21, 2008

To Whom It May Concern:

This is my second communication on this subject.

The last several years has been extremely interesting and disconcerting when one observes the events that have transpired within the securities industry. I feel that there is no need to re-hash the events as we are all too familiar with the events and their causes via the media.

As we are all aware fixed indexed annuities have performed admirably while the securities market has performed abysmally.

What happened to the watchdogs SEC, FINRA (NASD) of the security industry that should have prevented greed and avarice from taking precedence over the investors?

Are these the same watchdogs that will supposedly be watching over the fixed indexed annuities?

Please spare us that indignity. It is obvious that FINRA and the SEC cannot manage its own house, let alone adding the fixed indexed annuities to mixture.

As I pointed out in my previous comments regarding this subject, it is my opinion that The Broker – Dealers want control of this sector of the insurance market due to the fact approximately 160+ billion dollars have left the securities firms to be invested in fixed indexed annuities and for good reasons.

It appears to me that the wolves in sheeps clothing desire to control and participate in the profits without doing anything to earn that right.

I deal with numerous agents who have placed their clients in fixed indexed annuities.

Not one of those clients has lost a single penny (unless they withdrew some or all of their money prior to the end of the surrender charge period). The investment risk was borne by the insurance company NOT the clients.

By definition any product whose investment risk is borne by the investment company is NOT a security.

Similarly, by definition any product whose investment risk is borne by the client IS a security.

Fixed Indexed Annuities are exactly what the investor desires especially when asked How much of this money that you wish to invest can you afford to lose? and the answer is None

I highly suggest that the SEC and FINRA abolish this proposal and leave a good product alone. Instead the SEC and FINRA should spend their time cleaning-up their own house before looking elsewhere to make sure money.

You cannot have it both ways:
Securities = investment risk is on the clients.
Insurance = NO client investment risk