Subject: File No. S7-14-08
From: JAY C SMITH, CLU,ChFC

October 29, 2008

Annuity contracts consist of GUARANTEES, and a pay-out option which is also guaranteed. Securities, by nature, do not provide either of the above. Therefore to regulate them as a security is positively ludicrous, and a further federal governmental regulation.
Further, annuities, indexed or fixed, have always been the provence of State regulators, who have done a remarkably good job of regulation therefore they should continue to do so.
If suitability and educational requirements for sale of indexed annuities is a desired effect of the proposed regulation, then state regulators could easily impose that requirement, along with current continuing education requiremnets already in place.
I, for one have always strongly believed in education in products I sell. I have a CLU and ChFC designation, as well as a Master's degree in Financial Services to emphasize my belief. I have been in this business for 47 years, and expect to continue to be as long as I am able. Further Federal regulation of products which do not belong in their bailiwick is wrong, and has not occured to date.

Jay C. Smith, CLU, ChFC