Subject: File No. S7-14-08
From: Robert Haley, JD, CFP, AIF
Affiliation: Advanced Wealth Management

November 13, 2008

It has been brought to my attention that the insurance industry is lobbying hard to drop the rule proposal for the SEC to have oversight on index annuities.

The SEC has been guilty of too little oversight – not too much. Index annuities are truly a security, in that their returns depend upon how equity markets behave. Allowing these products to be sold by individuals who are not securities licensed means that people are selling solutions for which they are not trained and which they do not understand. This invites the abuse of appearing to be an expert when really the selling of a commissioned product is the only goal.

I have been in the financial services industry since 1982, and have been a member of ICFP/IAFP/FPA since the early 1990’s. I have learned that insurance products can be an important part of a family’s financial planning tool kit.

However, the most abusive practices I have seen in my 26 years in the business, at least at the consumer retail level (ignoring then the abuses at the Wall Street level) – have been with career insurance and annuity salespeople, who so many times find an insurance product as a solution to every financial challenge. A quick look at the marketing materials insurance companies provide to agents and registered reps will confirm this.

At least licensed agents have some incentive to guide their clients to objective solutions because they have the threat that their ability to sell registered products can be taken from them. An unlicensed salesperson has no such fear.

Please, the SEC needs to take oversight of the selling of index annuities to do the job Congress has given it and which the American people expect of the SEC.

Thank you.

Robert Haley, JD, CFP, AIF
Advanced Wealth Management