November 13, 2008

Subject: FPA Regulatory Alert - File No. S7-14-08

Mr. Thompson,

For the record, not all FPA members agree with this stand that you are taking as described below. I am in favor of leaving the SEC out of what is specifically insurance business, not securities business. Regulation should be by the Insurance Commissioners and consumer protection agencies.

Demographics - age 65, 30+ years in the insurance business, 10+ years as a college professor teaching insurance, economics and finance, CLU, ChFC, CFP(r) , CLTC.

David F. L. Bernthal

----- Original Message -----
From: Duane Thompson
To:
Sent: Thursday, November 13, 2008
Subject: FPA Regulatory Alert

TO: FPA Members

The Securities and Exchange Commission has re-opened the comment period for a rule that would allow for SEC oversight of indexed annuity sales in addition to state oversight by insurance commissioners. FPA is concerned that the insurance industry may pressure the SEC to drop the rule proposal. Several thousand emails from insurance agents opposing federal oversight have been filed, and numerous meetings by insurance industry lobbyists have been held with the Commission urging it to withdraw the rule. FPA supports the rule as a means of helping to curb abusive sales practices, particularly aggressive and misleading sales tactics targeting the elderly. FPA urges you to add your voice to the record by sending an e-mail to the SEC today supporting the Equity-Indexed Annuity Rule.

The deadline for comment is Nov. 17th, 2008. Please send your email to rule-comments@sec.gov and include "File No. S7-14-08 in the subject line. All comments are posted on the SEC website within a few days as part of the public record.

Some of the following talking points you may want to consider in your email message:

a. Identify who you are, i.e., a member of FPA and state upfront that you support the proposed rule
b. Mention your qualifications and experience in financial planning and/or as an insurance agent
c. Cite a 'horror' story involving a client who was previously sold an unsuitable equity indexed annuity
d. Cite problems with current regulation:
a. the rule is a reasonable and balanced approach to enhancing state enforcement efforts
b. the vulnerable aging population needs additional protection from aggressive sales agents
c. consumers are often mislead regarding the benefits of an indexed annuity
d. liquidity risks, surrender charges, and other suitability factors are not always clearly disclosed or understood
e. not all states have adopted suitability standards for annity sales, nor do most insurance commissioners have adequate enforcement resources available
f. some agents misrepresent themselves as offering a single retirement solution when in fact retirement planning is generally a complex planning process

Thank you for taking the time to participate in this important issue!

Duane Thompson, Managing Director, FPA

To see the original rule proposal, go to: http://www.sec.gov/rules/proposed/2008/33-8933.pdf

To review FPA's comment letter, go to: http://www.sec.gov/comments/s7-14-08/s71408-1735.pdf