July 15, 2008
This proposed rule change results will not substantially benefit the public but rather will harm the majority. Since the introduction of Fixed Equity Indexed Annuities in 1992 by Keyport Life, and Delta Life and Annuity (Amerus aka Aviva) millions of Americans have benefited from their purchase of fixed equity indexed annuities for long term retirement savings. Equity Indexed Annuities meet all requirements to qualify as Fixed Annuities rather than as a variation of a variable annuity. Look to other regulatory authorities such as the state insurance regulators for more strict scrutiny to protect the public from the perceived abuses by the insurance industry and insurance licensees. Generally the public is not harmed by the marketing of Fixed Indexed Annuities as non securities. Perhaps the SEC should reassess their objectivity and independence to protect the public against securities abuses since there have been many many examples of the public being seriously harmed thrugh substantial securities violations by the securities industry. I urge the SEC to avoid intervention in the fixed annuity area which is currently constitutionally state regulated and should remain a state issue. While here are some limited abuses in this fixed annuity marketing and sales practices it does not rise to the (hyped) levels required to pursue SEC regulation. Fixed Equity Indexed Annuities are NOT SECURITIES Products and are therefore not subject to securities regulation and securities regulators supervision. JOHN MARTIN, AMERICAN FINANCIAL STUDIES, INC.