November 17, 2008

Subject: File No. S7-14-08 comment

Sirs;

I am a member of the FPA and I support the proposed rule allowing the SEC oversight of indexed annuity sales in addition to state oversight by insurance commissioners. I am a Financial Planner who is a Chartered Financial Consultant (ChFC) with over six (6) years of experience in the investment and insurance industries. I have a client who attended a dinner seminar provided by an independent insurance agent who promised to show the attendees how to protect themselves from retirement income shortfalls in a downturn investment environment. He proposed to everyone attending the dinner that the solution is an equity indexed annuity and never mentioned the high internal fees, liquidity risks, surrender charges or the large commission he was to receive (12%).

In regards to my client, he was smart enough to bring me the meeting's hand-out and asked my opinion of the offering. I provided him with a detailed explanation of what an equity indexed annuity is and how it might not be a good investment for him.

I am continously amazed how some insurance advisors prey on elder citizens and give their profession a poor image. I recommend that strong SEC oversight be provided to preclude the above mentioned practices having the opportunity to occur.

Gregory W. French, ChFC®
Financial Consultant
Virginia Asset Management