Subject: File No. S7-14-08
From: Jerry L. Reiter
Affiliation: Certified Senior Advisor, LUTCF

November 17, 2008

I have been on both sides of this issue. Originally I was an Insurance only agent selling Life, health and annuities. I sold a lot of Index annuities especially to retirees and pre-retirees who could not risk losing their retirement savings. AS more and more money was moved from "Variable" annuities (RISK) to "Fixed Indexed" annuities (NON-RISK) the broker dealers started to take notice and ultmately pushed to have Fixed Index annuities listed as a security and therefore governed by FINRA and sold only by Registered reps. Why? mainly i believe to make money. You see every transaction that a registered rep does, which he must put through a broker/dealer, gets a "hair Cut". (ie) they take 10 to 20% of the commission.

I am currently a registered rep and therefore have no problem whether you make Fixed Index annuities securities or not. Having said that let me suggest "Fixed Index annuities are just that "Fixed" and therefore the client will lose none of their principle no matter how bad the market performes, and in fact, they will earm a minimum guranteed amount of interest on their annuity.

When I sell Variable annuities, mutual funds, ETFs, REITs, structured products, Options, and stocks/bonds. I required to provide a "perspectus" for the client to read. According to FINRA this will insure the clinet will be protected - in other words - give them a 50 page, single spaced, 9 point type, book and tell them to read it before agreeing to my recommendation.

So the question becomes do you (the SEC) think the Clients will be better served when an agent gives them a 50 page book before they sign the Fixed Annuity contract? I think not, if anything they will be no better off than they are today and in many cases worse due to the fact that Registered reps will not have to look them in the eye and explain the Fixed Index annuity - instead they will just hand them the Prospectus and like Pontius Pilot wash their hands of any responsibility FINRA style.

In closing, my sense of this is if you enforce rule 151 you will make the Broker/dealers and Registered Reps very happy and very rich. The clients will have no better protection, and in some cases less, and thousands of solid, caring insurance agents will be denied the ability to offer one of the best retirement tools to their Senior clients.

Respectfully,

Jerry Reiter