Subject: File No. S7-14-08
From: Stephen R Smith

July 22, 2008

Dear Mr. Cox,

I am an insurance agent, and am inactive on the securities side (former Reg. Rep.). I have made a prior comment however I want to add this addendum concerning the 151A ruling on EIAs/FIAs. I appreciate the chance to comment on the proposed ruling.

According to information on the internet close to 98 per cent of all index annuities are sold by insurance agents. To all of the sudden require insurance agents to become Registered Representatives to market these products makes no sense whatsoever as this will virtually eliminate the product.

After all the years you the SEC had to look at this product, it would be an injustice to force many agents to lose their customers....and substantial income....by the proposed ruling. Certainly the intent of 151a is not to deprive customers of their agents thus causing dislocation. Indeed the SEC has made it clear EIAs of FIAs are complex products.

Also, please state why numerous complaints continue to be made concerning variable annuities since they have been regulated for years by the NASD (FINRA)?

Also, explain why the SEC is acting now when a federal court already ruled the product in question IS NOT A SECURITY???

Also, how can EIAs or FIAs be considered securities when the futures contracts behind these products are in the general account of the insurance company???

A better solution is to allow insurance agents to obtain a special license to market these annuities, in order not to dislocate these agents or customers....and without dragging life insurance agents into the Orwellian world of the Registered Representative...

Yours truly,
Stephen R Smith