Subject: File No. S7-14-08
From: Aaron P Roush
Affiliation: Financial Advisor

July 29, 2008

I am a supporter of the proposal to regulate fixed annuities (equity indexed annuities in particular) as securities. I see many inappropriate recommendations out there by advisors looking to make a quick buck. The product does have its merits, but too often it is sold as a blanket solution to clients of all ages and backgrounds. The number #1 complaint I hear from people who have purchased these products is that the surrender period is not well presented to the client. In fact I met one gentlemen who had done a direct rollover of a portion of his 401(k) from his former company with the express purpose of using that money to fund a trip. Within his 401(k) he had access to the money as he had retired after age 55, but prior to age 59.5. By rolling the money to the IRA he lost that privledge and they also further messed things up by putting his money in an annuity. This was done by a "Financial Advisor" at a bank. I use that term very loosely. I see very incompetent work done mostly by banks and property and casualty reps who dabble in the investment business. Hopefully by making these people become more educated it will lessen these situations. I would propose that an industry group revamp the series exams to be more practical in helping people who have passed them make proper recommendations to clients.