Subject: SR-NASD-2004-183
From: Sheron Dinnel
Affiliation:

August 4, 2005

Jonathan G. Katz
Secretary, Securities and Exchange Commission
Securities and Exchange Commission
100 F Street, NE
Washington, DC 20549-9309

Jonathan Katz:

I am a licensed insurance professional and variable product salesperson in western Nebraska. I am writing because I feel that the principal review requirements and suitability standards contained in NASD proposed Rule 2821 are an unnecessary duplication, will provide no additional protection for consumers and will put me out of business. I urge the SEC to disapprove the proposal.

I believe that people who engage in misleading sales practices should have their licenses stripped and aggressively prosecuted. However, proposed Rule 2821 only duplicates requirements that are already in place because NASD rules already contain suitability requirements that apply to all sales of securities, including variable annuities. If regulators really want to protect consumers, appropriate enforcement of the existing suitability rule is the answer, not adopting a new rule.

Also, the requirement for review by a principal found in the proposed rule presents a bias against these products. In addition, these requirements will lead to constant second guessing of my advice and recommendations (based upon less first hand information than was available to me) as well as significant increases in merit less litigation.

Lastly, I feel that this proposal is a "solution in search of a problem"I don't feel the available data supports the NASD's claims that the level of sales problems in the variable annuity marketplace calls for the adoption of this proposed rule. The NASD has not statistically quantified the scope of the problem it is allegedly seeking to solve with the proposed rule.

Furthermore, over 95% of the comments received by the NASD regarding the proposal opposed the new rule, and the NASD has not adequately responded to the concerns raised by the vast majority of commentators. For these reasons, I urge the SEC to disapprove NASD proposed Rule 2821.

Thank you for your consideration of my views on this matter.

Sincerely,

Sheron Dinnel