Subject: SR-NASD-2004-183
From: Wayne L. Warren, CLU, ChFC, MSFS

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:

It is my honor to be a licensed insurance professional and variable product salesperson. For my entire career I have believed that people who misrepresent any product they sell should be aggressivley prosecuted by the appropriate authorities. But I also believe that saddling the good guys with additional principal review requirements and redundant suitability standards contained in NASD proposed Rule 2821 are unnecessary, will provide no meaningful additional protection to consumers but instead will benefit only trial lawyers. Therefore, I urge the SEC to disapprove the proposal.

The proposed Rule 2821 duplicates requirements that are already in place. NASD rules already contain suitability requirements that apply to all sales of securities, including variable annuities. So again, I say, regulators should apply appropriate enforcement of the existing suitability rule rather than adopting a new rule if they really want to protect consumers.

A real problem with this proposed change is that the review by a principal found in the proposed rule is biased against these products. Why is the same rule not proposed for all security products? My fellow professionals work very hard to determine the proper product for a given client and this proposed change will do nothing except provide lawyers an opportunity to second guess every sale.

I do not think the available data supports the NASD's claims that the level of sales problems in the variable annuity marketplace calls for the adoption of the proposed rule. Therefore, I urge the SEC to disapprove NASD proposed Rule 2821. Thank you for your consideration of my views on this matter.


Wayne L. Warren, CLU, ChFC, MSFS