From: D. Gregory Baker
Sent: August 9, 2005
Subject: File No. SR-NASD-2004-183

D. Gregory Baker
26400 Lahser, Suite 312
Southfield, MI 48034

August 9, 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 experienced in selling variable life insurance products. I am writing you concerning the NASD proposed Rule 2821. I feel it contains unnecessary principal review requirements in addition to redundant suitability standards. There is no additional protection to consumers and these unnecessary standards will negatively affect my business. I strongly hope that the SEC will disapprove the proposal.

There is no doubt that people need to be aggressively prosecuted for engaging in any misleading sales practices. Yet, the newly proposed Rule 2821 merely restates requirements already in place. NASD rules already cover the sale of securities as a whole. If variable annuities were to be singled out as having additional rules, then there would be a bias against such products, thus severely impacting my clients and business.

The answer is not to pile more legislation on top of legislation, but rather appropriate enforcement of the existing suitability rule. This new rule is perhaps searching out a problem that does not exist. The available data does not necessarily support the NASD’s claim that the variable annuity marketplace is in need of more restrictions. The NASD seems to be over looking the vast majority of businesses that oppose this new rule. For these reasons, I strongly urge the SEC to disapprove proposed Rule 2821. Thank you for your consideration on my views.


D. Gregory Baker