Subject: SR-NASD-2004-183
From: Lance Perkins, CFP

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 Certified Financial Planner(CFP) designee who sells variable products. I am writing to you regarding the principal review requirements and redundant suitability standards in NASD proposed Rule 2821. I believe they will provide no real additional protection to consumers. However, if the SEC approves this rule, it will also not be in the best interest of my business, nor that of the small broker-dealer through whom I route my business. I urge the SEC to disapprove the proposal.

I believe that people who use misleading sales practices should be prosecuted and subject to appropriate sanctions. Rule 2821 only duplicates requirements already on the books. NASD rules already contain suitability requirements for variable annuities. Regulators should protect consumers through enforcement of the existing suitability rules rather than adopt a new rule.

Furthermore, the requirement for review by a principal of my small broker dealer presents a bias against this valuable consumer product. In addition, this requirement will lead to constant second guessing regarding my advice and recommendations (based upon less first hand information than was available to me) as well as a potential increase in meritless lawsuits.

In conclusion, I think that the proposed rule is supported by the NASD's claims that the level of sales problems in the variable annuity marketplace calls for its adoption. Let's be aware that the NASD has not statistically quantified the scope of the problem it is allegedly seeking to solve with this new proposed rule. Additionally, over 95% of the comments received by the NASD regarding the proposal opposed the new rule.

Why hasn't the NASD adequately responded to the concerns raised by the large 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.


Lance Perkins, CFP