From: Walter J. Scott, Jr.
Sent: July 13, 2006
Subject: File No. SR-NASD-2004-183

I'm a licensed insurance professional in Wisconsin, and have been so licensed for the past 40 years. My primary product in the annuity area is the variable annuity.

I certainly agree with you that policing unscrupulous agents out of our business is a must. Having said that, I am not in favor of passing additional regulations to those that already exist, and are certainly able to handle the situation. Those of us who practice in a professional manner, I have never had a complaint, should not be penalized for the very few that make the headlines.

We already have suitability requirements in place, including Rule 2310, and we are certainly highly regulated by our Broker/Dealer. If the Broker/Dealer is doing their job, the unscrupulous agent will be eliminated very quickly.

As to the review by a Principal, I do not see what this would accomplish. The recommendation of the advisor comes after several interviews with the client to understand exactly what goals they want to accomplish. There is no way the Principal can have this type of information.

The variable annuity is an outstanding investment product for many clients - and serves as a compliment in our portfolio to mutual funds and individual stocks. It is already highly regulated, as are all of our products.

Please - do not add more regulation! The consumer is already burdened by all the paperwork, and additional compliance regulations will not benefit them.

Thanks for listening.

Walter J. Scott Jr., CLU
W. F. Coe & Associates, LLC
240 Algoma Blvd. PO Box 1600
Oshkosh, WI 54903-1600
Phone: (920) 236-6587
Fax: (920) 236-6589