From: Catherine Latto
Sent: July 14, 2006
Subject: File No. SR-NASD-2004-183

I have been in the selling Variable Annuities and securities for 25 years and can't believe you want to make yet another requirement for suitability to enforce upon me that only confuses clients who would benefit from what they need.

Let some responsibility rest upon clients and their decisions with their advisors. If the advisor uses unsuitable investments we have legal recourses clients can follow. My broker-dealer has their own requirements of client suitability I must adhere to in addition to rules you already have in effect to protect investors. I admit I have seen sales abuse among some of my peers and their companies have been in class action suits as a result.

Please to not add File #SR-NASD-2004-183 to another one of the many requirements I already have to adhere to in order to serve my clients. If you need to pass more rules how about brokers adhering to fiduciary standards like real registered investment advisors! I always try and put my clients needs first and use quality products with low fees and minimal surrender charges and I explain to them why a particular investment meets their needs.

My catch phrase for this year is "Sometimes what theoretically should work in a certain way in reality it does not." Theoretically you think these additional rules will prevent more sales abuses and protect clients but it wont. Deceitful salesmen will not adhere to them, clients will lose money and still want somebody to blame, broker dealers can't keep track of every transaction, and you will create more rules to make like something is being done. Let the industry and legal system work it out with what is already in place.


Catherine Latto, CFP
Latto & Associates, Inc.
Phone: 843-571-4470
Fax: 843-571-4471