From: Mark J. Napolin
Sent: July 17, 2006
Subject: File No. SR-NASD-2004-183

I am writing to voice my strong opposition to the NASD proposed Rule 2621. My urgent request of the SEC to reject this onerous, unnecessary, and redundant proposal is based upon the following comments and observations from my personal perspective:

1) I am have been a Registered Representative and OSJ Manager in a small independent practice for many years. As a self-employed person in a small private business, I am already dedicating a full time staff member to compliance and regulatory matters. We sometimes are forced to operate in a deficit situation on particular client accounts, primarily due to the already incredible amount of required compliance related paperwork.
2) My personal sales of VA products are rarely, if ever, a one interview sale.
3) The use of VAs in my practice are the result of careful data collection and client interviews, which result in a well planned retirement and financial planning strategy, fully identifying customer needs, suitability, appropriate product selection and asset allocation.
4) I carefully review the product prospectus and accompanying carrier client materials with each client. I carefully explain all fees and expenses related to the various product features.
5) My broker dealer requires a Variable Annuity Disclosure Form which I carefully complete with the client, tying it back to the prospectus and accompanying sales materials. When used in combination with my client discovery process, analysis, and prospectus, the disclosure form gives the client further reinforcement of the critical information necessary to make a fully informed decision. My clients are fully informed on all aspects of the VA product.
6) If an investment switch is advocated, the appropriate switch forms are carefully explained and completed.
7) My broker dealer has conducted extensive training on VA products and customer suitability criteria.
8) Current NASD general suitability rules already provide a thorough standard for the marketplace in determining VA product suitability for my clients. Further burdensome and unnecessary suitability rules are redundant and will potentially cause great harm to my small business. These proposed rules, rather than helping consumers, will cause otherwise qualified annuity purchasers to be injured.

Rather than create a new set of onerous, restrictive, bureaucratic regulation that hurts me and my customers, I encourage the NASD and SEC to vigilantly enforce the current suitability rules and aggressively prosecute those representatives that engage in unlawful or misleading VA sales practices.

Thank you for your consideration in rejecting these proposed rules!!

Mark J. Napolin, CLU, ChFC
Managing Principal
6100 Uptown Blvd. NE, Suite 530
Albuquerque, NM 87110

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