Crying out for a simple product

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You only have to look at the figures relating to insurance bond sales to realise the effect that the recent tax changes have had on the market.

Bond sales are down, and I believe this is predominantly due to the change in tax rules that have put these products at a disadvantage to collectives. Historically it was claimed that bonds were sold because of the commission rates, isn’t it interesting to see how quiet these critics have been now that bond sales have declined? In these days off levelled commissions and CAR there is no evidence that a bias remains to bonds. But, it should be remembered that bonds held appeal, many investors like them because they were simple products, that generated simple income payments, and often gave ...

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