Bond demise forecasts spark mis-selling fears

Investment management director Paul Wright says there has been a knee-jerk reaction to the CGT proposals, which emerged during last month’s Pre-Budget Report (PBR). Wright says everyone in the industry has a responsibility to ensure clients do not over-react by pulling their investment out of bonds; a move which Wright says could be good for some consumers, but not all. Chancellor Alistair Darling proposed reducing CGT to a flat rate of 18% in the PBR but insurance bonds will be unaffected as they are treated as income. The proposals prompted many to say the changes would damage the insu...