CGT changes 'worse than Northern Rock crisis'

Managing director Adrian Shandley says if the CGT changes go ahead, he can envisage a mass exodus from insurance bonds. Shandley noted insurance companies heavily rely on these bonds and could even “go to the wall” if there are huge consumer outflows. “The CGT changes could destabilise the whole life and insurance bond market,” he says. “The simple fact is if there is a more tax efficient alternative out there, why would anyone stay in insurance bonds. “The ultimate conclusion is that if you find an insurer or a couple of smaller insurers who depend on this bond business in trouble,...