Mis-selling cloud hangs over success of life settlement funds

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The corporate bond and life settlements markets have been the two big winners in the last 12 months in terms of attracting fund flows from advisers and their clients.

It doesn't take a detailed knowledge of investment markets to understand why this is so - the search for income. With interest rates currently at 0.5% the average retail investor relying on his or her savings for income is not exactly spoilt for choice when it comes to finding reliable forms of income. So the perceived reliability of the income stream from corporate bonds means advisers have a compelling 'tool' in their advice kit. Despite widespread rumblings of 'mis-selling' around corporate bond funds, to date nothing has emerged which is a good indicator that advisers have on t...

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