Advisers Call For Bond Providers To Focus On Compatible Investment Propositions
London, 8th September 2026 – Onshore investment bond providers could do more to ensure their products are compatible with adviser centralised investment propositions (CIPs), new research from Chesnara Life (UK) Ltd shows.1
Research for its Onshore Bond Adviser Sentiment Survey found advisers identified compatibility with and access to CIPs as the key improvement they want from providers.
Its survey, which investigates the use of onshore investment bonds by advisers, as well as their views on key market issues, found 41% believe better CIP access would improve onshore investment bond sales.
It ranked ahead of providers offering a wider range of trusts to use with onshore investment bonds which was chosen by just over a third (35%) of advisers.
Advisers also want providers to offer ESG and sustainable investment options within an onshore investment bond – 78% questioned said ESG was crucial or very important. Just 2% say ESG has no impact in their decision making.
Mark Lambert, Head of onshore bond distribution, Chesnara Life (UK) Ltd, said:
“With growing adviser realisation of the tax effectiveness and great flexibility of onshore investment bonds and their associated trusts, there is a greater focus within the advice community around what provider support is needed to help them tailor their recommendations to their clients in the most efficient manner.”
Onshore bonds offer zero tax on cash dividends at a policyholder level while non-dividend income is taxed at 20%. Capital gains realised within the Bond are subject to UK life fund taxation.
This “fund level” taxation treatment of income and capital gains results in a full basic rate income tax credit being available to the investor when a chargeable event arises. In effect, this means that the policyholder is treated as having already paid basic rate income tax on these gains. Top slicing relief and 5% p.a. tax deferred rules on withdrawals remain. Lifetime transfers by way of assignment without consideration are generally not treated as taxable events.
The value of investments can go down as well as up, meaning investors may not get back the amount of their original investment. Tax treatment depends on individual circumstances and may be subject to change in future. Investors should seek professional advice before making investment decisions.
1.Chesnara Life commissioned independent research company PureProfile to interview 200 UK financial advisers during April 2026.
About Chesnara Life (UK) Ltd
Chesnara Life (UK) Ltd, formerly HSBC Life (UK) Limited, is a UK subsidiary of Chesnara plc. Chesnara Life offers its open architecture Onshore Investment Bond as a stand-alone offering or through a range of third-party investment platform partners. The Chesnara Life Business Development Team supports all versions of our Bond. The Chesnara Life Onshore Investment Bond provides individual investors with access to over 4,800 funds (Investment Trusts, Open Ended Investment Companies, Unit Trusts, and Exchange Traded Funds) from more than 200 Fund Managers. chesnaralife.co.uk
Chesnara Life (UK) Ltd is authorised by the Prudential Regulation Authority (“PRA”) and regulated by the Financial Conduct Authority (“FCA) and the Prudential Regulation Authority (“PRA”). Our Financial Services Register number is 133435 and our registered office is at: 2nd floor, 33-34 Winckley Square, Preston, Lancashire, PR1 3JJ, United Kingdom. Registered in England number 88695.
Media Contact:
CDR – Jonathan Flint – Jonathan.Flint@cdrconsultancy.com