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Lisa doubts and Kid problems: the week in news

Lisa doubts and Kid problems: the week in news

Whether you have been enjoying this week's heatwave or you see it as the prelude to our inevitable fiery demise, this week it turned out the real worry was whether there was enough food to go around.

But before you rush off to the supermarket to raid the tin aisle, let's reflect on what's being keeping the financial services sector busy this week.

1) We're all going on a summer holiday

With the summer now in full swing, it seems there are a lot of accountants and executives who are done with the office and want to hit the beach.

Because this week we've been showered with a litany of financial results from companies keen to ditch the boardroom for the boardwalk.

For example, Schroders reported net inflows of £1.2bn into its wealth management division for the first half of the year, with £700m coming from the Benchmark Capital business it bought last year.

Meanwhile Jupiter's assets dropped by £2.3bn as investors pulled out of bonds, and Charles Stanley saw its assets increase to £24.9bn.

The Mortgage Advice Bureau reported an increase in revenue for the first half of the year despite fewer housing transactions taking place, while Metro Bank’s half year profits quadrupled year-on-year and Virgin Money saw its profit before  tax increase by £3.4m.

But the pick of the bunch has surely got to be TSB, which managed to swing from a £108.3m profit to a £107.4m loss on the back of its failed IT upgrade.

Now, where's the sun cream?

2) A year is a lifetime in politics

It turns out some MPs might have a different idea of what counts as a "lifetime", because this week the Treasury select committee called for the abolition of the Lifetime Isa, only a year after it was rolled out.

The MPs said it was too complex, not popular among savers and incentivises savers to stop putting money in too early.

They also argued pensions tax relief, the main financial incentive the government provides for long-term saving, was not an effective or well-targeted way of incentivising saving into pensions because it gives greater incentives to those who earn more.

The comments about the Lifetime Isa were met with criticism from providers of the product, with Nutmeg saying it would be a "slap in the face" for a whole generation but advisers were more favourable towards the idea.

3) Never work with Kids

The Financial Conduct Authority (FCA) has uncovered investment providers are making significant calculation errors when pulling together transaction costs for key information documents (Kids).

In a 23-page paper published by the FCA this week, the regulator revealed details around the issues it has already uncovered with investment providers having to make sense of Mifid II and Packaged Retail and Insurance-based Investment Products (Priips) regulation.

About 5 per cent of funds reported zero transaction costs and a small number of funds reported negative transaction costs of less than minus 0.1 per cent.