Insurance linked securities. The government is consulting on a new regulatory and tax framework for insurance linked securities (see Legal update, HM Treasury consults on implementing a new regulatory and tax framework for insurance linked securities). Alongside this, the PRA and FCA are consulting on their approach to authorising and supervising insurance special purpose vehicles (ISPVs) (see Legal update, FCA and PRA consult on authorisation and supervision of insurance SPVs). This will help to maintain London's position as the most important global hub for reinsurance business. The government will place the final regulations before Parliament in spring 2017.

FinTech. To support investment in UK FinTech, the Department for International Trade (DIT) will provide £500,000 each year to FinTech specialists. The government has also commissioned an annual "State of UK FinTech" report on key metrics for investors, and will launch a network of regional FinTech envoys.

In addition, the Joint Money Laundering Steering Group (JMLSG) has agreed to modernise its anti-money laundering (AML) and counter-terrorist financing (CTF) guidance on electronic identity verification, to support the use of technology to access financial services.

Pension scams. The government will shortly publish a consultation paper on options to tackle pension scams. The options will include banning cold calls relating to pensions, giving firms greater powers to block suspicious transfers, and making it harder for scammers to abuse small self-administered schemes.

Consumer insurance markets. New FCA rules on consumer policy renewals, which are being introduced in April 2017, will encourage consumers to shop around instead of renewing their policies automatically. The FCA will monitor the effect of the rules, and the government will ask the FCA to consider further intervention if necessary. For more information on the rules, see Legal update, FCA policy statement on increasing transparency and engagement at renewal in general insurance markets.

Credit unions. From 2018, the government will expand on an existing scheme that incentivises credit union membership in communities that are at risk of being targeted by loan sharks. This will use funds recovered under the Proceeds of Crime Act 2002 (POCA) from convicted loan sharks.

Bank levy reforms. As announced in the July 2015 Budget, the bank levy charge will be restricted to UK balance sheet liabilities from 1 January 2021 (see Legal update, July 2015 Budget: key financial services announcements: Banking). Following a consultation, the government confirms that there will be an exception for certain UK liabilities relating to the funding of non-UK companies, as well as an exception for UK liabilities relating to the funding of non-UK branches. Details will be set out in the government's response to the consultation. The government intends to legislate on this in the Finance Bill 2017-18.

The government will continue to consider the balance between revenue and competitiveness with regard to bank taxation, taking into account the implications of the UK leaving the EU.