Fintech Features - October 2024

In this edition:

• we delve into the Financial Conduct Authority’s recent consultation on proposed changes to the safeguarding regime for payments and e-money firms;
• our IP team gives a firsthand account of the infamous Craig Wright Bitcoin trial;
• we also examine the Payment Systems Regulator’s latest developments on the new cap for Authorised Push Payment fraud, alongside the UK Information Commissioner’s Office focus on enforcing compliance with data subject access rights;
• we explore the opportunities and challenges presented by AI regulation in the financial services sector, and give you a preview of Bird & Bird’s upcoming Guide to the EU AI Act;
• we take a trip to Singapore to highlight the latest regulatory updates from the Monetary Authority of Singapore; and
• finally we’ve included a roundup of our latest articles relevant to the FinTech industry— plus, some exciting upcoming events you won’t want to miss!

PS – for any financial entities or ICT third party service providers: don’t forget to register for our upcoming webinar on DORA. Details below under “Upcoming Events”!

Spotlight On: Bird & Bird Tokyo Office & Shingo Ito

We are delighted to announce the official opening of Bird & Bird's Tokyo office as of early September! Expanding into Tokyo, a global hub for technological innovation, including FinTech, is a perfect fit for our technology-focused law firm. This marks an exciting new chapter for Bird & Bird, as we continue to grow in this dynamic, tech-driven environment.

To mark the opening of the new office, in this edition we will be profiling Legal Director at Bird & Bird's London office, Shingo Ito.

‘I joined the Bird & Bird team in June 2024. I support Japanese clients across industries such as FinTech, advising on in-bound acquisitions, joint-ventures, and restructurings in Europe, as well as regulatory and employment matters.

I began my career as a Japanese-qualified bengoshi in Tokyo in 2008, and since moving to London in 2016, I have combined my Japanese and English expertise to better serve our clients.

With Bird & Bird’s new Tokyo office, I'm looking forward to enhancing our support for Japanese clients by providing seamless cross-border advice and using my background to strengthen our links between Japan and Europe’.

Fintech Features

FCA launches consultation on new safeguarding requirements for UK e-money institutions and payment institutions

As announced on 25 September 2024, the Financial Conduct Authority (FCA) has launched a consultation on proposed changes to the safeguarding regime for payments and e-money firms, including interim rules to improve compliance with the current regime and new final rules to enhance consumer protection. Importantly, e-money firms have until 17 December 2024 to seek clarification and provide feedback on the proposed rules.

Read the full story

A different way to defraud: The lessons from the trial of Bitcoin’s origins

For three years, our IP team at Bird & Bird have been leading a claim at the heart of cryptocurrency and token systems worldwide. On one side: a pretender to the throne of cryptocurrency, with a plan to take a grand prize. On the other, a coalition of individuals and companies, led by the Crypto Open Patent Alliance - a nonprofit organisation formed to promote openness in crypto generally, and represented by Bird & Bird.

The technology was Bitcoin, and the pretender is Craig Steven Wright. The prize he claimed was the legacy of Satoshi Nakamoto itself.

Read the full story

UK Information Commissioner offers advice to the UK finance sector on how to improve data subject access right processes following increase in complaints

Following the European Data Protection Board's decision to focus on data subject access rights (DSARs) as a topic for "coordinated enforcement action" in 2024, the UK's Information Commissioner's Office (ICO) recently highlighted compliance with DSARs in the financial sector. In this article, our team provides a summary of the ICO's suggestions for improving compliance.

Read the full story

New UK APP fraud rules – latest developments

There have been a number of recent developments in the UK's Authorised Push Payment (APP) fraud regime. On 25 September 2024, the Payment Systems Regulator (PSR) confirmed a new cap of £85,000 as the maximum level of reimbursement for APP fraud claims. Separately, in early September, the PSR published its policy statement and Specific Direction 21, which extends APP fraud reimbursement protection to consumers of CHAPS.

Read the full story

AI in Financial Services: Regulatory Opportunities

AI capabilities are constantly evolving and becoming more advanced over time. Financial services providers are exploring how they can integrate AI into their operations to improve customer outcomes and reduce costs. However, given the industry's strict regulatory framework, it is critical for these providers to fully understand the specific compliance challenges associated with AI implementation.

Read the full story

Singapore: Financial Services Regulatory & Payments Updates

The Monetary Authority of Singapore (MAS) has recently introduced several important regulatory and payments updates. In this update, our team outlines the key developments affecting Singapore's financial sector.

Regulatory Updates

Payments Updates

Coming Soon! Bird & Bird's Guide to the EU AI Act. Register to receive your copy now

As the world's most comprehensive legal framework for AI developers, users and importers, the EU Artificial Intelligence Act (AI Act) aims to ensure that AI systems entering the European Union's internal market are safe, comply with existing laws on fundamental rights and are in line with EU values.

To help you navigate the AI Act, our multi-disciplinary team is producing an AI Act Guide. This guide will provide a concise overview of the key elements of the Regulation and outline the essential steps organisations need to take to achieve compliance.

If you'd like to be among the first to receive the guide when it's published, please register your interest using the link below.

Register here

Other recent fintech news and alerts from around the firm

We are always busy publishing news and alerts relevant to the fintech industry. Here is a roundup of recent articles you may have missed.

DORA

• Draft RTS on subcontracting ICT services supporting critical or important functions - August 2024
• DORA: last batch of final draft RTS published - August 2024

Fraud/White Collar Crime

• New UK APP fraud rules – PSR consults on a lower cap of £85,000 for the maximum level of reimbursement for APP fraud claims - September 2024
• BaFin consults on new guidance on the German AML Act – What does this mean for crypto-asset services providers? - September 2024
• EU AML Package – a new adventure begins - July 2024

Crypto-assets

• ESMA publishes its opinion on global crypto firms using their non-EU execution venues - August 2024

Outsourcing

• Singapore: Knowledge that cannot be outsourced. Are you ready for the latest MAS outsourcing regime? - July 2024
• UK: The FCA and PSR publish a joint call for information on digital wallets - August 2024

Upcoming Events

Understanding the nuances of the Digital Operational Resilience Act (DORA)

Online Webinar - 30 October 2024

Join this webinar on the Digital Operational Resilience Act (DORA) on October 30, 2024, to help financial institutions and third-party ICT service providers understand how DORA will shape the future of digital resilience and cybersecurity. The event will cover topics such as ICT risk management, resilience testing, and contractual obligations for regulated entities, providing key insights for those involved in the financial services sector as they prepare for DORA’s regulatory requirements starting in January 2025.

Register here