FinTech Features Summer 2024
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A FinTech news and event round-up from Bird & Bird's cross practice group fintech team.
In this summer edition of our newsletter, we cover key topics influencing the FinTech sector with insights from our specialists. We discuss the new UK rules for reimbursement on authorised push payment (APP) fraud and Labour's plans for the UK FinTech sector. Our analysis of the EU Digital Operational Resilience Regulation (DORA) provides essential contract updates for in-house lawyers, and we explore the FCA's expectations for AI adoption in financial services. We also spotlight the UAE Central Bank's Open Finance Framework and revisit the interplay between open banking rules and GDPR under the European Commission's proposed payment services legislation revisions.
We are also excited to announce our upcoming events: please see below for further details.
Bookmark this page for updates from our FinTech Team.
New rules for reimbursement on authorised push payment fraud (APP) are coming into force in the UK - given the upcoming deadline on 7 October 2024, what do payment service providers need to consider?
The Payment Systems Regulator, or PSR, in the UK is putting into place a new rule on October 7, 2024. This rule is all about giving money back to customers who have been victims of APP (Authorised Push Payment) fraud. Some people in the payments industry wanted the deadline to be extended, but the PSR is sticking to its original plan. This article will explain what this new rule means for payment services providers (PSPs) and how it's supposed to work.
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Labour’s plans for the UK fintech sector
Labour's potential impact on the UK's fintech sector includes a focus on consistent regulation and a pro-business environment, according to their report and manifesto released in 2024. The party pledges to support innovation, investment, and high-quality jobs, with a specific emphasis on new technology such as open banking and open finance. A proposed Regulatory Innovation Office will aim to speed up approval timelines and coordinate regulatory matters. Labour's stance on AI includes a balance between supporting its growth and introducing regulation for safe development. More specific plans for the fintech sector are expected after the election, if Labour wins.
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DORA - what do in-house lawyers need to know when updating their contracts?
The EU Digital Operational Resilience Regulation 2022/2554 (DORA) aims to standardize how financial services (FS) entities manage ICT-related risks, such as cyber-attacks. Effective from 17 January 2025, it mandates specific requirements for contracts between FS entities and ICT third-party service providers. It applies to EU-regulated financial entities and parent companies outside the EU that use ICT services for EU-regulated firms. The regulation allows flexibility for FS entities to implement measures based on their size and risk profile.
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Commission seeks input from industry on the use of artificial intelligence in the financial sector
In order to provide guidance to the financial sector for the implementation of the AI Act, the European Commission has launched a targeted consultation and a series of workshops seeking input on the concrete application of artificial intelligence in the financial sector. In order to provide guidance to the financial sector for the implementation of the AI Act.
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Spotlight on UAE
UAE Central Bank Implements Open Finance Framework
The UAE Central Bank recently issued the Open Finance Regulation which establishes a framework for the licensing, supervision and operation of an open finance framework for the cross-sectoral sharing of data and initiation of transactions on behalf of customers (the Open Finance Framework) which incorporates both open banking and open insurance components.
Financial Services Regulation in the UAE
Dubai's Economic Agenda aims to double the city's economy and establish it as a global financial hub, attracting financial service providers to the UAE. The country has various financial regimes, including the Federal UAE, regulated by the UAE Central Bank, and freezones like ADGM and DIFC. Operating a financial service business in the UAE typically requires a licence, obtained through a process of due diligence and satisfying regulator's requirements. Costs include regulatory fees and operational expenses. Assistance is available for businesses navigating this process.
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Data Protection Feature
Open banking rules and GDPR interplay revisited under the EC’s Payment Services Legislation Proposals
On 28 June 2023, the European Commission (EC) published its proposed revisions to the current EU payment services legislation, the second Payment Services Directive (PSD2), in a package that includes the proposed Payment Services Regulation (PSR proposal) and the third Payment Services Directive (PSD3 proposal). The Plenary of the European Parliament (EP) adopted its final report on the PSR Proposal on 23 April 2024.
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Hot Topics: Financial Services and Data Protection
In this video, our Financial Services and Data Protection experts Gavin Punia, Berend van der Eijk and Sanjana Kaur S. delve into the key hot topics and pressing issues surrounding data protection in the UK and EU Fintech and payments space.
Listen here
Upcoming Events
Contract Law Developments 2024 A Briefing for the Fintech sector. Presented by Andrew White & Jonathan Emmanuel
The UK Fintech team is excited to host a Fintech-focused networking and knowledge sharing breakfast event at Bird & Bird's London offices.
Andrew White will provide a whistle-stop tour of recent developments in English business-to-business contract law, highlighting topics effecting the UK Fintech sector providing you with tools and insights to support negotiation, drafting, advice and dispute management on commercial agreements.
We would love to see you there! Please register view the links below.
More information and RSVP
