Fintech Features May Edition

As we approach sunnier months, this edition of Fintech Features brings you a comprehensive array of updates and insights including:

• Stablecoin acceptance and the future of the UK stablecoin sector: As strategic M&A activity in the stablecoin payments market picks up pace, we take a look at why stablecoins have the capability to power efficiencies in payments and at some of the hurdles facing the UK market, including the draft SI on a new regulatory regime for cryptoassets.

• Keeping pace with the PSR: proposals on scheme, processing and interchange fees, and a new home within the FCA: The PSR has had a noteworthy year so far, marked by significant developments, which we've highlighted in this article.

• UK Payments Horizon Road Scanning Map - Q2 2025: The FCA's new strategy focuses on smarter regulation, growth, consumer guidance, and fighting financial crime, with plans to merge with the Payments Systems Regulator.

• Instant Payments Regulation: On 3 March 2024, the EU co-legislators adopted Regulation (EU) 2024/886 on instant credit transfers in euro, often called the ‘Instant Payments Regulation’ (IPR). The IPR intends to make instant payments fully available in euro to consumers and businesses across the EU by amending various existing EU payments regulation.

• UK/EU data protection in financial services round-up – 2025 so far: The first quarter saw significant data protection developments in the UK and EU, particularly impacting financial services.

• ASIC v FIIG Securities - AFSL Holders on Notice for Cyber Failures: ASIC initiates legal action against FIIG Securities for alleged four-year cybersecurity lapses, exposing clients to significant cyber intrusion risks.

We've also updated Bird & Bird's European Union Artificial Intelligence Guide: Bringing you the latest updates form the European Commission that could impact your organisation.

Read on to find out more on these topics and links to the full articles below.

The Bird & Bird FinTech Team

Spotlight on: Nicolas Mordaunt-Crook

We are thrilled to welcome Nicolas Mordaunt-Crook to our Financial Services Sector Group in the Paris Office. Nicolas brings seasoned experience, having worked 25 years in banking and financial law, advising across complex transactional and regulatory matters. Nicolas's appointment strengthens the Financial Services Sector Group offering, supporting clients in France and internationally.

We recently met with Nicolas to discuss his thoughts on upcoming significant trends, technological innovations and his motivation.

Click the button to learn more.

Click to read Nicolas' interview

Fintech Features

Stablecoin acceptance and the future of the UK stablecoin sector

Strategic M&A activity in the stablecoin payments market is picking up pace as reflected in a series of moves by industry leaders in the space. The latest example of this is the recent announcement of the acquisition of Iron, an API-first stablecoin infrastructure startup, by US crypto payments specialist MoonPay. In this article, we look at the growing use of stablecoins in payment acceptance and some of the issues facing the UK market and the future of this sector in the UK, including the draft SI on a new regulatory regime for cryptoassets.

Read the full story

Keeping pace with the PSR: proposals on scheme, processing and interchange fees, and a new home within the FCA

The Payment Systems Regulator (PSR) has had an eventful year so far, filled with significant developments, we've summarised the key highlights in this article.

Read the full story

UK Payments Horizon Scanning Roadmap - Q2 2025

The Financial Conduct Authority ("FCA") has recently published their new five-year strategy, focusing on four priorities: being a smarter regulator, supporting growth, helping consumers navigate their financial lives and fighting financial crime. This insight aims at outlining key regulatory events for the next few months, Q2 of 2025 and beyond, in payment regulation.

Read the full story

Instant Payments Regulation

On 3 March 2024, the EU co-legislators adopted Regulation (EU) 2024/886 on instant credit transfers in euro, often called the ‘Instant Payments Regulation’ (IPR). The IPR intends to make instant payments fully available in euro to consumers and businesses across the EU by amending various existing EU payments regulation.

Read the full story

UK/EU data protection in financial services roundup – 2025 so far….

It has been a busy first quarter in the data protection world – to help you get up to speed, here is a round-up of some recent notable UK and EU data protection developments focused on financial services.

Read the full story

ASIC v FIIG Securities – AFSL Holders on Notice for Cyber Failures

This is ASIC’s second enforcement proceedings against an Australian Financial Service Licensee (AFSL) for failing to maintain adequate cybersecurity protections and aligns with ASIC’s 2025 enforcement priority of investigating and prosecuting “licensee failures to have adequate cyber-security protections”. The case is particularly relevant in light of several Australian superannuation providers suffering coordinated cyberattacks in early April 2025.

Read the full story

Recent Events

The FinTech team recently hosted their AI in Financial Services: Understanding the Challenges and Opportunities event (27 Feb - London)

The event included a deep dive by our Bird & Bird FinTech team into the key updates on the legal and regulatory aspects of AI impacting the financial services sector.

Our team was also joined by Uwais Iqbal from Simplexico, who provided a conceptual overview of AI and practical applications in the financial services sector.

Our event provided attendees with the opportunity to gain practical knowledge, engage with industry experts, and connect with peers facing similar challenges.

Financial services news & alerts roundup

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

• UK Regulators Scrutinise Apple and Google Digital Wallets
• European Accessibility Act: Focus on Financial Services
• European Commission rejects DORA RTS on Subcontracting
• UK: FCA publish Dear CEO Letters to Payments Portfolio Firms
• UK: Payment regulation 2025: What's on the horizon?
• BaFin publishes guidance note on crypto asset services according to MiCAR

Bird & Bird EU AI Act Guide - Now Updated

Our EU AI Act Guide has just been updated with the latest insights from the European Commission’s guidance.

This update brings critical clarifications that could impact how your organisation develops and deploys AI in the EU.

What’s new?

A deeper dive into Prohibited Practices under Article 5
Clarification of the Definition of an AI System under the Act

These additions help sharpen your understanding of the Act’s scope and risk framework, ensuring your AI systems stay ahead of compliance challenges.

Coming soon: Stay tuned for our Financial Services Addendum, designed to address the sector-specific implications of the AI Act for banks, insurers, and other financial institutions.

Access the guide here