The Ontario Securities Commission (OSC) has signed a deal with the Australian Securities and Investments Commission (ASIC) in which the two regulators pledge mutual support to innovative financial technology (fintech) firms in both jurisdictions.
Under the agreement, which was signed this week in Toronto, the OSC and the ASIC will help reduce regulatory uncertainty for fintech firms and help them get to market faster. Specifically, fintech startups will be able to draw on the regulators’ combined resources when they seek to operate in each other’s markets.
Under the regulators’ deal, fintech firms will be able to call on regulatory staff in each jurisdiction to help them understand the regulatory environment, and how it may apply to their proposed business, before they start the process of seeking authorization. The assistance is intended to help fintech firms launch more quickly in each other’s markets.
In addition, the ASIC and the OSC have committed to share information on emerging fintech trends in each other’s markets, and the potential impact on regulation.
The agreement comes immediately in the wake of the creation of the OSC’s new fintech innovation hub, known as OSC LaunchPad, last week, which followed on the heels of the opening of the ASIC Innovation Hub in April 2015. Both initiatives aim to help financial sector startups navigate securities regulation and come to market more quickly, and in compliance with local regulations.
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“Today’s agreement — another first for a Canadian securities regulator — reflects our commitment to improving the regulatory experience for emerging businesses that are offering innovative services, products and applications of benefit to investors,” says OSC chairwoman and CEO Maureen Jensen.
“Since we launched our Innovation Hub last year, we have seen a surge in requests by fintech startups seeking assistance about how to navigate the regulatory requirements. These have covered a wide range of issues, as you would expect of such a young and exciting sector, but include robo or digital advice, crowd-sourced equity funding, payments, marketplace lending and blockchain business models,” says ASIC commissioner John Price, in a statement.
“Some of these business concepts are already looking to expand internationally, and these agreements with like-minded regulators will be a significant factor in paving the way,” he adds.
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