ASIC has expanded its information sharing framework by signing a Cooperation Agreement with Canadian regulators. This agreement will allow for information sharing and the referral of innovative fintech businesses.
Each of the 10 provinces and three territories in Canada are responsible for securities regulation. The Canadian Securities Administrators (CSA) is an amalgamation of the securities regulators from each province. ASIC has signed the Cooperation Agreement with the following participating provincial securities regulators:
- Autorité des marchés financiers (Québec)
- British Columbia Securities Commission
- Alberta Securities Commission
- Financial and Consumer Affairs Authority of Saskatchewan
- Manitoba Securities Commission
- Financial and Consumer Services Commission (New Brunswick)
- Nova Scotia Securities Commission.
The CSA has commenced a number of initiatives to support innovation in Canada’s capital markets and participating jurisdictions. The CSA launched its 'CSA Regulatory Sandbox' in February 2017. This initiative supports fintech businesses seeking to offer innovative products, services and applications in Canada. The CSA Regulatory Sandbox allows firms to obtain exemptive relief from securities laws requirements, similar to ASIC’s Regulatory Sandbox relief.
ASIC and the CSA share a mutual desire to promote innovation in financial services in their respective markets. The regulatory bodies, through their respective innovation functions, will refer to each other innovative fintech businesses that would like to operate in the other’s jurisdiction. Where appropriate, they will also share information about innovations in financial services in their respective markets.
We are experienced in providing advice to fintech businesses and understand the opportunity this agreement creates for entrepreneurs seeking to expand their target markets into other jurisdictions. If you would like further information about the Agreement and if it applies to you, please do not hesitate to contact Hillary Ray or someone from our Financial Services Team.