OSC signs fintech support deal with Australian markets regulator to foster expansion in both markets
Canada’s largest provincial securities regulator has signed an agreement with the Australian Securities and Investments Commission that will provide mutual support to fintech startups that want to enter each other’s market.
The Ontario Securities Commission announced the agreement Wednesday morning at a conference on blockchain and fintech in Toronto.
The agreement between the OSC and ASIC calls on both regulators to refer “innovative” businesses between each other’s market. For example, if an Ontario business meets the eligibility criteria to operate in that jurisdiction and wants to expand to Australia, the agreement ensures the Canadian company will have access to dedicated staff to help them understand the regulatory framework in Australia.
The agreement is expected to cover a range of issues, such as robo or digital advice, crowd-sourced equity financing models, payments, marketplace lending and block chain business models, the regulators said.
“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,” said John Price, ASIC commissioner.
The agreement also commits the ASIC and OSC to share information on trends and their impact on regulation.
“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,” said Maureen Jensen, chair and chief executive of the OSC.
The OSC last month announced the creation of Launch Pad, a program that helps Canadian fintech businesses get approval to operate with the “support” and “engagement” of the regulator. Australia’s ASIC launched something similar, Innovation Hub, in April 2015.