Under a new agreement signed this week in Ontario, the Australian Securities and Investments Commission (ASIC) and the Ontario Securities Commission (OSC) will refer to one another fintech companies looking to enter the other’s market. Either regulator may offer support to these fintech companies before, during, and after authorization to help reduce regulatory uncertainty and time to market.
The National Insurance Brokers Association (NIBA) of Australia reported that the agreement also allows both regulators to share information on emerging trends in each other’s markets, and their potential impact on regulation.
The agreement follows the inception of the Innovation Hub at ASIC in April 2015 and the OSC LaunchPad in October 2016. Both initiatives were created to guide start-up businesses with innovative ideas through financial/securities regulation.
“ASIC is committed to encouraging innovation that has the potential to benefit financial consumers and investors,” said ASIC commissioner John Price in a statement.
“Since we launched our Innovation Hub last year we have seen a surge in requests by fintech start-ups 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. 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.”
“Last month, the Ontario Securities Commission unveiled OSC LaunchPad,” added OSC chair and CEO Maureen Jensen. “This is the first dedicated team by a securities regulator in Canada to help fintech businesses navigate securities law requirements and accelerate time-to-market. 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.”
According to NIBA, fintech businesses will need to meet the criteria of their home regulator before they can receive support. Once a business has been referred by its home regulator, it will be granted access to dedicated staff that would help it understand the regulatory framework in the market it wishes to participate in, and how it applies to its operations.
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