ASIC and OSC sign agreement to support fintech businesses

Australian Securities and Investments Commission (ASIC) has signed an agreement with the Ontario Securities Commission (OSC) under which, innovative fintech companies in Australia and Ontario, Canada will be able to draw on support from combined resources of their financial regulators.

The agreement will allow ASIC and OSC to refer one another, those innovative fintech businesses seeking to enter the others’ market. The signing of the agreement follows the formation of the Innovation Hub at ASIC in April 2015 and the OSC LaunchPad in October 2016. These initiatives helped fintech businesses with innovative ideas, navigate financial/securities regulation, support them through the authorization process and ease their engagement with the regulator, the release stated.

“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, including robo or digital advice, crowd-sourced equity funding, payments, 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,” John Price, ASIC Commissioner said.

Innovative businesses will need to meet the eligibility criteria of their home regulator in order to qualify for the support offered by the agreement. After getting referred by the regulator, the business will have access to dedicated staff that will help them to understand the regulatory framework in the market they wish to join.

“Last month, the Ontario Securities Commission unveiled OSC LaunchPad. 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,” Maureen Jensen, Chair and CEO of the OSC said. “Today’s agreement reflects our commitment to improving the regulatory experience for emerging businesses that are offering innovative services, products, and applications of benefit to investors.”