UK and Canadian authorities enter into agreement to support fintech businesses

The U.K.’s Financial Conduct Authority (FCA) announced that it has signed a cooperative agreement with Ontario Securities Commission (OSC) in order to support innovative fintech businesses in Ontario and UK.

The official release stated that the agreement allows FCA and OSC to refer one another innovative businesses in the fintech industry that are seeking to enter other’s market. With the agreement, the regulators can offer support to these businesses to help in minimizing regulatory uncertainty to the market.

“Today’s Agreement with the OSC is a positive step towards promoting financial innovation in each of our respective markets. It provides FinTech businesses in Ontario and the UK with ready access to the regulatory support they need and we look forward to welcoming firms referred to us by the OSC to assist them in understanding the UK market and its financial regulation,” Christopher Woolard, Executive Director of Strategy and Competition at the FCA, said.

The fintech agreement comes after building FCA’s Innovation Hub and OSC LaunchPad in the year 2014 and 2016 respectively. These initiatives were aimed to support businesses with innovative ideas that navigate the regulatory framework, as well as help them in authorization and facilitate engagement with their respective regulators.

Also, both the agreed bodies FCA and OSC have committed to sharing information regarding the emerging trends and regulatory issues that are pertaining to innovation in the financial services sector.

“Since unveiling OSC LaunchPad last year, we are hearing from many emerging businesses that offer innovative services, products, and applications of benefit to investors. Many of these businesses are also seeking to expand globally, and this agreement reflects our ongoing commitment to enhancing their regulatory experience,” Maureen Jensen, Chair, and CEO of the OSC mentioned.

After the regulator refers and before applying for authorization, the fintech businesses will have an opportunity to access dedicated staff that will help them to understand the regulatory framework in the market that they wish to join.