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British and Canadian regulators sign agreement to support fintechs

British and Canadian regulators sign agreement to support fintechs | Insurance Business UK

British and Canadian regulators sign agreement to support fintechs
Thanks to a new agreement signed yesterday, fintech businesses in Ontario and the United Kingdom can now receive support from their respective financial regulators as they seek to open shop in the other’s market.

The Co-Operation Agreement allows the Financial Conduct Authority (FCA) and the Ontario Securities Commission (OSC) to refer to one another any innovative businesses looking to do business in the other’s market.

Both the FCA and the OSC had previously launched initiatives (in 2014 and 2016, respectively) that helped businesses understand their respective regulatory framework, supported them through authorisation, and facilitated engagement with their respective regulators. This new agreement was designed to complement those initiatives.

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“Today’s agreement with the OSC is a positive step towards promoting financial innovation in each of our respective markets,” said FCA executive director of strategy and competition Christopher Woolard in a statement.

“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.”

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

A release noted that once a business has been referred by the regulator and has successfully applied for authorisation to operate in the new market, they would then have access to dedicated staff to help the business understand the regulatory framework of the market it wishes to join as well as how the framework applies to them.

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