Canadian Regulator launches FinTech sandbox

The Ontario Securities Commission today unveiled OSC LaunchPad, the first dedicated team by a securities regulator in Canada to help fintech businesses navigate securities law requirements and accelerate time-to-market.

OSC LaunchPad will provide direct support to eligible new and early-stage fintech businesses that provide innovative services, products and applications of benefit to investors. The support will be tailored to each business, allowing for meetings with the OSC LaunchPad team on navigating the regulatory framework, flexibility around current regulatory obligations, or informal guidance at an early stage on potential securities regulation implications. In appropriate cases, the OSC will consider time-limited registration or exemptive relief for innovators to test their products, services and applications.

“This is an exciting opportunity for Canadian innovators. With OSC LaunchPad, emerging fintech businesses now have an opportunity to work with securities law experts from day one,” said Maureen Jensen, Chair and CEO of the OSC. “This initiative reflects the OSC’s commitment to regulation that is in step with innovation.”

OSC LaunchPad is now accepting requests for support from eligible fintech businesses at www.osclaunchpad.ca. The site provides fintech businesses with helpful insights as to whether and how securities regulation may apply to their business models, and features an updated listing of events that the OSC LaunchPad team will host or attend.

The OSC will apply its learnings from OSC LaunchPad more broadly in order to modernize regulation for similar businesses. To this end, the OSC will establish a fintech advisory committee to further understand the unique issues faced by these start-ups. Additional details will be published in the coming weeks.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices and to foster fair and efficient capital markets and confidence in the capital markets. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at http://www.osc.gov.on.ca

Lavanya Rathnam

Lavanya Rathnam is an experienced technology, finance, and compliance writer. She combines her keen understanding of regulatory frameworks and industry best practices with exemplary writing skills to communicate complex concepts of Governance, Risk, and Compliance (GRC) in clear and accessible language. Lavanya specializes in creating informative and engaging content that educates and empowers readers to make informed decisions. She also works with different companies in the Web 3.0, blockchain, fintech, and EV industries to assess their products’ compliance with evolving regulations and standards.

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