Fintech Innovation: A Digital Opportunity Beyond Finance for Canada

Most noteworthy updates include increased governmental attention to understanding important aspects and the operationalization of fintech and blockchain; the creation of new provincial fintech working groups and committees in both Quebec and Ontario; and above all the establishment of regulatory sandboxes by both the OSC and CSA. [...] The UK, one of the leading global fintech centres and generally acknowledged fintech hub blueprint for the rest of the world, has has spurred fintech innovation through the Financial Conduct Authority (FCA) creating industry sandboxes for the fintech sector. [...] Global Engagement Last year, the OSC signed a fintech agreement with the FCA in the UK in order to support one another in referring innovative fintechs to the other’s markets to accelerate market entry.33 The OSC has signed a similar agreement with the Australian regulators as well. [...] Comprised of financial services industry representatives and fintech entrepreneurs, the committee’s responsibility is to advise the OSC on developments in the fintech sector and feedback challenges faced by fintech firms.39 While these are healthy and encouraging developments at the provincial level, Canada still lacks a coherent fintech strategy and voice at the national level to support the indu. [...] The special counsel for a Toronto innovation hub suggests that the financial sector policy branch in the Federal Department of Finance, and the Bank of Canada are the two regulatory and policy bodies best suited to lead the super sandbox initiative.