OSC’s LaunchPad helping fintechsBy The IJ Staff | August 27 2018 11:30AM
Fintech companies are leveraging new technology and creating new business models thanks to the Ontario Securities Commission’s LaunchPad initiative.
In its Annual Summary Report for Dealers, Advisors and Investment Fund Managers, the OSC says the initiative is helping fintechs provide new product offerings, such as blockchain-based cryptoassets.
As well, after an initial focus on online advisors, online lenders and crowdfunding portals, the industry focus has largely shifted to cryptoasset-related businesses, including initial coin and token offerings, cryptoasset investment funds, traditional financial service businesses using blockchain technology and cryptoasset trading platforms.
Support provided to fintechs
Members of the OSC LaunchPad group held 242 meetings with fintech business and stakeholders in 2017-2018, there were 156 requests for support and direct support provided to fintech businesses, and had 25 collaborative reviews with the CSA Regulatory Sandbox of novel business models that wanted to operate across Canada.
“The pace of fintech innovation continues to accelerate and is a disruptive force in the financial services industry,” states the report. “Our goal is to keep regulation in step with digital innovation.”
The LaunchPad, which began in October 2016, strives to make greater use of creative regulatory approaches that provide an environment for innovators to test their products, services and applications. It also helps support the development of novel business models, provides a positive and supportive environment for fintech innovation as well as ensures investors are protected.