December 14, 2017—OTTAWA, ON—Competition Bureau

The Competition Bureau has published the final report from its market study concerning technology-led innovation in the Canadian financial services sector.

The report outlines barriers to the growth and adoption of financial technology (FinTech) in Canada and provides a number of recommendations to help regulators and policymakers continue to promote FinTech innovation. The Bureau’s proposals are aimed at fostering competition and innovation in how Canadians:

• pay for goods and services;
• obtain loans for themselves and their businesses; and
• receive financial advice.

In its report, the Bureau recommends modernizing laws and regulations to encourage the entry and adoption of new technologies, while maintaining consumer confidence and safety in this rapidly evolving sector.

The report follows 18 months of active engagement with national and international leaders in this sector, federal and provincial government partners, and Canadians. During this time, a number of positive developments that align with the Bureau’s recommendations have occurred. For example:

• The Canadian Securities Administrators launched a regulatory sandbox that allows businesses to test their FinTech innovations in an environment with fewer regulations, and enables administrators to develop a common regulatory approach.
• The Department of Finance is looking at ways to modernize legislation and regulation, and is examining new concepts such as open banking. Open banking has the potential to offer Canadians more control over their banking information, the ability to find the financial services that best meet their needs, and greater ease of switching between service providers.
• Numerous initiatives to modernize regulations have been launched, including the Ontario Securities Commission’s (OSC) LaunchPad, which aims to help FinTech firms navigate securities law requirements and bring new products to market faster. The OSC also partnered with the Australian Securities and Investment Commission to better assist FinTech firms to expand internationally.

The Bureau is proud to have contributed to the dialogue with regulators, industry stakeholders and Canadians. This kind of collaboration is key to ensuring that the future of FinTech in Canada is competitive and innovative.