Under a new agreement, fintech companies in Australia and Ontario will be able to draw on support from financial regulators in both hemispheres as they expand their businesses.

An agreement between the Australian Securities and Investments Commission (ASIC) and the OSC, signed in Toronto this week, will refer to one another those businesses seeking to enter the others’ market. The regulators may provide support to innovative businesses before, during and after authorisation to help reduce regulatory uncertainty and time to market.

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The agreement follows the creation of the Innovation Hub at ASIC in April 2015 and the OSC LaunchPad in October 2016. These initiatives were established to help businesses with innovative ideas navigate financial/securities regulation, support them through the authorisation process and ease their engagement with the regulator.

“Since we launched our Innovation Hub last year we have seen a surge in requests by fintech startups seeking assistance about how to navigate the regulatory requirements,”John Price, ASIC Commissioner, said.

Requests have come from startups working on robo or digital advice, crowd-sourced equity funding, payments, marketplace lending and blockchain business models.

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“Some of these business concepts are already looking to expand internationally, and these agreements with like-minded regulators will be a significant factor in paving the way,” he added.

To qualify for the support offered by the agreement, innovative businesses will need to meet the eligibility criteria of their home regulator. Once referred by the regulator, and ahead of applying for authorisation to operate in the new market, the business will have access to dedicated staff that will help them to understand the regulatory framework in the market they wish to join, and how it applies to them.

ASIC and the OSC have also committed to share information on emerging trends in each other’s markets and the potential impact on regulation.

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