Hong Kong’s SFC and Canada’s CSA Sign Fintech Cooperation Agreement
- Eight members of the Canadian Securities Administrators are part of the fintech cooperation framework.

The CSA members include the Ontario Securities Commission, Autorité des marchés financiers (Québec), British Columbia Securities Commission, Alberta Securities Commission, Financial and Consumer Affairs Authorities of Saskatchewan, Manitoba Securities Commission, Financial and Consumer Services Commission (New Brunswick) and Nova Scotia Securities Commission. Per the announcement, the partnership seeks to share information regarding their innovation functions, which means “the dedicated function established by an authority to support innovation in financial services in their respective markets.”
“This agreement reflects the SFC’s continuing focus on strengthening regulatory cooperation with its counterparts and facilitating innovation in financial services. We look forward to working closely with these members of the CSA in sharing experiences and information with a view to supporting innovative firms’ communications with regulators globally,” Ashley Alder, the SFC’s Chief Executive Officer, commented on the matter.
The CSA's Reaction to the Announcement
Moreover, Louis Morisset, CSA Chair, President and Chief Executive Officer of the Autorité des marchés financiers, pointed out that registered firms based in their respective jurisdictions will have the opportunity to operate in growing regulated markets. “We are particularly proud to partner with the SFC, which plays a central role in the development of a fair, efficient and transparent Fintech industry,” he added.
In March 2016, Hong Kong’s SFC launched Fintech Contact Point, while the CSA deployed a regulatory Sandbox Sandbox A sandbox is a commonly deployed term in the fintech universe, referring to a mechanism for developing regulation that keeps up with the fast pace of innovation.In scope of the computer science world, a sandbox is also associated with a closed testing environment that designed for experimenting safely with web or software projects.Sandboxes are very important to the regulatory field, though is also utilized within the digital economy space.The first regulatory sandbox was launched in the United Kingdom in 2015 and generated great interest from regulators and innovators around the world. For example, these constructs are useful testing grounds for new business models that are not protected by current regulation, or supervised by regulatory institutions.How are Sandboxes Used?In terms of fintech, the collision between new technology expanding boundaries and the regulation needed to police it is an important interaction that has evolved over time.In the fintech space, there is a growing need to develop regulatory frameworks for emerging business models in particular.Overall, the purpose of the sandbox is to adapt compliance with strict financial regulations to the growth and pace of the most innovative companies.Crucially, this needs to happen in a way that doesn’t smother the fintech sector with rules, but also doesn’t diminish consumer protection. A regulatory sandbox should aim to bring down the cost of innovation down, while also reducing the barriers to entry, and allowing regulators to collect important insights before deciding if further regulatory action is necessary.A successful test may result in several outcomes, including full-fledged or tailored authorization of the innovation, changes in regulation, or a cease-and- desist order. A sandbox is a commonly deployed term in the fintech universe, referring to a mechanism for developing regulation that keeps up with the fast pace of innovation.In scope of the computer science world, a sandbox is also associated with a closed testing environment that designed for experimenting safely with web or software projects.Sandboxes are very important to the regulatory field, though is also utilized within the digital economy space.The first regulatory sandbox was launched in the United Kingdom in 2015 and generated great interest from regulators and innovators around the world. For example, these constructs are useful testing grounds for new business models that are not protected by current regulation, or supervised by regulatory institutions.How are Sandboxes Used?In terms of fintech, the collision between new technology expanding boundaries and the regulation needed to police it is an important interaction that has evolved over time.In the fintech space, there is a growing need to develop regulatory frameworks for emerging business models in particular.Overall, the purpose of the sandbox is to adapt compliance with strict financial regulations to the growth and pace of the most innovative companies.Crucially, this needs to happen in a way that doesn’t smother the fintech sector with rules, but also doesn’t diminish consumer protection. A regulatory sandbox should aim to bring down the cost of innovation down, while also reducing the barriers to entry, and allowing regulators to collect important insights before deciding if further regulatory action is necessary.A successful test may result in several outcomes, including full-fledged or tailored authorization of the innovation, changes in regulation, or a cease-and- desist order. Read this Term in February 2017. Last month, the SFC revealed in its annual report 2020-21 that it had approved 188 collective investment schemes and 146 unlisted structured investment products for public offering during the mentioned period. As a result, SFC’s total number of licenses and registrants jumped to 47,178. The total number of licensed corporations spiked to 3,159.
The CSA members include the Ontario Securities Commission, Autorité des marchés financiers (Québec), British Columbia Securities Commission, Alberta Securities Commission, Financial and Consumer Affairs Authorities of Saskatchewan, Manitoba Securities Commission, Financial and Consumer Services Commission (New Brunswick) and Nova Scotia Securities Commission. Per the announcement, the partnership seeks to share information regarding their innovation functions, which means “the dedicated function established by an authority to support innovation in financial services in their respective markets.”
“This agreement reflects the SFC’s continuing focus on strengthening regulatory cooperation with its counterparts and facilitating innovation in financial services. We look forward to working closely with these members of the CSA in sharing experiences and information with a view to supporting innovative firms’ communications with regulators globally,” Ashley Alder, the SFC’s Chief Executive Officer, commented on the matter.
The CSA's Reaction to the Announcement
Moreover, Louis Morisset, CSA Chair, President and Chief Executive Officer of the Autorité des marchés financiers, pointed out that registered firms based in their respective jurisdictions will have the opportunity to operate in growing regulated markets. “We are particularly proud to partner with the SFC, which plays a central role in the development of a fair, efficient and transparent Fintech industry,” he added.
In March 2016, Hong Kong’s SFC launched Fintech Contact Point, while the CSA deployed a regulatory Sandbox Sandbox A sandbox is a commonly deployed term in the fintech universe, referring to a mechanism for developing regulation that keeps up with the fast pace of innovation.In scope of the computer science world, a sandbox is also associated with a closed testing environment that designed for experimenting safely with web or software projects.Sandboxes are very important to the regulatory field, though is also utilized within the digital economy space.The first regulatory sandbox was launched in the United Kingdom in 2015 and generated great interest from regulators and innovators around the world. For example, these constructs are useful testing grounds for new business models that are not protected by current regulation, or supervised by regulatory institutions.How are Sandboxes Used?In terms of fintech, the collision between new technology expanding boundaries and the regulation needed to police it is an important interaction that has evolved over time.In the fintech space, there is a growing need to develop regulatory frameworks for emerging business models in particular.Overall, the purpose of the sandbox is to adapt compliance with strict financial regulations to the growth and pace of the most innovative companies.Crucially, this needs to happen in a way that doesn’t smother the fintech sector with rules, but also doesn’t diminish consumer protection. A regulatory sandbox should aim to bring down the cost of innovation down, while also reducing the barriers to entry, and allowing regulators to collect important insights before deciding if further regulatory action is necessary.A successful test may result in several outcomes, including full-fledged or tailored authorization of the innovation, changes in regulation, or a cease-and- desist order. A sandbox is a commonly deployed term in the fintech universe, referring to a mechanism for developing regulation that keeps up with the fast pace of innovation.In scope of the computer science world, a sandbox is also associated with a closed testing environment that designed for experimenting safely with web or software projects.Sandboxes are very important to the regulatory field, though is also utilized within the digital economy space.The first regulatory sandbox was launched in the United Kingdom in 2015 and generated great interest from regulators and innovators around the world. For example, these constructs are useful testing grounds for new business models that are not protected by current regulation, or supervised by regulatory institutions.How are Sandboxes Used?In terms of fintech, the collision between new technology expanding boundaries and the regulation needed to police it is an important interaction that has evolved over time.In the fintech space, there is a growing need to develop regulatory frameworks for emerging business models in particular.Overall, the purpose of the sandbox is to adapt compliance with strict financial regulations to the growth and pace of the most innovative companies.Crucially, this needs to happen in a way that doesn’t smother the fintech sector with rules, but also doesn’t diminish consumer protection. A regulatory sandbox should aim to bring down the cost of innovation down, while also reducing the barriers to entry, and allowing regulators to collect important insights before deciding if further regulatory action is necessary.A successful test may result in several outcomes, including full-fledged or tailored authorization of the innovation, changes in regulation, or a cease-and- desist order. Read this Term in February 2017. Last month, the SFC revealed in its annual report 2020-21 that it had approved 188 collective investment schemes and 146 unlisted structured investment products for public offering during the mentioned period. As a result, SFC’s total number of licenses and registrants jumped to 47,178. The total number of licensed corporations spiked to 3,159.