The Canadian Securities Administrators (CSA) and the UK’s Financial Conduct Authority (FCA) have signed a cooperation agreement to foster collaboration in several areas, including support of financial technology (Fintech) innovation.
The CSA is an umbrella organization of Canada’s various provincial and local securities regulators. Similar to the Securities and Exchange Commission in the US, they seek to coordinate the regulation of Canada’s securities regulations and educate investors.
The purpose of this agreement is to provide a framework for cooperation and referrals between the functions of each authority and also sets out how the regulators plan to share and use the information on innovation in their respective markets. The agreement is also aimed at expansion into each other’s markets and facilitates introductions between fintech firms in each jurisdiction.
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In addition, the co-operation framework will enable the regulators to share information about financial services innovations, reduce barriers to entry in new jurisdictions and further encourage innovation in the UK and Canada.
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The participating jurisdictions from Canada include securities regulators in Alberta, British Columbia, Manitoba, New Brunswick, Nova Scotia, Québec, and Saskatchewan.
The CSA already has similar cooperative agreements in place, which was previously signed with the relevant regulators in Abu Dhabi, Australia, and France. While it further extends the country’s efforts to work together in developing new technologies for the financial services sector, these agreements are subject to the domestic laws and regulations in each authority’s respective jurisdiction.
Commenting on the news, Louis Morisset, CSA Chair and President and CEO of Québec’s Autorité des marchés financiers, said: “This co-operation agreement with the FCA is in addition to agreements we have reached with other regulatory organizations. Since FinTech businesses are not constrained by national borders, it is in our best interest to share views and exchange information in connection with their activities so we can evaluate market trends and adapt our regulatory framework appropriately.”