News & Events

CSA / ACVM
For Immediate Release
February 23, 2017


The Canadian Securities Administrators Launches a Regulatory Sandbox Initiative


MONTRÉAL – The Canadian Securities Administrators (CSA or we) today launched a regulatory sandbox, an initiative that supports businesses seeking to offer innovative products, services and applications.

“The objective of this initiative is to facilitate the ability of those businesses to use innovative products, services and applications all across Canada, while ensuring appropriate investor protection,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “We will consider applications, including for time-limited registrations, on a coordinated and flexible basis to provide a harmonized approach throughout Canada for business models, whether they are start-ups or incumbents. Our ability to regroup and coordinate our involvement and expertise in this busy environment is another example that demonstrates the agility and proactivity of the CSA,” concludes Louis Morisset.

The CSA regulatory sandbox is open to business models that are truly innovative from a Canadian market perspective. The CSA will assess the merits of each business model, on a case-by-case basis, and businesses that register or receive relief could be permitted to test their products and services throughout the Canadian market.

Examples of potential business models eligible to the CSA regulatory sandbox are:

  • online platforms, including crowdfunding portals, online lenders, angel investor networks or other technological innovations for securities trading and advising;
  • business models using artificial intelligence for trades or recommendations;
  • cryptocurrency or distributed ledger technology based ventures; and
  • technology service providers to the securities industry, such as non-client facing risk and compliance support services (also known as regulatory technology or regtech).

To apply to the CSA regulatory sandbox, businesses should contact their local securities regulator, which will consider its eligibility and refer it to the CSA regulatory sandbox if it provides genuine technological innovation in the securities industry. As part of the application process, CSA Staff may request live environment testing, a business plan and demonstration of potential investor benefits (as well as how investor risks are minimized).

Local securities regulators can also provide early stage guidance on the application of current securities regulatory obligations, as well as information and support.

The CSA, the council of the securities regulators of Canada’s provinces and territories, co-ordinates and harmonizes regulation for the Canadian capital markets.

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Business inquiries:

Province

Contact Information

British Columbia

The BCSC Tech Team, at TechTeam@bcsc.bc.ca

Alberta

Mark Franko at Mark.Franko@asc.ca or Denise Weeres at Denise.Weeres@asc.ca

Saskatchewan

Dean Murrison at dmurrison@sfsc.gov.sk.ca or Liz Kutarna at liz.kutarna@gov.sk.ca

Manitoba

Chris Besko at chris.besko@gov.mb.ca

Ontario

The OSC LaunchPad team at osclaunchpad@osc.gov.on.ca

Québec

The Fintech Support Team at fintech@lautorite.qc.ca.

New Brunswick

registration-inscription@fcnb.ca

Nova Scotia

Bill Slattery at William.Slattery@novascotia.ca



Media inquiries:

Sylvain Théberge
Autorité des marchés financiers
514-940-2176

Janice Callbeck
Office of the Superintendent of Securities
P.E.I
902-368-6288

Kristen Rose
Ontario Securities Commission
416-593-2336

John O’Brien
Office of the Superintendent of Securities
Newfoundland and Labrador
709-729-4909

David Harrison
Nova Scotia Securities Commission
902-424-8586

Andrew Nicholson
Financial and Consumer Services
Commission, New Brunswick
506-658-3021

Jason (Jay) Booth
Manitoba Securities Commission
204-945-1660

Nicole Tuncay
Alberta Securities Commission
403-297-4008

Jeff Mason
Nunavut Securities Office
867-975-6591

Rhonda Horte
Office of the Yukon Superintendent
of Securities
867-667-5466

Shannon McMillan
Financial and Consumer Affairs
Authority of Saskatchewan
306-798-4160

Tom Hall
Northwest Territories Securities Office
867-767-9305

Alison Walker
British Columbia Securities Commission
604-899-6713