OSC LaunchPad Rocket
OSC LaunchPad Rocket

Many investors today want services that are fast, convenient and mobile – and the fintech industry is keen to provide this. However, some fintechs may be unaware that they need to comply with securities regulatory requirements. By understanding early if securities regulations apply to you, you can potentially avoid costly delays and oversights.

DOES SECURITIES REGULATION APPLY TO YOUR BUSINESS?

You may need to comply with securities regulatory requirements if your innovation involves:

  • Digital platforms (including websites and apps) that connect investors with companies seeking to raise capital.
  • Preparing offering documents, marketing materials or other similar documents for companies looking to raise capital.
  • Initial coin (ICOs) and initial token offerings (ITOs), as well as cryptocurrency exchanges, cryptocurrency funds and fund management.
  • Investor networks and organizations, and the platforms that support them.
  • Lending platforms that allow investors to fund loans (or portions of loans).
  • Technology and/or data-driven investment activities or advice, including online advice and AI.

Still not sure if securities regulation applies to you? Complete and submit our request for support form or contact us.

COMMON SECURITIES REGULATION REQUIREMENTS

Many businesses that deal with securities, including fintechs, have certain obligations they must fulfil. These can include:

  • Registering (sometimes referred to as "licensing"). Firms or individuals that are in the business of trading or advising in securities are subject to specific requirements under securities law.
  • Preparing a prospectus or having a prospectus exemption. Companies that offer securities for sale to the public are subject to specific requirements under securities law.
  • Specific resale and transfer restrictions.
  • Meeting other requirements, such as those that apply to operating as an exchange or marketplace.

HOW WE HELP FINTECHS

OSC LaunchPad engages with fintech businesses informally through events and formally through requests for support.

We have provided time-limited relief from requirements like registration and prospectus filing, permitted both accredited and retail investors to invest in businesses under certain conditions and provided guidance on investor protections such as Know Your Client (KYC) and suitability requirements.

Coin and token offerings

Cryptocurrency investment funds

Lending platforms

Online advisers

Online venture capital raising platforms

  • AngelList
    • NEXT Canada
    • Creative Destruction Lab
    • York Entrepreneurship Development Institute’s Incubator Track
    • Ontario Centres of Excellence’s Market Readiness Program

Trading platforms

HOW WE HELP INVESTORS

While innovation can offer great investment opportunities, it also comes with unknowns and risks. The OSC’s Investor Office provides information that can assist Canadians in making informed investment decisions. Fintech-related resources include:

REGULATORY PARTNERSHIPS

Many ideas go beyond borders. We work with other regulators to improve access to opportunities for both fintechs and investors on a national and international level.

CSA Regulatory Sandbox

Similar to OSC LaunchPad, the CSA Regulatory Sandbox provides fintechs with an opportunity to test their products, services and applications on a time-limited basis – but throughout the Canadian market. The OSC is an active and key partner in this sandbox.

International cooperation agreements

We have agreements with financial regulators in other countries to make it easier for Ontario-based innovators to attract and do business with investors around the globe.

"Regulatory rules must protect investors – but they must also make sense for emerging businesses. OSC LaunchPad is dedicated to making sure our framework keeps pace with the latest innovations in investing."
Pat Chaukos
Deputy Director of OSC LaunchPad