The Canadian Securities Administrators Launches a Regulatory Sandbox Initiative

MONTRÉAL, Feb. 23, 2017 /CNW Telbec/ - 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.

Business inquiries:

Media inquiries:
Sylvain Théberge	Janice Callbeck
Autorité des marchés financiers	Office of the Superintendent of Securities,
514-940-2176	P.E.I.
	902-368-6288
Kristen Rose
Ontario Securities Commission	John O'Brien
416-593-2336	Office of the Superintendent of Securities,
	Newfoundland and Labrador
Nicole Tuncay	709-729-4909
Alberta Securities Commission
403-297-4008	Rhonda Horte
	Office of the Yukon Superintendent of
Alison Walker	Securities
British Columbia Securities Commission	867-667-5466
604-899-6713
	Jeff Mason
Jason (Jay) Booth	Nunavut Securities Office
Manitoba Securities Commission	867-975-6591
204-945-1660
	Tom Hall
Andrew Nicholson	Office of the Superintendent of Securities,
Financial and Consumer Services	Northwest Territories
Commission, New Brunswick	867-767-9305
506-658-3021
	Shannon McMillan
David Harrison	Financial and Consumer Affairs Authority of
Nova Scotia Securities Commission	Saskatchewan
902-424-8586	306-798-4160

SOURCE Autorité des marchés financiers

Businesses inquiries: British Columbia: The BCSC Tech Team, at [email protected]; Alberta: Mark Franko at [email protected] or Denise Weeres at [email protected]; Saskatchewan: Dean Murrison at [email protected] or Liz Kutarna at [email protected]; Manitoba: Chris Besko at [email protected]; Ontario: The OSC LaunchPad team at [email protected]; Québec: The Fintech Support Team at [email protected].; New Brunswick: [email protected]; Nova Scotia: Bill Slattery at [email protected]; Media inquiries: Sylvain Théberge, Autorité des marchés financiers, 514-940-2176; Kristen Rose, Ontario Securities Commission, 416-593-2336; Nicole Tuncay, Alberta Securities Commission, 403-297-4008; Alison Walker, British Columbia Securities Commission, 604-899-6713; Jason (Jay) Booth, Manitoba Securities Commission, 204-945-1660; Andrew Nicholson, Financial and Consumer Services, Commission, New Brunswick, 506-658-3021; David Harrison, Nova Scotia Securities Commission, 902-424-8586; Janice Callbeck, Office of the Superintendent of Securities, P.E.I., 902-368-6288; John O'Brien, Office of the Superintendent of Securities, Newfoundland and Labrador, 709-729-4909; Rhonda Horte, Office of the Yukon Superintendent of Securities, 867-667-5466; Jeff Mason, Nunavut Securities Office, 867-975-6591; Tom Hall, Office of the Superintendent of Securities, Northwest Territories, 867-767-9305; Shannon McMillan, Financial and Consumer Affairs Authority of Saskatchewan, 306-798-4160