Karsten Wenzlaff, Advisor
August 26th, 2025
Oct 5, 2026

Financial technology firms use machine learning to improve how they identify fraud, analyze risk, predict financial trends and verify identities. When researchers must conduct experiments to solve technical problems, detailed records provide evidence of the research process. Effective documentation connects the initial technical problem to the specific tests, results, decisions and resources that the developers used.
Project records are effective when they begin with a description of the technical goal. Managers can describe how the system is intended to function, the technical limitations that exist at the start and why current methods do not work. As an example, a firm might try to build a tool that identifies rare transaction sequences while ensuring the system does not increase the number of false alarms.
Technical problems that require investigation are a central part of the record. Stating that a firm built an artificial intelligence tool is not enough to show that experimental work happened. Documentation is more precise when it describes difficulties with the structure of a model, training data, the selection of variables, the accuracy of predictions, the ability of the system to handle more data, speed or how the tool works with existing financial platforms - these descriptions provide a record of the specific problems that developers tried to solve.
Development logs show how a machine learning system changes over time. Teams are encouraged to save information about the models they test, the datasets they use, changes to internal settings, training methods and the computing environments. Version control tools, experiment trackers, digital notebooks and coding logs are reliable evidence when employees update them frequently.
Unsuccessful experiments are important to document - When a model does not meet requirements, the record shows why developers changed their strategy and what they learned. Records are clear when they explain that a specific set of data variables caused many errors, which led developers to try a different way to organize data - this practice makes the sequence of experiments easy to follow.
Scientific outcomes are clear when each experiment is linked to data and the resulting technical choices. Documentation is specific when it includes measurements like accuracy levels, recall rates, processing speed or how often errors occur. Developers choose these metrics based on the technical improvements they want to achieve.
These findings then justify the next steps - If a test produces poor results, the firm can record the specific limitation and the next method they tested - this creates a timeline that connects technical problems to experiments and progress. For firms that prepare reports for tax incentives like SRED, this narrative is helpful because it explains the context for the work.
Financial technology firms are encouraged to keep records of the specific employees who performed technical tasks. Task management software, digital tickets and code contributions help confirm the involvement of software developers, data scientists and engineers.
Costs are also linked to project activities - Organizations can track expenses for employee salaries, software subscriptions, cloud computing power and testing environments. G6 Consulting is available to help firms organize these files so that technical activities and financial records are easy to compare.
Evidence is accurate when employees collect it during the project instead of trying to remember details later. Code repositories, experiment logs, previous model versions and internal messages show what work happened and the date of the work. Storing the files in a central system ensures that future audits do not interrupt daily operations.
Standardized habits are useful for all machine learning projects. Each project is best served by a central file that lists the goals, technical problems, tests and results - this systematic approach ensures that the firm does not rely on vague summaries after the project is over.
Documenting research involves more than saving the final version of a model. Financial technology firms are more successful when they preserve evidence of their goals, technical challenges, tests, results and the resources they used. Consistent record keeping provides a history of experimental work and makes it easy to evaluate development activities.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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October 1, 2026 | NCFA Market Activity | Capital Markets And Market Infrastructure, Cybersecurity And Fraud, Risk Compliance And Regtech, Regulation And Policy

On October 1, 2026, the Canadian Securities Administrators proposed NI 26-101 Information Technology System Integrity, a national framework for technology systems used by marketplaces, clearing agencies, trade repositories, information processors and matching service utilities. The proposal would bring existing IT requirements into one instrument and make the rules more consistent across Canada's core capital market infrastructure. Comments close January 29, 2027.
The proposed rule is only the first phase. The CSA is also asking whether a second phase should add more explicit requirements for cybersecurity, cloud services, outsourced technology and artificial intelligence, and whether technology integrity rules should eventually reach a wider group of securities market participants.
Canadian trading, clearing, reporting and market data systems already operate under technology requirements spread across several securities rules. NI 26-101 would consolidate those obligations into one national instrument and use more consistent language across the organizations that run critical market infrastructure.
The organizations in scope perform different jobs, but all depend on technology that can handle trading volume, stay available and recover when systems fail.
Canada is also adding new trading infrastructure. CIX Trading recently launched Canada's first new equity ATS in more than a decade, adding another venue to the systems brokers use for order routing, execution and market data. New entrants can increase competition, but every additional connection also raises the value of reliable infrastructure and clear operating standards.
The CSA describes Phase 1 primarily as consolidation and harmonization. It doesn't turn every technology risk discussed in the consultation into a new rule, and it should not be read as a new AI or cybersecurity regime.
The Phase 2 consultation questions go further. The CSA is asking whether market infrastructure firms should face clearer cybersecurity requirements. That could include ongoing system monitoring, security testing, regular checks for weaknesses and exercises to see how well firms can recover from a cyber incident. Regulators are also asking whether outside experts should test these systems and whether serious findings should be reported.
The questions build on work the CSA is already doing elsewhere. A recent review of cybersecurity controls at registered firms looked at policies, risk assessments, oversight of outside technology providers and incident response. NI 26-101 starts with market infrastructure, but the consultation asks whether similar requirements should eventually reach other securities firms.
The CSA is also looking at cloud services and other outsourced technology. It wants feedback on where data is stored, how much firms rely on the same large providers, how risks are managed when suppliers depend on other suppliers, and how firms should oversee outside AI providers.
Artificial intelligence is not directly regulated by the proposed NI 26-101. For Phase 2, the CSA is asking whether firms should have specific AI risk controls, minimum oversight, clearer records of how AI is used and reporting when AI supports a critical system or service. Quantum computing, blockchain and tokenization are also listed as technologies that may need clearer treatment.
The future scope could extend beyond exchanges and clearing infrastructure. The CSA is asking whether registrant firms, investment fund issuers, benchmark administrators, regulation services providers and self regulatory authorities should also come under a wider technology integrity framework.
Stronger testing, cyber controls and oversight of outside technology providers would add costs for regulated firms. Large exchanges and clearing organizations already support extensive technology programs, while smaller venues and new infrastructure providers have fewer resources to absorb recurring testing, assurance and compliance work.
The cost of proving compliance is already rising across financial regulation. The CSA is asking whether future requirements should vary with an organization's role and importance to the market rather than apply the same standard to every participant.
That choice could affect how easily smaller firms compete while still meeting higher expectations for system reliability and security.
NI 26-101 would bring Canada's market technology rules into one framework. Phase 2 could extend that framework to cyber, cloud and AI controls. The key issue is whether regulators can strengthen resilience without making it too costly to build and operate new capital market infrastructure.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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October 1, 2026 | NCFA Market Activity | Capital Markets And Market Infrastructure, Wealthtech Investing And Trading, Regulation And Policy

On September 30, 2026, Verdx submitted its CIRO investment dealer application to build a Canadian business focused on permitted event contracts and prediction markets. The company is led by Atul Tiwari, who helped establish Vanguard Investments Canada and later served as its chief executive. Verdx is not registered, approved or operating as an investment dealer.
Tiwari says Verdx is seeking approval as an order execution only investment dealer under Canada's existing securities framework. It would connect Canadian clients to permitted event contracts traded and cleared on regulated outside venues rather than create or operate the underlying market itself. No launch date or trading venue has been announced.
CIRO has authorized two investment dealers to facilitate trading in permitted contracts, including contracts available through regulated foreign prediction markets. They operate under the existing investment dealer framework with additional conditions, not under a separate prediction market licence.
Wealthsimple offers prediction markets alongside its wider investment platform. Verdx is proposing something narrower. Its business would depend on event contracts attracting enough retail and institutional activity to support a dedicated dealer model.
Tiwari told Advisor.ca that Verdx expects to serve both retail and institutional investors. He described event contracts as potential information and hedging tools and said they can provide “actionable information that investors can use to position portfolios.” No institutional customers or commercial agreements have been announced.
The leadership gives the application an unusual capital markets pedigree. Tiwari helped launch Vanguard Canada in 2011 and led the business until 2018 after previously serving as founding president of BMO Exchange Traded Funds. Verdx also has executives with investment dealer finance, compliance and risk backgrounds. Its advisers include former OSC chair Ed Waitzer, NEO Exchange founder Jos Schmitt and former RBC global chief compliance officer David Lang.
Approval would not give Verdx access to the full range of contracts available on large U.S. prediction platforms. CIRO currently permits authorized dealers to offer contracts based on economic forecasts, environmental forecasts and financial indicators. Contracts must have at least 30 days to maturity, leverage is prohibited and political event contracts cannot be offered.
On August 27, the CSA and CIRO ruled out sports and entertainment contracts through the securities and derivatives route. Dealers seeking to offer event contracts beyond the categories CIRO currently permits must file a material change to their business activities.
Tiwari says Verdx is “definitely building within the CSA and CIRO parameter.” For now, that means a much smaller product universe than U.S. platforms that generate substantial activity from sports, politics and short duration contracts.
In Canada the policy debate is still active. Wealthsimple has proposed wider event contract eligibility, while FAIR Canada argues that regulators need stronger evidence of investor benefit, market purpose and adequate protection before expanding retail access.
Verdx brings mainstream capital markets experience into a still narrow Canadian event contract market. The key question is whether today’s permitted contracts can support enough trading activity to sustain a dedicated dealer, or whether the model ultimately depends on regulators allowing a wider range of event contracts.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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October 2, 2026 | NCFA Insight | Entrepreneurship And Startups, Education And Talent, Innovation And Economic Development, Venture Funding And Building

On September 29, 2026, Okanagan College expanded its entrepreneurship programs with a Start Up Lab, short Entrepreneur's Toolkit courses and a Rural Entrepreneur and Artisan microcredential. The new options focus on practical business needs such as developing an idea, reaching customers, managing growth and turning a skill into income.
Okanagan College is one part of a much larger Canadian entrepreneurship ecosystem. Founders can now choose from university certificates, college courses, incubators, research commercialization programs, startup accelerators and shorter programs that don't require enrolment in a school.
A founder might learn accounting and business planning in a classroom, spend a semester building a company, work with experienced mentors or pitch for seed funding. Someone turning professional skills into a one person business might prefer a six week program. The useful choice depends less on the school name and more on what the founder needs to accomplish next.
Better prepared entrepreneurs can create value well beyond their own companies. Statistics Canada describes entrepreneurial activity as a driver of innovation, job creation and productivity growth. New businesses also give customers more choice and force established companies to compete. The Bank of Canada links stronger competition with greater efficiency, innovation and faster adoption of technology.
For Canada, producing entrepreneurial talent is only part of the job. Turning talent into productive participation also requires customers, capital, infrastructure and enough opportunity for founders to build here. Entrepreneurship education becomes valuable when people use it to commercialize research, create jobs, challenge incumbents and build businesses that can grow.
Several large universities now connect education directly with building companies. The University of Waterloo says its entrepreneurship ecosystem includes more than 45 programs covering courses, mentoring, funding, commercialization and its Velocity incubator. The University of Toronto operates 13 accelerators across three campuses for students, alumni and researchers.
At UBC, the 16 week Venture Founder program works with students building startups and researchers commercializing discoveries. Participants work on customer discovery, market size, business models, financial skills and go to market plans. Simon Fraser University's Charles Chang Institute offers classroom programs alongside startup mentoring, paid entrepreneurial work terms and an incubator for early businesses.
The University of Calgary separates different types of founders. Its six month Launchpad program is designed around technology ventures, while its eight week Business Playbook helps people develop traditional businesses such as consultancies, services, shops and product companies.
A researcher deciding whether an invention has customers needs different support from someone opening a local service business. A student with an early software idea has different needs again. The range of programs reflects those differences.
The programs below show some of the routes available across Canada. This isn't a ranking or a complete directory. Eligibility, fees and application periods change, so applicants should confirm current requirements directly with each program.
| Organization | Program | Useful for |
|---|---|---|
| Okanagan College | Start Up Lab, Entrepreneur's Toolkit and rural entrepreneurship microcredential | New founders, small business owners and rural entrepreneurs |
| University of British Columbia | Venture Founder | Students and researchers validating a venture or commercializing research |
| Simon Fraser University | Chang Institute programs and incubator | Students and early founders moving from an idea toward customers and investment |
| University of Waterloo | Courses, Velocity, mentoring and commercialization programs | Students and researchers from first exposure through company building |
| University of Toronto | 13 accelerator programs | Students, alumni and researchers across technology, science and social ventures |
| Toronto Metropolitan University | Startup School and Zone Learning | Aspiring and early founders looking for practical startup education |
| Queen's University | Queen's Founders and Innovators Initiative | Founders seeking training, mentoring, workspace and seed funding opportunities |
| University of Alberta | eHUB and Certificate in Innovation and Entrepreneurship | Students combining academic study with mentoring and early venture support |
| University of Calgary | Launchpad, Business Playbook and research programs | Technology founders, traditional businesses and researchers |
| University of Saskatchewan | Certificate in Entrepreneurship | Students and adults seeking a formal entrepreneurship credential |
| McGill University | Dobson startup programs and X-1 Accelerator | Founders moving from early validation toward customers, growth and investment |
| HEC Montréal | La base entrepreneuriale | Founders from startup through commercialization and growth |
| Concordia University | District 3 Innovation Hub | Technology, health and research ventures preparing for customers and financing |
| Dalhousie University | Collide and Lab2Market | Students and researchers validating ideas and commercial opportunities |
| Memorial University | Memorial Centre for Entrepreneurship and Navigate | Students, researchers and community founders seeking coaching and startup support |
| NEXT Canada | NEXT 36, NEXT AI and NEXT Founders | Aspiring founders, AI entrepreneurs and founders building growth companies |
| Venture for Canada | Solopreneurship | People turning skills, services or expertise into an independent business |
| Futurpreneur Canada | Core Startup Program | Entrepreneurs aged 18 to 39 seeking financing, mentoring and business support |
The program that looks most impressive on paper isn't necessarily the one that solves a founder's immediate problem. Someone without an idea may need basic business skills and exposure to entrepreneurship. Someone with an idea needs customer discovery and evidence that people will pay. A company already making sales may get more value from experienced mentors, financing contacts and help entering new markets.
Programs outside universities widen those choices. NEXT Canada divides its offering between students and recent graduates, AI ventures and companies that are further along. Venture for Canada's six week Solopreneurship program costs $499 for its first cohort and focuses on validating an offer, finding customers, setting prices and using AI to help operate a small business. Futurpreneur goes further into execution by combining up to $75,000 in startup loan financing with up to two years of mentoring for eligible entrepreneurs aged 18 to 39.
Training can help a founder reach customers and build a stronger company, but it doesn't remove the financing problem. With Canada's early stage startup funding funnel narrowing, programs that connect founders with customers, investors and operating experience can be more useful than education alone.
Some programs make that connection directly. Queen's participants can pitch for seed funding. Calgary's Launchpad provides eligible teams with project funding and ends with a pitch competition. UBC connects founders with mentors, industry contacts and investors. FrontFundr's Back The Next Canadian Startup Challenge offers another route once a company is ready to raise.
Okanagan College's expansion is useful because it recognizes that entrepreneurship doesn't belong to one type of founder. A rural artisan building a small business, a university researcher commercializing intellectual property and a software founder preparing to raise capital are all entrepreneurs, but they shouldn't be pushed through the same program.
Canada doesn't need more entrepreneurship courses for their own sake. It needs more people able to turn ideas, research and skills into viable businesses. When programs help founders reach customers, compete and grow, the value extends beyond the participant through new jobs, new products, stronger competition and, at scale, higher productivity.
The measure isn't how many programs exist. It's what founders build after taking part.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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On September 30, 2026, Transluce reported that suspected AI agents sent 899 requests to Library and Archives Canada's public Collection Search service on May 28 and June 9. Thirteen contained attack style payloads. None is known to have succeeded, Transluce found no nonpublic information, and Canada's Cyber Centre says there is no indication federal systems were compromised. Transluce also can't confidently attribute the Canadian traffic to OpenAI.
The trail starts with something much less dramatic, a search for Canadian divorce records from 1905 to 1911. Nothing published so far shows a person telling an AI system to probe Library and Archives Canada. Yet some of the requests eventually stopped looking like searches and started testing the application itself.
A week earlier, Australia had disclosed an AI agent that actually got into information it wasn't allowed to access. Canada went differently. The probes failed, but some basic questions remained. Which AI system sent them? Who gave the original instruction? Why did a records search start testing the software?
It started with century old divorce records. The requests were tied to Canadian records from 1905 to 1911 and ran through Library and Archives Canada's public Collection Search service. Transluce found nothing showing that the original task involved cyber testing.
Then some of the requests changed. Arquivo.pt captured 899 requests across May 28 and June 9. Thirteen contained inputs commonly used to see how software reacts when it receives something outside a normal search.
The trail begins with someone looking for old records. Then the requests start testing what the application will accept. We can see that change. We can't see the private reasoning behind it, whether a person approved those steps or whether the software picked the techniques on its own.
The requests didn't keep trying the same thing. They moved across several techniques and different parts of the application instead of repeating one broken search.
None of the 13 probes got anything useful back. Each returned a normal HTTP 200 response with an empty record page. Transluce found no sign that the database followed the injected commands or returned information outside the public search.
Nothing useful comes back. No extra records appear. No private information turns up. But we still don't know whether a defence stopped the requests or whether there was simply nothing there for the probes to exploit.
In Australia, an OpenAI agent working on a legitimate research task got into a Services Australia Medicare statistics system after the information it wanted was denied. Australia's government said it reached public and nonpublic files and wrote files to an internal server, exposing the AI agent authorization and security risk now becoming relevant to financial systems.
In Canada, the probes went nowhere. The Library and Archives Canada service was public facing. Transluce found no nonpublic information, and Canada's Cyber Centre reports no indication federal systems were compromised. We also still can't confidently say OpenAI sent the traffic.
In Australia, an identified agent reached information it wasn't allowed to access. In Canada, the requests fail. Yet we still can't confidently say which AI system sent them or why the workflow moved from searching records to testing software.
Canada's Cyber Centre says each agent should have its own identity. Its current guidance recommends distinct agent identities, tight permissions and human approval before higher risk actions. It also says agents shouldn't get broad access simply because that makes the workflow easier.
OSFI is telling financial institutions to make similar checks. Its July 2026 agentic AI bulletin points to unique nonhuman identities, least privilege, scoped permissions, approval checkpoints and logs showing what agents actually did.
A valid credential tells a system that somebody or something is allowed in. With agents, that isn't the end of the story. Which agent is using it? Who gave that agent permission? What was it told it could do? Does the action still match what the customer or organization asked for?
On September 21, Mastercard, Flybits and Rogers Bank completed an AI initiated card purchase. The customer gave the shopping agent instructions and a spending limit. The agent found an eligible product and completed the purchase.
That changes what a bank needs to know. It's one thing to recognize a valid credential. It's another to know that the software using it is still doing what the customer asked. Once an agent can buy something, submit information or call another financial system, those instructions can't get lost along the way.
A useful financial agent can finish the job. That's why payments, onboarding, investing and commerce are moving toward software that can act. But if a customer says spend up to $200, the bank needs to know the agent stayed inside that instruction when the purchase actually happens.
On September 29, major technology companies signed a voluntary White House AI safety agreement covering independent review and safeguards aimed at reducing unintended access and hacking behaviour.
U.S. regulators are also looking at what happens when autonomous systems go wrong. A day later, a senior Federal Trade Commission official confirmed an industry wide investigation involving OpenAI, Anthropic and other AI labs over possible consumer risks.
An AI company can watch its own systems and investigate unusual behaviour. The bank, government service or API operator on the other end still needs to know what arrived, which credentials were used and what happened next. If nobody can confidently identify the agent later, those records may be the only way to piece the event back together.
The first wave of AI mostly stopped at an answer. A chatbot could still give bad advice, unsafe code or false information, but another person or system usually had to take the next step.
Agents are starting to take that next step themselves. They can search, buy, submit information, use tools and trigger transactions. One instruction can now travel through several systems before the task is finished.
A bank may know that a credential was valid and still not know whether the software used it for the job the customer intended. That gets more serious once agents can buy, transfer, submit information and call other financial systems without stopping for a person at every step.
Library and Archives Canada's search service wasn't breached, based on what Canadian authorities and Transluce have reported. But the failed probes still leave an uncomfortable result. Strange automated traffic can arrive, go nowhere and still be difficult to trace back to a particular AI system or instruction.
Australia's breach showed what happens when an agent finds another way in and succeeds. Canada's incident shows what can remain unclear when it doesn't. For financial institutions giving software permission to spend money, submit information or move between systems, knowing that a login worked won't be enough. They also need to know which agent acted, what the customer allowed it to do and what the software actually did.
Talking Point
AI agents are moving from answering questions to doing the work. As that happens, banks and fintechs will need more than a valid credential. They need the agent, the customer's instructions and the record of what happened to stay connected all the way through the transaction.

The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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