January 31, 2020 - Ottawa, Ontario - Department of Finance Canada
Canadians deserve a stable financial sector that is globally competitive, promotes consumer choice and contributes to economic growth. As the financial sector—like other aspects of the Canadian economy—becomes increasingly digitized, standards must be modernized to ensure that Canada continues to enjoy a strong, stable and innovative financial sector. Canadians have benefitted from one of the safest and most resilient financial sectors in the world, and they must continue to have confidence that it operates with the highest regard for privacy and security. Protecting the privacy and security of Canadians’ financial data is a priority for the government as well as for the private sector, and is crucial for maintaining continued trust in Canada’s financial system.
Today, Minister of Finance, Bill Morneau, released the findings from the first phase of the review by the Advisory Committee on Open Banking and announced that the committee will undertake a second phase of work to continue to examine the merits of open banking with a particular focus on data security in financial services.
The committee found that while some data sharing is already happening, the development of more secure infrastructure to use and move financial data would establish better protection for consumers and support other initiatives to strengthen data protection such as Canada’s Digital Charter, consumer protection standards in the financial sector and cyber security.
For the second phase, the committee will work with stakeholders across Canada, beginning in spring 2020, to provide advice on potential solutions and standards to enhance data protection in the financial sector, examining issues such as governance, consumer control of personal data, privacy, and security. The committee will deliver the results of its findings to the minister later this year.
“Canadians expect their data to be secure when using financial services. I wish to thank the committee for their work to date and look forward to the results of the next phase of the review, which they will undertake with a strong focus on consumer privacy and security and in a way that continues to promote financial stability.”
- Bill Morneau, Minister of Finance
Quick facts
Innovative, data-driven services can help consumers budget, access more affordable financial services and become better equipped to manage their finances. Canadians expect that any mechanism for sharing financial data would have a strong focus on security, privacy and the stability of our financial sector.
Over the coming months, the advisory committee will work with stakeholders across Canada to deliver advice on potential solutions that provide secure channels for consumers to use these new services. The minister would then assess these findings.
In 2019, the Standing Senate Committee on Banking, Trade and Commerce released a report and issued recommendations for the government to protect Canadians’ financial information by moving forward with open banking.
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, 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
Budget 2018 announced the Government's review into the merits of open banking and, as a first step in this process, the Minister of Finance appointed an Advisory Committee on Open Banking, to guide the review. The Advisory Committee is supported by a Secretariat within the Department of Finance.
The Advisory Committee was tasked with considering whether open banking would provide meaningful benefits to Canadians and to deliver a report assessing the potential merits of open banking for Canada, with the highest regard for consumer privacy, security and financial stability.
This report represents the findings and recommendations of the Committee following engagement with Canadians and stakeholders on open banking – a term this report will replace with consumer-directed finance. Over a hundred written submissions were received in response to the consultation paper, "A Review into the Merits of Open Banking," which was released in January 2019. Through the course of the review, the Committee and the Department of Finance have engaged, both through public roundtables and bilaterally, with hundreds of stakeholders.
The Committee recommends that the Government move forward to enable consumer-directed finance. It is an opportunity to position Canada's financial sector to compete effectively in the data and digitally powered world, and to do so in a way that puts consumers first.
There is no going back. A significant amount of data sharing is already undertaken in the market through inefficient technological workarounds that present liability and security risks for all.
Unlocking consumer-directed finance will not be straightforward. There are a number of complex policy questions to be answered; collaboration with provinces and territories that is required, and a need for multi-sector engagement and leadership from all partners. Government should acknowledge that this is a journey and take the first steps.
There remains only the question of how to move forward. In that effort, we recommend the following principles guide the Government's approach to consumer-directed finance:
Consumer-directed finance should be focused on enabling consumer choice and meaningful control. Consumers, including small businesses, should be able to securely direct and control the use of their data in ways that benefit them.
Consumer-directed finance should give consumers confidence and engender trust. It should be secure; respect and enhance privacy; and, be an improvement over the status quo. If something goes wrong, there must be a clear and straightforward accountability mechanism for consumers and a means to ensure that liability rests with the appropriate party.
Innovation should guide the development of consumer-directed finance, founded on a safe, secure and standardized data-sharing mechanism. While privacy and cyber security concerns are real and must be addressed, equal weight must be given to ensuring the growth of a vibrant financial ecosystem and technological innovation.
In considering a process to enable to consumer-directed finance, we recommend the following:
There is a role for government to play in catalyzing the move towards consumer-directed finance and a role for industry to deliver leading-edge technical solutions given its expertise and innovation capacity. Regardless of the approach taken by government it should set a clear timeline for moving forward, prioritize consumer interests and the development of an ecosystem that is accessible to a broad range of stakeholders.
Consumer-directed finance should serve as a blueprint for the Government to enable enhanced data choice and control for Canadians across all sectors of the economy. To that end, it should be done in consultation with regulators across sectors and in alignment with other related initiatives including payments modernization, updates to privacy frameworks, consideration of digital identity and the Department of Innovation, Science and Economic Development's digital and data initiatives.
Canada has the opportunity to take advantage of the experience of other jurisdictions that have enabled consumer-directed finance. While recognizing the unique Canadian context, Canada should draw considerably on the experience of these existing models – to both benefit from successful elements and avoid pitfalls. Canada's approach must also provide for interoperability with international systems.
Striking a balance between the imperative to act identified by many stakeholders and the need to mitigate risks is critical. The Government should consider developing a policy framework, in collaboration with stakeholders, which delivers on the above principles.
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, 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
Wealthsimple Cash offers 2.4% interest rate and lets Canadians save and spend through a mobile app and metal card
TORONTO, Jan. 21, 2020 /CNW/ - Wealthsimple has launched its first hybrid saving and spending product: Wealthsimple Cash. The new account offers users the ability to save and spend with one of Canada's highest non-promotional interest rates of 2.4% - in addition to a host of features that help people earn more on every dollar in their Cash account.
Wealthsimple Cash combines a saving and spending account to give Canadians the power to have both an account that allows for everyday purchases while also providing a safe place to grow their money. Cash clients will benefit from no monthly account fees, no low balance fees, no foreign transaction fees worldwide, and ATM fee reimbursements - all through a sleek, metal card designed to make spending responsibly easy.
"Canadians are used to the status quo when it comes to everyday banking - multiple accounts, high fees and low interest," said Michael Katchen, CEO and co-founder, Wealthsimple. "With Wealthsimple Cash, users can enjoy the power of a high interest savings account for all of their day-to-day spending needs. And they can do so while enjoying the full benefits of a Wealthsimple account: simple, affordable and transparent."
Today, one million Canadians use Wealthsimple products for investing, saving, trading, tax filing, and now spending. The launch of Wealthsimple Cash brings the company one step closer to being its clients' primary financial relationship through a more holistic, end to end financial experience.
Wealthsimple Cash will have the following features:
2.4% interest rate (non-promotional)
No monthly account fees
No low balance fees or account minimums
No exchange fees on foreign currency transactions worldwide
ATM fee reimbursements at Visa ATMs in Canada
Tungsten metal Wealthsimple Cash card
Direct deposits
Bill pay
Apple Pay and Google Pay support
Canadians can open a Wealthsimple Cash account today to start saving and be first to access spending features as they are rolled out over the coming months, including the Wealthsimple Cash card.
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, 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
Montreal - The Canadian Securities Administrators (CSA) today published Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets, to help these entities to determine situations where securities legislation may or may not apply.
“The evolving landscape of the industry prompts us to clarify our regulatory framework so as to better support fintech businesses seeking to offer innovative products, services and applications in Canada,” said Louis Morisset, CSA Chair and President and CEO of the Autorité des marchés financiers. “As we continue to consider the comments and responses to the consultation we launched last year, the staff notice published today will help platform operators to determine whether their activities are subject to securities legislation.”
The notice describes situations where securities legislation will and will not apply. For example, securities legislation may apply to platforms that facilitate the buying and selling of crypto assets that are commodities, because the user’s contractual right to the crypto asset may itself constitute a derivative, a security or both.
The relevant determination will depend on the facts and circumstances, including the obligations and intention to provide immediate delivery of the crypto asset. The notice provides guidance on what constitutes immediate delivery, together with a detailed example of a situation where securities legislation does not apply.
The CSA and the Investment Industry Regulatory Organization of Canada (IIROC) continue to review the comments and responses to Joint CSA/IIROC Consultation Paper 21-402 Proposed Framework for Crypto-Asset Trading Platforms. We anticipate publishing a summary of comments and responses along with guidance on the regulatory framework applicable to crypto-asset trading platforms that are subject to securities legislation later this year.
CSA Staff Notice 21-327 Guidance on the Application of Securities Legislation to Entities Facilitating the Trading of Crypto Assets is available on jurisdictions’ websites.
The CSA, the council of the securities regulators of Canada’s provinces and territories, co- ordinates and harmonizes regulation for the Canadian capital markets.
For Investor inquiries, please refer to your respective securities regulator. You can contact them here.
For media inquiries, please refer to the list of provincial and territorial representatives below or contact us at media@acvm-csa.ca:
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, 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
Crowdfunding Offering supported by UK Based Tokenise and KABN Equity Token created using Polymath Token Studio
Gibraltar--(Newsfile Corp. - December 9, 2019) - KABN (Gibraltar) PLC ("KABN" or the "Company") is pleased to announce that it has created its KABN Equity Token using the Polymath Token Studio and will make its Equity Token available for sale through a public Equity Crowdfunding sale via UK based Tokenise, which is fully compliant with the UK FCA regulatory framework. The Company's Token Offering information site can be found at www.kabntoken.com.
Unlike a network or utility token, each KABN Equity Token will represent a KABN (Gibraltar) PLC Preference Share as equity or ownership in the Company.
After spending well over 2 years to develop, test and launch its active business platform, KABN believes that ownership of identity is a basic human right and that individuals should be the primary beneficiary of any use of that identity data. To that end, KABN has developed a continuous, Always On, verified identity solution for commercial clients and consumers that allows individuals to manage both their private and public data, restricting the sharing and use of that data while benefiting the user. KABN also has a platform that will help users maximize value of their data through qualified offers from 3rd parties, including KABN's Financial Services program KABN KASH and its Pegasus Flyte digital currency linked VISA card program.
The KABN Equity Token is a new generation of Security Token Offerings created with the Polymath Token Studio, allowing qualified private and public investors to purchase KABN Preference Shares, or Equity in the Company, represented by tokens on the Ethereum Blockchain. The KABN token can be viewed by visiting:
KABN has designed its Equity Token Offering to be a true investment in the Company, allowing Preference Share and Token Holders to participate in the potential growth and long-term value appreciation of the Company. KABN Preference Share / Equity Token Holders will receive first priority of dividend distribution and in the event that KABN has a liquidity event, all KABN Equity Token holders will be included in the event, allowing KABN Equity Tokens holders to truly benefit in the Enterprise, or overall value of the Company.
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, 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
The proposal would expand the definition of accredited investor and increase retail access to private markets
Washington D.C., Dec. 18, 2019 —
The Securities and Exchange Commission voted to propose amendments to the definition of accredited investor, one of the principal tests for who is eligible to participate in our private capital markets. The proposal seeks to update and improve the definition to more effectively identify institutional and individual investors that have the knowledge and expertise to participate in our private capital markets.
“The current test for individual accredited investor status takes a binary approach to who does and does not qualify based only a person’s income or net worth,” said Chairman Jay Clayton. “Modernization of this approach is long overdue. The proposal would add additional means for individuals to qualify to participate in our private capital markets based on established, clear measures of financial sophistication. I also am pleased that the proposal specifically recognizes that certain organizations, such as tribal governments, should not be restricted from participating in our private capital markets.”
The proposed amendments would allow more investors to participate in private offerings by adding new categories of natural persons that may qualify as accredited investors based on their professional knowledge, experience, or certifications. The proposal would also expand the list of entities that may qualify as accredited investors by, among other things, allowing any entity that meets an investments test to qualify.
The public comment period will remain open for 60 days following publication in the Federal Register.
The proposed amendments to the accredited investor definition would add new categories of natural persons based on professional knowledge, experience, or certifications. The proposed amendments would also add new categories of entities, including a “catch-all” category for any entity owning in excess of $5 million in investments. In particular, the proposed amendments to the accredited investor definition would:
add new categories to the definition that would permit natural persons to qualify as accredited investors based on certain professional certifications and designations, such as a Series 7, 65 or 82 license, or other credentials issued by an accredited educational institution;
with respect to investments in a private fund, add a new category based on the person’s status as a “knowledgeable employee” of the fund;
add limited liability companies that meet certain conditions, registered investment advisers and rural business investment companies (RBICs) to the current list of entities that may qualify as accredited investors;
add a new category for any entity, including Indian tribes, owning “investments,” as defined in Rule 2a51-1(b) under the Investment Company Act, in excess of $5 million and that was not formed for the specific purpose of investing in the securities offered;
add “family offices” with at least $5 million in assets under management and their “family clients,” as each term is defined under the Investment Advisers Act; and
add the term “spousal equivalent” to the accredited investor definition, so that spousal equivalents may pool their finances for the purpose of qualifying as accredited investors.
The proposed amendments to the qualified institutional buyer definition in Rule 144A would add limited liability companies and RBICs to the types of entities that are eligible for qualified institutional buyer status if they meet the $100 million in securities owned and investment threshold in the definition. The proposed amendments would also add a “catch-all” category that would permit institutional accredited investors under Rule 501(a), of an entity type not already included in the qualified institutional buyer definition, to qualify as qualified institutional buyers when they satisfy the $100 million threshold.
The proposal will be subject to a 60-day public comment period. To submit comments, use the SEC’s Internet submission form or send an email to rule-comments@sec.gov.
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, 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
FrontFundr | Will Tang and Victoria Bennett | Dec 13, 2019
VANCOUVER, British Columbia, Dec. 13, 2019 (GLOBE NEWSWIRE) -- On November 27, 2019, FrontFundr obtained discretionary approval to use start-up crowdfunding rules already available in other provinces. Working with the Ontario Securities Commission (OSC), Canada's largest investment crowdfunding platform now offers its clients a simplified process to crowdfund in Ontario – providing opportunity for both companies and investors.
What does this mean for Canadian private companies?
Inefficient crowdfunding regulations that previously inhibited companies from raising capital from the public in Ontario have been removed. FrontFundr is now in a position to help its start-up clients based in Ontario and in any other jurisdictions in Canada to raise money from retail investors in Ontario. And conversely, Ontario investors now have an opportunity to invest in start-up companies from across the country.
“Access to capital can make or break a company,” said Peter-Paul Van Hoeken, Founder and CEO of FrontFundr. “We see our role as democratizing the private markets. We have successfully helped 42 companies raise capital; we are pleased the largest province in Canada now provides better access to crowdfunding in line with the rest of the country.”
At FrontFundr, we are all about democratizing capital – providing companies access to capital is in our DNA. We have been change-makers since we launched our platform in 2015 – successfully funding companies and transforming the Canadian private markets landscape by creating new opportunities for all Canadians.
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, 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