UK Telegraph, Tech | Joseph Archer | Jan 7, 2019

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

Support NCFA by Following us on Twitter! Follow @NCFACanada

EY 2024 Financial Sector Report: Navigating New Norms

December 4, 2023

Dec 4, 2023 EY's 2024 Strategic Guidance for Financial Firms Focusing on Compliance, Digital Transformation, and Operational Resilience EY has published it's annual 2024 Global financial services regulatory outlook report highlighting the challenges and unprecedented opportunities for firms ready to adapt and excel in this dynamic environment. As we approach 2024, markets are increasingly shaped by complex regulations, digital innovation, and a heightened focus on sustainability and consumer protection. Report Overview Stay abreast of prudential developments, resolution, and recovery processes. Given the dynamic market conditions, it's crucial to be well-prepared for regulatory changes and heightened supervisory focus. Take a holistic approach to address a range of critical areas including consumer impact, environmental, social, and governance (ESG) factors, digital assets, the digitalization of finance, artificial intelligence (AI) integration, financial crime, and operational resilience. This comprehensive approach is key to staying competitive and compliant. See:  OSC/EY Report: AI in Fintech Use Cases Proactively develop a strategy for ongoing engagement with regulatory bodies, especially regarding new prudential developments. Understanding and anticipating regulatory shifts can position your firm for more effective compliance and strategic planning. Strengthen your firm’s capabilities in crisis management, ensuring that capital and liquidity standards are met. This will not only ...

Read More

Lemonade and Other Leading Insurtechs Form Coalition

December 4, 2023

Insurtech | Dec 4, 2023 The InsurTech Coalition launches with leading insurtech companies including Boost, Branch, Clearcover, Lemonade, and Root Insurance. The InsurTech Coalition, announced through an open letter to the insurance industry, positions itself as a pivotal voice in the industry and emphasizes the need for agility and the ability to adapt to the ever-changing needs of modern consumers through advanced technology. Coalition's Objectives The formation of an innovative InsurTech Coalition represents a significant collaborative effort among leading insurtech companies to drive the industry forward.  Since the announcement, additional insurtechs have joined including Indigo, Vouch, and Amplify. A core tenet of the Coalition is the responsible use of technology in insurance, ensuring that advancements benefit consumers and the industry ethically. See:  Costanoa: Insurtech Investment Themes and Opportunities The Coalition aims to empower consumers with modern tools and transparent practices, enhancing their experience and protection. Collaborate with regulators to build frameworks that support new technologies while prioritizing consumer protection is a primary goal. A commitment to make insurance products more accessible and affordable, addressing the needs of diverse communities. Founding members: "This is not a time for complacency.  We invite all like-minded insurtech advocates to join the InsurTech Coalition to ...

Read More

Stanford Economist Declares ‘End of the Office Era’

December 4, 2023

Remote Work | Dec 4, 2023 Stanford University economist Nick Bloom declares that the "return to the office is dead," marking a significant shift in the U.S. labor market. A recent CNBC article highlights the persistence of remote work as a permanent fixture in the post-pandemic world. During the early days of the COVID-19 pandemic, 61.5% of paid workdays were from home. This number decreased through 2022 but stabilized around 28% in 2023, still significantly higher than the pre-pandemic level of 7%. See:  Game-changer for Remote Work? Introducing the AR Laptop by Spacetop Key Insights The percentage of work-from-home days has plateaued in 2023, indicating a new normal in the labor market. Remote work offers advantages like no commute, flexible schedules, and cost savings, equating to an 8% pay raise for employees and reduced expenses for employers.  So benefits for everyone or a classic win-win? About 47% of employees capable of remote work were engaged in a hybrid model as of October 2023, blending in-office and remote work suggesting that hybrid arrangements will likely prevail. The strong job market since early 2021 has given employees leverage to seek better work arrangements, reinforcing the remote work trend. Long-term trends suggest an ...

Read More

AccelerateIP Launches New $12.5 Million IP Program for Startups

December 4, 2023

Intellectual Property | Dec 4, 2023 AccelerateIP launches with $12.5 million funding to help over 600 startups understand and secure their intellectual property The launch of AccelerateIP, as reported by Techcouver, is expected to help over 600 startups across British Columbia, Yukon, Nunavut, and the Northwest Territories with the $12.5 million funding received. The program's collaboration with the Province of British Columbia on their Intellectual Property Strategy initiatives further amplifies its impact. Led by New Ventures BC and supported by Innovate BC, along with a network of accelerator partners. ElevateIP Program Background ElevateIP, a program initiated by the Government of Canada a year ago, is designed to help Business Accelerators and Incubators (BAIs) provide Canadian startups with the necessary tools to understand, strategically manage, and leverage their IP. This initiative is part of the broader National Intellectual Property Strategy launched in 2018. The program was announced in the 2021 Budget, with an allocation of $90 million over four years starting from 2022-2023. Key activities include: Facilitating IP support by BAIs to startups across Canada; Increasing IP capacity in the BAI ecosystem through IP education for BAIs and their client startups; and Enabling BAIs to provide targeted supports customized to the ...

Read More

Considerations for Evaluating AI Startups in 2023

December 4, 2023

AI | Dec 4, 2023 AI is a game-changer, reshaping how startups innovate and deliver services. AI Is changing the startup landscape forever.  For instance, AI-driven platforms like Wealthsimple in Canada have revolutionized personal finance management, offering automated, algorithm-driven financial planning services. In the US, companies like Affirm and Robinhood are leveraging AI to personalize investing and credit services, making them more accessible to a broader audience. Across Europe, startups like Revolut and Klarna are using AI to enhance user experience and security, offering real-time fraud detection and tailored financial products. These examples underscore a significant shift towards AI-driven personalization and efficiency in financial services. See:  AI Metamorphosis in Venture Capital For investors, this shift means looking beyond traditional metrics and considering the innovative potential of AI in transforming financial services. The ability of AI to process vast amounts of data for insights, risk assessment, and customer personalization presents a new frontier for investment opportunities. Founders, on the other hand, must focus on leveraging AI to address specific financial challenges, ensuring compliance with evolving regulatory standards, and maintaining ethical standards in data usage. Evaluating AI Startups NFX has recently published the 5-Level AI Spectrum offering a high level framework for ...

Read More

CRA Tax Implications for Individuals and Crypto Platforms

November 30, 2023

Crypto Tax | Nov 29, 2023 The Canadian Revenue Agency (CRA) Has Clarified That Crypto Deposits on Trading Platforms May Trigger Taxes As deftly summarized in this November 2023 client update article from Goodman's LLP, the CRA suggests that:  A client holding cryptocurrency through a centralized Crypto Trading Platform (CTP) may not actually own the cryptocurrency for Canadian income tax purposes. Depositing cryptocurrency with a trading and lending platform could be considered a disposition for Canadian tax purposes, making it a taxable event for the client. Notes The CRA's response was based on two specific questions. The first question involved a Canadian taxpayer who lost bitcoin due to fraud on a platform. The CRA's response highlighted the need to determine the nature of ownership and the platform's liability in such cases. The loss's tax treatment depends on whether the cryptocurrency was held as a business or as a capital investment and the contractual relationship between the taxpayer and the CTP. See:  Proposed Changes to Crypto Mining GST/HST Rules: What’s Capture and What’s Not? The second question addressed the tax implications when a taxpayer transfers bitcoin to a platform offering a return, payable in bitcoin. The CRA concluded that such a ...

Read More

BoC Speech: Essence of the New Retail Payment Activities Act

November 30, 2023

Canadian Payments Regulation | Nov 30, 2023 New Retail Payments Regulatory Framework On November 28, 2023, Ron Morrow, the Executive Director – Supervision at the Bank of Canada delivered a speech about the new Retail Payments Activities Act in Canada at the Central 1 Momentum Summit in Vancouver, BC. See:  Canada’s New Retail Payment Regulations: Registration and Compliance Passed in the summer of 2021, the new Retail Payment Activities Act in Canada is a major shift in the supervision of retail payments, expanding the oversight of the Bank of Canada to include a broader range of Payment Service Providers (PSPs), many of which were previously not subject to supervision beyond anti-money laundering regulations. The Bank of Canada is focused on managing risks associated with payment activities. The robustness of national payment systems and rigorous supervisory roles of central banks have increased, especially after events like the Herstatt Bank failure in 1974 and the 2008-09 financial crisis. Registration and Compliance Under the new regime, PSPs are required to register with the Bank of Canada and comply with minimum standards for managing operational risks and safeguarding end-user funds. This includes separating end-user funds from operating funds and ensuring their protection through trust, ...

Read More

Reflecting on Charlie Munger’s Investment Wisdom

November 29, 2023

Investing | Nov 29, 2023 Reflecting on Charles T. Munger who passed away yesterday at the age of 99 in Santa Barbara, California Charles Thomas Munger (January 1, 1924 – November 28, 2023) The recent passing of Charlie Munger, the esteemed vice-chairman of Berkshire Hathaway (and billionaire), marks the end of an era in the investment world. As reported by The New York Times, Munger's influence extended beyond investment strategies to shaping the very culture of Berkshire Hathaway. His emphasis on integrity, patience, and rational decision-making are principles that fintechs and investors can adopt for long-term success. Born in Omaha in 1924, Munger served in the Army Air Corps and later graduated from Harvard Law School. He practiced law before shifting to investing, where he made his first million dollars. Munger was also known for his philanthropic efforts, particularly in architecture, donating millions to university projects. He was active in Berkshire Hathaway into his 90s and served as chairman of Good Samaritan Hospital in Los Angeles. Despite being overshadowed by Warren Buffett, Munger's influence at Berkshire Hathaway was significant. He was known as the originator of the company's investing approach, shifting Buffett's strategy from buying undervalued companies to investing in ...

Read More

BoC Update on The Digital Canadian Dollar Initiative

November 29, 2023

Canadian Digital Dollar | Nov 29, 2023 Bank of Canada Publishes Stakeholder Feedback on The Canadian Digital Dollar Initiative Since 2020, the Bank of Canada has actively engaged with Canadians and stakeholders to gather insights on the digital Canadian dollar. This has included diverse discussions with the financial sector, focus groups, civil society groups, and an online public questionnaire.  The Bank of Canada's report, "A Digital Canadian Dollar: What we heard 2020–23 and what comes next", provides a feedback lens across several themes. Key Feedback Themes There's a shared interest in accessibility and financial inclusion ensuring that the digital dollar caters to underserved communities, with a focus on making it accessible without stringent identification requirements. This approach aims to bridge gaps in current digital payment offerings and promote universal access. Stakeholders emphasized the importance and concerns of privacy, advocating for a digital currency that offers the anonymity of banknotes. The public expressed strong reservations about sharing personal information and the potential overreach of privacy laws. See:  Bank of Canada Publishes Staff Paper on ‘Unmet Payment Needs and CBDCs The importance of maintaining access to physical currency was highlighted, with suggestions to mandate merchant acceptance of banknotes to support marginalized communities ...

Read More

Exploring the Controversy of SEC’s In-House Judges

November 29, 2023

Regulation | Nov 29, 2023 Elon Musk and Mark Cuban Support Legal Challenge Against SEC's In-House Judges Elon Musk and Mark Cuban are backing hedge-fund manager George Jarkesy in a significant legal battle against the Securities and Exchange Commission (SEC). This case, now before the US Supreme Court, questions the SEC's use of in-house judges for imposing penalties. Jarkesy's argument, supported by Musk and Cuban, is centered on the constitutional right of defendants in SEC cases to have a jury trial. This challenge could reshape how the SEC and potentially other regulatory bodies like the Federal Trade Commission conduct their enforcement actions. The Problems with Conflicts and Power Imbalance The problem with the Securities and Exchange Commission (SEC) using in-house judges primarily revolves around concerns of fairness, constitutional rights, and the balance of power in regulatory enforcement. Here are some key points of contention: The central issue is the SEC's ability to bring cases before its own administrative law judges (ALJs) instead of federal courts. Critics argue that this denies defendants the constitutional right to a jury trial, which is seen as a fundamental aspect of the American legal system. There's a perception that in-house judges may be biased in ...

Read More