Not yet a done deal

share save 171 16 - Not yet a done deal

Investment Executive | By James Langton | Nov 23, 2018

CCMR national regulator - Not yet a done dealMany hurdles remain for the CMRA before it becomes a reality

Canada’s regulatory landscape faces a transformation as politics, shifting priorities and new legal realities push the investment industry’s overseers in new directions.

Most obviously, the prospect of a fundamental reshaping of the regulatory framework in Canada now is, at least, a possibility – given the Supreme Court of Canada’s (SCC) long-awaited decision on Nov. 9, which reversed a lower court’s ruling in Quebec, that declared that a proposed federal/provincial model for a co-operative capital markets regulator is constitutional.

But while this decision knocks down a basic legal obstacle for the new model for overseeing the securities industry, that doesn’t mean that the adoption of a co-operative regulator is imminent – or even inevitable. Indeed, the SCC’s decision hints at the significance of the hurdles that still must be cleared before the proposed Capital Markets Regulatory Authority (CMRA) can become a reality in Canada.

Although the SCC has found that the proposed CMRA model is constitutional, that doesn’t necessarily mean it is a good idea. “It’s up to the provinces to determine whether participation is in their best interests,” the SCC’s decision states.

See:  CCMR Draft Prospectus and Related Registration Exemptions (Comment period ends Aug 7, 2018)

And even though several provinces have signed on to the proposed initiative, in theory, actually going through with adopting the new system, in practice, may be another matter.

“For example,” the SCC’s decision states, “the participating provinces will be required to effectively dissolve their existing securities commissions and to merge the administration of those commissions into the [proposed] authority’s organizational structure. Once this has been done, it would undoubtedly be impractical for those provinces to extricate themselves from the co-operative system at a later date.”

The SCC’s decision also points out that the legislation required to enable the proposed CMRA has not been published yet. And, once the required legislation is proposed, “it will have to be carefully drafted so as to respect the limits on overlapping, yet distinct federal and provincial authority.”

Indeed, poorly drafted legislation could prompt further challenges in court.

Certainly, policy-makers in Quebec are not ready to concede that some form of national regulation is inevitable now. Following the release of the SCC’s decision, Éric Girard, Quebec’s finance minister, said that the province intends to retain its autonomy and expertise regarding securities regulation. The Autorité des marchés financiers (AMF) is not in jeopardy of being absorbed into the CMRA if and when the new agency comes into being.

Girard also highlighted the SCC’s reminder that the CMRA’s enabling legislation must continue to respect provincial jurisdiction, and he hinted that Quebec will be keeping a close eye on this. “We reaffirm our resolve with regard to defending both the interests of Quebecers and Quebec’s jurisdiction from any eventual encroachment,” he said.

Even longtime supporters of national regulation don’t view the CMRA as a done deal, given the amount of political spadework that still needs to be done. Ian Russell, president and CEO of the Investment Industry Association of Canada, for example, notes that although the SCC decision removes one stumbling block to the “eventual launch” of a co-operative regulator, there are numerous others.

See:  SCC hears Canada and Quebec AGs arguments on national securities regulator

Not only will all of the participating provinces need to pass legislation to enable the CMRA and to delegate their authority to the proposed agency, they may have to amend other laws, such as privacy and labour laws, to be in accord with the new regulator, Russell points out: “This will contribute to continued delay, as the pending legislation has low priority in provincial governments beset with difficult economic conditions. The approval process is further handicapped by the lack of a champion at the political level.”

Moreover, the SCC’s decision on its own isn’t likely to win over any of the provinces that currently aren’t part of the initiative, Russell suggests: “This means significant further delay, given the need to establish a regulatory interface between the participating and non-participating provinces to ensure integrated national capital markets. The participating and non-participating provinces also will have to establish an umbrella arrangement to achieve a uniform rule framework.”

The one positive sign for supporters of the CMRA model is that the new Progressive Conservative government in Ontario backs the plan despite the fact that support for the idea of a co-operative regulator is a holdover from the previous Liberal government.

Although Ontario’s new government actively repudiates many of the previous administration’s policies, the Tories are casting the CMRA initiative as being in line with the party’s goal of curbing regulation. (See accompanying sidebar story.)

Reacting to the SCC’s ruling, Vic Fedeli, Ontario’s finance minister, said, “Ontario is committed to working with the other participating jurisdictions toward the launch of the system … the co-operative system would support businesses and investors by helping to streamline regulation and reduce red tape.”

Ontario’s government also reiterated its support for the CMRA initiative in its first-ever autumn economic update, noting that the government believes a co-operative regulator would help “businesses raise capital more efficiently and better protect investors.”

Nevertheless, launching the CMRA remains a distant prospect at this point. In the meantime, the fact that the SCC validated one of the CMRA’s core purposes – better monitoring of systemic risk – shifts the spotlight to the existing members of the Canadian Securities Administrators (CSA).

See:  Saskatchewan, New Brunswick to join national securities regulator

To be sure, systemic risk is on the agenda of both the CSA and the existing provincial securities commissions already, but the SCC ruling highlights that their efforts in this area are limited: “While provinces have the capacity to legislate [with] respect [to] systemic risk in their own capital markets, they do so from a local perspective and therefore in a manner that cannot effectively address national concerns.”

Indeed, in 2011, the SCC first ruled that the monitoring of systemic risk is an area in which the federal government could claim jurisdiction in the traditionally provincial realm of securities regulation. And the proposed federal legislation that would be adopted as part of the CMRA focuses largely on dealing with systemic risk.

“The heart of this is data collection. In the current Canadian financial regulatory regime, there is a gap in data collection because there is nobody charged with the authority to collect data relating to systemic risk threats on a national basis,” explained Kevan Cowan, CEO of the Capital Markets Authority Implementation Organization (which was established to help create the CMRA), at a hearing before the Standing Senate Committee on Banking, Trade and Commerce in early November.

At the same hearing, Cowan said that because the CMRA would carry out both day-to-day regulation and systemic risk monitoring under one roof, there could be synergies realized in this model that don’t exist in the current system.

Nevertheless, the CSA maintains that it stands ready to meet the ever-changing and evolving demands on securities regulators.

“While provincial governments will determine the nature of future relationships among all Canadian securities regulators, I am confident that our member jurisdictions will continue to work collaboratively to deliver on their core mission, which is to protect investors and promote fair, efficient and transparent markets,” says Louis Morisset, chairman of the CSA and president and CEO of the AMF.

Morisset adds: “If the CMRA initiative ever moves forward,” the members of the CSA will work together to “implement an interface” among provinces that are in the new arrangement and those that are not.

“In the meantime,” Morisset adds, “we are working on delivering on the initiatives of our 2016-19 business plan and will work on the development of a new business plan in the year to come.”

Continue to the full article --> here


NCFA Jan 2018 resize - Not yet a done deal 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

Latest news - Not yet a done dealFF Logo 400 v3 - Not yet a done dealcommunity social impact - Not yet a done deal

JOIN US THUR, AUGUST 13 CURRENCY WARS, DIGITAL ASSETS, THE RISE OF DEFI WEEK!


GET TICKETS NOW
More Info


Week 6 Currency Wars Digital Assets and DeFi resize - Not yet a done deal



NCFA COVID 19 letter to government to support Fintechs and SMEs - Not yet a done deal

NCFA Newsletter subscribe600 - Not yet a done deal

Guest Post | Aug 7, 2020 As a business owner, you'll always be on your toes to ensure that your business succeeds. However, this may not always be the case. There are financial liabilities that could cost your business a great deal. These may include debts, payable interests, overdrafts, and other various acquired expenses. Liabilities can be categorized into current liabilities, contingent liabilities, and non-current liabilities just to mention but a few. All these could mean disaster for your business especially if you had not had a contingency plan. Now, this could either spell catastrophe for your business or the start of something new. In this informative guide, we'll be shedding more light on what you need to do if your business is on the edge of bankruptcy. 1. File for Bankruptcy If you've been running your business unsuccessfully and are found to be in debt, you shouldn't spend sleepless nights lamenting over it. Just file for bankruptcy and you'll find the help that you need. In doing so, it will help to shield you against creditors. This simply means that when creditors try to collect accumulated debts from you, you'll have been granted immunity by the courts. This, however, ...
Read More
bankrupt image - Not yet a done deal
Norton Rose Fulbright | July 2020 Financial institutions, including banks, asset/fund managers and insurers, as well as established FinTech businesses and start-ups, have been presented with major disruptive events with the advent of COVID-19 and national lockdowns, and with the impending risk of global or regional recessions. How are financial institutions and FinTechs responding to such challenges? What role might new business models, strategic collaborations, investment and M&A, outsourcing, regulatory considerations, and the risk of litigation play in addressing such challenges? See:  Fintech Reports and Research To find out, in May and June we undertook a survey of a range of banks, asset/fund managers, insurers, established FinTech businesses, FinTech start-ups and venture capital and consulting firms across the globe. We invite you to read the findings of the survey which cover the following subject areas: FinTech as a strategic priority New FinTech use cases FinTech strategic collaborations FinTech investment and M&A Outsourcing and FinTech Regulatory impact in relation to FinTech initiatives FinTech areas of potential dispute Download the 23page PDF Report --> Now 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 ...
Read More
Norton Rose Fulbright Fintech and institutions covid lockdown recession Survey - Not yet a done deal
OSC | Press Release | Jul 31, 2020 Toronto – The Canadian Securities Administrators (CSA) today announced that in light of COVID-19 and the challenges it presents to small businesses seeking to raise capital, the Ontario Securities Commission (OSC) made an interim local order that adopts the start-up crowdfunding regime currently in place in certain other Canadian jurisdictions (the Interim Order). The Interim Order, which takes effect in Ontario on July 30, 2020, provides registration and prospectus exemptions for start-up crowdfunding that are substantially similar to the local exemptions in British Columbia, Alberta, Saskatchewan, Manitoba, Quebec, New Brunswick and Nova Scotia. On February 27, 2020, the CSA published for comment National Instrument 45-110 Start-Up Crowdfunding Registration and Prospectus Exemptions (the Proposed National Instrument), which will replace and harmonize the local start-up crowdfunding exemptions in British Columbia, Alberta, Saskatchewan, Manitoba, Québec, New Brunswick and Nova Scotia (as well as those in Ontario adopted through the Interim Order). The comment period on the Proposed National Instrument ended on July 13, 2020. “The adoption of the Interim Ontario order will better facilitate access to capital for start-ups and other small businesses, while still providing appropriate investor protection,” said Louis Morisset, Chair of the ...
Read More
OSC 1 - Not yet a done deal
NCFA Canada | Team FFCON20 | Aug 3, 2020 Join us Thursday, August 6, 2020!  As the digital economy grows and the world increasingly moves online, the future of digital identity will deliver new frameworks and infrastructure to support digital commerce, online interactions and social identification in more secure and robust ways than ever thought before. This future is here today where individuals and businesses can establish digital representations of their identities to serve as the gateway to store and protect sensitive data, manage permissions and ultimately enable the future of Convergence Marketplaces. Why digital identity matters globally in 2020 – where is it taking us and what’s the future How businesses and government need to adapt to consumer ownership of data Are consumers ready to control their own data? How blockchain technology and other core tenants are the foundation for Convergence Marketplaces – A peak into the future Liquid Avatar and and convergent marketplace DEMOs   FFCON20 Week 5:  In Focus NEXT UP --> Aug 6, 2020 Digital Identity & Convergence Marketplaces Time remaining for this deal ...
Read More
Week 5 Digital Identity and Convergence Marketplaces resize2 - Not yet a done deal
NCFA | Samuel He | July 28, 2020 With technical job creation outpacing the rate of technical studies graduates, demand for software developers is high. As a result, competition for in-house software development talent is expensive. The rapidly growing Fintech space requires top-notch development teams to push the limits of new financial experiences. Ideas in fintech are plentiful, but the challenge is a lack of technical capability. Recognizing this need, Finnovate.io was founded in 2016 to provide digital innovation services to customers in the Fintech ecosystem. Finnovate.io specializes in web, mobile, and blockchain application development. They have a track record of providing technical expertise at all stages of product development. See:  Fearless: How Technology Helps Conquer our Fear of the Unknown Acting as a trusted software development partner, the company leverages its expertise in software technology and finance by working closely with a client’s core team. Their mission is to deliver results while cutting time to completion, costs, and stress. As a part of their product mix, they also deliver technical training to their Fintech partners. Finnovate.io’s training initiatives involved gamifying financial literacy training in the classroom for Junior Achievement. They also delivered a budget simulation experience that changes the way ...
Read More
finnovate.io home - Not yet a done deal
NCFA | FFCON20 Team | July 28, 2020 Join us Thursday, July 30, 2020!  Leaders inspire a vision of the future, motivate and coach others, and bring together the resources and skills to achieve a vision.  They must overcome challenges and obstacles as they lead people, technology, markets and navigate regulation towards transformative change. How humans can adapt during crisis and how to unleash it How to understand and lead in culturally diverse and different environments What are the 'People lessons' learned for growing organizations? How can a dynamic leader capitalize on their vision, market and relationships? Interactive Networking Breakouts!  Network and learn with experts on the topics of 'Pitching & Funding During Covid-19, Fintech Innovation and Growth Mentoring' ...
Read More
Leadership image 1 - Not yet a done deal
NCFA Canada | Craig Asano | July 28, 2020 TORONTO, JUL 28, 2020 – The National Crowdfunding & Fintech Association of Canada (NCFA) today announced that Michelle Beyo, Founder and CEO of Finavator, has joined the Association`s growing Advisory Group to advise on the areas of payments and financial inclusivity. Michelle Beyo is Founder & CEO of Finavator INC, Money2020 RiseUp Alumni, WomeninPayments Global Console & Award Committee Member, FinTech Advisor, CPPO Member, Amazon Prime Docu-Series Associate Producer and Participate on season two of The Social Movement. Michelle started Finavator as she is passionate about payments & financial inclusion. Her background in Telecoms, E-commerce, Prepaid and Loyalty programs nurtures her passion for the world of tech. She has 20 years of extensive industry experience driving innovation across the retail and payments industry. Her most recent roles were as Chief Client Officer for a Blockchain startup focused on consent-based data sharing, Senior Director of Sales and Marketing at InComm, and Director of Loyalty Solutions for Aeroplan Division at International Marketing Company. Her company, Finavator (www.finavator.com), helps Enterprise and Fintech companies present their customers with innovative payment and digital services. Finavator's team has experience and expertise in Payments, Open Banking, Prepaid Solutions, ISO 20022, Challenger Banks, , Affiliate Marketing, Micro Loans, E-Commerce, ...
Read More
Michelle.Beyo 320 - Not yet a done deal
Crowdfund Insider | JD Alois | Jul 27, 2020 Seedrs has long been an innovator in the secondary market for crowdfunded securities. Today, the leading UK based crowdfunding platform is announcing variable pricing for its secondary market. Launched in 2017, Seedrs Secondary Market has continued to iterate and add new features and functionality. Of course, the biggest challenge is liquidity but that is something that should resolve itself over time as the platform grows and external issuers utilize the marketplace. According to a recent blog post, Seedrs July market volume saw levels return to their “pre-Revolut levels of trading.” Seedrs states that during the July opening, 907 share lots were sold worth £229,000. There were 456 buyers and 423 sellers trading in securities issued by 162 businesses at an average value per business of £1.4k. Seedrs reports that each seller made an average profit of £202. See:  OSC LaunchPad approves TokenGX (Tokenfunder) for Secondary Trading of Digital Securities Variable pricing should make it easier for buyers and sellers to make a market by matching supply with demand more effectively. In an email, Seedrs founder and Chairman Jeff Lynn said variable pricing represents an “important milestone in our work to be ...
Read More
Seedrs raising capital - Not yet a done deal
Sifted | Isabel Woodford | Jul 22, 2020 It's been a slow journey to get UK customers meaningful control of their bank data. Is the next phase of "open finance" the answer? It’s a noble task to want to help users control, access and utilise their financial data better. The problem is, users aren’t convinced they want a third-party poking their nose into their data, or if it’s really of much use to them. Here are their top four top takeaways about what it will take for open banking to take off, and why open finance is an important next step. 1) Success relies on building awareness The panellists agreed that one key obstacle to open banking so far has been a trust-gap; fuelled by poor communication around user-benefits. See:  3 examples of what open finance can do right now Roisin Levine referenced research that still shows “very, very low percentages” of people say they’re willing to share their data in exchange for “more personalised services.” She said these vague concepts are unhelpful and apps need to “explain this stuff…don’t use these big, high-level generic terms.” She recommended products leveraging open banking get more specific about the benefits to boost ...
Read More
open banking US vs UK and Europe - Not yet a done deal
The Finanser | Chris Skinner | July 21, 2020 I’ve seen a few big deals signed this month to get banks onto the cloud, such as National Australia Bank (NAB) switching to Microsoft’s Azure, and Deutsche Bank moving to the Google Cloud. McKinsey expect that cloud usage will rise from less than a quarter of banks business being cloud-based to anything between 40 and 90 per cent of banks’ workloads globally moving to the cloud over the next decade. Bankers believe coronavirus will accelerate that shift dramatically which is why companies like IBM made a big announcement of renewed Cloud for Financial Services offer yesterday. This is a development building on when Bank of America and IBM announced their collaborative efforts in creating the first public cloud specifically designed to address the requirements of financial services institutions late last year. See:  4 Digital Transformation Lessons that Banks Need to Learn from Covid-19 Bank of America’s Cathy Bessant, Chief Operations and Technology Officer at Bank of America described the new partnership with IBM as “one of the most important collaborations in the financial services industry cloud space. This industry-first platform will allow Bank of America to use the public cloud, putting data ...
Read More
fintechs banks and cloud - Not yet a done deal

 

share save 171 16 - Not yet a done deal