Regulating Disruption

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Mowat Centre | Sunil Johal and Michael Crawford Urban | May 11, 2017

Mowant centre regulating disruption - Regulating DisruptionGoverning in an era of rapid technological change:  In this report, the Mowat Centre examines the relationship between regulation and innovation in rapidly-changing technological industries. Building on this analysis and informed by examples from other jurisdictions, the authors suggest a suite of reforms to Canada’s regulatory frameworks and development processes aimed at enabling them to become more encouraging of innovation.

Executive Summary

Governments across the world are scrambling to respond to the arrival of innovative new digital services such as Uber, Netflix and Airbnb. While these services promise great benefits for Canadians, they also pose novel regulatory challenges to how governments are structured, engage with stakeholders and hire and train their staff.

How should governments regulate global services headquartered in other jurisdictions but available digitally within Canada? How can governments engage and encourage innovators and balance their needs with other stakeholders when government agencies struggle to hire and retain personnel who understand the technical issues involved? How can regulators successfully reconcile the deliberate pace of regulatory processes with the accelerating speed of innovation?

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Identifying solutions to these questions will be a vital step towards securing Canada’s prosperity in the digital age. Other countries have already launched serious efforts aimed at reducing the burden of regulation as well as other measures designed to make their regulatory systems more innovation-friendly. Without renewed attention to this issue, Canada risks being left behind.

This report argues that Canadian governments can and should undertake a serious and sustained effort to bring their regulatory practices and culture out of the industrial age and into the digital age. Canadian governments have the opportunity to significantly boost innovation in several exciting ways, ranging from a greater embrace of design thinking in their regulatory design processes, to the initiation of programs for enhancing technological capacity within government, to the development of new tools to ensure vigorous competition in digital markets. By leveraging these opportunities, governments can make a significant and positive contribution to Canada’s future and ensure Canadians are well-positioned to promote and reap the benefits of innovation.

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NCFA Jan 2018 resize - Regulating DisruptionThe National Crowdfunding & Fintech Association of Canada (NCFA Canada) is a cross-Canada non-profit actively engaged with fintech, alternative finance, blockchain, cryptocurrency, crowdfunding and online investing stakeholders globally. NCFA Canada provides education, research, industry stewardship, services, and networking opportunities to thousands of members and subscribers and works closely with industry, government, academia, community and eco-system partners and affiliates to create a strong and vibrant crowdfunding and fintech industry. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: ncfacanada.org

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NCFA Canada | Craig Asano | May 27, 2020 NCFA SUBMISSION TO CSA ON PROPOSED HARMONIZED RULES FOR START-UP SECURITIES CROWDFUNDING (NI 45-110) The Canadian Securities Administrators (CSA) are seeking comments on proposed harmonized rules for start-up securities crowdfunding by 27 May 2020. The National Crowdfunding and Fintech Association of Canada (NCFA) welcomes this initiative. The following addresses the specifics of the proposed rules, but please see our previous submissions on crowdfunding in Canada on our website in the advocacy section for more details – https://ncfacanada.org/advocacy/. 1. Harmonization NCFA has argued for many years that CSA crowdfunding rules are unduly constraining, and this enhanced harmonization will enable a greater use of crowdfunding across Canada, help to fill a funding gap, and allow more retail investors to invest in businesses whose purpose they support. 2. Impact of the pandemic on fundraising Today, early stage Ventures are the most likely not to get funded as they lack established relationships with banks (including BDC) and they have been amongst the hardest hit by the pandemic.  Many VC funds are moving towards growth equity (later stage) investing and foreign investors mainly invest at later stages.   3. Funding cap While the maximum total amount ...
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NCFA Response to CSA Request for Commments on Proposed Crowdfunding Harmonization Rules NI 45 110 - Regulating Disruption
Sifted | Tim Smith | May 26, 2020 As coronavirus has forced classrooms around the world to move online, kids are getting creative in trying to sabotage lessons Georgina Farnham, a Barcelona-based English literature and language teacher, was just getting used to the transition to online teaching when, one day, she thought the internet trolls had parked their tanks on her lawn. Farnham was making use of Kahoot!, the Norwegian educational games app, when the sabotage struck. “We were playing a game and it kept just crashing and not giving kids time to answer the questions, and on the leader board, all of these ridiculous names that hadn’t been entered into the game as players were coming up: ‘gayboy27’, ‘Covid-19’ — offensive names,” she explains. See:  58 Must-Read Remote Work Resources | 50 Great Remote Working Resources The kids said it was nothing to do with them, and Farnham got worried: “I thought someone had hacked into our game and was watching us, and I was worried for our cyber security.” Farnham quickly contacted the Kahoot! customer service team to find out what was going on. But the culprits, as it turned out, were closer to home than she had ...
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Koho Release | Brittany Bell | May 27, 2020 TORONTO, May 27, 2020 (GLOBE NEWSWIRE) -- KOHO, Canada’s leading challenger bank, today announced it is piloting a new Early Payroll feature that will help those under financial strain pay their bills and make ends meet. KOHO’s Early Payroll pilot will grant users free access to $100 of their CERB payment before the scheduled payday. KOHO will not charge fees or interest. The company hopes this will provide a cushion that many Canadians could use right now to help pay bills and necessary expenses, and avoid harmful loan alternatives. “The economic impact of COVID was not equally distributed,” said Daniel Eberhard, Founder and CEO of KOHO. “A lot of lower and middle income Canadians are vulnerable right now. The KOHO team did an amazing job putting this together so quickly. We hope it helps.” In 2016 the Financial Consumer Agency of Canada released a report on payday loans that revealed the average cost of a $300 loan (for two weeks) is $63. That means 21% of the money you borrow is automatically eaten up by fees. See:  Shopify Balance Brings Banking and Cash Flow to Merchants In March, KOHO partnered with ...
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koho covid adavnces - Regulating Disruption
May 27, 2020 As real estate prices keep rising, the practice of crowdfunding your workplace — especially if you're independently funded — has never been more critical. When you crowdfund your workplace, you preserve your independence while also giving your workers and all interested stakeholders a better opportunity to mobilize and commit to the project. Community Mobilization  As evidenced by the success of coworking space co.up, which has managed to crowdfund €7,950 to build a new top floor and renovate their current building, crowdfunding is an innovative and practical way to meet your business requirements for coworking space. It has demonstrated that workers and business owners can make use of the enthusiasm of workers and coworkers to "succeed through support of other communities already wishing to benefit from this extra space," according to Alex, the community manager. His confidence is understandable; Co.up was able to double its size thanks to crowdfunding. It may be easy to consider this feat as a one-off, but other projects have shown that it is possible to raise a significant amount of money by ensuring community participation in crowdfunding. See:  SEC Gives Break on Crowdfunding Rules for Some Small Firms For example, organizations such as ...
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Forbes | Randall Lane | May 26, 2020 In a matter of weeks, Covid-19 spurred seismic shifts in how we work, learn and transact, and it helped usher in a new era that is smarter and fairer. The surreal year 2020 produces a personal Groundhog Day effect. The clock moves at one-quarter speed as the time-numbing diversions and necessities of a century ago, from jigsaw puzzles to yeast, fly off the virtual shelves. Simultaneously, though, the world is transforming at a pace unlike any experienced since World War II. In a matter of weeks, seismic, permanent shifts have occurred in how we work, learn and transact. The most significant shift is taking place in our economic system itself. See:  OpEd: IT’S TIME TO BUILD Capitalism, the greatest engine for prosperity and innovation ever created, was already under strain before the coronavirus pandemic. Despite a decade of impressive economic growth and job creation, a plurality of Americans still reported feeling as though the system was rigged, that hard work and playing by the rules no longer ensured success. “It is scary when you had the lowest unemployment, the lowest African-American unemployment, the lowest Hispanic unemployment, the lowest women’s unemployment,” says Michael Milken, ...
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The Globe and Mail | Patricia Chisholm | May 22, 2020 The emerging use of artificial intelligence (AI) to support or even replace human financial advisors is attracting the attention of regulators – mainly in Britain but also in Canada. While they’re broadly supportive of AI as a cost-efficient tool to broaden the reach of financial advice, they’re also monitoring the potential risks and challenges, trying to ensure that this advice remains both suitable and transparent for clients. The current crisis is certainly putting the usefulness of the new technology to the test. Tony Vail, chief advice officer at Wealth Wizards, a fwell-known provider of AI-assisted financial advice in Britain, says: “We’re finding increasing demand for our technology solutions [as a result of the crisis]. For example, our digital financial advisor, MyEva, had an unprecedented response to an [online] nudge offering help and guidance with finances related to the impacts of COVID-19.” See:  WealthBar rebrands as CI Direct Investing Given the increased attention on AI-assisted advice, Britain’s Financial Conduct Authority (FCA) is taking a proactive approach on the matter. Last autumn, the FCA and the Bank of England conducted a survey of more than 100 financial services firms on their ...
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Wealth Professionals | David Kitai | May 21, 2020 CEO tells WP why the firm is rebranding and what new opportunities lie in the company's future Robo-advisor WealthBar is rebranding as CI Direct Investing with parent company CI financial increasing their ownership stake from 75 per cent to 100 per cent. Tea Nicola, founder and CEO of WealthBar, says that in terms of day to day operations nothing will change for their advisors and their clients. While she admits a bit of melancholy saying goodbye to the brand she built, she accepts that this is the logical next stage for her company and looks forward to the new challenges and opportunities she and her team will be taking on as CI Direct Investing. WealthBar will eventually be combined with Virtual Brokers, CI’s discount broker. See:  Why Partnerships Are the Future for Fintech “We're currently not making any major changes aside from the rebrand itself,” Nicola says. “We're simply fully focused on supporting our customers, growing with the current demand we're seeing and launching this rebrand.” Nicola explained that the rebrand fits in a wider strategy on the part of CI financial, unifying their group of companies under a shared banner ...
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Wealthbar rebrand - Regulating Disruption
Independent.ie | Adrian Weckler | May 21, 2020 A 20-year-old former BT Young Scientist winner has landed $16m (€14.6m) in new funding from some of Silicon Valley’s most prestigious US venture capital firms The famous former data security chief for Yahoo and Facebook, Alex Stamos, has come on as a new investor, as have Eventbrite CEO Kevin Hartz and (French firm) Datadog’s CEO Olivier Pomel.  The heavy-hitting Silicon Valley firms backing the venture are led by Index Ventures with participation from Sequoia Capital and Kleiner Perkins and assistance from Dublin-based venture firm Frontline. “We’re aiming to distill what GDPR did in 99 Articles down to a line of code,” said Mr Curran. Seven years ago, Sequioa invested in the payments firm created by another former Young Scientist winner, Patrick Collison and his brother John. Stripe has gone on to become one of the world’s most valuable private companies, valued at $35bn (€31.7bn). See:   Cyber security world first as unique guide is launched Evervault hosts a network of hardware-secured data processing ‘enclaves’ which allows developers to deploy their applications in privacy ’cages’.  These cages allow information to be processed securely with strictly controlled access but without changing the way that developers ...
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Forbes | Christopher Helman | May 21, 2020 It’s everyone’s dream to get paid to do nothing. Bitcoin miner Layer1 is turning that dream into reality — having figured out how to make money even when its machines are turned off.  Layer1 is a cryptocurrency startup backed by the likes of billionaire Peter Thiel. In recent months, out in the hardscrabble land of west Texas, the company has been busy erecting steel boxes (think shipping containers) stuffed chockablock with high-end processors submerged inside cooling baths of mineral oil. Why west Texas? Beause thanks to a glut of natural gas and a forest of wind turbines, power there is among the cheapest in the world — which is what you need for crypto. See:  Bitcoin’s “halvening” is upon us “Mining Bitcoin is about converting electricity into money,” says Alex Liegl, CEO and co-founder. By this fall Layer1 will have dozens of these boxes churning around the clock to transform 100 megawatts into a stream of Bitcoin. Liegl says their average cost of production is about $1,000 per coin — equating to a 90% profit margin at current BTC price of $9,100. So it’s odd how excited Liegl is about the prospect ...
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Guest Post | May 23, 2020 Over the years, the many forms of data storage and transfer devices have failed due to one reason or another. Floppy disks used to get spoiled too quickly, and CDs were an inconvenience when having to burn data on to them just to make it portable. However, after the introduction of USB flash drives to the market, numerous problems faced by almost anyone who had a job working with computers were solved. They are known by many names; flash drives, thumb drives, USB drives, pen drives etc. and come in many shapes and sizes but their main function is storage and transfer of digital data from one location to another. The biggest benefit of these devices is that they are USB (meaning they connect via universal serial bus terminals) and the fact that they are plug-and-play (meaning that they do not require any external software to be installed before use). However, as with anything on the market, certain precautions need to be taken while making a purchase for a USB drive as well as during its use. Some Things to Know When Purchasing a Flash Drive: Avoid buying a USB drive that requires any ...
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Flash drives and USB sticks - Regulating Disruption

 

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