Regulators of Canadian securities have signed an agreement with top financial regulator in Taiwan to establish a “referral mechanism” between their fintech sandboxes.
Also, as part of the partnership deal, eight members of the Canadian Securities Administrators (CSA) have agreed to “information-sharing” with the Financial Supervisory Commission of Taiwan (FSC).
Both financial regulators from Canada and Taiwan will be able to send start-ups to their counterparts, offer support on how to handle the respective country’s regulatory regimes and circulate fintech related information on their respective markets.
Already, the CSA has launched its ‘Regulatory Sandbox Initiative’ for fintechs in a bid to test their products in Canada without regulatory restrictions. In the same vein, the FSC has launched its ‘FinTech Regulatory Sandbox’ after Taiwan implemented its new regulations in April 2018 to enable the creation of fintech sandboxes.
While talking about the agreement, the Chairman of FSC, Tien-Mu Huang said: “This co-operation agreement between Canada and Taiwan aims to promote financial innovation, enhance supervisory cooperation, and facilitate market access for fintech businesses on both sides.”
The fintech agreement is the fourth agreement signed by the FSC with a foreign counterpart so far after partnerships with Poland, Arizona state and France.
Few of Canada’s members are still anticipating the approval of government. The eight members comprise Saskatchewan, Alberta, British Columbia, New Brunswick, Manitoba, Nova Scotia, Ontario and Quebec.
The Chairperson and President of CSA, Louis Morisset in a statement said: “Canadian and Taiwanese innovative businesses will now have access to new regulated markets with this agreement between the CSA and the FSC.
“Investors and the fintech industry will benefit from our regulatory environments, which combine flexibility with appropriate investor protection measures.”
