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    FCA OSC Co Operation Agreement

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    Financial Conduct Authority and Ontario Securities Commission Cooperation Agreement. Fintech. February 2017.

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    FCA OSC Co Operation Agreement

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    CrowdfundInsider
    321 views8 pages
    Financial Conduct Authority and Ontario Securities Commission Cooperation Agreement. Fintech. February 2017.

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    © © All Rights Reserved

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    PDF, TXT or read online from Scribd

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    Financial Conduct Authority and Ontario Securities Commission Cooperation Agreement. Fintech. February 2017.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    321 views8 pages

    FCA OSC Co Operation Agreement

    Uploaded by

    CrowdfundInsider
    Financial Conduct Authority and Ontario Securities Commission Cooperation Agreement. Fintech. February 2017.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 8

    Dated 22nd February 2017

    Co-operation Agreement

    United Kingdom Ontario

    1
    Contents

    1. Definitions 3

    2. Introduction 4

    3. Purpose 5

    4. Principles 5

    5. Scope of assistance (Referrals & Information Sharing) 5

    6. Confidentiality & Permissible Uses 6

    7. Term 6

    8. Amendment 7

    Appendix 1: Authority-wide contact details 8

    2
    Financial Conduct Authority
    25 The North Colonnade
    Canary Wharf
    London E14 5HS

    Ontario Securities Commission


    20 Queen St. West, 22nd Floor
    Toronto, Ontario, Canada
    M5H 3S8

    Innovation Functions Co-operation Agreement between

    Financial Conduct Authority (FCA)

    and

    Ontario Securities Commission (OSC)

    1. Definitions

    For the purposes of this Co-operation Agreement, unless the context requires otherwise:

    "Authorisation" means the process of licensing, registering, approving, authorising or


    otherwise bringing an entity under either Authoritys regulatory ambit so that they are
    authorised to carry on business in providing a financial service or issuing a financial
    product in the relevant Authoritys jurisdiction;

    "Authority" means:

    1. the FCA;

    2. the OSC; or

    3. any other Canadian securities regulatory authority which has established an


    Innovation Function and that becomes a party to this Co-operation Agreement
    in the manner set forth in section 8.

    "Criteria for Support" means the criteria of a Referring Authority that an Innovator
    Business is required to meet before the Referring Authority will refer the Innovator
    Business to a Receiving Authority;

    "Innovator Business" means an innovative financial business that has been offered
    support from an Authority through its Innovation Function, or would qualify for such
    support;

    Innovation Function means the dedicated function established in the Authorities to


    promote innovation in financial services in their respective markets;

    "Receiving Authority" means the Authority that is receiving an Innovator Business


    referral or information relating to that referral;

    "Referring Authority" means the Authority that is referring an Innovator Business to the
    Receiving Authority; and

    3
    "Regulations" means any regulation or regulatory requirement applicable in the
    jurisdiction of an Authority.

    2. Introduction

    2.1. The Authorities share a mutual desire to promote innovation in financial


    services in their respective markets. The Authorities have established
    Innovation Functions in order to do so. The Authorities believe that through
    co-operation with each other, they will be able to further the promotion of
    innovation in their respective markets.

    Background to the Authorities' Innovation Functions

    2.2. The FCA launched Project Innovate in October 2014, with the objective of
    encouraging innovation in financial services in the interests of consumers by
    supporting innovator businesses with a range of services. This is closely tied
    to the FCAs objective of promoting effective competition in the interest of
    consumers. Project Innovate is led by the FCAs Innovation Hub.

    2.3. On October 24, 2016, the OSC announced OSC LaunchPad to engage with
    Fintech businesses, provide the opportunity for support in navigating the
    securities requirements and strive to keep regulation in step with digital
    innovation. OSC LaunchPad will support innovation while fulfilling its
    mandate to provide protections to investors and promote confidence in its
    markets. OSC LaunchPad will initially operate as a pilot project.

    Support offered through the Innovation Functions

    2.4. The support offered by the Authorities to Innovator Businesses through their
    Innovation Functions includes:

    2.4.1. A team and/or a contact for each Innovator Business;

    2.4.2. Help for Innovator Businesses to understand the regulatory


    framework in the relevant Authority's jurisdiction, and how it applies
    to them;

    2.4.3. Assistance during the pre-authorisation application phase to:

    2.4.3.1. Discuss the authorisation application process and any


    regulatory issues that the Innovator Business has
    identified; and

    2.4.3.2. Ensure the Innovator Business understands the relevant


    Authority's regulatory regime and what it means for
    them.

    2.4.4. Support during the authorisation process, including the allocation of


    authorisation staff to consider the application that are knowledgeable
    about financial innovation in their respective markets.

    2.4.5. A dedicated contact and the provision of assistance after an


    Innovator Business is authorised, as and when circumstances require
    it.

    4
    3. Purpose

    3.1. The purpose of this Co-operation Agreement is to provide a framework for co-
    operation and referrals between the Innovation Functions of each Authority.
    The framework centres on a referral mechanism which will enable the
    Authorities to refer Innovator Businesses between their respective Innovation
    Functions. It also sets out how the Authorities plan to share and use
    information on innovation in their respective markets.

    4. Principles

    4.1. The Authorities intend to provide the fullest possible mutual assistance to one
    another within the terms of this Co-operation Agreement. This Co-operation
    Agreement operates subject to the domestic laws and regulations of each
    Authority and does not modify or supersede any laws or regulatory
    requirements in force in, or applying to, the United Kingdom or Canada. This
    Co-operation Agreement sets forth a statement of intent and accordingly
    does not create any enforceable rights, and is not legally binding. This Co-
    operation Agreement does not affect any arrangements under the existing
    2013 Memorandum of Understanding between the OSC and the FCA.,
    including the IOSCO Multilateral Memoranda of Understanding concerning
    consultation and co-operation and the exchange of information for
    enforcement purposes. .

    5. Scope of Assistance (Referrals & Information Sharing)

    Referral mechanism

    5.1. The Authorities, through their Innovation Functions, will refer to each other
    Innovator Businesses that would like to operate in the others jurisdiction.

    5.2. Referrals should include information demonstrating that the Innovator


    Business seeking to operate in the Receiving Authority's jurisdiction meets, or
    would meet, the Referring Authority's Criteria for Support.

    5.3. Following referral, the Receiving Authority's Innovation Function should offer
    support to the Innovator Business in accordance with paragraph 2.4 above.

    5.4. The Referring Authority acknowledges that an Innovator Business benefiting


    from the Receiving Authoritys Innovation Function's assistance during the
    pre-authorisation phase may or may not meet the requirements for
    authorisation, and that in providing assistance through the Innovation
    Function, the Receiving Authority is not expressing an opinion about whether
    an Innovator Business will ultimately meet the requirements for authorisation
    in its jurisdiction.

    Information sharing

    5.5. The Authorities undertake, subject to applicable domestic laws and


    regulations, to share information about innovations in financial services in
    their respective markets, where appropriate. This may include, but is not
    limited to:

    5.5.1. Emerging market trends and developments; and

    5.5.2. Regulatory issues pertaining to innovation in financial services.

    5
    5.6. The Authorities agree, subject to applicable domestic laws and regulations, to
    share further information on Innovator Businesses which have been referred
    to a Receiving Authority for support through its Innovation Function by a
    Referring Authority (including the nature of the support to the Innovator
    Business by the Referring Authority pursuant to paragraph 2.4.).

    5.7. The Authorities should notify each other of any material changes to the other
    Authority's Criteria for Support.

    6. Confidentiality & Permissible Uses

    6.1. Any information disclosed by one Authority to the other Authority under
    paragraphs 5.6 to 5.7, and any information contained in a referral under
    paragraphs 5.1 to 5.4, should be treated by the other Authority as
    confidential information.

    6.2. Information about an Innovator Business included in a referral under


    paragraphs 5.1 to 5.4 and shared under paragraph 5.7 should be sent to a
    Receiving Authority only if the Innovator Business consents to that disclosure.

    6.3. A Receiving Authority should use information about a referred Innovator


    Business only for the purpose of providing support to the referred Innovator
    Business through the Receiving Authority's Innovation Function and ensuring
    compliance with the law of the Receiving Authority's jurisdiction, unless the
    Referring Authority consents to other uses.

    6.4. If either Authority is required to disclose any information provided to it by the


    other Authority pursuant to a requirement of law, such Authority should
    notify the other Authority prior to complying with such a requirement and
    should assert all appropriate legal exemptions or privileges with respect to
    such information as may be available.

    7. Term

    7.1. This Co-operation Agreement takes effect on the later of the date of
    execution by FCA and the date determined in accordance with the OSC's
    applicable legislation and notified to FCA. For an Authority that becomes a
    party to this Co-operation Agreement under section 8, this Co-operation
    Agreement takes effect for FCA and that Authority on the date of execution of
    the counterpart referred to in section 8.

    7.2. The Co-operation Agreement can be terminated by an Authority by the giving


    of at least 30 days written notice of termination to the other Authority or
    Authorities.

    7.3. Termination of this Co-operation Agreement does not affect obligations under
    any existing Memorandum of Understanding between the Authorities.

    7.4. In the event of the termination of this Co-operation Agreement, information


    obtained under this Co-operation Agreement will continue to be treated in the
    manner set out under paragraph 6.

    6
    8. Amendment

    8.1. The Authorities will review the operation of this Co-operation Agreement and
    update its terms as required. The Authorities acknowledge that review may
    be required if there is a material change to the support offered by a Receiving
    Authority's Innovation Function to an Innovator Business referred by a
    Referring Authority pursuant to paragraph 5.1; or the Authoritys Criteria for
    Support.

    8.2. Any Canadian securities regulatory authority which has established an


    Innovation Function may become a party to this Co-operation Agreement by
    executing a counterpart hereof together with the FCA and providing notice to
    the other Canadian securities regulatory authorities or regulators which are
    parties to this Co-operation Agreement.

    8.3. This Co-operation Agreement may be amended if each Authority agrees in


    writing to do so.

    Executed by the Authorities:

    For OSC For FCA

    _______________________ _______________________

    Maureen Jensen, Chair and CEO Andrew Bailey, CEO

    Date: Date:

    7
    Appendix 1: Authority-wide Contact Details

    FCA: Head of Department, Project Innovate


    Financial Conduct Authority
    25 The North Colonnade
    London, E14 5HS
    United Kingdom

    OSC: OSC LaunchPad Co-operation Requests:


    osclaunchpad@osc.gov.on.ca
    Telephone: (416) 596-4266

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