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The ASC’s InnoFin Team will engage with entrepreneurs that are interested in testing (a) new business models using financial technology (fintech) or improvements on existing fintech in the capital markets and/or (b) a regulatory innovation that while protecting investors has the potential to improve capital formation.
(a) Fintech testing
This testing is available in circumstances where there appears to be a potential to foster the development of fintech and the financial sector in Alberta within an environment that addresses investor protection concerns.
For entrepreneurs that are interested in testing their technology or business model, working with us to develop the parameters for a test that will allow testing within a regulated environment. This will typically involve exemptions from some securities regulatory requirements but to mitigate risk, with limits such as on the time period for the test, the dollar value of investments or the number of investors.
The market participant will also typically be subject to certain reporting to allow monitoring of and assessment of the test. It could also involve time-limited registration or a conditional exemption from registration.
(b) Regulatory innovation
This testing is available in circumstances where there appears to be potential to improve capital formation for Alberta businesses while still addressing investor protection concerns but we have insufficient information to be able to conclude that a new CSA rule-making project is justified.
This regulatory innovation may be initiated by ASC staff or on request of market participants.
It could involve blanket orders, discretionary exemptive relief and time limited dealer registration.
It too would be time limited in nature, subject to certain predetermined parameters and involve certain reporting to allow for monitoring and an assessment.