Innovation, Disruption And The Regulation Of Fintech

We are witness to sweeping changes taking place in Canada and the world in the delivery and operation of financial products, services and technologies.

"Fintech", or financial technology, is the term that is now commonly used to refer to innovation – some would say disruption – in financial services. Of course, mention the word "financial" in the same breath as "innovation" or "disruption", and invariably regulators will think of another word: "risk". Prudentially and sensibly regulating the financial sector to manage risk, not to mention market conduct, consumer protection, money laundering and market integrity, among other important areas, is the collective job of our various Canadian regulators. However, the Canadian regulatory framework is an uneven, fragmented, divergent and overlapping patchwork when it comes to fintech. The identity of the regulator and the nature, scope and degree of any applicable regulation depends on the entity and the type of product or