The Ontario Securities Commission (“OSC”) has announced the introduction of Launchpad which is a hub to work directly with fintech companies to help them navigate the securities regulatory framework. http://www.osc.gov.on.ca/en/what-you-need-to-know.htm
The OSC has identified a broad range of activities that may give rise securities regulatory compliance issues including:
· Connecting investors with companies looking to raise capital through an online platform, website, or app.
· Setting up lending platforms that allow investors to fund loans or portions of loans.
· On line platforms recommending investments.
· Online advising, including operating platforms that recommend model portfolios or other investments (“robo-advising”).
· Setting up online platforms (including equity crowdfunding portals), auction boards, bulletin boards, apps, or similar facilities for securities trading.
· Operating angel investor organizations or networks, or acting as a lead investor.
· Using artificial intelligence to recommend investments or facilitate trading.
· Arranging or participating in pitch sessions, where companies present their businesses, products, services, or applications to potential investors.
· Setting up means for investors and companies looking to raise capital to interact, including chat rooms, message boards, and other forms of social media.
· Helping to prepare offering documents, marketing materials, or other similar documents for companies looking to raise capital.
Barbara Hendrickson has extensive experience providing corporate finance, securities and financial services advice to the fintech industry. Her clients have operated in the following areas: online marketplace lending including peer to peer lending and real estate based lending, equity crowdfunding, trading signal providers, robo-advisors, online mortgage syndication, financial services software providers, artificial intelligence and robotics providers, online commodity traders, foreign exchange, regulatory compliance software, exempt market dealers with online trading systems, mobile apps and trading and clearing and settlement system.
If you would like more information, please call Barbara Hendrickson at 416.601.1004.