ASIC and Ontario's financial regulator signed an agreement this week in support of the fintech sector.

The Australian Securities and Investments Commission and the Ontario Securities Commission have signed an agreement supporting fintech development, adding to a run of jurisdictions signing such pacts.

Under the agreement, fintech companies located in Australia and the Ontario province of Canada, which encompasses Toronto, will be able to draw on the combined resources of their financial regulators if they wish to operate in the other's market.

The OSC and ASIC will collaborate in referring to one another fintech businesses looking to enter the other's market while providing continuous support before, during and after authorisation to quicken the process and reduce regulatory uncertainty.

To qualify for support offered, businesses will be required to meet the eligibility criteria of their native regulator. Once referred by the regulator, a company will have access to a dedicated team of staff that will help it understand the regulatory framework in the market it wishes to join. 

Additionally, both regulators have committed to sharing information on emerging trends in each other’s markets and the potential impact they may have on regulation.

Among jurisdictions that have signed such pacts are Singapore, South Korea and the UK. In September, for example, the Monetary Authority of Singapore and the Swiss Financial Market Supervisory Authority (FINMA) signed an agreement to foster greater cooperation on fintech issues.

The latest agreement follows the inception of the Innovation Hub at ASIC last year and the OSC Launch Pad last month, which were both established to assist innovative businesses in navigating financial and securities regulation processes.

“ASIC is committed to encouraging innovation that has the potential to benefit financial consumers and investors,” said John Price, ASIC’s commissioner. “Some of these business concepts are already looking to expand internationally, and these agreements with like-minded regulators will be a significant factor in paving the way.”

“[The agreement] reflects our commitment to improving the regulatory experience for emerging businesses that are offering innovative services, products and applications of benefit to investors,” said Maureen Jensen, chair and chief executive of the OSC.