March 27, 2018 13:30
Louis Morisset | Photo : canadian club of Montreal
Thefinancial markets Authority wants to continue to protect optimally the public without curtailing the momentum of fintech. This is what was said by its CEO Louis Morisset, in a speech in front of 300 people at the canadian club in Montreal, march 26.
Innovation is nothing new in the industry. What is new is the speed at which all these new proposals arise, emphasized the CEO of the Authority during his speech.
235 applications of fintech
At the origin of what he calls his revolution, the fintech represent about sixty companies in Montreal, recalled Mr Morisset. «In recent months, we have received more than 235 requests for information from companies fintech in search of information on the regulatory environment that might be applicable. «
However, the Authority does not hinder, but rather help them to integrate into the regulatory framework. «I want the financial markets Authority to be part of those who have contributed to the growth of innovative companies in Québec, whether they are startups or established firms «, he said.
Louis Morisset has also clarified that the fintech will not go against the legislative requirements existing. «Hence the importance of modernizing the laws that govern québec’s financial sector, an enormous task that the government, with bill 141, is about to finalize,» -he said.
The Authority should keep its flexibility, » says Leitão
If we are to believe statements made by Carlos J. Leitão when the Committee on public finance, the minister of Finance and the CEO of the French financial markets Authority are on the same wavelength on this point. On the 14th of last march, while bill 141 is in second reading, Mr. Leitão presented his vision as to the latitude which he would leave to the Authority to issue rules.
«Maintaining principles that are relatively simple in the project of act 141, is given the Authority to implement rules and guidelines that will address concepts such as the sale of insurance via the Internet. There are elements which will evolve quickly over time. It is necessary that the Authority be able to keep all of the flexibility to implement these guidelines as the market evolves. «
Insurance of shared property
Thus, the Authority does not chômera’t follow the pace of fintech, said Mr. Morisset during his speech. The economy of sharing brings its share of concerns to the regulators, he also mentioned, among others with respect to insurance coverage for personal assets used for commercial or collaborative.
«The sudden arrival of the companies from this economy also raises some difficult questions, and quite legitimate. In particular, by competitors who pay a permit or operating rights and will be subject to a regulatory environment is very strict. «
Among the 235 requests for information, some fifty were public calls in cryptomonnaies, revealed the CEO of the Authority. According to him, the logical consequence is the cryptofonds, such as those offered by First Block Capital or Ross Smith Asset Money, as well as the trading platforms and custodian of cryptomonnaies such as Gemini, Xapo or Coinbase. However, these companies are not canadian and raised several issues regulations, he recalled.
Louis Morisset acknowledges that all regulators see their framework put to the test. They need to quickly re-evaluate the model and the approach which they intend to apply to » this vast ubérisation financial services «.
Strategy fintech proximity
In front of the technological innovation, the Authority wants to avoid any offset which would have the effect of undermining the public’s confidence in the industry and what is gravity. «We must follow the pace of development of digital technology. One of the ways to get to follow the pace of work, more than ever, in close collaboration with all stakeholders, » said Louis Morisset.
He also believes that the opening of the Authority is essential to the improvement of the monitoring, to detect anomalies, faults or risks, or intervene before problems arise.
The Authority on the ground
The regulator intends to be on the field for exchange with its partners on the issues, and be proactive and agile to quickly propose solutions that do not complicate unnecessarily the frame. These include the working group on the fintech and his lab, fintech, established in the last two years. His sixty or so employees working on several projects, including the robots-advisers, the mégadonnées, and artificial intelligence.
The Authority also wants to keep the pace engaging in technological innovation and by hiring experts. «Among other things, supporting different companies in our regulatory environment, developing new technology solutions to the internal and seeking new profiles of professionals still more focused on the needs that accompany all of these changes,» said Mr Morisset.
For example, he recalled that his laboratory fintech account of the specialists of the artificial intelligence, physics, mathematics, and statistics.
Develop a culture of innovation to the Authority
Recently, the regulator has, for example, developed a tool for the analysis of mass data on social networks, which has enabled him to detect more easily the insider trading by making connections between individuals, it would not have been able to do before. The Authority is also working on a technological tool that will allow it to migrate data from a mass of documents to electronic records.
«The Authority will soon become a reference in the collection, storage, processing and analysis of the evidence collected in the course of the investigation, has added to its CEO. My ambition is to develop a genuine culture of innovation, which percolera across all strata of Authority. «
Adoption of the draft law, 141 and 150
Whether the projects of act 141 and 150 will be adopted before the next elections in the fall, Louis Morisset responded in the margins of the event to be confident with regards to the adoption of the draft law 141. «You wish, absolutely. The process with parliamentary committees is going well. I like to believe that this will go forward. I think that bill 141 is on the rails «, he said.
Mr. Morisset is less affirmative for the bill 150, to which he reiterated that the study had not yet begun. «We will see. The one that appeals to me more today is bill 141, » added the CEO of the Authority.
If the bills are not enacted before the end of the parliamentary session in June, they will die on the order paper. It will be for the next elected government to put the collar back on.