Financial services and fintech regulatory sandbox

“Alberta. Innovation and Technology”

The funder does not disclose this information

Maximum Eligible Amount

Government Grant, In-kind

Fund Type

Overview

The regulatory sandbox, established by the Financial Innovation Act, supports financial innovation and attracts new investment in the financial and financial technology (fintech) sectors.

Approved participants will get a certificate of acceptance allowing them to be temporarily exempted from some laws and regulations and setting out terms and conditions for their participation in the sandbox.

A regulatory sandbox is a “safe space” in which companies can test innovative products or services, without immediately meeting all regulatory requirements. It also assists companies in collecting information on new products and services to determine if they have value for customers.

Alberta is the first province in Canada to establish a regulatory sandbox for the finance and fintech sectors, giving them new ways to build their business and create jobs. The province is also a growing destination for financial services and financial technology companies, and a regulatory sandbox increases our standing in this part of the global economy.

How it works

Approved participants will receive a certificate of acceptance allowing them to be temporarily exempted from some laws and regulations and setting out terms and conditions for their participation in the sandbox.

Approved participants may be temporarily exempt from some requirements set out in each of the following Acts, and regulations under these Acts:

Loan and Trust Corporations Act
Credit Union Act
ATB Financial Act
Consumer Protection Act
Financial Consumers Act
Personal Information Protection Act

Each sandbox participant will have to follow specific terms and conditions to protect consumers. Public information about sandbox participants will be published online.

The regulatory sandbox does not include exemptions to securities laws, including the Alberta Securities Act. The CSA Regulatory Sandbox is an initiative of the Canadian Securities Administrators to support fintech businesses seeking to offer innovative products, services and applications in Canada.

Information on how to participate will be available when applications open July 4, 2022.

Eligibility

To participate in the regulatory sandbox, companies will have to meet each of the following criteria, set out in the Financial Innovation Act:

Physical presence requirement: Applicants will be required to maintain a physical presence in Alberta. This means applicants must have an office in Alberta or senior staff living in Alberta.
Financial services requirement: The regulatory sandbox is designed for companies that offer financial products or services that fall under the legislation listed above.
Innovation requirement: Applicants must adequately explain how each eligible product or service is considered to be new and original in the Alberta marketplace, or a new adaptation or material improvement of another product or service. Applicants will not receive exemptions for products or services that are offered in Alberta by other companies.
Business plan requirement: Applicants must provide a sound and viable business plan, including details for testing their financial product or service and plans to exit the regulatory sandbox.

The Minister of Finance may also require applicants to provide additional information as necessary.