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Tag Archives: financial institutions

SEC issues Guidance on Public Company Cybersecurity Risk Disclosures

Posted in Cybersecurity, Financial, Regulatory Compliance

On Wednesday, February 21, 2018, the United States Securities and Exchange Commission (SEC) published cybersecurity risk disclosure guidance (the SEC Guidance) for public companies to assist them in preparing disclosure related to these types of risk and incidents. The SEC Guidance does not propose new rules or rule amendments that would impose new requirements, but… → Read More

Department of Finance Releases Consultation Paper on Canada’s Anti-Money Laundering and Anti-Terrorist Financing Regime

Posted in Cybersecurity, Financial, FinTech

Overview The Department of Finance Canada released a consultation paper (the “Paper”) on reviewing Canada’s anti-money laundering (“AML”) and anti-terrorist financing (“ATF”) regime on February 7, 2018. Comments on the Paper are due April 30, 2018.  This Paper comes following the recent 2016 Financial Action Task Force (FATF) mutual evaluation report for Canada which generally… → Read More

Budget 2018: Financial Institutions Update

Posted in Financial, Open Banking

The 2018 federal budget (the “Budget”) announced a number of measures directed to the financial services sector, including plans to modernize the deposit insurance framework, to implement a resolution framework for Canada’s systemically important financial market infrastructures (“FMIs”), to undertake a review of open banking, to introduce legislative amendments to implement a new framework for… → Read More

IIROC Provides Additional Guidance on Proactive Management of Cyber-related Risks

Posted in Cybersecurity, Financial, Regulatory Compliance

On January 18, 2018, the Investment Industry Regulatory Organization of Canada (IIROC) released its Compliance Priorities Report for 2017/2018, identifying cybersecurity as a “high priority” issue that IIROC dealer members should address to improve investor protection and foster market integrity. The report also provides specific guidance on initiatives that dealers may undertake in 2018-19 to… → Read More

Fintech Regulatory Developments: 2017 Year in Review

Posted in Big Data, Competition, European Union, Financial, FinTech, Legislation, Open Banking, Virtual Currency

As predicted in our 2016 year-end report, 2017 proved to be a busy year for Fintech in Canada, with a number of important regulatory developments. With the dawn of 2018, we look back to summarize some of 2017’s most notable Fintech regulatory developments in Canada, as well as developments to watch for in 2018. What We… → Read More

SEC issues Cease and Desist Order for ICO and Statement on Cryptocurrencies

Posted in Financial, FinTech

On December 11, 2017, Munchee Inc., a California-based developer of a restaurant app, shut down its initial coin offering (“ICO”) after the Securities and Exchange Commission (“SEC”) issued a Cease and Desist order. SEC Chairman Jay Clayton subsequently issued a statement highlighting the SEC’s general concerns with cryptocurrencies and ICOs. The order and Chairman Clayton’s… → Read More

Bank of Canada White Paper on Creating Digital Currency

Posted in Financial, FinTech

In November 2017, the Bank of Canada (“BoC”) released a white paper evaluating whether a central bank should issue a decentralized digital currency for general public use. The Central Bank Digital Currency (“CBDC”) model considered by the white paper would be different from the BoC’s Project Jasper (as summarized in our previous post) and from… → Read More

Financial Stability Board Releases Report on Financial Stability Implications of Artificial Intelligence and Machine Learning

Posted in AI and Machine Learning, Big Data, Financial, FinTech

On November 1, 2017, the Financial Stability Board (the “FSB”)[1] published its report on the market developments and financial stability implications of artificial intelligence (“AI”) and machine learning in financial services. The FSB noted that the use of AI and machine learning in financial services is rapidly growing and that the application of such technologies… → Read More

Canadian Competition Bureau Releases Fintech Report for Consultation

Posted in Big Data, FinTech, Open Banking

On November 6, 2017, the Competition Bureau (Bureau) released a draft report on its market study into technology-led innovation in the Canadian financial services (Fintech) sector.[1] The Bureau has invited feedback from interested parties only until November 20, 2017, an uncharacteristically short comment period. Financial services are an area of interest for the Bureau due… → Read More

U.S. Consumer Financial Protection Bureau Sets Out Principles for Consumer-Authorized Data Sharing and Aggregation

Posted in Big Data, FinTech, Open Banking

On October 18th, 2017 the U.S. Consumer Financial Protection Bureau (“CFPB”) outlined the principles to be followed (“Principles”) when consumers authorize third party companies to access their financial data to provide certain financial products and services. These principles will be of particular note to the Fintech sector, in which a significant number of companies incorporate… → Read More

Basel Committee on Banking Supervision Issues Consultative Document Highlighting Implications of Fintech on Banks

Posted in AI and Machine Learning, Big Data, Cybersecurity, FinTech, Payments, Privacy

On August 31, the Basel Committee on Banking Supervision (the “BCBS”) published a consultative document on the implications of Fintech for the financial sector. The consultative document was produced by BCBS’s task force mandated with identifying trends in Fintech developments and assessing the implication of those developments on the financial sector. Parts I and II… → Read More

Project Jasper Update: White Paper Release and Phase 3 Announcement

Posted in Authentication, Blockchain, Financial, FinTech, Identity, Payments, Privacy

Project Jasper is an experiment being done by the Bank of Canada, Payments Canada and R3 to test the viability and feasibility of using Distributed Ledger Technology (“DLT”) as the basis for wholesale interbank payment settlements. This project was launched in March 2016 and has completed two phases. Phase 1 of Project Jasper employed the… → Read More

Three Cybersecurity Trends Driving the Bank of Canada’s Call for Cybersecurity to be Treated as a ‘Public Good’

Posted in Cybersecurity, Financial

The June 2017 Financial System Review released by the Bank of Canada warns that Canada’s financial institutions have reached a point of interconnectedness that could allow a cyber-attack to rapidly transmit stress throughout Canada’s financial system, leading to prolonged service interruption, compromised data integrity or a loss of confidence in the financial system. Such an attack… → Read More

Department of Finance Releases Consultation Paper on New Retail Payments Oversight Framework Providing for Functional Regulation of Payment Service Providers

Posted in FinTech, Payments, Privacy

On July 7, 2017, the Department of Finance issued the consultation paper “A New Retail Payments Oversight Framework” (the “Consultation Paper”) proposing a federal oversight framework for retail payments. Comments on the Consultation Paper are due October 6, 2017. Summary of Proposed Oversight Framework The Consultation Paper is discussed in more detail below, but the… → Read More

European Banking Authority Responds to European Commission Public Consultation on Fintech: Potential Takeaways for Canada

Posted in AI and Machine Learning, Big Data, Cybersecurity, Financial, FinTech

In March 2017, the European Commission issued a public consultation document on Fintech.  The goal of the European Commission (EC) document is to further the objective of a digital single market within Europe.  This will be done by supporting the development of digital infrastructure,  improving access to goods and services, and ensuring rules foster technological… → Read More

“Not There Yet”: Bank of Canada Experiments with Blockchain Wholesale Payment System

Posted in FinTech

The Bank of Canada has issued a report on Project Jasper, its recently completed experiment testing the viability of distributed ledger technology (DLT) as the basis for a wholesale payment system. The experiment was a combined effort by the Bank of Canada and Payments Canada, along with Bank of Montreal, Canadian Imperial Bank of Commerce,… → Read More

U.S. Federal Insurance Office Issues Report Addressing InsurTech and Traditional Insurance

Posted in Big Data, Cybersecurity, Discrimination, FinTech

The Federal Insurance Office, U.S. Department of the Treasury (“FIO”) released its first annual Report on Protection of Consumers and Access to Insurance (the “Report”). The Report reviews developments and concerns relating to five insurance issues: technology; environmental hazards; fairness in insurance practices; fairness in state insurance standards; and retirement and related issues. The Report… → Read More

Fintech Regulatory Developments: 2016 Year in Review

Posted in FinTech

This year was a tremendously active year for Fintech in Canada and internationally, and 2017 promises to be even more so.  In the Fall of 2016, we co-authored a comprehensive report together with the Digital Finance Institute, “FinTech in Canada: British Columbia Edition” on the state of the Canadian Fintech ecosystem, highlighting a number of… → Read More

Supreme Court Renders Landmark Privacy decision in Royal Bank of Canada v. Trang

Posted in Privacy

The Supreme Court of Canada released a landmark decision today giving important guidance on how Canada’s federal privacy law, the Personal Information Protection and Electronic Documents Act (“PIPEDA”), should be interpreted. In Royal Bank of Canada v. Trang, 2016 SCC 50, the Court ruled that courts can use their inherent jurisdiction to make orders permitting… → Read More

Chatbots, Open Data and Sandboxes: Trending Topics from the 2016 Money20/20 Conference

Posted in AI and Machine Learning, Financial, FinTech, Mobile Payments, Privacy

With 10,000+ attendees, including more than three thousand companies from seventy-five countries, Money20/20 is the largest annual global event focusing on payments and financial services innovation. The 2016 conference in Las Vegas this October featured a packed agenda of talks by industry and thought leaders on a broad range of current and emerging Fintech issues,… → Read More

US Federal Regulators Propose Binding Rules to Enhance Banks’ Cybersecurity Practices

Posted in Cybersecurity

On October 19, 2016, three US financial regulators – the Board of Governors of the Federal Reserve System, the Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation (collectively, the “Agencies”) – issued a joint Advance Notice of Proposed Rulemaking (“ANPR”) seeking comments by all stakeholders on enhanced cyber risk management… → Read More

FDIC Issues Proposed Guidance on Best Practices for Third-Party Lending: Implications for Canadian Banks and Lenders

Posted in Financial, FinTech, Payments

Background The FDIC recently released for comments a proposed guidance with respect to third-party lending (the “Proposed Guidance”). While subject to potential revisions following the FDIC’s review of comments, the Proposed Guidance provides valuable insight into current regulatory trends relating to marketplace lending. The Proposed Guidance defines “Third-Party Lending” as lending arrangements that rely on… → Read More

Canada’s Competition Commissioner Emphasizes Innovation, Highlights Fintech Market Study

Posted in Big Data, Financial, FinTech

Canada’s Commissioner of Competition, John Pecman, spoke on October 6th, 2016 to the Canadian Bar Association’s Competition Law Fall Conference, addressing the link between competition and innovation and providing updates on the Fintech market study launched by the Competition Bureau earlier this year. Competition Drives Innovation The Commissioner noted that new disruptive technologies challenge not… → Read More

NY State Introduces Cybersecurity Regulations for Financial Services: Implications for Canadian Business

Posted in Cybersecurity, Financial, FinTech, Legislation, Regulatory Compliance

The New York State Department of Financial Services announced its  first state-level regulation for cybersecurity. The proposed regulation would apply to regulated banks, insurance companies, and other financial services institutions and has implications for Canadian organizations doing business with these entities. On September 13, 2016, the New York State Department of Financial Services (“DFS“) announced a… → Read More