Following similar initiatives by provincial regulators, (including the OSC’s LaunchPad), the CSA have announced the launch of their own, cross-Canada “regulatory sandbox”, that will allow financial services firm to test leading edge products and services without regulatory burden. Firms with innovative business models such as online platforms, cryptocurrency, artificial intelligence, or regulation technology ventures can apply for leeway in the form of, for example, time-limited registrations or limited-audience testing.

The CSA will require applicant firms to submit a business plan detailing investor benefits and safeguards to minimize risk, and may also require firms to undergo live environment testing.