Follow us on
Difitek
  • News
  • What We Offer
  • Contact Us
  • Visit our Site

Ontario ReleasesĀ Guidelines for P2P Lending

6/25/2015

 
Picture
Peer to peer lending has been increasing rapidly in many parts of the world, such as the UK, USA and China, where the market is booming. However, in some other areas the development of P2P lending has been slower, for example in Canada.

Many factors could contribute to why Canada’s P2P market has a slower growth than other countries, but certainly the lack of clear guidance in provinces like Ontario, has played a role. In fact, the existing Canadian P2P marketplaces have been very cautious in their operations, most of them making sure to comply to the existing securities laws. And they did well, given that the Ontario Securities Commission (OSC) has recently released a guiding statement warning P2P operators that they may be subject to securities laws, depending on their business model.

In particular, ordinary loans are not considered securities, but they might be depending how they are provided, for example bonds, debentures and other “investment contracts”. In this case, the companies has to comply to the existing relevant securities laws and the Ontario Securities Commission also suggested to check with them whether they need to register as investment adviser or dealer.

All in all Ontario Securities Commission has not made it easier for peer-to-peer lending to establish in the province, but at least operators now know what they have to do: get in touch with OSC and check with them if they are doing everything alright.



Picture
About the author - Irene Tordera

Born and raised in Milan, Italy, Irene is an International Business graduate, with a strong interest for innovative ideas that can simplify our lives.
During her studies, she co-founded an online community for sportspeople and worked in marketing positions at Ogilvy & Mather Advertising and at the European Business Angel Network, in Brussels. She is a passionate blogger about crowdfunding and the startup ecosystem.




Comments are closed.

    RSS Feed

       

    Categories

    All
    All Sectors
    Americas
    API
    Asia
    Australasia
    Clean Energy
    Crowd Valley
    CTO Blog
    Difitek
    Equity Investment
    Europe
    Events
    Expert Analysis
    Fintech
    Global
    Interview
    Lending
    Local Funding Network
    Marketing
    Market Watch
    Oceania
    Platform Updates
    Presentations
    Press Release
    Real Estate
    Regulations
    Russia
    Social Capital
    Webinar

Back to Difitek website


Copyright 2018 Crowd Valley Inc. 
All Rights Reserved.

Crowd Valley does not engage in the offer, sale or transfer of securities and securities may not be offered, sold or transferred via this website. Securities may not be offered or sold in the United States absent (i) registration under the U.S. Securities Act of 1933, as amended (the Securities Act) or (ii) an available exemption from registration under the Securities Act. Please consult legal counsel in the appropriate jurisdiction before offering, selling or buying securities as registration under the Securities Act or similar state legislation may be required.

Please note that the provision of the information on this website does not create and is not intended to create a relationship between Crowd Valley Inc. and any other person. You are not and should not regard yourself as being a client or customer of Crowd Valley Inc. and must not expect Crowd Valley Inc. to have any duties or responsibilities to you, act for you or your clients, or be responsible for providing protections afforded to customers or yourselves or be responsible for advising you in any respect.