Canadian Lawyer - sample

w w w . C A N A D I A N L a w y e r m a g . c o m N O V E M B E R / D E C E M B E R 2 0 1 6 25 w w w . C A N A D I A N L a w y e r m a g m a g m a g m a g m a g m a g c o c o c o . c o . c o . c o m N O V N O V N O V E M B M B M E M B M B M B E R / E R / R / R / D E C D E C D E C D E C D E D E D E M B E M E M B E M B E E R E R E R 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 2 0 1 6 1 6 1 6 1 6 1 6 1 6 1 25 25 25 25 25 25 25 25 H I t was an engrossing week, and the latest evidence that the Can- adian world of finance was being upended by the emergence of nimble players using new technologies to offer cutting-edge financial products and services. It began with little fanfare when Maureen Jensen, the first woman to be nominated as chairwoman and chief executive officer of the Ontario Secur- ities Commission, announced plans in late September to cre- ate the first innovation hub by a Canadian securities regulator to help financial technology companies navigate the OSC's regulatory framework. "We will work to tailor regulation and oversight to their unique business model, as long as inves- tor protections are in place," Jensen told the audience at the Toronto Region Board of Trade. The following day, the OSC was at it again and granted a Canadian fintech company regulatory approval to become the first online lender in the country to receive an exempt market dealer licence for marketplace lending. On the same day, there was more blunt confirmation that digital disruption was beginning to gain traction. The Laurentian Bank of Canada took the unusual step of closing its branches in and around Montreal for most of the day to allow staff to attend a meeting to hear president and CEO Fran- çois Desjardins deliver harsh news. The traditional banking model, he said, was becoming "obsolete." The financial institution had little choice but to shut down a third of its branches, and with it 300 posi- tions, as growing droves of consumers were forsaking bank tellers in favour of smartphones. It may be early days in Canada for fintechs, a catchphrase for new innovative financial technology startups, and major technology com- panies that are challenging traditional financial institutions on their turf by offering cheaper and easier-to-use Internet- or smartphone- based services such as payment apps or peer-to-peer lending or digital currencies, but Canada's Big Six banks are paying heed even though they appear to be on solid ground. Canadian banks have strong brand recognition and higher levels of consumer satisfaction compared with other markets, in part because it was largely spared by the 2008 finan- cial crisis. In other parts of the world, notably in the United States and the United Kingdom, the crisis gravely undermined public faith in financial institutions. Indeed, some observers believe that the crisis — and the huge loss of talent pool in financial services that accompanied it — spawned in many ways the roots of the fintech movement. "As a result from pressures from the financial crisis, there was more of an impetus to innovate in some jurisdictions," says Ana Badour, a Toronto financial services lawyer with McCarthy Tétrault LLP. "Our financial institutions fared well so there was less direct pressure to innovate outside of the institution." Canadian banks are still doing well, generating strong revenues and posting solid returns despite low economic growth, sagging commodity prices and a relentless slump in the energy sector. Con- solidated revenues for the Big Six banks stood at $21.4 billion in 2015,

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