Canadian fintech company Lendified has issued a statement saying their subsidiary Vault Circle Inc. has obtained an exempt dealer license from the OSC, giving its investment business freedom to operate in the Ontario securities space.
The company described the development as a milestone for Canada’s emerging online lending space, which has grown in recent years following the US and the UK.
“The OSC approval represents a historic leap forward for Canada's fintech sector,” said Marcel Schroder, managing director and chief compliance officer at Vault Circle. “Once launched, our platform will provide accredited investors with access to an exciting alternative investment option not available in Canada today.”
The landmark approval is a result of close collaboration between Lendified, Vault Circle, and OSC staff. Cooperation was necessary to tailor regulatory requirements to the company’s online lending business while baking in measures for investor protection. Critical to this effort’s success, according to company executives, were their track record and extensive experience within the banking sector.
Lendified is the only online lender among its peers to have obtained this approval from the OSC. Hopefully, Ontario will only be the start, as the firm has expressed interest in expanding to other markets.
“As well as offering a new opportunity to investors, this approval strategically provides Lendified with another source of funding to meet the growing demand for online small business loans in Canada, and marks another chapter in our continued growth story,” said Lendified Founder and CEO Troy Wright.
OSC announces new members of its Seniors Expert Advisory Committee
OSC to focus on peer-to-peer and crowdfunding lending