Lending Loop’s CEO, Cato Pastoll, recently joined Mr. Hudak in announcing Sharing Economy 2, a Private Member’s Bill that addresses regulatory challenges faced by companies that operate in the sharing economy. This bill specifically focuses on Fintech which has become a rapidly growing industry in Canada. Unfortunately, Fintech in Canada continues to face an uphill battle with decades-old regulations that are preventing innovative models, such as peer-to-peer lending from operating.
Dan Breznitz, the co-director of the innovation policy lab at the Munk School of Global Affairs, noted that when it comes to financial innovation in peer-to-peer lending, Canada is “11 Years late to the party”. A recent report he co-authored (published November 2015) on the development of Toronto’s financial technology ecosystem specifically states that “our regulatory system, is now seen by many to be an obstacle in the context of the evolving Fintech ecosystem”.
As Canadians, we have an opportunity to develop and scale global Fintech companies that leverage Canada’s reputation of trust and stability in financial services. Mr. Hudak and others understand the opportunity as stake with peer-to-peer lending and the entire team at Lending Loop is committed to making this model a reality.
— Tim Hudak (@timhudak) March 31, 2016
Mr. Hudak’s office issued the following press release after the conference:
March 31, 2016
Empowering People – Welcoming Innovation
MPP Launches Website to Champion Sharing Economy in Ontario
QUEEN’S PARK – Today, MPP Tim Hudak released details on his second Sharing Economy Private Member’s Bill, which will build on the momentum created by his groundbreaking Opportunity in the Sharing Economy Act, 2015. It aims to give Ontarians the ability to earn extra income through home food sales, carpooling, investing or lending, and task-based services.
Hudak’s second sharing economy Bill will empower people to use technology to earn extra income by using assets that they already own or skills they possess. He will do this by establishing a province-wide framework with modern, streamlined consumer protection measures to give consumers greater choice through sharing economy services in Ontario.
Hudak’s first sharing economy Bill, Opportunity in the Sharing Economy Act, incorporates modern, province-wide best practices to fully legalize ridesharing, home sharing, and parking sharing companies. The Act passed a critical second reading vote 32-9 in the Legislature on October 29th. The proposed legislation is the first of its kind in Canada.
MPP Hudak has also launched a website (www.sharingeconomy.ca) dedicated to both his sharing economy Bills. It encourages debate on the sharing economy and invites input on how best to legalize these new apps while ensuring sensible consumer protection measures are in place. Hudak will create the final Bill from best practices and advice from industry experts and consumers.
The many new innovative companies joining the sharing economy market are further proof that people are looking for new ways to save money and earn extra income. These types of apps offer flexibility for both the consumer and the service provider and encourage people to be entrepreneurs.
“In an era where technology is outpacing the speed of regulation, it is critical that lawmakers, regulators, and entrepreneurs foster an open dialogue that doesn’t hamper or halt the success of new business models,” said Cato Pastoll, the CEO of innovative FinTech app Lending Loop.
Hudak says, “What I plan to do with both of my Bills is to help people get more of life’s most precious commodities – time and money. What I want is to see Ontario leading and not struggling to catch up.”
For more information on the Sharing Economy Private Member’s Bill and how it plans to address peer-to-peer lending in Canada, please visit sharingeconomy.com/sharing/your-money.