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The Autorité des marchés financiers (Authority) monitors marketplace peer-to-peer lending platforms

In the past few years, the market of online peer-to-peer lending platforms has vastly expanded. The Fintech technology allows borrowers to access funds from individuals and institutional investors. There is no legislative framework designated for this type of investment yet, but the Authority considers these transactions to be subject under the Securities Act.

The Securities Act provides a legal framework for the practice of dealers and advisers of securities. Thus, a platform which offers online investment services or advices regarding securities is subject to the Act and must respect its various requirements such as registration with the Authority and establishing a prospectus regarding certain investments. Businesses who offer peer-to-peer lending platforms in Quebec must contact the Authority before debuting their operations, to be sure that their business model respects the Securities Act.

Consumers must be careful when dealing with this type of platform, since they are not operating under a specific legal framework in Quebec. The Authority will continue to analyze this service in order to develop a legislative and regulatory framework which suits its mission, to protect clients. 

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