How Agile Regulation of Consumer-Driven Banking Can Drive Innovation and Protect Investors

The Canadian Investment Regulatory Organization (CIRO) is currently exploring the best options for moving the dial forward on consumer-driven banking while minimizing risks to consumers. CIRO’s 2025-2027 Strategic Plan identified the need for transformational initiatives to advance the structure of regulation in Canada specifically aimed at enabling innovation, while still maintaining strong investor protections. In line with this commitment, in February 2025 CIRO announced its support of the federal Consumer-Driven Banking Framework and outlined plans to explore how it can best support Members in adopting the framework with a view to reducing regulatory duplication, ensuring alignment with national standards, securities legislation, and providing education and guidance.

This year, CIRO will engage with various stakeholders—including Members, government agencies, fintechs, and industry associations—to help determine CIRO’s potential role in supporting the framework and identify opportunities to streamline processes, enhance efficiency, and foster innovation.

The consultations aim to clarify various elements of the framework, including accreditation, regulatory oversight, and compliance expectations within the existing securities framework.

Results from these consultations will be released in the coming months.

To learn about Canada’s journey towards consumer-driven banking, what it means for consumers and the industry, and the opportunities and challenges that lie ahead, watch this recent webinar featuring CIRO’s Karen McGuinness in conversation with Michelle Beyo, CEO and Founder of Finavator.