It has always been a challenge for capital market enforcers to muster sufficient information about potential market wrong-doing. This challenge has encouraged the proliferation of formal “whistleblower” protections and incentives within regulators’ enforcement toolbox. Some of these incentives are not without their critics, particularly in their use of “bounties,” as we discussed in this 2016 blog post. However, it is clear that these incentives have become an effective and important support to those enforcing capital markets rules and mandates.
On March 9, 2023, the Ontario Securities Commission (the OSC) released an update on its Whistleblower Program (the Program). The Program has been in place since 2016, and is the first and only paid program of its kind run by a Canadian securities regulator. We have previously written about the Program’s inception as well as the 2018 and 2020 Program updates. Pursuant to the Program, whistleblowers who submit original information about violations of Ontario securities law may be eligible for awards of up to $5 million.
OSC’s Whistleblower Program update
The OSC's latest update states that, since its inception, the Program has awarded over $9.33 million to 11 whistleblowers. As a result of information provided by whistleblowers through the Program, enforcement actions have been successfully brought against 19 respondents and $48 million in monetary sanctions and voluntary payments have been imposed. Awards may be issued pursuant to...
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