The OSC today published Proposed OSC Policy 15-601 Whistleblower Program, which describes a whistleblower program that would encourage the reporting of serious securities-related misconduct in Ontario to the OSC.
The program would be the first of its kind for securities regulators in Canada, and under the proposed policy, a whistleblower could be awarded up to $5 million upon the final resolution of an administrative matter.
“The OSC recognizes that whistleblowers are an incredibly valuable source of information. We are providing strong incentives for them to come forward. Our whistleblower program is well-considered, and we believe it will result in real-time tips on complex securities law matters that may otherwise be difficult for us to detect,” says Howard Wetston, CEO and chair of the OSC.
The program is expected to increase the effectiveness of the OSC’s Enforcement Program by giving the OSC access to high-quality information about matters, such as insider trading, accounting and disclosure violations and registrant misconduct. The program is also expected to entice companies to self-report wrongdoing to the OSC.
Staff are seeking comment on the proposed policy by January 12, 2016. The OSC aims to have a whistleblower program in place in the spring of 2016.