OSC awards tipster $1.5 million

By James Langton | February 27, 2024 | Last updated on February 27, 2024
1 min read
definition of whistleblower
AdobeStock / Feng Yu

A tipster who fed information to the Ontario Securities Commission (OSC) that helped protect investors is getting a $1.5-million payout from the regulator.

The OSC said it paid a whistleblower award to a corporate insider who provided “very specific and discrete” information that enabled the regulator to broaden an existing investigation, and contributed to the successful enforcement action.

It also noted that the information “allowed the OSC to act swiftly to protect investors.”

“The whistleblower had access to valuable information regarding early-stage misconduct that was critical to our ability to quickly respond and protect investors from further harm,” said Jeff Kehoe, director of enforcement with the OSC, in a release.

“Internal whistleblowers can play a critical role in identifying harmful misconduct at an early stage that would be almost impossible to detect without their assistance,” he said. “We will continue to build upon our successes to strengthen this enforcement tool.”

With this latest reward, the OSC has now paid over $10 million to whistleblowers that brought information to the regulator that helped lead to successful enforcement action.

“The program is seeking more tips containing non-public information, including from whistleblowers who may be involved in misconduct, and is also appealing for tips about novel and emerging issues in securities regulation,” the OSC said.

In particular, the regulator said it’s interested in issues such as greenwashing, auditor misconduct and tech-powered regulatory violations involving the use of algorithms or artificial intelligence.

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James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.