In-house counsel can’t blow the whistle: OSC

When it comes to whistleblowers, the OSC wants to make clear that in-house counsel aren’t eligible for rewards.

Read: How to blow the whistle

The commission has published a proposed change to its whistleblower program, with a 60-day comment period.

The whistleblower program already excludes those who obtained information while providing legal services to the subject of the whistleblower submission, but there are exceptions for in-house counsel.

The exceptions existed for situations where in-house counsel acted outside their legal capacity, the OSC says in its proposal. But it’s moving to clarify the rules by omitting the category of in-house counsel from the exceptions altogether.

Further, the proposed change clarifies that in Ontario, in-house counsel acting in a legal capacity are ineligible for a whistleblower award because of lawyer-client confidentiality.

Comments can be submitted in writing to Grace Knakowski, OSC secretary, by emailing comments@osc.gov.on.ca by Mar. 20.

For full details, read the proposal.

Also read:

OSC whistleblower program less than meets the eye

When the wrong thing is legal, what’s an investor to do?

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.