The 2018 Ontario budget has introduced new tools for the OSC to expand and strengthen its enforcement powers.
One tool will be the creation of new offences for breaching an undertaking and obstructing investigations.
The OSC will also be able to:
- reciprocate certain court convictions or specific sanctions by another Canadian securities regulator;
- streamline the administrative penalty process for first-time violators;
- streamline information sharing during enforcement proceedings; and
- work with the government to improve the way investors can be compensated for “financial losses due to the acts or omissions of registered firms.”
The government proposes to create a Serious Fraud Office through cooperation between the OSC and the Ministry of the Attorney General. The office will initially focus on auto insurance fraud.
Ontario will also create a regulatory regime to reduce the risk of manipulating financial benchmarks and to correspond to international requirements. These new rules for benchmarks would help protect investors and capital markets against misconduct.
IIROC has also recently proposed changing its enforcement powers by creating a program to deal with minor violations and to settle cases earlier in the disciplinary process.