In a bid to help resolve certain enforcement proceedings more quickly, the Ontario Securities Commission (OSC) is launching an 11-month pilot mediation program to allow those facing regulatory enforcement proceedings to utilize mediation to help resolve their cases.

Starting May 1, the OSC’s enforcement branch will officially launch a pilot mediation program that will allow the respondents to OSC regulatory proceedings the option of participating in a mediation, with an independent third party, to possibly resolve the enforcement proceeding itself, or other outstanding issues. The program is set to run until March 31, 2016.

The opportunity to use mediation will be open to people involved in enforcement proceedings before the commission, and both sides will have to agree to proceed to mediation. The process can commence at any time after a notice of hearing is issued, as long as it does not delay the actual enforcement proceedings themselves. The costs will be divided equally between both sides, and the respondents must be represented by counsel, although they can also turn to the OSC’s legal assistance program.

A mediation agreement will govern the process, and will impose confidentiality on both sides, and the mediator. If the process results in a settlement, the deal must still be approved by the commission, as negotiated settlements are now. Either side can also terminate the mediation at any time, as can the mediator.

In a notice announcing the program, the OSC says that its enforcement staff “recognize the importance to all parties in an enforcement matter of early resolution of issues arising in enforcement investigations and proceedings. As a result, staff are prepared to participate with respondents in a confidential and privileged mediation at any time following the delivery of an enforcement notice… “

OSC staff and the respondents’ counsel can select a third party mediator listed on a roster on eligible mediators, which, to start, includes three people: former OSC commissioner and industry veteran, Paul Bates; retired securities lawyer, Joel Wiesenfeld; and retired Ontario Superior Court judge, Colin Campbell.

If the pilot is successful and the OSC decides to continue the mediation program, an application process will be implemented to add names to the roster, and to establish qualification standards.