The Ontario Securities Commission (OSC) is tapping into its enforcement sanctions fund to finance a pair of external investor protection initiatives.
The regulator announced a funding commitment of up to $5.4 million to the charity Prosper Canada to support investor education and financial coaching services, and another $875,000 to help fund the work of the Investor Protection Clinic at Osgoode Hall Law School.
“Prosper Canada champions financial literacy and empowerment through education, research and outreach. By providing funding to Prosper Canada, we are investing in Ontarians and ensuring they have access to the resources and support to navigate the complexities of the financial landscape,” said Grant Vingoe, CEO of the OSC, in a release.
The financing for Prosper Canada will be spread over three years, while the commitment to the Osgoode IPC — which provides free advice to harmed investors who can’t afford a lawyer — will be allocated over five years.
“Supporting the Osgoode IPC aligns with our mandate of protecting investors and fostering confidence in the financial markets,” Vingoe said.
“This initiative not only enhances investor protection but reinforces our commitment to improving investors’ access to redress and the supports available to them to navigate complex financial disputes,” he added.
Funding for both organizations is coming from the OSC’s reserve, which accumulates money collected under enforcement settlements and sanctions orders. According to the regulator’s latest financials, the fund stood at $125 million at the end of fiscal 2024.
Money collected through enforcement efforts must be used to benefit investors and cannot be used for the OSC’s routine operations. Historically, the fund has supported various investor protection initiatives, monetary rewards to whistleblowers and payouts to harmed investors.
Earlier this month, the OSC announced the adoption of a new framework for distributing money collected under disgorgement orders to harmed investors — an effort intended to ensure more of those funds are returned directly to investors who suffer losses due to regulatory misconduct.