The Ontario Securities Commission Friday announced a series of policy initiatives designed to boost enforcement performance by increasing co-operation and encouraging settlements.

The commission says that it has two main goals with these initiatives: to improve the quality, quantity, and timeliness of information coming into the OSC; and to expedite the resolution of enforcement cases.

To expedite enforcement cases, it plans to introduce a new ‘no-contest settlement’ program, which would allow it to enter into settlement agreements with those accused of wrongdoing, but without “a specific admission by the respondent” of a breach of the Securities Act. This is similar to the practice in the US where cases are typically settled with the accused neither admitting or denying any wrongdoing.

It also aims to boost cooperation with another new program using ‘no-enforcement action’ agreements, with which the OSC would explicitly agree not bring enforcement action in exchange for self-reporting of incidents that may involve breaches of securities law, or activities that would be considered contrary to the public interest, and for cooperating in an investigation.

Additionally, the OSC is clarifying the process for self-reporting under its existing credit for cooperation program “to ensure that all parties are informed on how best to self-report and come forward with information”. And, it also plans to enhance public disclosure of credit provided by OSC staff for cooperation “to provide greater certainty of potential outcome for all parties that may consider self-reporting”.

“These new tools will have a direct impact on our ability to take decisive enforcement action in order to protect the public interest,” said Tom Atkinson, director of enforcement at the OSC. “They will allow us to effectively deliver on our commitments to investors and the market place, in a timely manner.”

The OSC says that in developing these policy initiatives, its staff considered the current enforcement policies and practices of both the commission and other regulatory organizations, and its ongoing dialogue with investors, market participants and the securities litigators.

The proposed new initiatives are out for comment until December 20.