The first whistleblower program in Canada that offers financial rewards for tips leading to securities enforcement action has received 200 tips and sparked numerous active investigations since the program was launched two years ago.
The Ontario Securities Commission (OSC) said today that, since its whistleblower program was launched in July 2016, it has generated approximately 200 tips and that 45 of those tips (22%) are currently under review. It also reports that 10% of the whistleblower tips have been referred to enforcement, and that 15 of them (7%) are associated with active investigations.
The program, which offers the prospect of up to $5 million in compensation for tips that lead to successful enforcement action, has yet to pay out a financial reward. Actual whistleblower payouts are expected to take several years given that, under the OSC’s program, awards will be paid only after enforcement cases are concluded and any appeals have been exhausted.
“The program is still in its infancy, but is already proving to be a powerful enforcement tool, as with our no-contest settlements and the option to self report,” said Jeff Kehoe, director of enforcement at the OSC. “These all serve to promote a strong culture of compliance in Ontario’s business community, effectively extending our reach and allowing us to do more to protect investors.”
In addition to the tips that are being investigated by its enforcement department, the OSC reports that 35% of the tips it has received have been referred to another OSC branch, or to another regulator.
“The whistleblower program has been very effective in generating tips and shining a light on information that previously would have remained in the shadows,” said Maureen Jensen, chairwoman and CEO of the OSC. “We are pleased that people know about the whistleblower program, that it is being used, and that it has become an important tool for protecting investors.”