Awards of up to $5 million will be paid out to insiders who help ferret out malfeasance under the Ontario Securities Commission’s new whistleblower program.
“The OSC recognizes that whistleblowers are an incredibly valuable source of information. We are providing strong incentives for them to come forward,” Howard Wetston, chair of the OSC, said Wednesday as Canada’s largest capital markets regulator rolled out a formal whistleblower policy.
Whistleblowers in Canada could receive awards in excess of $1.5 million when a formal policy is unveiled Wednesday by the Ontario Securities Commission to encourage those in the know to help ferret out corporate wrongdoing.
Canada’s largest securities regulator initially capped proposed awards at $1.5 million. But Tom Atkinson, the OSC’s director of enforcement, said Monday the awards could be larger in some cases, notably if more than $10 million was collected.
Canadians were among the top foreigners to report tips of alleged corporate malfeasance this year to the U.S. Securities and Exchange Commission through the regulator’s whistleblower line.
Calls from the United Kingdom and India outstripped Canada this year, but Canadians were the third most active tippers with 58 calls to the regulator that offers financial incentives for tips that lead to successful enforcement action.
Did someone finally inform the SEC that Bernie Madoff's business model has been adopted by every central bank in the "developed world?" Whatever the reason for today's record SEC award, which almost certainly has to do with HFT, a topic which this blog first brought to light back in 2009 when nobody had a clue what algo/high frequency trading is, congratulations to the lucky winner (unless of course it has to do with someone spilling the beans on US tax evaders in Swiss banks), and our condolences to the banks, because now that one can comfortably retire by informing the regulators of the p
TORONTO — Ontario’s securities watchdog has launched its whistleblower program, a first in Canada, in an effort to root out accounting fraud, insider trading and market manipulation.
Under the program, the Ontario Securities Commission offers rewards of up to $5 million for tips that lead to successful prosecution.
The OSC originally planned to cap payments to $1.5 million, but it raised that after experts suggested that was too little to compensate senior executives who risk losing high-paying jobs and being blacklisted from their industries.
An incentive-backed whistleblower program that would pay financial rewards for information about serious financial crimes is being proposed by Canada’s largest capital markets regulator.
The Ontario Securities Commission’s program would mark the first time a Canadian securities regulator has paid for tips.
Posted by Joseph M. McLaughlin, Simpson Thacher & Bartlett LLP, on Saturday, December 12, 2015 Editor's Note: Joseph M. McLaughlin is a Partner at Simpson Thacher & Bartlett LLP. This post is based on a Simpson Thacher memorandum by Mr. McLaughlin and Yafit Cohn.
The Ontario Securities Commission will officially launch a rewards-backed whistleblower program July 14, and has named longtime regulator Kelly Gorman as the first Chief of the Office of the Whistleblower.
“The OSC’s Office of the Whistleblower will be the first paid whistleblower program [operated] by a securities regulator in Canada,” said Maureen Jensen, chair and chief executive of the OSC.