Tariffs-Free Regulatory Importing? Jul. 2016 | Page 2

Tariffs-Free Regulatory Importing? Asad Akhtar Table of Contents Executive Summary ...................................................................................................................... 3 Introduction ................................................................................................................................... 7 Part One: Contrasting the Capital Markets ............................................................................... 9 A. Regulatory Framework in Canada & Ontario ...................................................................... 9 1. Provincial Regulation – Ontario and the OSC..................................................................... 9 2. A Model for the Future - The Cooperative Capital Market Regulatory System ............... 10 B. The Public Interest Jurisdiction .......................................................................................... 11 1. Defining the Scope ............................................................................................................ 12 2. Public Interest Slide & Restraint ....................................................................................... 13 Part Two: Incentivized Whistleblower Program ..................................................................... 15 A. The American Experience .................................................................................................. 15 1. Purpose of Incentivized Whistleblowing........................................................................... 15 2. Expansions under Dodd-Frank ......................................................................................... 16 3. Framework for Regulation 21F ......................................................................................... 17 4. Opportunities and Challenges with Section 21F ............................................................... 22 B. Implementation in Ontario.................................................................................................. 24 1. Distinctions from Regulation 21F ................................................................................... 24 2. Opportunities with Policy 15-601 in the Capital Markets ................................................. 25 3. Weaknesses with Policy 15-601 in the Capital Markets .................................................. 26 Part Three: No Contest Settlements .......................................................................................... 30 A. The American Experience .................................................................................................. 30 1. Advantages ...................................................................................................................... 30 2. Criticism .......................................................................................................................... 31 3. Recent Policy Changes .................................................................................................... 32 B. Implementation in Ontario.................................................................................................... 33 1. Concerns ........................................................................................................................... 33 2. OSC Staff Notice 15-702 – Credit for Cooperation ........................................................ 34 3. Transparency in Public Interest Determination ............................................................... 35 4. Existing No-Contest Settlements ..................................................................................... 36 Part Four: Joint Serious Offences Team .................................................................................. 38 1