Tariffs-Free Regulatory Importing?
Asad Akhtar
B. Implementation in Ontario
In light of the SEC’s success, the OSC released a proposed framework for an incentivebased whistleblower program in OSC Staff Consultation Paper 15-401 (“CP”).80 For much of
the reasons discussed earlier, the OSC believes that incentivized whistleblowers can help
uncovering complex securities fraud that has traditionally been linked to sophisticated players.81
After an extensive comment period and roundtable discussion, the OSC has released Proposed
Policy 15-601 for comment in October 2015.82
1. Distinctions from Regulation 21F
As indicated earlier, the OSC borrows heavily from the SEC’s Regulation 21F
framework. To avoid redundancy, only the unique attributes of the OSC’s Proposed Policy 15601 have been highlighted below.
Financial Incentives
The stark distinction between the SEC and OSC’s whistleblowing program lies with the
type of incentives offered. Under the OSC regime, an eligible whistleblower may receive an
award of between five to fifteen percent of total monetary sanctions imposed over $1 million, to
the maximum amount of $1.5 million.83 Additionally, if the OSC successfully collects monetary
sanctions that exceed $10 million, the maximum reward will increase to $5 million.84
Internal Compliance & Legislative Amendments for Anti-retaliation Provisions
To encourage whistleblowers to first report violations through internal compliance
systems, the OSC is seeking to introduce two mechanisms in the Proposed Policy. Firstly,
80
Proposed Framework for an OSC Whistleblower Program, OSC CP 15-401 38 OSCB 5 (2015).
Ibid at 1.
82
Proposed O SC Policy 15-601 - Whistleblower Program, OSC PP 15-601 (October 28, 2015).
83
Ibid at 11.
84
Ibid.
81
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