Tariffs-Free Regulatory Importing?
Asad Akhtar
internal compliance will be considered a factor when considering the amount to be rewarded to a
whistle blower.85 Secondly, the OSC is recommending legislative amendments to the Act that
would clarify that whistle blowers will be protected from anti-retaliation regardless if they make
a report directly to the Commission or through an internal compliance system.86
Segregation of Whistleblower Intake from Enforcement
The OSC seeks to segregate the whistleblower program as a separate division, staffed
with specialized intake personnel, within the enforcement branch. The Commission has
indicated the reasons for doing so are to ensure confidentiality of the whistleblower and allow for
the program to operate in accordance with the terms laid out.87
2. Opportunities with Policy 15-601 in the Capital Markets
While the OSC’s proposed changes to the SEC framework are few, they are important in
that they represent the agency’s acknowledgement of the challenges faced in the American
experience.
Financial Incentives
In relation to financial incentives, having a two-tiered system to reward payouts is
favorable to a system that is solely contingent on the Commission’s ultimate ability to collect
from a violator. While non-contingent rewards are favorable to whistleblowers, the OSC’s
primary mandate is to compensate harmed investors first with recovered funds. Additionally, the
restricted resources as a government entity limit the agency’s ability to offer guaranteed awards
comparable to the contingency rewards offered by the SEC. Finally, OSC’s abysmal track
record in collecting sanctions would be detrimental in offering rewards purely contingent on
85
Supra note 82 at 10.
Supra note 80 at 24.
87
Supra note 80 at 21, 23.
86
25