Tariffs-Free Regulatory Importing?
Asad Akhtar
recovery. For example, in 2015 the Commission levied $53 million but only recovered $7.5
million of this amount.88. Through a combination of the two systems, the OSC is seeking to
achieve a balance in providing assurances to whistle blowers while also potentially offering more
lucrative rewards that could only be offered through contingency on recovery.
Legislative Amendments & Segregated Intake
Introducing legislative amendments that seek to clarify that whistleblowers who utilize
internal mechanisms are protected from employer retaliation is an effective strategy to resolve
the current challenges unfolding in the American experience.
As the OSC explicitly
recommends the use of internal procedures as the initial step for whistleblowers, it is critical
these individuals have assurances regarding their protection for retaliation. As legislative
amendments to the Act exist outside the scope of the OSC, it remains to be seen if “strongly
suggested” will lead to actual changes.
A segregated intake system for whistleblowers may help to alleviate some concerns over
communication and adversarial communication present in the SEC system. Although, it should
be acknowledged that the Proposed Policy is sparse on many details related to this unit and does
not specifically list the failures in the SEC system as a weakness that needs to be addressed in the
Canadian context.
3. Weaknesses with Policy 15-601 in the Capital Markets
As highlighted above, Proposed Policy 15-601 has the potential to help uncover complex
frauds occurring in the market while also addressing many of the challenges occurring under the
SEC’s framework. Ultimately, it remains to be seen how effective the policy will be in
implementation but the outlook is promising. The following section highlights additional areas
88
OSC, OSC Annual Report 2015, online: OSC at 28.
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