Tariffs-Free Regulatory Importing?
Asad Akhtar
Part Five: Final Thoughts
The OSC’s adoption of an incentivized whistleblower program, no-contest settlements
and a specialized serious frauds task force provide a positive outlook on the future of securities
regulation in Canada. Beyond these tools having the potential to increase the regulator’s ability
to providing prompt and meaningful enforcement action, this paper has also indicated that these
tools are not simply “tariffs free” importation of American securities regulation. Rather, it is
readily apparent that the OSC was alive to many of the challenges south of the border and has
carefully drafted and narrowly construed the use of the tools, when applicable, for its application
in the local markets.
Has the OSC finally shaken its image as a toothless tiger? Given the infancy of these
policies, it remains to be seen what practical impact they will have in the long run for detecting,
successfully prosecuting and deterring sophisticated mainstream frauds in the market. Other
factors, including political will, may play just as large of a role as the development of new
enforcement tools. Unlike boiler-room operations, placing a greater emphasis on mainstream
transactions occurring on the Street is a contentious position. Howard Weston, the current chair
of the OSC, has made aggressive enforcement of the mainstream market a greater priority under
his tenure but it is unclear if this shift will continue with his successor.
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