The Ontario Securities Commission (OSC) has awarded $300,000 to a whistleblower whose detailed information led to the identification of significant misconduct within a firm.
According to the OSC, this award underscored the importance of whistleblowers in maintaining the integrity of capital markets and highlighted the effectiveness of its Whistleblower Program.
The whistleblower, whose seniority, knowledge, and experience provided the OSC with actionable intelligence, played a crucial role in uncovering the misconduct. The information supplied was critical, revealing activities inconsistent with regulatory obligations that would have been challenging for the OSC to detect without insider knowledge. As a result of the whistleblower's submission, the OSC could take necessary actions to ensure the firm rectified the identified issues.
"Actionable information from whistleblowers is critical in the fight against misconduct and in protecting the integrity of our capital markets," said Leslie Byberg, interim executive vice president of enforcement. "Some misconduct can be difficult to detect without intelligence from those within a firm. This individual’s actions directly identified a complex issue that may have gone unnoticed."
The OSC Whistleblower Program, which offers protections and financial incentives for individuals who report potential violations of Ontario securities law, has been instrumental in uncovering various forms of misconduct. The program can award up to $5 million for tips that lead to successful enforcement actions. Since its inception, the program has awarded more than $10 million.
Confidentiality is a cornerstone of the Whistleblower Program. The OSC makes all reasonable efforts to protect whistleblowers' identities, ensuring that the details of each case remain strictly confidential. The OSC aims to encourage more individuals to come forward with valuable information without fear of retaliation.
The OSC continues to seek tips containing non-public information, including from whistleblowers who may be involved in the misconduct. The program is also interested in tips about emerging issues in securities regulation, such as greenwashing, misconduct by accounting firms related to their audits of reporting issuers, and the misuse of algorithms and artificial intelligence.