08:00:37 EDT Sat 04 May 2024
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Globe says OSC seen as stingy with money from fines

2023-08-31 07:54 ET - In the News

The Globe and Mail reports in its Thursday edition that the Ontario Securities Commission has $123-million in the bank collected over the years from settlements and sanctions levied by its enforcement division. The Globe's Clare O'Hara writes that in the most recent fiscal year, it spent just $7-million on investor education, payments to whistle-blowers and compensation for harmed investors. That stark contrast has the provincial government saying the OSC needs to spend more of what it collects. That has prompted a new proposal by the Finance Minister to allow the OSC to redirect those funds to new technology projects and the commission's Office of Economic Growth and Innovation. Investor advocates are taking aim at the proposed regulation, saying funding operations with money from enforcement fines and penalties is a potential conflict of interest and could lead to uncertainty and instability in the OSC's budget. Some also say they would like to see more money go to investors harmed by bad actors. Currently, the OSC can allocate enforcement money to pay back harmed investors, fund investor education and advocacy organizations and compensate whistle-blowers. However, the OSC uses just a small fraction of that money.

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