The Globe and Mail reports in its Thursday edition that the Ontario Securities Commission has paid three whistle-blowers $7.5-million in total, marking the first payments of their kind in Canada.
The Globe's Tim Kiladze and David Milstead write that the payments, made in three separate cases, were given to people who, the OSC said, "voluntarily provided high quality, timely, specific and credible information" which helped regulators with enforcement actions. The OSC opened its whistle-blower office in 2016, promising payouts of up to $5-million for people who report securities-related crimes that lead to successful prosecutions.
The OSC did not say which enforcement actions led to the awards. It also did not say how much money went to each recipient.
In developing and administering its program, the OSC was able to look south to the U.S. Securities and Exchange Commission, which set up a whistleblower office in 2011 to comply with the Dodd-Frank Act. The SEC awarded more than $168-million (U.S.) in the year ended last September. While the SEC is willing to pay out 10 per cent to 30 per cent of whatever money it collects, the range for awards from the OSC is 5 to 15 per cent of the sanctions, up to $5-million.
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