OSC awards a whistleblower for critical insider information that safeguarded investors
The Ontario Securities Commission (OSC) has awarded a substantial sum of $1.5m to a whistleblower, as reported by Newswire Canada.
This significant award was given in recognition of the whistleblower's crucial role in aiding the OSC to promptly address investor protection concerns.
Jeff Kehoe, the director of enforcement at the OSC, emphasized the vital contribution of the whistleblower, who was an insider possessing exclusive and non-public information.
This information not only expanded the scope of an ongoing investigation but also played a pivotal role in the successful enforcement action.
“The whistleblower had access to valuable information regarding early-stage misconduct that was critical to our ability to quickly respond and protect investors from further harm,” said Kehoe.
He highlighted the indispensable role of internal whistleblowers in uncovering hard-to-detect misconduct at an early stage and reaffirmed the OSC's commitment to enhancing this enforcement tool.
The OSC Whistleblower Program is designed to encourage individuals to report potential violations of Ontario securities law by offering protection and monetary awards. Violations can range from illegal insider trading and abusive short selling to corporate disclosure violations.
The program, which has already awarded over $10m since its inception, maintains strict confidentiality to protect the identity of whistleblowers. This confidentiality is central to the program, ensuring that the details of each case and the identities of the whistleblowers are securely guarded.
In its pursuit to uncover and address securities violations, the OSC Whistleblower Program is actively seeking more tips, especially those containing non-public information. It encourages whistleblowers, including those who may be involved in the misconduct themselves, to come forward.
The program is also particularly interested in tips regarding emerging and novel issues in securities regulation. These issues include greenwashing, misconduct related to audits of reporting issuers by accounting firms, and the misuse of algorithms and artificial intelligence.
