This week the Ontario Securities Commission (OSC) announced an increase in enforcement activity
by the regulator in 2015. In 2015 the OSC commenced proceedings in
31 cases (18 before the Tribunal and 13 before the courts),
compared to 22 in 2014. The 13 proceedings before the courts
include 10 prosecutions pursuant to the Securities Act and 3
prosecutions pursuant to the Criminal Code. Further, in 2015, eight
individuals were sentenced in criminal or quasi-criminal matters
including conditional and probationary sentences, as well as a
three-month custodial sentence for breach of a Commission
The OSC has introduced new initiatives to assist with its role
as regulator of the financial markets including no-contest
settlements, and a mediation pilot program. These initiatives are
aimed at encouraging self-reporting and early resolution of
These resolution initiatives are in addition to the proposed
whistleblower program the OSC hopes to roll out this year. The
proposed whistleblower program, which has already gone through one
round of public comment, would be the first of its kind to be used
by securities regulators in Canada. The whistleblower program would
provide a financial incentive of up to $5 million for "high
quality, original information" that leads to an enforcement
outcome with sanctions. The hope is that this program will assist
the investigation and prosecution of complex securities law matters
including insider trading and market manipulation which have been
historically difficult to detect and effectively prosecute. It
would also provide further incentives for self-reporting of
In addition to these initiatives, the OSC has increased its
investigatory role through the Joint Serious Offences Team (JSOT).
JSOT is a partnership between the OSC and the RCMP Financial Crime
program and the OPP's Anti-Rackets Branch designed to assist
with the investigation financial crime. In 2015 JSOT executed 49
search warrants and laid charges against 20 accused. This
partnership was further buttressed by the relocation of the RCMP
financial crime unit to the OSC's Toronto office last year.
Under the Income Tax Act, the Employment Insurance Act, and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions or GST.
Under the Income Tax Act, the Employment Insurance Act, the Canada Pension Plan Act and the Excise Tax Act, a director of a corporation is jointly and severally liable for a corporation's failure to deduct and remit source deductions.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).