In a much-anticipated announcement, the Ontario Securities
Commission said on June 16th that it will
officially launch its rewards-based Whistleblower Program on July
14, 2016, less than a month from now. The newly-created Office of
the Whistleblower will be open and ready to receive tips on that
date. The OSC release noted that Kelly Gorman, currently Deputy
Director of the OSC's Enforcement Branch, will head up the
Osler has written extensively on the OSC's proposed
Whistleblower Program and the significant impact it will have on
businesses, including their management and directors, in-house
counsel and compliance personnel. While the final terms of the
Program have not yet been released, the key elements of the Program
are unlikely to change significantly from the most recent proposal.
In particular, the OSC's June 16th press release
confirmed that the regulator will offer compensation up to
$5-million to whistleblowers who come forward with tips that lead
to successful enforcement action. In addition, the OSC has
indicated it is working with the Ontario government to seek
amendments to the Securities Act that would bolster whistleblower
protections, and said in its release that these provisions are
"expected to be in place" by the time the Program is
launched in mid-July.
As the first program of its kind for a securities regulator in
Canada, we expect that the OSC program will attract significant
attention. As we previously discussed, the OSC suggested in April
that it had already received a number of calls from would-be
tipsters enquiring about when the Program would be online. Given
that the Program will not require whistleblowers to first report
wrongdoing internally within their organizations, the Office of the
Whistleblower will likely be the first stop for many tipsters
looking to report wrongdoing and to position themselves to receive
potentially significant awards. While the $5-million award cap will
preclude the astronomical awards we have seen issued by regulators
in the U.S. (including recent awards from the SEC and the CFTC), it
would not be surprising if the OSC begins to announce major awards
in the near future.
Stay tuned for further commentary from Osler on the Office of
the Whistleblower as we approach the July 14th
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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.
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