As
we discussed in October 2011, the Ontario
Securities Commission is currently considering a
number of enforcement initiatives, including a
"no-contest" settlement program. In response to public
comments received, the OSC yesterday provided a
clarification on the limited circumstances under which
a such a settlement agreement would be considered.
Specifically, the OSC stated that no-contest settlements would
not be available to those that had engaged in egregious, fraudulent
or criminal conduct, or where the misconduct resulted in
unaddressed investor harm. Further, in proposing a no-contest
settlement, OSC would have to assess a number of factors in
determining a respondent's eligibility, including the extent of
the respondent's cooperation with staff's investigation,
the degree and timeliness of self-reporting, the remedial steps
taken by the respondent and whether disgorgement had occurred.
Finally, the OSC is now proposing that no-contest
