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ARTICLE · 09 JULY 2025

Steering Through The OSC's New Framework For Disgorged Funds

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The Ontario Securities Commission (OSC) finalized OSC Rule 11-502 Distribution of Amounts Received by the OSC under Disgorgement Orders and Payment of Related Administrative Costs and its related companion policy, that deals with the distribution of funds that have been collected by the OSC pursuant to disgorgement orders.

CanadaCorporate/Commercial Law
AUM Law
AUM Law
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The Ontario Securities Commission (OSC) finalizedOSC Rule 11-502Distribution of Amounts Received by the OSC under Disgorgement Orders and Payment of Related Administrative Costsand its related companion policy, that deals with the distribution of funds that have been collected by the OSC pursuant to disgorgement orders. The framework concerns distributions to investors that have incurred direct financial losses due to contraventions of Ontario securities laws or commodity futures law. Similar rules have been published under theCommodity Futures Actin OSC Rule 11-503, and its related companion policy (collectively, the Rules).

As noted in the companion policies, the purpose of a disgorgement order is not to compensate investors but to prevent a wrong-doer from benefitting from their misconduct, deter the wrong-doer and others from engaging in similar misconduct, and restore confidence in capital markets.

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