The OSC Whistleblower Program And Employment Agreements

On July 14, 2016, the Ontario Securities Commission (OSC) launched the Office of the Whistleblower, the first paid whistleblower program by a securities regulator in Canada. The OSC whistleblower program offers compensation of up to C$5 million to individuals who come forward with tips on violations of Ontario securities law that lead to an enforcement action. Anti-reprisal provisions have also been added to the Securities Act (Ontario) that allow the OSC to take enforcement action against employers who retaliate against whistleblowers and to nullify contractual provisions that preclude or purport to preclude whistleblowing activities by current or former employees. Given the relative infancy of the OSC whistleblower program, reporting issuers can seek guidance from the administration and enforcement of the Securities and Exchange Commission (SEC) whistleblower program, which is similar in form and substance to the OSC whistleblower program.