Will The OSC’s Proposed Whistleblower Program Bolster Enforcement Activity Notwithstanding Unique Challenges?

On February 3, 2015, the OSC issued Staff Consultation Paper 15-401. The Consultation Paper calls for comments from the industry on its proposed framework for an award-based whistleblower program. The program would offer cash incentives to whistleblowers totalling up to $1.5-million, which the OSC says will "motivate those with inside knowledge or information that relates to possible serious breaches of Ontario securities law to come forward and share that information with the OSC". The goal of enhancing Canada's 'white collar' enforcement capabilities is important and supportable, and we have written previously about the challenges faced by authorities in pursuing wrongdoing in the area (see e.g. Regulators Continue to Face Challenges Pursuing Insider Trading; Difficulties Continue with Prosecuting Cases Involving Chains of Tipper-Tippee Misconduct). But for the OSC's proposed whistleblower program, whether the ends of motivating employees to come forward justify the