OSC Adopts New Framework To Distribute Funds From Disgorgement Orders To Harmed Investors

On June 12, 2025, the Ontario Securities Commission (OSC) published final rules to facilitate the implementation of a new statutory framework for distributing amounts collected by the OSC under disgorgement orders to harmed investors. Traditionally, investors harmed by the wrongdoing of securities law violators had to find redress in the court system or through statutory ombud services. While securities regulators were permitted to issue disgorgement orders, there was no framework in place to distribute disgorged funds to harmed investors nor any requirement for the regulator to do so.

The final rules provide harmed investors with a streamlined path to restitution, through the regulators themselves. As always, time will tell whether the implementation of the statutory framework will successfully fulfill the intended purpose of making harmed investors whole. Nonetheless, the final rules represent a positive step towards meeting the OSC's mandate of