Ontario securities watchdog to boost whistleblower reward

Ontario's securities watchdog has boosted its proposedreward for corporatewhistleblowersto as much as $5 million.

In its previous proposal to reward those who come forward withinformation about accounting fraud, insider trading andmarketmanipulation, the Ontario Securities Commission had suggestedcapping reward payments at $1.5 million.

However, some experts deemed that too stingy to spur seniorexecutives to come forward.

Butwhistleblowersmust meet certain requirements to be eligiblefor an award, including that the information they provide is of"meaningful assistance" to the commission and that the caseresults in at least $1 million of sanctions being ordered.

Ifeligible, thewhistleblowercould receive between five and 15 percent of the sanctions ordered.

Payoutswillstillbecappedat$1.5millionunlessthesecuritiesregulatorisabletocollectatleast$10millioninsanctions related to the case.

In such cases, thewhistleblowerwillreceive between five and 15 per cent of the sanctions collected, upto a maximum of $5 million.

The OSC is seeking comment on its new proposal byJan. 16andaims to have the program by in place by next spring. If implemented,the program would be the first of its kind for Canadian securitiesregulators.