Returning funds to harmed investors

If you are an investor who has lost money as a result of a wrongdoing, you may be eligible to make a claim to get some of your money back. In Ontario, contraventions of securities law or commodity futures law may lead to sanctions resulting in disgorgement orders. A disgorgement order is aimed at collecting funds obtained illegally by a wrongdoer.

New statutory framework

Disgorgement orders issued on or after September 1, 2025 are governed under a new statutory framework which requires the Ontario Securities Commission (OSC) to make amounts received under disgorgement orders available for distribution unless:

  • the disgorgement was ordered in relation to a contravention of the “insider trading and tipping” prohibition in section 76 of the Securities Act, or
  • the costs of administering the distribution would not justify making the distribution given the amount of money received and the number of potential harmed investors.

Distributions may be carried out by:

  • a third-party administrator appointed by the Superior Court of Justice following a process established by the court, or
  • the OSC following a process set out in the OSC Rule 11-502 or OSC Rule 11-503 Distribution of Amounts Received by the OSC under Disgorgement Orders and Payment of Related Administrative Costs.

For information on the allocation and use of sanction and settlement money not covered under the new statutory distribution framework, please see the allocation and use of funds from sanctions and settlements framework.

Money received

If the OSC receives money under a disgorgement order issued on or after September 1, 2025, other than a disgorgement order relating to insider trading, the OSC will:

  1. publish amounts received under the disgorgement order. Refer to Money received under disgorgement orders issued on or after September 1, 2025
  2. issue a press release and post a notice of the claims process if sufficient amounts have been received and a distribution has started. Refer to Active Distributions
  3. publish a report on each completed distribution. Refer to Report of completed distributions

Holding money for potential future distributions

In some cases, the OSC may hold money for potential future distributions. For example, if the OSC received partial amounts under a disgorgement order and that amount is not enough to justify making a distribution, the OSC will hold the money while collection steps are taken. Collection steps may take several years and may not always result in the recovery of funds. If the OSC is not able to collect enough money to carry out the distribution after 3 years, any money received may be used for other authorized purposes such as investor education.

Potential future distributions

If you would like to be contacted in the event that money is received by the OSC under a disgorgement order and a distribution is carried out in the future, please refer to Money received under disgorgement orders issued on or after September 1, 2025 and complete the Contact Information Form relating to the relevant matter.

Collecting money owed

The OSC makes reasonable efforts to enforce Capital Markets Tribunal and court orders, including collecting amounts owing under disgorgement orders. Tribunal orders are routinely filed in the Ontario Superior Court of Justice. Under Ontario securities law, Tribunal orders then become enforceable in the same manner as court orders. This allows the Commission to use a range of creditor remedies to collect amounts owing, including:

  • garnishment
  • seizure and sale of property
  • and registering writs

In these circumstances, the OSC becomes an ordinary creditor of the respondent. There is no guarantee that any funds, assets, or property may be realized through creditor remedies. In addition, any funds, assets or property may be shared with other creditors based on any creditor priorities.

Making a claim

Refer to the checklist for investors for information about the claim process.

For questions about a specific distribution, contact the Distributions staff at:

Email: [email protected]

Phone: 437-291-5250

For all other inquiries, contact the OSC.

Related legislation and rules