OSC Chair Howard Wetston Pledges Strong Investor Protection Through Effective, Active Enforcement

TORONTO – Ontario Securities Commission Chair Howard Wetston Q.C., announced today the OSC is examining new tools to deliver strong investor protection through an enhanced enforcement regime. Chair Wetston stated that the OSC is examining the use of immunity agreements, a new whistleblower program and the use of settlement agreements that do not include admissions of fact.

In his remarks to the Economic Club of Canada, Chair Wetston said the OSC would seek stiffer penalties by sending more proceedings to the Ontario Court of Justice. “Our goal is to bring forward meaningful cases that have a strong deterrent impact in order to protect investors and markets,” he said. “We aim to maximize the deterrent effect of court-imposed sanctions, including jail terms.”

Chair Wetston said recent high-profile cases involving insider trading and market manipulation are evidence that the Commission’s focus on enforcement is producing results for the public. “We are investigating cases faster and commencing more prosecutions,” Chair Wetston said. “The OSC’s enforcement program is vigorous and effective – and active.”

Chair Wetston also addressed the OSC’s role in reviewing the proposed transaction between the TMX Group and London Stock Exchange, and indicated that the Commission would ensure a transparent and comprehensive public consultation process. “The OSC has a key role to play in reviewing the transaction in our capacity as the lead regulator of the TSX and TMX Group,” he said. “We will review all aspects of the transaction – including the proposed structure – to ensure that we are satisfied that any changes are in the public interest.”

For a complete text of “Strong Regulation, Strong Capital Markets” and copies of the 2010 OSC Enforcement Activity Report, please refer to the OSC’s website: www.osc.ca.

 

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