OSC STAFF CONSULTATION PAPER 15-401 Proposed Framework for an OSC Whistleblower Program (the “Consultation Paper”)
We support the principles behind the proposed whistleblower program which is intended to encourage persons to report knowledge of possible serious breaches of securities law to the OSC. Effective internal compliance systems are integral to the efficiency of our capital markets and should remain a “first line of action”. As a result, we agree with an approach whereby the OSC will consider the timing of an initial report by a potential whistleblower who first reports to internal compliance personnel while a second person reports directly to the OSC in determining whistleblower eligibility. We understand that it may not be appropriate in
every situation that individuals report misconduct to their organizations’ internal compliance program in order to be eligible for a whistleblower award, particularly if the organization does not have an effective compliance department.
Overview of the Council’s Comments:
For persons who are not interested (or may not be eligible) to receive an award, it would be constructive if it would be possible to maintain the anonymity of the whistleblower perpetually.