April 08, 2016
The Canadian Securities Administrators (CSA) has reported a significant rise in fines and penalties in Canada, with the dollar amount of penalties in 2015 more than doubling those in 2014. While there is much speculation on why the numbers have risen so sharply, senior associate Rebecca Wise, who was sought for comment on this issue by Advisor.ca, points out that the Ontario Securities Commission’s (OSC) new focus on insider trading may be a factor contributing to the increase. Below is an excerpt of the article.
Rebecca Wise, an associate at Torys LLP in Toronto, points to the increase in insider trading cases. Proceedings commenced doubled compared to 2014. “That statistic is consistent with an increasing regulatory and legislative focus,” she says, referring to a 2015 Ontario Securities Act amendment that made insider trading rules apply to issuers outside Ontario.
Further, “The OSC’s been, increasingly, using its public interest jurisdiction to capture problematic trading activities that may not technically fall inside the insider trading regulations,” Wise says.
To read the full article, click here.
Read more on securities enforcement from Rebecca Wise in “Whistleblower Policies: A Practical Guide for Reporting Issuers.”