Questions for Heidi Franken, Deputy Director of Enforcement, Ontario Securities Commission
You head up the Ontario Securities Commission’s new Office of the Whistleblower. What is its mission?
The program is primarily an investor protection policy aimed at serious securities misconduct. This misconduct can be difficult to detect without the assistance of a knowledgeable whistleblower. The earlier we know about misconduct, the more protective orders we can issue, the greater our ability to minimize harm to investors and, therefore, the stronger the deterrent message.
We did extensive research on programs in Canada and around the world, including the Securities and Exchange Commission’s (SEC) program in the U.S. We then designed a program specific to Ontario’s needs that not only offers excellent incentives for whistleblowers to come forward and report misconduct, but also offers important protective measures for them.
A recent SEC study found that 80 per cent of whistleblowers reported the misconduct to the SEC after trying to raise their concerns internally. Why would that be?
As you indicate, a large majority of whistleblowers attempted to
