THE B.C. Securities Commission (BCSC) announced on Tuesday that it will start paying people who provide helpful information about investment fraud and other serious types of market misconduct.
The BCSC’s whistleblower awards will range from $1,000 to $250,000, and will be determined by how quickly the information was reported, how much the information contributed to the enforcement outcome, and the seriousness of the misconduct, among other considerations. A whistleblower also could receive more than one award for the same information, with the maximum payout capped at $500,000.
The BCSC’s whistleblower program, specifically tailored for B.C.’s investment market and unique among Canadian securities regulators, will make it easier for people to qualify for awards and to receive awards quickly.
The BCSC will give awards if the information leads to enforcement action by the BCSC, including:
- A halt trade order
- Issuing formal allegations
- Sanctions after a hearing
- A settlement agreement, and
- The identification and location of assets of people who have been ordered to pay financial sanctions.
“Often, people who break the law in the investment market or evade our sanctions can’t do it without others noticing,” said Brenda Leong, BCSC’s Chair and CEO. “The BCSC always encourages people to report suspicious activity, and we think these awards provide an added incentive for people to contact us and provide information that will help make our market more honest and fair.”
The BCSC’s Executive Director, after considering the recommendation of staff, will determine the amount of the award, if any.
While the awards may be lower than those provided by other market regulators the BCSC will pay for more enforcement outcomes and will pay more quickly.
“The more valuable your information is, the more we may pay you,” Leong said.
The BCSC will use a special online portal to receive whistleblower tips, which can be completed online, mailed, or called in. A whistleblower can submit their own tip or they can get help from a lawyer.
Whistleblowers can file their tip anonymously, but they must reveal their identity to the BCSC before receiving an award.
Whistleblowers are protected from reprisal by British Columbia’s Securities Act, which prohibits retaliation that is solely the result of a person providing information to the BCSC.
Whistleblowers must provide information about someone else’s wrongdoing to qualify for a whistleblower award. They are excluded from receiving a whistleblower award if they provide information about themselves only. In those situations, they may qualify for credit for cooperation under a different BCSC policy.
Whistleblowers who provided information to the BCSC before November 7, 2023, are not eligible for a whistleblower award. Information provided now that relates to misconduct before November 7, 2023, will be eligible.
