The Ontario Securities Commission (OSC) has published final rules to implement a new statutory framework that facilitates distributing amounts collected under disgorgement orders to investors harmed by misconduct. Disgorgement is a monetary sanction imposed by the Capital Markets Tribunal or the Ontario Superior Court of Justice requiring a respondent to pay amounts obtained through non-compliance with securities law or commodity futures law. Once the rules are in force, the OSC will create a new website section that lists each disgorgement order and lets investors register contact details to be notified about potential future distributions, track amounts collected and distribution status, and access instructions for submitting claims. The OSC also noted it will continue to use no contest settlements and receiverships to return money to harmed investors in appropriate cases. The rules are expected to come into force in late summer or early fall 2025, subject to the coming into effect of legislative amendments to the Ontario Securities Act, Commodity Futures Act and Securities Commission Act, 2021.
Ontario Securities Commission 2025-06-12
Ontario Securities Commission issues final rules for statutory distribution of disgorgement proceeds to harmed investors
The Ontario Securities Commission (OSC) has finalized rules to establish a statutory framework for distributing funds collected under disgorgement orders to investors affected by misconduct. The OSC will launch a website section for investors to track disgorgement orders and submit claims. The rules are anticipated to take effect in late summer or early fall 2025, pending legislative amendments.