The British Columbia Securities Commission (BCSC) has announced the issuance of its first-ever whistleblower award, valued at $25,000, to a person whose information meaningfully contributed to a current enforcement action regarding suspected misconduct.
“This award reflects the fact that when individuals come forward with timely, credible information, it can make a real difference in our ability to act quickly to protect investors and the integrity of our investment markets,” said Brenda Leong, the BCSC’s chair and chief executive officer, in a news release.
The whistleblower award is the first payout under the BCSC’s whistleblower program. Unlike the equivalent programs of other securities regulators, financial awards under the BCSC’s program cover ongoing enforcement matters, not just matters with concluded hearings.
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In its news release, the BCSC explained that it rewards information for investigations into others’ serious market misconduct such as investment fraud, resulting in halt trade orders, preservation orders, formal allegations, and other kinds of enforcement action.
Under the BCSC’s whistleblower program, financial incentives range from $1,000 to $500,000, depending on how promptly the whistleblower made a report, how much the information contributed to the investigation, and how serious the misconduct was.
“The more valuable your information is, the more we may pay you,” Leong said in the BCSC’s news release.
The BCSC clarified that it does not divulge details regarding the nature of the suspected misconduct or the specific enforcement action to help keep the whistleblower’s identity safe.
The BCSC’s news release noted that those reporting only their own wrongdoing cannot qualify for a whistleblower award but can receive credit for cooperation under another BCSC policy.
More on whistleblower program
Established in November 2023, the BCSC’s whistleblower program seeks to support the BCSC’s efforts to more speedily discover and address misconduct.
In its news release, the BCSC explained that whistleblowers can send tips, possibly anonymously, via a secure online portal, by mail, or by phone. However, whistleblowers do need to tell the BCSC their identity if they want to get a financial award.