New framework for distributing disgorged funds collected to harmed investors comes into force

TORONTO, Sept. 2, 2025 /CNW/ - On September 1, 2025, a new statutory framework and related Ontario Securities Commission (OSC) Rules came into force to facilitate the distribution of funds collected under disgorgement orders to investors who have been directly harmed. This follows the announcement of the new framework by the OSC in June 2025.

Disgorgement is a monetary sanction imposed by the Capital Markets Tribunal or the Ontario Superior Court of Justice. It requires respondents to pay amounts obtained through non-compliance with Ontario securities law or commodity futures law to the OSC.

To support this new framework, the OSC has launched a dedicated section on its website. This new resource provides information about the distribution process and allows investors to:

• View new disgorgement orders
• Register to receive updates about potential future distributions
• Track amounts collected under each order
• Access details about any related distribution process and how to submit a claim

Under the new framework, information about each disgorgement order, including the amounts collected, will be posted on the OSC website. Investors who were directly harmed by the conduct that resulted in the order can register their contact information to be notified of any future distribution of collected amounts. This initiative aligns the OSC with other Canadian and international regulators that have implemented similar frameworks to return funds to harmed investors.

The mandate of the OSC is to provide protection to investors from unfair, improper or fraudulent practices, to foster fair, efficient and competitive capital markets, and confidence in the capital markets, to foster capital formation, and to contribute to the stability of the financial system and the reduction of systemic risk. Investors are urged to check the registration of any persons or company offering an investment opportunity and to review the OSC investor materials available at https://www.osc.ca.

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SOURCE Ontario Securities Commission

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