In 2015, the OSC saw an uptick in enforcement activity, according to the SRO’s annual enforcement report.

In 2015, eight individuals were sentenced in criminal or quasi-criminal matters, with the OSC handing out 28 months’ worth of jail time via the courts—for example, one man received a conditional sentence of two years, less a day, for fraud for issuing false monthly statements indicating his client’s holdings were increasing in value when the client was actually losing money.

Read: 5 actions to reduce fraud risk

The OSC also rendered decisions in two major insider trading cases, resulting in lengthy bans and financial penalties. Further, in November 2015, the SRO approved a no-contest settlement agreement in relation to excess fees that Quadrus Investment Services self-reported to the OSC. Quadrus agreed to compensate clients approximately $8 million, and OSC says the settlement illustrates the importance of treating clients fairly with respect to fees.

Read: No-contest settlements still hot-button issue

Summary of enforcement activity

  • The OSC commenced 31 cases against 73 individuals or companies, versus 22 cases against 45 parties in 2014.
  • Last year, says the report, there were more cases related to issues such as illegal distribution, disclosure violation and breach of orders. In total, the SRO handled more tribunals (18, versus 14 in 2014) as well as court cases (10 quasi-criminal and 3 criminal, versus 6 and 2 in 2014). Read: Top risks for new investors and Pointers on CRM2 reporting
  • In terms of concluded proceedings, the OSC results were mixed. While the SRO concluded fewer tribunals (38, versus 58 in 2014), it closed more quasi-criminal court cases (7, versus 2 in 2014) and issued more settlement agreements (37, versus 29 in 2014).
  • As a result, OSC handed out more in penalties and settlements ($20,106,596, versus $19,498,461in 2014). Over the same period, there was a drop in disgorgement orders ($42,882,986, versus $49,081,332) and total costs.