The B.C. Securities Commission has issued its first whistleblower award, paying $25,000 to an individual who provided information about suspected misconduct. The payment was announced Tuesday by Mark Hilford, the commission's deputy-director of enforcement, who declined to provide further details to protect the whistleblower's identity and the ongoing investigation.
Unique Program Features
Hilford emphasized that the award was made before any hearing or final penalty, distinguishing it from other whistleblower programs. "Other programs don't pay until the hearing is done, they've won, and the big fines have been issued and paid. Then they reward a whistleblower," he said. "So it highlights the unique nature of our particular program."
Program Launch and Impact
The whistleblower program was launched in November 2023 to increase the number and quality of public tips about investment fraud and other market misconduct. In its first year, overall public tips rose by 33 percent, with 255 specific whistleblower tips received. A quality assessment graded 60 percent of tips as good, very good, or excellent.
Hilford expects more payouts as the program matures and investigations into other tips progress. Financial awards range from $1,000 to a maximum of $500,000, depending on factors such as how quickly the information was reported, its contribution to the investigation, and the seriousness of the misconduct.
Commission Chair's Statement
Commission chair Brenda Leong stated that whistleblower information "can make a real difference in our ability to act quickly to protect investors and the integrity of our investment markets." She added, "The more valuable your information is, the more we may pay you." Awards are paid for information leading to halt-trade orders, preservation orders, or formal allegations.
Whistleblower Reporting Patterns
Hilford noted that about half of whistleblowers choose to report anonymously, while half identify themselves. Most (77 percent) use the online portal, 22 percent call, and just one percent mail their tips. Some whistleblowers decline payment, while others are motivated by financial reward. A third category the commission targets is "the angry person who wants to do something about it and wants to get even" after being victimized by investment scams.
The commission has launched advertising campaigns to warn the public about rising investment fraud globally.
