Plastic2Oil Inc (PTOI)

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Ontario Securities Commission Investigations

What To Do When The Regulator Comes Knocking

Susan Friedman
Breakfast Seminar Series – March 28, 2012

http://www.davis.ca/uploads/publications/ontario-securities-commissions-investigations_en.pdf

OSC’s statutory powers of investigation:

• Subsection 11(1) – empowers OSC to conduct investigation for:

• (i) due administration of Ontario’s securities laws and regulation of Ontario’s capital markets, or

• (ii) to assist other jurisdictions such as the US Securities and Exchange Commission

http://www.davis.ca/uploads/publications/ontario-securities-commissions-investigations_en.pdf


ONTARIO SECURITIES COMMISSION STAFF NOTICE 15-703

GUIDELINES FOR STAFF DISCLOSURE OF INVESTIGATIONS

1. Purpose

The purpose of this Staff Notice is to inform the public of the guidelines used to determine whether investigations ought to be disclosed by OSC Staff.

2. Background

In the ordinary course, OSC Staff do not publicly disclose the existence of an investigation or details regarding an investigation. Some investigations may be compromised if disclosure is made before the Enforcement Branch has an opportunity to carry out its work. Confidentiality of the investigation minimizes this risk. In addition, confidentially minimizes potential harm to the reputations of those to whom the investigation relates if no proceedings are taken.

However, public confirmation of the existence or nature of an investigation will provide investors with information that may be useful in assessing the risks of certain investments. Such confirmation may also serve to foster confidence in the capital markets by affirming that enforcement action is being taken in relation to potential breaches of the Securities Act or conduct contrary to the public interest. Therefore, there are cases where the value in disclosing the existence of an investigation will outweigh any risks associated with disclosure.

[...]
http://www.osc.gov.on.ca/en/SecuritiesLaw_sn_20041015_15-703_disclosure-investigations.jsp

Re: Order issued under Section 11(1) of the Ontario Securities Act dated February 15,2012