On September 1, 2025, a new framework came into force in Ontario governing how funds collected under disgorgement orders are handled. Disgorgement requires wrongdoers to give up money obtained through misconduct. Historically, however, there was no requirement to return those funds to harmed investors. That has changed. Under the new framework, disgorged amounts collected by the OSC will generally be distributed to investors who suffered direct financial losses because of the misconduct.
To support this process, the OSC will publish key information on its website, including the amounts ordered and collected, any outstanding balance, and whether a distribution has begun. Investors can provide their contact information if they wish to be notified about future distributions.
The OSC v. Bharti case is the first under the new framework where disgorged funds have been received. The OSC is considering potential approaches to distributing those funds and will provide updates as decisions are made.
The Bharti case offers an important first look at how the framework will work in practice. In this instance, the OSC has successfully collected the full amount of the disgorgement orders, which is uncommon. Historically, collection rates on OSC disgorgement orders have been low. Although the framework has the potential to improve investor confidence by providing another path to financial redress, that promise depends on the OSC’s ability to consistently collect funds from wrongdoers. Strengthening the OSC’s statutory collection powers is critical to ensuring that disgorgement orders deliver meaningful compensation to investors and help reinforce trust in Ontario’s capital markets.