Under a no-contest settlement, companies or individuals can resolve a dispute with the Ontario Securities Commission without having to admit wrongdoing.
The policy is meant to help the regulator enforce the law expeditiously. But law professor Anita Anand, the J.R. Kimber Chair in Investor Protection and Corporate Governance in the Faculty of Law, says there's reason to question the deterrence value and efficiency of no-contest settlements.
The average time taken to reach such a settlement has increased, while the process also lacks transparency, she argues in The Globe and Mail.
“We should question whether the alleged benefits of no-contest settlements, including efficiency and deterrence, outweigh the weaknesses of this enforcement program,” she says.