TORONTO - Ontario's securities watchdog has launched its whistleblower program in an effort to root out accounting fraud, insider trading and market manipulation.

Under the program -- the first in Canada to provide compensation -- the Ontario Securities Commission offers rewards of up to $5 million for tips that lead to successful prosecution.

The OSC originally planned to cap payments to $1.5 million, but it raised that after experts suggested that was too little to compensate senior executives who risk losing high-paying jobs and being blacklisted from their industries.

Payouts are still capped at $1.5 million unless the securities regulator is able to collect at least $10 million in sanctions related to a case.

In such cases, the whistleblower would receive between five and 15 per cent of the sanctions collected, up to a maximum of $5 million.

The program also includes protections for those who come forward, such as confidentiality and anti-retaliation measures.

Kelly Gorman, chief of the Office of the Whistleblower, told BNN in an interview that the program recognizes the complexity of dealing with tipsters who are involved with the misconduct themselves.

“Culpable whistleblowers or individuals sometimes have the most and the best inside knowledge about misconduct that is taking place. And we recognize that,” Gorman said.

“If a whistleblower has been culpable, that’s something that will skew down the amount of award that we will recommend.”

Gorman added that the OSC has made it “very, very clear” that even if a culpable whistleblower gets a reward, they’re not immune from being subject to enforcement action.

With files from BNN's Paige Ellis