Respondents identified these regulatory initiatives significantly more frequently than the economic or business environment as having the most important impact on their businesses. Increased workloads, additional cost and further staffing and advisory requirements were identified as some of the key impacts of these regulatory initiatives.
“This survey is particularly timely in understanding the impact of changes in governance and disclosure requirements on business, and the role and responsibility of issuers and their advisors to provide clearer communications between issuers and investors,” said Roxanna Benoit, President and Chief Executive Officer of CIRI.
"It is interesting to note that two-thirds of those surveyed believe they will have to change the composition of their board due to new governance initiatives related to specialist competencies, regulatory awareness, company reputation or maintaining investor trust," said Bernard Wilson, Vice-Chairman PricewaterhouseCoopers and Chairman of the Institute of Corporate Directors. “As directors' responsibilities increase they have to ensure they remain ahead of the curve on emerging governance issues to enhance board performance."
Consistent with results from other surveys conducted by the TSX Group and other industry groups, 75% of survey respondents support the need for a single, national securities regulator. Significantly, a majority of respondents whose head office is located in Alberta (67%) or British Columbia (69%) agreed with this position. “Provincial legislators need to acknowledge the Canada-wide support for a national securities regulator,” said Robert Fabes, Senior Vice President, Toronto Stock Exchange.
The overall purpose of the study was to evaluate and benchmark the current state of corporate governance and investor relations issues in Canada. Specific objectives of the research included defining the roles and responsibilities of the investor relations industry in Canada and determining views and practices respecting new regulations and corporate governance standards.
About Canadian Investors Relations Institute
CIRI is the second largest association for investor relations professionals in the world with over 700 members and chapters in Montreal, Toronto, Calgary and Vancouver. CIRI is dedicated to advancing the stature and credibility of the investor relations profession and the competency of its members.
About TSX Group Inc. (TSX:X)
TSX Group operates Canada's two national stock exchanges serving the senior equity and public venture equity markets as well as NGX, a leading North American exchange for the trading and clearing of natural gas and electricity contracts. TSX are the initials attached to the core equity operations of the TSX Group (www.tsx.com): Toronto Stock Exchange, TSX Venture Exchange, TSX Markets, TSX Datalinx, TSX Technologies. TSX Group is headquartered in Toronto and maintains offices in Montreal, Winnipeg, Calgary and Vancouver.
About Blake Cassels & Graydon LLP
Founded in 1856, Blakes has over 500 lawyers and offices in Canada, the United States, Europe and China. In May 2004, Chambers and Partners Legal Publishers named Blakes "Canadian Law Firm of the Year." Blakes has also been ranked "Canada’s Leading Law Firm" in The International Who’s Who of Business Lawyers 2003/2004, published by Law Business Research, with more lawyers ranked as leading business lawyers than any other law firm in Canada.
About Institute of Corporate Directors (ICD)
The Institute of Corporate Directors (ICD) is committed to enhancing the quality of governance in Canada. The ICD is the only membership association solely representing the profession of directors, ensuring they are well-prepared to deal with their responsibilities and remain current on best practices. The ICD provides education, accreditation, publishing and other support services to Boards, directors, aspiring directors and organizations.
The ICD also represents Canada, as one of seven nations in the Global Director Development Circle, an international governance initiative established by the UK-based Institute of Directors, focused on the development needs of Directors and Boards globally.
