The key recommendations call for mandatory disclosure of conflicts of interests for the brokerage firms and analysts, prohibition of certain relationships for analysts producing research and registration of supervisory analysts.
Committee Chairman Purdy Crawford said, "It is no secret that open disclosure enhances the credibility of a public company in the minds of shareholders. These same principles must be applied to analysts who provide research and advice on Canadian corporations. Therefore industry leaders at both investment-dealer firms and public companies must 'walk the talk' and encourage analyst independence and prove they are serious about independent research."
The recommendations include:
- 7 recommendations that focus on better disclosure of conflicts of interest;
- 12 recommendations that focus on improving research reports by outlining best practices for the reports and the issuance of these reports by analysts and their firms;
- 6 recommendations that focus on the registration of supervisory analysts and the oversight of all analysts in the marketplace;
- 7 recommendations that focus on the importance of good governance; and
- 1 recommendation that encourages the industry to work together to help investors understand the role of the analyst in the marketplace.
- 18 recommendations are directed at the IDA, including 6 recommendations that also involve the Stock Exchanges and 2 that involve the Association for Investment Management and Research.
- 12 recommendations are directed at the Industry and will involve implementation by the IDA.
- 3 recommendations are directed to the Securities Commissions, as are many of the recommendations directed at the IDA that will require securities commission support and approval.
Copies of this final report are available on tse.com.
