Canadian firms are some of the strongest supporters of regulatory reform for the global financial services industry, reports Greenwich Associates.

The firm conducted a survey at the end of July, canvassing the opinions of 458 banks, asset managers, pension funds and corporations (including 32 Canadian firms) on their level of support for various regulatory reform proposals.

“Canadian companies and financial institutions express strong levels of support for many of the most important reform proposals currently being debated around the world,” says Greenwich Associates consultant Pater Kane. “Almost half are in favour of the establishment of a government entity to regulate systemic risk, almost two-thirds favour major reforms of global derivatives markets and a full 83% support tighter regulations for hedge funds.”

Greenwich also reports that European firms also express strong levels of support for several sweeping reform proposals, including the creation of pan-European regulatory bodies.

“There is a significant group of companies and financial institutions — some 22% of the total that remain neutral to the establishment of these pan-European bodies,” notes Greenwich consultant Robert Statius-Muller. “So, although there is broad support for this approach, much will depend on how these new bodies are composed and empowered to enforce standards on individual European governments.”

Greenwich Associates adds that almost 60% of European firms would support government conducted “stress tests” of the region’s banks similar to those carried out in the U.S., and almost 65% support proposals from the European Commission to enhance hedge-fund regulation.