In a speech to the Toronto Board of Trade today, Maurizio Bevilacqua, Secretary of State for International Financial Institutions, said that executives should certify their financials as well as take other measures to improve corporate governance.

Bevilacqua outlined five areas where the Liberals are proposing reform:

> strengthening investor confidence

> improving Canadian securities regulation

> improving access to banking services

> updating information technology

> the formation of holding companies

He said that the government takes the task of strengthening the confidence of Canadian investors, “very seriously”.

“I’d like to be clear on this – while our system of corporate governance has real strengths, it must be improved. It must adequately reflect new standards that people are demanding,” he said.

Some of the specific requirements will include chief executive officers and chief financial officers certifying their firm’s financial statements, an insistence on disclosure being complete, transparent and timely as well as independent boards and auditors.

“To be effective, we need a coordinated approach with the federal government, other governments, regulators and the private sector. But let’s be clear – this is an urgent issue, and the federal government will use all the levers at its disposal to strengthen the confidence of investors in Canadian capital markets,” he said in the news release.

Bevilacqua said little on securities regulation, noting that Harold MacKay now has that task. “Of course, achieving our goals requires the cooperation of all governments and we remain committed to working with all stakeholders so that we create the securities regulatory system our nation needs to stay competitive in the global marketplace,” he said.

Bevilacqua also noted that a coordinated approach should enable financial institutions to adapt sophisticated technologies and make new financial services possible. “We will also loosen the constraints keeping federal financial institutions from investing more freely in a broader range of non-financial information technology activities,” he said.

“I’m pleased to say that, in these areas of access to banking services, holding companies and information technology, we are moving quickly. The regulatory process required on all three will be completed early in the new year, giving our institutions the means to help power the economy of tomorrow.”