As he promised in Wednesday’s hearing before the Senate Committee on Banking, Trade & Commerce, Ontario Securities Commission chair David Brown has sent a letter to market players outlining the OSC’s progress toward improving investor confidence.

The OSC has posted the 14-page letter from Brown to Ontario capital market participants to its Web site. In his September 3, 2002 letter to market participants, Brown promised to report by October 31 on the progress made by the OSC and other stakeholders in addressing investor confidence issues. The letter details the results achieved to date.

The letter covers legislation introduced in Ontario yesterday to boost the OSC’s enforcement powers, its progress on considering the Sarbanes-Oxley reforms in the U.S., and analyst conflict rules, among other topics. It also addresses the five major themes that the OSC is focusing on: improved transparency and disclosure; auditor independence; audit committees; public oversight of auditors, and broader sanctions and remedies for wrongdoing.

“As a result of our consultations and the work of OSC staff and other stakeholders, a clear picture has emerged over the past few months of action taken — and the further steps needed — to increase investor trust and confidence in our capital markets,” said Brown in the letter.

“The Ontario Government has introduced legislation to require CEO and CFO certification of financial reports and to strengthen audit committees; robust standards are being put in place to guard against analyst conflicts; regulators and the accounting profession have taken steps to strengthen accounting standards, promote auditor independence and create a new public oversight body for auditors of public companies; the government has proposed new enforcement sanctions; and the legislation would also provide investors with broader rights to sue over improper financial disclosure,” he said.

http://www.osc.gov.on.ca/en/HotTopics/currentinfo/prom_inv_conf/pic_20021031_cmp-progress-report.pdf