The Securities Industry Committee on Analyst Standards issued its final report today, tabling 33 recommendations.

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 the registration of supervisory analysts.

Seven of the recommendations focus on better disclosure of conflicts of interest. Twelve focus on improving research reports by outlining best practices for the reports and the issuance of these reports by analysts and their firms

Six of the recommendations focus on the registration of supervisory analysts and the oversight of all analysts in the marketplace. Seven focus on the importance of good governance. The final recommendation encourages the industry to work together to help investors understand the role of the analyst in the marketplace.

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.”

Eighteen of the recommendations are directed at the IDA, including six recommendations that also involve the stock exchanges and two that involve the Association for Investment Management and Research. Twelve recommendations are directed at the industry and will involve implementation by the IDA, and three are directed to the securities commissions.

“We expect regulators, exchanges and industry participants will act expeditiously to implement these recommendations,” added Crawford. “Our committee will be monitoring progress and will go as far as releasing a report card in a year’s time.”