The Securities Industry Committee on Analyst Standards is recommending that the Canadian securities industry should adopt the Code of Ethics and Standards of Professional Conduct of the Association for Investment Management and Research.
In its report, which was released today, the committee recommends four items that relate to AIMR:
- The Investment Dealers should create and enforce a process of annual certification for all analysts to comply with the AIMR code of ethics;
- Independent analysts and journalists should adhere to the same AIMR code;
- The IDA should develop proficiency standards for supervisory sell-side analysts mandating that they earn the CFA designation; and
- All Canadian investment dealers should require their sell-side analysts to achieve the CFA designation.
“Canada has taken the initiative towards securing uniform standards for sell-side analysts,” said Philippe Sarasin, chair of AIMR’s board of governors. “The efforts of SICAS will serve as an important precedent to other markets and will reinforce the efforts to raise professional standards in a way that serves the best interests of all investors. We are pleased that the AIMR Code and Standards have been endorsed in Canada, and we remain committed to our work with other countries on this and other issues.”
The SICAS recommendations mark the first time a uniform code of ethics has been recommended for all sell-side analysts across Canada. It will hold analysts to a high ethical standard, protect investors, improve the transparency of their disclosures to clients, and foster fair and open capital markets.