A new report recommends the creation of a single, national regulatory body for Canada’s financial markets, and better enforcement of existing securities regulations to help to improve corporate governance.

The report from the Public Policy Forum (PPF), which was released yesterday, represents the results of a year-long research project into the role that public policy and institutional investors can play in restoring Canadians’ confidence in the financial markets.

The PPF is an independent, national, non-profit organization with a mandate to promote better public policy and better public management. It commissioned a research paper and convened a roundtable with senior representatives from government and the financial community.

Among the reports key findings and recommendations:

  • raising the level of confidence in corporate governance should be a political priority;
  • Canada’s current system of 13 regulators should be consolidated into a single national body;
  • Canadian rules regarding security regulations are adequate, but are not being sufficiently enforced;
  • institutional investors are playing a growing role in raising corporate governance standards; and
  • there is a need to create a clear definition of corporate social responsibility.

“The Public Policy Forum’s research found that, in order to enhance confidence in corporate governance, action must be taken by governments, corporations and investors,” said Public Policy Forum president Jodi White. “While media coverage can help to make corporate behaviour more transparent, and institutional investors can monitor companies, suggest new standards, and even withdraw investment when dissatisfied, these tools alone are not enough without some substantial public policy initiatives to ensure their ultimate effectiveness.”

“It is important for federal and provincial governments to work with the private sector and investors to develop measures that will enhance the standards of corporate governance in Canada, and consequently enhance Canadians’ confidence in their investment decisions,” she added.