Investment Dealers Association of Canada Proposes Revised Policy on Analyst Standards
|Area||Corporate Finance and Securities|
As public scrutiny continues to focus on potential conflicts of interest affecting research analysts, the Investment Dealers Association of Canada ("IDA") has published a revised version of its proposed Policy No. 11 - Analyst Standards. Proposed Policy No. 11, which is intended to improve investor confidence by setting higher practice standards for analysts, has been revised by:
- increasing disclosure requirements for research reports,
- recasting numerous quasi-voluntary "guidelines" as mandatory "standards", and
- providing greater harmonization with the standards of its U.S. counterpart, Rule 2711 of the National Association of Securities Dealers ("NASD 2711"), although important differences remain.
This update summarizes the significant amendments in revised Policy No. 11 and also includes a discussion of another recent IDA initiative designed to increase harmonization with the U.S. model. Policy No. 11 is currently under consideration by the Ontario Securities Commission. Although not yet effective, the IDA has indicated that compliance by dealers is expected during the interim period prior to approval by the Commission.