In January 2004, the Ontario Securities Commission proposed new corporate governance guidelines and disclosure requirements aimed at strengthening investor confidence in Canada’s capital markets. This briefing examines the Commission’s proposals, compares the extent of harmonization with recent U.S. initiatives, such as the Sarbanes-Oxley Act of 2002, and discusses the impact the new requirements may have on corporate ethics management practices in Canada.
Document Highlights
Following a series of high-profile accounting scandals, the United States introduced various measures to strengthen its regulatory regime, including the Sarbanes-Oxley Act of 2002. The U.S. moves pose a dilemma for Canadian securities regulators. On one hand, Canada cannot be seen to be ignoring what is clearly not an exclusively American problem. On the other hand, there is a need for a ‘made in Canada’ solution that takes into account the various Canadian approaches to regulatory policy, the higher proportion of small-capitalization companies relative to the U.S. and the need to attract issuers as well as investors.
In January 2004, the Ontario Securities Commission proposed new corporate governance guidelines and disclosure requirements aimed at strengthening investor confidence in Canada’s capital markets. This briefing examines the Commission’s proposals, compares the extent of harmonization between the U.S. and Canadian initiatives, and discusses the impact the new requirements may have on corporate ethics management practices in Canada.
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