Corporate Governance Is Biggest Regulatory Headache For Corporate Canada, Finds Survey

Ipsos Reid has released the results of a survey aimed at evaluating and benchmarking the current state of corporate governance and investment relations issues in Canada. Specific objectives of the research included defining the roles and responsibilities of the investor

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Ipsos-Reid has released the results of a survey aimed at evaluating and benchmarking the current state of corporate governance and investment relations issues in Canada. Specific objectives of the research included defining the roles and responsibilities of the investor relations industry in Canada and determining views and practices respecting new regulations and corporate governance standards.

According to the results, corporate governance and disclosure requirements has been identified as the issue having the most impact on Canadian public companies today. Nearly half (48%) of respondents indicated this response in this new Ipsos-Reid survey sponsored by the Canadian Investor Relations Institute (CIRI), TSX Group Inc., Blake, Cassels & Graydon LLP, and the Institute of Corporate Directors (ICD).

Respondents identified these regulatory initiatives significantly more frequently than the economic or business environment as having the most important impact on their businesses. Increased workloads, additional cost and further staffing and advisory requirements were identified as some of the key impacts of these regulatory initiatives.

Consistent with results from other surveys conducted by the TSX Group and other industry groups, 75% of survey respondents support the need for a single, national securities regulator. Significantly, a majority of respondents whose head office is located in Alberta (67%) or British Columbia (69%) agreed with this position.

The survey, one of the most comprehensive in the industry to date on the impact of governance regulation on Canadian business to date, was completed by Ipsos-Reid and consisted of online interviews with over 650 individuals including: corporate directors, chief financial officers, investor relations officers, general counsel and others responsible for corporate governance disclosure within their company.

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