The creation of a single, national regulatory body for Canada's financial markets and a clearer definition of corporate social responsibility are two of the recommendations contained in a Public Policy Forum report released Dec. 8.

The report contains 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 Public Policy Forum commissioned a research paper and convened a roundtable with senior representatives from government and the financial community. Among the key findings:

1. Measures to raise the level of confidence in corporate governance should be a political priority.
2. Canada's current system of thirteen market regulators should be consolidated into a single national body.
3. Canadian rules regarding security regulations are adequate, but are not being sufficiently enforced; greater enforcement is required to sustain a healthy market.
4. Institutional investors are playing a growing role in raising corporate governance standards.
5. 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," added Ms. White. "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."

The Public Policy Forum is an independent, national, non-profit organization with a mandate to promote better public policy and better public management through dialogue among leaders from the public, private, labour and voluntary sectors.

The report is available on the Public Policy Forum's Web site, www.ppforum.ca.