The Institute of Chartered Accountants of Ontario (ICAO) is partnering with the Ontario Chamber of Commerce to hold a series of consultations on proposed changes to financial reporting regulations proposed by the Canadian Securities Administrators.

Speaking at the Toronto Board of Trade this morning, Brian Hunt, President and CEO of ICAO, said it is crucial that Canadian regulators learn from the successes and failures of similar U.S. legislation, and that Canadian businesses make their voices heard as new reporting requirements are developed.

“In the wake of high-profile business failures, such as Enron and WorldCom, U.S. regulators quickly responded with legislation requiring that business demonstrate greater accountability in corporate governance and greater transparency in financial reporting. This ‘new normal,’ highlighted by the passage of the Sarbanes-Oxley Act, is now coming to Canada,” said Hunt. “The difference is that corporate Canada has been presented with a window of opportunity to prepare for, and even help define, the approach being taken in this country. It is an opportunity that was largely denied our U.S. business counterparts.”

On February 4, 2005, the CSA released proposed regulatory changes that would bring Canadian requirements in line with those of Section 404 of the Sarbanes-Oxley Act, which requires CEO and CFO certification of their companies’ systems of internal control over financial reporting and an auditor’s report on their efforts. The CSA has asked for feedback on the proposed changes by June 6.

ICAO says Section 404 has been highly controversial since its passage in 2002, with some lauding its focus on increased accountability and others decrying increased costs for businesses.

Hunt said his Toronto address was an initial step in what will be a wide-ranging consultation with the business community staged by Ontario’s Chartered Accountants and the Ontario Chamber of Commerce. A series of regional meetings will be held in April and May.

“Sarbanes-Oxley has helped fuel a serious debate in business and regulatory circles over the benefits of compliance versus the costs,” said Hunt. “The June 6 deadline for comment set by the CSA is just 75 days away. Make your voice heard,” he urged

ICAO is the qualifying and regulatory body of Ontario’s 31,000 CAs.