Despite the financial crisis of the past year, CFA charterholders have not lost confidence in the effectiveness of Canadian regulatory and investor protections, the 2009 Financial Market Integrity Index report reveals.

The survey of more than 2,000 CFA charterholders gauges perceptions of the state of ethics and integrity in six different markets around the world. The latest index, released on Thursday by the CFA Institute Centre for Financial Market Integrity, shows that the sentiment of Canadian charterholders remains largely unchanged from 2008.

This contrasts with results from other countries, such as the United States and the United Kingdom, where perceptions of markets deteriorated significantly in the past year.

“The stable ratings for the Canadian market suggest that respondents believe that the integrity of their market has not changed appreciably over the past year and that, unlike other markets, Canadian respondents do not appear to blame Canadian professionals or market institutions for the current global financial crisis,” the report says.

However, Canada’s regulatory system continued to earn low scores from charterholders. Many survey respondents cited the need for better regulatory enforcement in Canada, with the enforcement category earning a score of just 2.5 out of 5. Others criticized the fractured regulatory environment in Canada, with many calling for a single securities regulator.

“It is interesting to note that the comments of Canadian survey respondents are largely unchanged from those expressed in 2008, with the country’s regulatory system at the top of their list of concerns,” said Kurt Schacht, managing director of the CFA Institute Centre. “Those who commented on regulation in Canada often endorsed a one-regulator model to help coordinate regulation and strengthen regulatory enforcement. It is our hope that regulators and government will add CFA Institute to the growing list of those supporting the adoption of single national regulator in Canada.”

Transparency was another area of concern, with many respondents calling for better transparency about the risks of certain investments or the risk inherent in a company’s assets. Respondents also expressed concern about transparency in advisor and mutual fund fees, executive and financial advisor compensation, and risk reporting from hedge funds.

In the comments section of the survey, some respondents expressed concern about the ethical integrity of financial advisors, including advisors‘ competence levels and incentives.

Overall, only 72% of respondents said they would recommend investing in Canada based solely on the ethical behaviour of market participants and the effectiveness of regulatory and investors protections, down from last year’s findings of 79%.

“It is clear that Canadian CFA charterholders continue to lack confidence in the effectiveness of Canadian regulatory and investor protections,” said Matthew Orsagh, project manager for the FMI Integrity Index.