The Investment Dealers Association of Canada says it welcomes the Canadian Securities Administrators’ approval of Policy 11 — Analyst Standards, following a period of public consultation and review. The policy will become effective immediately.

The IDA says the new policy will give investors confidence in the integrity and independence of research analysts..

The new policy will require IDA member firms to put in place written policies and procedures that will minimize conflicts faced by analysts; prohibit activities that put investors at risk; and disclose information that investors need to make informed decisions.

“The public has a right and a need to know what shares a firm or analyst owns and any compensation practices that may influence an analyst’s recommendations,” said Joe Oliver, IDA president and CEO, in a statement. “Policy 11 will ensure the public gets the information they need. These new rules are tough, practical and effective.”

The IDA says Policy 11 takes a harmonized approach to U.S. rules while acknowledging the unique characteristics of the Canadian markets..

Policy 11, created in response to recommendations by the Securities Industry Committee on Analyst Standards established by the IDA, the Toronto Stock Exchange and the Canadian Venture Exchange, was approved by the IDA doard of directors in June 2003.