The board of directors of the Investment Dealers Association approved some important initiatives for restoring investor confidence at the IDA’s annual meeting in Whistler, B.C., on Monday.

The board approved an integrated dispute resolution system with the Mutual Fund Dealers Association, the Investment Funds Institute of Canada and the existing Canadian Banking Ombudsman’s office. The move will create a single National Financial Services Ombudservice for investment products. However, the insurance industry will maintain its own service.

The new ombudservice stems from an agreement in late 2001 among the various self-regulators and trade associations in the financial industry to create an integrated consumer dispute resolution service for the entire financial industry.

Indications are that the service will be free to investors who have a problem with their financial firm. It is also expected that the current banking ombudsman, Michael Lauber, will also reign over the new organization.

The IDA board also approved its proposed new rules on analyst conflicts of interest. The new rules follow from the report of the Securities Industry Committee on Analyst Standards chaired by Purdy Crawford, and recent developments in the United States. The rules address analyst compensation, disclosure requirements, and the separation of equity analysts and investment bankers.

The IDA also announced that it has also asked the provincial securities commissions for additional enforcement powers. The IDA made its request along with the MFDA and market regulator RS Inc

The association is seeking the ability to obtain investigation orders and compel witness testimony. It is also seeking the authority to file decisions of disciplinary hearings as decisions of the court.

IDA president and CEO, Joe Oliver, reported that the IDA’s internal enforcement makeover has produced total fines against firms of $3.6 million in the past year, against a previous annual average of $200,000 over the past five years.