The study, entitled "The trust challenge: how the management of financial institutions can lead the rebuilding of public confidence," examined how the financial world is reacting to the crisis in public confidence.

Over half of all respondents said that the most intense pressure for improved governance within financial institutions is coming from investors and regulators, rather than their own management -- an indication that financial institutions may be reacting primarily to regulatory and market pressure, rather than actively looking for ways to improve governance and disclosure.

"We are not suggesting that the financial services industry is responsible for changing general standards of disclosure," explained PwC partners Ian Dilks. "But as reporters of corporate information and as major investors in companies that disclose results, they can certainly be vocal advocates and practitioners of improved transparency."

On the basis of the research, PricewaterhouseCoopers identified five ways which could help management of financial institutions to play a leadership role in the restoration of public trust:

1) The industry should lend its support to moves by regulators to formulate consistent international accounting principles. Consistent standards enable investors and underwriters to gain a clearer picture of an institution's performance. Financial institutions should use such standards in their own disclosure and demand their use from client and investee companies.

2) Financial institutions must rethink their own standards of disclosure, and especially non-financial disclosure. The survey showed that they remain wary of disclosing more than they are required to -- most internally available information is not revealed to investors. Within individual institutions, the gap between internal and external reporting practices needs to narrow.

3) Financial institutions and regulators must work together to develop Internet-based reporting standards. Harnessing the Internet's capability to improve the timeliness and relevance of reporting, particularly through the use of Extensible Business Reporting Language (XBRL), will make analysis of performance easier for everyone

4) Whenever financial institutions provide capital to companies, they should seek to strengthen standards at those companies

5) Financial institutions must do more to establish the appropriate checks and balances on their own top managers. If financial institutions are to hold other companies to the highest standards of governance through their capital-allocation activities, their own house must be in order

As part of the research, senior executives from 43 institutions were surveyed and 30 one-to-one interviews were held with fund managers, investment associations, equity analysts, ratings agencies, international financial institutions, bankers and insurers in the US, Europe and Asia.

PricewaterhouseCoopers' CEO Samuel DiPiazza, Jr., is the co-author of Building Public Trust: The Future of Corporate Reporting.