term actions * The key global accounting standards bodies should work intensively toward the objective of creating a single high-quality global standard. Enhancing Sound Regulation Regulatory Regimes Immediate Actions by March 31, 2009 * The IMF, expanded FSF, and other regulators and bodies should develop recommendations to mitigate pro-cyclicality, including the review of how valuation and leverage, bank capital, executive compensation, and provisioning practices may exacerbate cyclical trends. Medium-term actions * To the extent countries or regions have not already done so, each country or region pledges to review and report on the structure and principles of its regulatory system to ensure it is compatible with a modern and increasingly globalized financial system. To this end, all G-20 members commit to undertake a Financial Sector Assessment Program (FSAP) report and support the transparent assessments of countries' national regulatory systems. Prudential Oversight Immediate Actions by March 31, 2009 * Regulators should take steps to ensure that credit rating agencies meet the highest standards of the international organization of securities regulators and that they avoid conflicts of interest, provide greater disclosure to investors and to issuers, and differentiate ratings for complex products. Medium-term actions * Credit Ratings Agencies that provide public ratings should be registered. Risk Management Immediate Actions by March 31, 2009 * Regulators should develop enhanced guidance to strengthen banks' risk management practices, in line with international best practices, and should encourage financial firms to reexamine their internal controls and implement strengthened policies for sound risk management. Medium -term actions * International standard setting bodies, working with a broad range of economies and other appropriate bodies, should ensure that regulatory policy makers are aware and able to respond rapidly to evolution and innovation in financial markets and products. Promoting Integrity in Financial Markets Immediate Actions by March 31, 2009 * Our national and regional authorities should work together to enhance regulatory cooperation between jurisdictions on a regional and international level. Medium -term actions * National and regional authorities should implement national and international measures that protect the global financial system from uncooperative and non-transparent jurisdictions. Reinforcing International Cooperation Immediate Actions by March 31, 2009 * Supervisors should collaborate to establish supervisory colleges for all major cross-border financial institutions, as part of efforts to strengthen the surveillance of cross-border firms. Major global banks should meet regularly with their supervisory college for comprehensive discussions of the firm's activities and assessment of the risks it faces. Reforming International Financial Institutions Immediate Actions by March 31, 2009 * The FSF should expand to a broader membership of emerging economies. * The IMF, with its focus on surveillance, and the expanded FSF, with its focus on standard setting, should strengthen their collaboration, enhancing efforts to better integrate regulatory and supervisory responses into the macro-prudential policy framework and conduct early warning exercises.
