LONDON (Dow Jones)--The Group of 20 developed and developing nations said Thursday all systematically important institutions and markets should be regulated, and urged members to complete the implementation of the Basel II capital framework.

"We have agreed that all systemically important financial institutions, markets and instruments should be subject to an appropriate degree of regulation and oversight," the G20 said in an annex to the communique following its summit Thursday.

The group said hedge funds or their managers must be registered and will be required to disclose "appropriate information on an ongoing basis to supervisors or regulators," including on their leverage.

The group called on all G20 countries to "progressively adopt" the Basel II capital framework, which hasn't been agreed by the U.S. among others.

The G20 endorsed the Financial Stability Forum's recommendations on reducing procyclicality of accounting rules and also endorsed new principles on pay and compensation, which aim to ensure compensation structures are consistent with "long-term goals and prudent risk-taking."

These principles should be integrated into risk management guidance by the coming fall, the G20 said.

The group also called for "the standardization and resilience" of credit derivative markets, mainly through the establishment of regulated central clearing counterparties.

It called on the industry to develop an action plan on standardization by autumn 2009.

However, the group of leading economies also said international standards on capital levels shouldn't be changed until the global economy recovers.

"Until recovery is assured the international standard for the minimum level of capital should remain unchanged," it said. "Once recovery is assured, prudential regulatory standards should be strengthened."

The G20 said compensation arrangements, including bonuses, should properly reflect risk and companies should disclose such information to make sure stakeholders are adequately informed.

"Payments should not be finalized over short periods where risks are realized over long periods," it said.

The G20 also agreed that action should be taken by the end of the year to reduce the complexity of accounting standards for financial instruments and make significant progress towards a single set of global accounting norms.

The G20 said it would promote the standardization and resilience of credit derivative markets and called for fair value accounting framework to be reaffirmed.

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