Of course, only time will tell if the group’s project will bring us closer to a code of conduct with mandatory disclosure requirements which is on the to-do list of the G7/G8 presidency. I for one am taking this initiative seriously and see it as a good step in the right direction.
The FSF’s recommendation to investors and counterparties is to actively obtain the information required so that market discipline has a chance to come into effect. This particularly concerns information on the risk profile. The FSF’s other three recommendations are addressed to financial supervisors.