EU finmins to urge G20 steps on ratings agencies-document

BRUSSELS, Oct 30 (Reuters) - EU finance ministers want the Group of 20 developed and emerging economies to crack down on excessive risk taking, force credit rating agencies to register, and curb executive pay, a document obtained by Reuters showed.

The finance ministers will discuss the document on Tuesday, before leaders of the 27 European Union states meet on Nov. 7 to prepare for the first G20 financial crisis summit in Washington on Nov. 15.

The meeting in the United States aims to launch a revamp of global market oversight to avoid a repeat of the worst turmoil in 80 years.

"It is important that the inaugural summit delivers a first set of decisions so as to initiate the right momentum around the process and build confidence in it," the draft document said.

The aim is to make oversight system take a longer term view, improve accountability, improve transparency, ensure more consistency between regulatory systems and better anticipate risks.

The document, which could be revised before Tuesday's ministerial meeting, says leaders at the Washington summit could commit themselves to a series of steps:

-- not to allow any financial institution, market or jurisdiction outside the scope of regulation or oversight, a reference to calls to directly supervise hedge funds and private equity groups;

-- submit all rating agencies to registration and appropriate surveillance. The EU will introduce draft law mandating registration in November while the United States already has a registration system;

-- elaborate and enforce codes of conducts to eliminate incentives to excessive risk taking in the financial industry, including through compensation schemes. The EU is due to come out with proposals on executive pay soon;

-- harmonise how banks calculate their core Tier 1 capital, seen as the key measure of their financial health;

-- better risk management in securitisation, including requiring originators to retain a share of their issuances, as already proposed in a draft EU law;

-- improve oversight of cross-border groups;

-- reconsider accounting and prudential standards to improve their mutual consistency, and how financial stability could be better incorporated into the mandate of standard setters like the International Accounting Standards Board. The IASB has already agreed to ease the impact of fair-value accounting rules on banks after pressure from EU leaders.

(Reporting by Francesco Guarascio, writing by Huw Jones, editing by Swaha Pattanaik)