A/HRC/10/14 page 13 50. The Working Group also suggests initiatives to the PMSC industry to formulate an industry-wide binding instrumental code of conduct, which would set appropriate human rights perspective, standards and guidelines, with punitive measures to be included in this code for companies which breach the standards. 51. The Working Group has also come to the conclusion that States should agree on a list of activities in the military and security sphere that are non-outsourceable to the private sector and remain a prerogative of the State. In agreeing upon such a list, States should consider that whilst official policy may be that private military and security companies do not engage in “combat” or in “offensive” military operations, they are routinely tasked with security functions that blur into these lines of conduct. For example, by tasking such companies with protecting assets that are lawful military targets under the law of war, States virtually ensure that private military and security companies will engage in combat. National legislation on the industry also should clearly list types of activities prohibited for nationally registered private military and security companies, including of mercenary-related activities banned by the International Convention against the Recruitment, Use, Financing and Training of Mercenaries or participation in overthrowing legitimate governments and political authorities. Registration 52. There is currently no international register for private military and security companies at the international level, and the Working Group recommends setting up such a register. It could be based on the experience of other registers, such as the United Nations Register of Conventional Arms, which was established by General Assembly resolution 46/36 L. The Register of Conventional Arms has been in operation since 1992 and 172 States have reported to it one or more times, capturing the bulk of the global arms trade in the categories of conventional weapons it covers. 53. The Working Group considered a draft convention4 which envisages the establishment of an international register of international arms transfers. This draft convention provides that contracting parties would submit to this register an annual report on arms transfers from or through their territory or subject to their authorization, and the register would publish annual and other periodic reports, as appropriate, on international arms transfers. Export of military and security services should be considered a similar category to an export of arms or military equipment, with consequent requirements to report regularly to the United Nations. 54. The Working Group also is aware that many Governments do not possess systematized information on which private military and security companies are registered in their territory, and which of these companies originating in their country are incorporated or registered abroad, perhaps in off-shore jurisdictions. Governments should consider creating a separate register for private military and security companies with certain required detailed information for such companies. The Working Group believes that Member States should prohibit, under their national laws, the incorporation or registration of private military and security companies in off-shore “minimal transparency” jurisdictions. 4 See http://www.iansa.org/documents/2004/att_0504.pdf.