16 November 2004

Commission assessment on Lamfalussy process

The Commission published its preliminary assessment on the application of the Lamfalussy process to EU securities markets legislation. The document considers some practical suggestions to improve further the working arrangements of the process. As there is little experience of Levels 3 and 4 work, a full evaluation of the Lamfalussy process will have to wait.

With regard to parallel working methods where CESR receives a provisional Mandate before the Level 1 measure has been agreed, the Commission is aware of the fear of some market participants, that work at Level 2 might influence on-going negotiations at Level 1. However, the Commission states that market participants will need to bear in mind that some speed in the process may have to be sacrificed if this practice will change.

On the level of detail contained in legislative measures at Level 1 and in implementing measures at Level 2 as already criticised among others by the IIMG report the Commission states that there needs to be a clearer articulation of what roles and tasks should be performed at each level of the Lamfalussy process.

With regard to the demanded impact analysis of future proposals the Commission plans that all major Level 1 measures will in future be subject to a regulatory impact assessment.

As the current Inter-institutional Monitoring Group’s mandate will expire at the end of 2004, the Commission favours to continue and expanded the groups mandate to cover banking, insurance and occupational pensions as well as securities law. It may also be worth exploring whether the mandate should include wider issues such as financial stability.

Comments on this report are requested by 31 January 2005

Document

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