17 February 2005

ECB response to Commission consultation on application of Lamfalussy

The ECB confirms its positive stance that the Lamfalussy process will continue to effect a substantial improvement in the regulation of the securities sector. However, it is too early for a full assessment as the new regulatory framework has still to be completed.

The need for the quick adoption of a number of very important directives did not allow a careful and structured reflection by European institutions and Member States on how to exploit all the possible benefits of the Lamfalussy process. This may provide a “window of opportunity” to benefit from the experience gained so far with a view to further improving the process. The ECB believes that the priority should be the creation of the right conditions for putting into place a flexible and not excessively burdensome regulatory framework.

In a truly integrated European market, market participants should be subject to the same harmonised regulatory conditions, irrespective of the country where either they are located or are providing financial services. To achieve this end, the Lamfalussy process should be used in such a way as to streamline existing regulatory requirements and develop a common set of harmonised technical rules that would satisfy the needs of both regulators and market participants. This common set of harmonised rules should provide market participants that offer cross-border services a unique source of rights and obligations in the EU harmonised regulatory fields.

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