-European securities legislation will be enacted more speedily than before and it will be adjusted more quickly to evolving market circumstances. But will it also improve the quality of the new directives? Without more staff, attempts to design better legislation for Europe's securities markets will fail, argues Alexandre Lamfalussy.
Getting legislation right requires four things:
Authorities must agree that there is a need for legislation.
Authorities must agree on the main objectives underlying any European regulation.
The legislation should meet these objectives both in its framework principles and in the technical details.
Implementation of legislation must both be unambiguous and remain faithful to the underlying regulatory objectives.
What is the best way to go about it?
Maintain a continuous flow of consultation and dialogue with investors, issuers and financial intermediaries throughout the legislative process.
There needs to be adequate staffing within the Commission and CESR.
EMAC will have to rely on outside experts and advisers - but this should be matched by an increase in its own staff.
The additional staff for these three organisations could come from national regulatory authorities.
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