The Federation of European Securities Exchanges (FESE) issued its comments on the Inter-institutional Monitoring Group questinaire stating, that various factors generally extraneous to the design of the Lamfalussy process itself led to a number of problems. These include excessive detail and ambiguous language in some cases, some legislation that did not benefit from a cost-benefit analysis, and inefficient and/ or nontransparent practices in the consultation processes.
FESE calls for spending more time to political discussions to clarify the distinction between principles and technical details. The relatively high level of detail, combined, with the lack of clarity in some parts of the early Lamfalussy legislation can be ascribed to the lack of prior consultation and the rush in adopting these laws, FESE states.
Also, while the transparency of the system as a whole has increased, there were institutional loopholes in the transparency of the legislative procedure, eg. with regard to the sometimes substantial changes proposed by the Council, which undermined the assessment of the impact of the proposed legislation.
Among the bottlenecks FESE identified among others the impact of unrealistic timetables on Consultations, the need to clarify the role of Level 3 in the process, and the pending institutional arrangements concerning the future of the Lamfalussy process.
Finally, FESE states that there is a concrete risk that the process could lead to poor quality legislation in general, and over-regulation in particular, if certain conditions are not met, particularly if sufficient time and resources are not allocated to the regulatory impact assessments.
Document
© Graham Bishop
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article