Final report released on the Lamfalussy process

Report broadly positive, but the Level 3 Committees need improving

The Inter-Institutional Monitoring Group (IIMG) has published its third and final report on the Lamfalussy process, the four-level regulatory approach for the adoption and implementation of EU financial services regulation. The results were broadly positive. The group observed that the process has contributed significantly to the integration of European financial markets, but in doing so it presented more challenges, particularly for the Level 3 Committees.

The final report focuses on the functioning of the Level 3 Committees and identifies the areas where more progress is needed to keep pace with market developments. It emphasises the need to strengthen the role the Level 3 Committees play as a platform for the coordination of supervision and regulation, in facilitating the development of supervisory tools and methods, and in strengthening the trust between national supervisors. Echoing the concerns of industry experts, the report considers it necessary to provide the Level 3 Committees with an appropriate legal basis and a clear EU mandate endorsed by the European institutions, and invites the Committees to review their decision-making rules with the objective of better operational effectiveness. It also highlights the need to provide the Committees with sufficient financial and other resources.

The full final report is available at:
http://ec.europa.eu/internal_market/finances/committees/index_en.htm#interinstitutional>