The FSA and HM Treasury have issued a joint paper entitled Strengthening the EU regulatory and supervisory framework: a practical approach (the Paper). The focus of the Paper is to set out an objective analysis of the operation of the Lamfalussy arrangements to date.
In the Paper it is stated that, overall, the UK authorities believe that the Lamfalussy arrangements have made a major contribution to the regulatory and supervisory framework in the EU. It has also provided an innovative, flexible and effective solution to enhancing supervisory cooperation and convergence.
The Paper also sets out certain recommendations for improving the Lamfalussy arrangements and these include:
- The Level 3 committees operating in accordance with a principles based approach which aims to achieve equivalent regulatory outcomes.
- A robust economic analysis to be undertaken by the Level 3 committees when preparing advice to the European Commission for the formulation of implementing measures for EU Directives.
- All Member States should limit their use of national discretions to the minimum extent necessary and all Level 3 committees should introduce a “comply or explain” regime coupled with a comprehensive system of peer review.
- For substantial Directives or legislative changes, it should become standard practice to provide a sufficient time period between adoption of relevant Level 2 measures and the implementation date for the piece of EU legislation.
- A package of measures to further develop group-based approaches to supervision and the home-host framework for supervisory cooperation that underpins it. Included in this package would be the further development of the home-host framework through the creation of principles governing a more extensive delegation of tasks between supervisors.
View Strengthening the EU regulatory and supervisory framework: a practical approach, (PDF 415KB), 7 November 2007