The Inter-institutional Monitoring Group (IIMG) issued its first report on the progress made on implementing the 'Lamfalussy process' which aims to create a more efficient system for the EU institutions to prepare, adopt and implement new legislation to integrate securities markets.
The Group has noted at least five challenges for all stakeholders ahead:
Continued pressures to make swift progress in order to stay ahead of European Parliament elections and the appointment of a new Commission.
Satisfactory solution to the Comitology issues stemming from Article 202 of the EC Treaty.
Degree of detail in Level 1 legislation, raising the question whether enough delegation has taken place to allow implementing rules to be adopted at Level 2.
More frequent use of the “fast track facility” for the adoption of a Level 1 measure (adoption on the basis of a single reading in the European Parliament).
Adequate resources must be made available to CESR and the Commission to fulfil their respective obligations related to consistent implementation and enforcement of European securities market legislation.
In particular, the Group highlights two particular challenges for the immediate future:
meeting the deadline of April 2004 set by the European Council for completing new securities markets legislation, such as the Directives on Investment Services and on transparency requirements for listed companies;
addressing Comitology powers, more particularly the European Parliament´s wish for equivalent so-called 'call-back' powers on an equal footing with the Council a position the Commission supports.
Commenting on the publication of the first report, the Chair of the Committee of Economic and Monetary Affairs Christa Randzio-Plath said she welcomed the first recommendations made by the Group.
“The issues identified by the Group will require our careful attention over the next few months as the institutions work towards the adoption of the remaining Lamfalussy Directives in the area of securities legislation” she noted. “As the group rightly identifies, we do not as yet have much practical experience of how the process works so it is too early to draw any definitive conclusions as to how it has worked in practice”.
The group is composed of six independent experts, two nominated by each institution. Graham Bishop is member and rapporteur of the Inter-institutional Monitoring Group. The Group intends to submit its next interim report in autumn 2003 and encourages all interested parties from outside to make comments and observations.
Executive summary
Full interim report
Working paper of the Group
Press release Randzio-Plath
Commission press release
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