Committee of European Banking Supervisors

Lamfalussy procedure

The Lamfalussy procedure, which was originally developed for the securities sector, was born of a proposal put forward by the Committee of Wise Men chaired by Baron Lamfalussy. The aim is to simplify and speed up the complex and lengthy regular EU legislative process by means of a four-level approach. In December 2002, the European Council decided to extend the Lamfalussy procedure to the entire EU financial sector.

According to the Lamfalussy procedure, the EU institutions adopt framework legislation under the auspices of the Commission (level one). The Commission prepares the detailed technical implementing measures with the help of four specialist committees (level two). These are the European Banking Committee (EBC), the European Securities Committee (ESC), the European Insurance and Occupational Pensions Committee (EIOPC) and the Financial Conglomerates Committee (FCC) for supervisory issues relating to cross-sector groups. These committees are composed of high-ranking representatives from the national finance ministries under the auspices of the Commission. They decide on implementing measures put forward by the Commission. The Commission may adopt these directly if a qualified majority of the members of the relevant specialist committees approve.

In developing the implementing measures, the Commission is again advised by committees of experts at the third level of the Lamfalussy procedure. These are the Committee of European Banking Supervisors (CEBS), the Committee of European Securities Regulators (CESR) and the Committee of European Insurance and Occupational Pensions Supervisors (CEIOPS). These committees are composed of high-ranking representatives from the national supervisory authorities. The Banking Supervision Committee also includes representatives from the national central banks. Apart from advising and assisting the Commission in the development of technical implementing measures, the committees of experts also deal with the exchange of supervisory information, the consistent implementation of European legal acts and the harmonisation of supervisory practices in the European market for financial services.

At the fourth level, the Commission – in close cooperation with the member states, the regulatory authorities involved in level three and the private sector – checks that Community law is applied consistently.