Europe’s securities regulators working together under the new EU regulatory framework

The Committee of European Securities Regulators (CESR) has an important role in the fourlevel Lamfalussy process for regulatory reform. At present, CESR produces at level 3 administrative guidelines, interpretative recommendations, common standards, peer reviews and comparisons of regulatory practice to improve consistent application and enforcement of EU legislation. These activities can be divided into three categories: (i) coordinated implementation of EU law, (ii) regulatory convergence and (iii) supervisory convergence. Within each of these categories additional activities of CESR should be developed further while also recognising the role of other key players such as the member states and the European Commission. With regard to the coordinated implementation, it is considered useful to keep alive the network of CESR experts who prepared CESR’s level 2 advice to the European Commission to fulfil a permanent advisory role. Furthermore, harmonised rulemaking powers for national securities regulators would facilitate further coordinated work at level 3 with respect to regulatory convergence. In this respect, it may be worthwhile for the Commission to take the initiative, where and when appropriate, to endorse common approaches of CESR members as a proper manner for applying EU law. Supervisory convergence could be enhanced by undertaking joint investigations by CESR members and setting up information databases on enforcement activities. In addition, the Monitoring Group encouraged CESR to set up an internal system of mediation for solving conflicts between national securities regulators.