The Lamfalussy League Table is a scoreboard which monitors the progress made by the different Member States in transposing the so-called "Lamfalussy Directives"
These Directives – adopted on the basis of the so-called "Lamfalussy approach" – fall into two categories: "level 1 Directives", which set out framework principles and "level 2 Directives", which set out the implementing measures that allow these principles to be put into practice.
There are four "level 1 Directives":
- Directive on Markets in Financial Instruments,
- Market Abuse Directive,
- Prospectus Directive,
- Transparency Directive.
All four are crucial pieces of legislation, which form an essential part of the Commission’s Financial Services Action Plan.
The Directive on Markets in Financial Instruments, for example, creates an effective "single passport", which will allow investment firms to operate across the EU whilst ensuring a high level of protection for investors. The Market Abuse Directive aims to prevent insider dealing and market manipulation. This is essential, if investor confidence is to be maintained.
The Transparency Directive is also important for investor confidence. It sets out uniform rules for the disclosure of accurate, comprehensive and timely information by issuers throughout the EU. The Prospectus Directive, meanwhile, provides issuers (including SMEs) with a "single passport", which will allow them to raise investment capital on a pan-European basis. This will allow them to "shop around" seeking out the cheapest capital available to them.
Given their importance, it is vital that the Lamfalussy Directives are transposed on time – i.e. in accordance with the deadlines which Member States have themselves agreed. Failure to do so would result in wholly unnecessary legal uncertainty, which would have detrimental effects on the operation of the markets and would entail significant economic costs.
The Commission hopes that the League table will help to keep the transposition process on track. It covers the two "level 1 Directives" whose transposition deadlines have already expired – i.e. Market Abuse and Prospectus – as well as the accompanying "level 2 Directives". It will be extended to include the Markets in Financial Instruments and Transparency Directives as soon as their transposition deadlines have passed. It will put the spotlight on those Member States that are lagging behind. This will put them under pressure to improve their performance as quickly as possible.
|Lamfalussy league table (14.07.2008)|
|Transposition of FSAP Directives|