The Lamfalussy process is an approach to the development of financial service industry regulations used by the European Union.
Originally developed in March 2001,[1] the process is named after the chair of the EU advisory committee that created it, Alexandre Lamfalussy.
The law then progresses to the second level, where sector-specific committees and regulators advise on technical details, then bring it to a vote in front of member-state representatives.
The Lamfalussy Process is intended to provide several benefits over traditional lawmaking, including more-consistent interpretation, convergence in national supervisory practices, and a general boost in the quality of legislation on financial services.
[3] The creation of the European System of Financial Supervision (ESMA, EIOPA and EBA), which took over from the Advisory Committees on 1 January 2011, has resulted in some changes regarding how the four level legislative procedure operates, with that system being given a greater role and more powers.