Lamfalussy Approach Explained

An article on the IJ Web site of Oct. 29, “Europe’s Banks and Insurers Appeal for Regulatory Harmonization,” referred to the “Lamfalussy approach,” but left it undefined. Thanks to Peter Casey, a very alert and informed reader, we can now explain that reference.

The Lamfalussy approach, Casey writes, is “named after the author of a report that originally recommended it for securities regulation, is to cast European Union Directives in broad terms, and allow a committee of national supervisory authorities to fill in, and amend, the details. The idea is to be more flexible and faster to react to market changes, than the cumbersome process of constructing new Directives.

The IJ wishes to thank Mr. Casey for his assistance.