Although measures towards integration of securities markets in the European Union were undertaken as early as in the 60s of the 20th century, by the end of the 90s the results of those actions were scarce. One of the major obstacles on the way to full integration was the ineffective system of legislation within the EU, and the inefficient system of implementation of legal regulations in the Member States.

In relation to the necessity of implementation of changes in the hitherto applied law-making process within the scope of securities, the Committee of Independent Experts, chaired by Alexandre Lamfalussy, was appointed at the meeting of the EU Economic and Financial Affairs Council in July 2000. The Committee's works resulted in covering EU securities market with a new system of legislation, which operates on four regulative levels. The structure of the legislation process proposed by the Committee increases its transparency and flexibility, thus making it more effective.