.An innovative regulatory process created for EU securities legislation, now in the process of being extended to banking supervision, insurance and pensions, the Lamfalussy process is in a constant state of refinement. This briefing reviews the first three years of its application to securities, identifying objectives already achieved, those which have proved more challenging, and those not yet tested. Although there is room for improvement for all levels of the process implemented so far, it is also clear that we have yet to exploit its full potential, which will only be possible once the constraints of FSAP deadlines are past and we make use of additional features of the process, such as its adaptability. There is general agreement that implementing the Lamfalussy process in full is the only way forward: turning back is not an option.