The single rulebook is the set of harmonised prudential and conduct rules that apply to financial institutions across the EU: Level 1 acts such as the CRR and CRD, the technical standards adopted under them, and ESA guidelines and Q&As. It aims to remove national differences inside the single market.
Level 1 and Level 2 legislation (Lamfalussy process)In EU financial regulation, Level 1 is the framework regulation or directive adopted by Parliament and Council. Level 2 is the detailed delegated and implementing acts, often regulatory and implementing technical standards drafted by the ESAs. Level 3 covers ESA guidelines and Q&As, and Level 4 enforcement (a model from the Lamfalussy report).
European Supervisory Authorities (ESAs)The European Supervisory Authorities are the EBA (banking), ESMA (securities and markets) and EIOPA (insurance and pensions), created in 2011. They draft technical standards, issue guidelines and Q&As, coordinate national supervisors and, in some areas, supervise firms directly. Their Joint Committee handles cross-sector work.
Q&A (ESA single rulebook Q&A)ESA Q&As are published answers by the EBA, ESMA or EIOPA to questions from firms, authorities and others on how to apply EU rules and technical standards. They are non-binding, but supervisors expect firms to follow them. Some legal interpretation questions are answered by the Commission.
CRR (Capital Requirements Regulation)The Capital Requirements Regulation, Regulation (EU) No 575/2013, sets the directly applicable EU rules on own funds, capital requirements, liquidity, leverage, large exposures, reporting and disclosure for banks and investment firms. It applies the Basel standards across the single market.
CRR (Capital Requirements Regulation)The Capital Requirements Regulation, Regulation (EU) No 575/2013, sets the directly applicable EU rules on own funds, capital requirements, liquidity, leverage, large exposures, reporting and disclosure for banks and investment firms. It applies the Basel standards across the single market.
ESA guidelines (comply or explain)ESA guidelines are Level 3 texts issued by the EBA, ESMA or EIOPA under Article 16 of their founding regulations to set consistent supervisory practice. National authorities must state within two months whether they comply or intend to comply, or explain why not, and firms must make every effort to comply.