The Inter-Institutional Monitoring Group (IIMG) has published its third and final report on the "Lamfalussy process", a four-level regulatory approach for the adoption and implementation of financial services regulation which allows the EU to respond rapidly and flexibly to developments in financial markets. With the termination of its mandate, the Group provides a general assessment of the Lamfalussy framework, an evaluation of its ability to deliver results and proposes concrete recommendations for improving the overall process. The Group observes that the Lamfalussy process has significantly contributed to the integration of European financial markets. This has however resulted in new challenges for the present institutional arrangements and, in particular, for the Level 3 of the Lamfalussy structure. The Group's final report focuses therefore on the functioning of the Level 3 Committees and identifies the areas where more progress is necessary to keep pace with the development of the markets.