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The purpose of CESR's Standing Committees and groups is also to strengthen the network of regulators in a given area as agreed in a tailored set of terms of reference. Much of the work is therefore focused on producing work of a level 3 nature according to the Lamfalussy process. Initiatives carried out at level 3 will include efforts to strengthen co-operation between national regulators to ensure consistent and effective supervision of financial services activities, and enforcement of securities laws in Europe. As such, these SC may, for example, develop standards and guidance or share confidential regulatory information based on legal agreements under the Memorandum of Understanding. Where appropriate, a SC can invite external parties of other relevant supervisory authorities to participate as an observer.
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