Regulations, such as the CRR on prudential requirements for banks or MiFIR on markets in financial instruments, apply directly in all Member States without requiring transposition, ensuring perfect uniformity of rules. Directives, on the other hand, bind Member States as to the result to be achieved while giving them flexibility in choosing the means.

The 'comply or explain' mechanism allows national competent authorities to notify whether they comply or intend to comply with the guidelines, or to explain the reasons for their non-compliance. The ESAs then publish the compliance status of each national authority, creating pressure through transparency.

Regulatory technical standards specify the substantive content of requirements, while implementing technical standards define procedural aspects such as standardized reporting forms. Both types of standards are drafted by the ESAs before adoption by the European Commission.

Adoption timelines for Level II acts range from 6 to 18 months, which is faster than the 18 to 36 months for Level I acts. This increased flexibility allows for faster adaptation to financial market developments.

Adoption timelines for Level I acts typically range from 18 to 36 months due to the complexity of the procedure involving multiple readings and potential trilogues.

The European Parliament and the Council retain a right of scrutiny allowing them to object to a delegated act within three months, or even to revoke the delegation of powers entirely. This ensures democratic control over these acts.

Guidelines and recommendations fall under soft law and do not have legally binding force under Article 288 of the TFEU. However, their practical effect is considerable due to the comply or explain mechanism established by Article 16 of the ESAs' founding regulations.

Regulations and directives are Level I acts. Delegated and implementing acts are Level II acts. Guidelines and recommendations are Level III instruments.