A regulatory agency (regulatory body, regulator) or independent agency (independent regulatory agency) is a government authority that is responsible for exercising autonomous

dominion The term ''Dominion'' is used to refer to one of several self-governing nations of the British Empire. "Dominion status" was first accorded to Canada, Australia, New Zealand, Newfoundland, South Africa, and the Irish Free State at the 1926 ...

over some area of human activity in a licensing and regulating capacity. These are customarily set up to strengthen safety and standards, and/or to protect consumers in markets where there is a lack of effective competition. Examples of regulatory agencies that enforce standards include the

Food and Drug Administration The United States Food and Drug Administration (FDA or US FDA) is a federal agency of the Department of Health and Human Services. The FDA is responsible for protecting and promoting public health through the control and supervision of food ...

in the

United States The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., federal district, five ma ...

and the Medicines and Healthcare products Regulatory Agency in the

United Kingdom The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the European mainland, continental mainland. It comprises England, Scotlan ...

; and, in the case of economic regulation, the Office of Gas and Electricity Markets and the Telecom Regulatory Authority in

India India, officially the Republic of India ( Hindi: ), is a country in South Asia. It is the seventh-largest country by area, the second-most populous country, and the most populous democracy in the world. Bounded by the Indian Ocean on the ...

Legislative basis

Regulatory agencies are generally a part of the executive branch of the government and have

statutory A statute is a formal written enactment of a legislative authority that governs the legal entities of a city, state, or country by way of consent. Typically, statutes command or prohibit something, or declare policy. Statutes are rules made by ...

authority to perform their functions with oversight from the legislative branch. Their actions are often open to legal review. Regulatory agencies deal in the areas of

administrative law Administrative law is the division of law that governs the activities of executive branch agencies of government. Administrative law concerns executive branch rule making (executive branch rules are generally referred to as " regulations"), ...

, regulatory law,

secondary legislation Primary legislation and secondary legislation (the latter also called delegated legislation or subordinate legislation) are two forms of law, created respectively by the legislative and executive branches of governments in representative dem ...

, and

rulemaking In administrative law, rulemaking is the process that executive and independent agencies use to create, or ''promulgate'', regulations. In general, legislatures first set broad policy mandates by passing statutes, then agencies create more de ...

(codifying and enforcing rules and regulations, and imposing supervision or oversight for the benefit of the public at large). The existence of independent regulatory agencies is justified by the complexity of certain regulatory and directorial tasks, and the drawbacks of political interference. Some independent regulatory agencies perform investigations or audits, and other may fine the relevant parties and order certain measures. In a number of cases, in order for a company or organization to enter an industry, it must obtain a license to operate from the sector regulator. This license will set out the conditions by which the companies or organizations operating within the industry must abide.

Functioning

Regulatory regimes vary by country and industry. In the most light-touch forms of regulation, regulatory agencies are typically charged with overseeing an industry, intervening only when there is a reasonable suspicion that a regulated company may not be complying with its obligations. Under such a regime, regulatory agencies typically have powers to: * oblige individuals or firms entering the industry to obtain a license; * require transparency of information and

decision-making In psychology, decision-making (also spelled decision making and decisionmaking) is regarded as the cognitive process resulting in the selection of a belief or a course of action among several possible alternative options. It could be either r ...

on part of the regulated company; and * monitor the performance and investigate the compliance of the regulated company, with the regulator publishing the findings of its investigations. In the event that the regulated company is not in compliance with its license obligations or the law, the regulatory agency may be empowered to: * require that administrators of the regulated company explain their actions; * undertake enforcement action, such as directing the regulated company to comply through orders, imposing financial penalties and/or revoking its license to operate; or * refer the regulated company to a competition authority, in instances where it may have breached competition law, or prosecute the company (via civil courts). In some instances, it is deemed in the public interest (by the legislative branch of government) for regulatory agencies to be given powers in addition to the above. This more interventionist form of regulation is common in the provision of

public utilities A public utility company (usually just utility) is an organization that maintains the infrastructure for a public service (often also providing a service using that infrastructure). Public utilities are subject to forms of public control and ...

, which are subject to economic regulation. In this case, regulatory agencies have powers to: * require the provision of particular outputs and/or service levels; and * set price controls or a rate-of-return for the regulated company. The functions of regulatory agencies in prolong "collaborative governance" provide for generally non-adversarial regulation. ''Ex post'' actions taken by regulatory agencies can be more adversarial and involve sanctions, influencing

, and creating quasi-common law. However, the roles of regulatory agencies as "regulatory monitors" provide a vital function in administering law and ensuring compliance.

Areas

*Advertising regulation *Alcoholic beverages * Bank regulation * Consumer protection * Cyber-security regulation * Economic regulation * Environmental regulation *

Financial regulation Financial regulation is a form of regulation or supervision, which subjects financial institutions to certain requirements, restrictions and guidelines, aiming to maintain the stability and integrity of the financial system. This may be handle ...

* Food safety and food security * Noise regulation *

Nuclear safety Nuclear safety is defined by the International Atomic Energy Agency (IAEA) as "The achievement of proper operating conditions, prevention of accidents or mitigation of accident consequences, resulting in protection of workers, the public and the ...

Minerals In geology and mineralogy, a mineral or mineral species is, broadly speaking, a solid chemical compound with a fairly well-defined chemical composition and a specific crystal structure that occurs naturally in pure form.John P. Rafferty, ed. ( ...

Occupational safety and health Occupational safety and health (OSH), also commonly referred to as occupational health and safety (OHS), occupational health, or occupational safety, is a multidisciplinary field concerned with the safety, health, and welfare of people at ...

Public health Public health is "the science and art of preventing disease, prolonging life and promoting health through the organized efforts and informed choices of society, organizations, public and private, communities and individuals". Analyzing the det ...

Regulation and monitoring of pollution To protect the environment from the adverse effects of pollution, many nations worldwide have enacted legislation to regulate various types of pollution as well as to mitigate the adverse effects of pollution. Regulation and monitoring by region I ...

Regulation of acupuncture Regulation of acupuncture is done by governmental bodies to ensure safe practice. Australia In 2000, the Chinese Medicine Registration Board of Victoria (Australia), Victoria, Australia (CMBV) was established as an independent government agency ...

* Regulation of nanotechnology *

Regulation of sport The regulation of sport is usually done by a sport governing body for each sport, resulting in a core of relatively invariant, agreed rules. People responsible for leisure activities often seek recognition and respectability as sports by joining ...

* Regulation of therapeutic goods *

Regulation through litigation Regulation through litigation refers to changes in society (particularly those that affect industries) brought about by litigation, rather than legislation or self-regulation. Some laws have "private attorney general" provisions that permit indi ...

* Vehicle regulation * Regulation of ship pollution in the United States * Regulation and prevalence of homeopathy *

Regulation of science The regulation of science refers to use of law, or other ruling, by academic or governmental bodies to allow or restrict science from performing certain practices, or researching certain scientific areas. Science could be regulated by legislation i ...

* Wage regulation

By country or international organization

Agencies of the European Union The agencies of the European Union (formally: ''Agencies, decentralised independent bodies, corporate bodies and joint undertakings of the European Union and the Euratom'') are bodies of the European Union and the Euratom established as juridic ...

Independent agencies of the United States government Independent agencies of the United States federal government are agencies that exist outside the federal executive departments (those headed by a Cabinet secretary) and the Executive Office of the President. In a narrower sense, the term refe ...

* Independent regulatory agencies in Turkey * List of regulators in the United Kingdom * List of regulators in India

References

Notes