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 I ...

over some area of human activity in a

licensing A license (or licence) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party (licensor) to another party (licensee) as an element of an agreeme ...

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 states, a federal district, five major unincorporated territo ...

and the

Medicines and Healthcare products Regulatory Agency The Medicines and Healthcare products Regulatory Agency (MHRA) is an executive agency of the Department of Health and Social Care in the United Kingdom which is responsible for ensuring that medicines and medical devices work and are accepta ...

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 continental mainland. It comprises England, Scotland, Wales and No ...

; and, in the case of

economic regulation Regulatory economics is the economics of regulation. It is the application of law by government or regulatory agencies for various purposes, including remedying market failure, protecting the environment and economic management. Regulation R ...

, 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 Executive ( exe., exec., execu.) may refer to: Role or title * Executive, a senior management role in an organization ** Chief executive officer (CEO), one of the highest-ranking corporate officers (executives) or administrators ** Executive d ...

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 l ...

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 Regulatory law refers to secondary legislation, including regulations, promulgated by an executive branch agency under a delegation from a legislature. It contrasts with statutory law promulgated by the legislative branch, and common law or case ...

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 ...

(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

audit An audit is an "independent examination of financial information of any entity, whether profit oriented or not, irrespective of its size or legal form when such an examination is conducted with a view to express an opinion thereon.” Auditing ...

s, 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 A license (or licence) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party (licensor) to another party (licensee) as an element of an agreeme ...

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 rati ...

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 Competition law is the field of law that promotes or seeks to maintain market competition by regulating anti-competitive conduct by companies. Competition law is implemented through public and private enforcement. It is also known as antitrust ...

, 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

. In this case, regulatory agencies have powers to: * require the provision of particular outputs and/or service levels; and * set

price controls Price controls are restrictions set in place and enforced by governments, on the prices that can be charged for goods and services in a market. The intent behind implementing such controls can stem from the desire to maintain affordability of good ...

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 Bank regulation is a form of government regulation which subjects banks to certain requirements, restrictions and guidelines, designed to create market transparency between banking institutions and the individuals and corporations with whom they ...

Consumer protection Consumer protection is the practice of safeguarding buyers of goods and services, and the public, against unfair practices in the marketplace. Consumer protection measures are often established by law. Such laws are intended to prevent busines ...

* Cyber-security regulation *

Economic regulation Regulatory economics is the economics of regulation. It is the application of law by government or regulatory agencies for various purposes, including remedying market failure, protecting the environment and economic management. Regulation R ...

Environmental regulation Environmental law is a collective term encompassing aspects of the law that provide protection to the environment. A related but distinct set of regulatory regimes, now strongly influenced by environmental legal principles, focus on the manage ...

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 Food safety (or food hygiene) is used as a scientific method/discipline describing handling, preparation, and storage of food in ways that prevent food-borne illness. The occurrence of two or more cases of a similar illness resulting from ...

and

food security Food security speaks to the availability of food in a country (or geography) and the ability of individuals within that country (geography) to access, afford, and source adequate foodstuffs. According to the United Nations' Committee on World ...

Noise regulation Noise regulation includes statutes or guidelines relating to sound transmission established by national, state or provincial and municipal levels of government. After the watershed passage of the United States Noise Control Act of 1972,U.S. Noise ...

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 w ...

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 * Regulation of acupuncture *

Regulation of nanotechnology Because of the ongoing controversy on the implications of nanotechnology, there is significant debate concerning whether nanotechnology or nanotechnology-based products merit special government regulation. This mainly relates to when to asse ...

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 The regulation of therapeutic goods, defined as drugs and therapeutic devices, varies by jurisdiction. In some countries, such as the United States, they are regulated at the national level by a single agency. In other jurisdictions they are reg ...

* Regulation through litigation *

Vehicle regulation Vehicle regulations are requirements that automobiles must satisfy in order to be approved for sale or use in a particular country or region. They are usually mandated by legislation, and administered by a government body. The regulations concern a ...

* Regulation of ship pollution in the United States * Regulation and prevalence of homeopathy * Regulation of science * 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 Independent regulatory agencies in Turkey are public authorities within the executive branch of the state that are autonomous from the government or any other bodies. They constitute service-based (as opposed to geographical) decentralized adminis ...

* List of regulators in the United Kingdom * List of regulators in India

References

Notes