 | This article includes a list ofgeneral references, butit lacks sufficient correspondinginline citations. Please help toimprove this article byintroducing more precise citations.(August 2020) (Learn how and when to remove this message) |
Aregulatory agency (regulatory body,regulator) orindependent agency (independent regulatory agency) is agovernment authority that is responsible for exercising autonomous jurisdiction over some area of human activity in alicensing andregulating capacity. Examples of responsibilities include strengthening safety and standards, and/or to protect consumers in markets where there is alack of effective competition. Examples of regulatory agencies that enforce standards include theFood and Drug Administration in theUnited States and theMedicines and Healthcare products Regulatory Agency in theUnited Kingdom; and, in the case ofeconomic regulation, theOffice of Gas and Electricity Markets and theTelecom Regulatory Authority inIndia.
Regulatory agencies deal in the areas ofadministrative law,regulatory law,secondary legislation, andrulemaking (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 oraudits, 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 alicense 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. Regulatory agency actions are often open tolegal review.
Some regulatory bodies are not statutory agencies, examples includequangos, industry-led initiatives, or 'voluntary organisations'.[1] They may be not-for-profit organisations or limited companies. They derive their authority from members' commitments to abide by the standards applied by the regulator, for instance as the UK's Advertising Standards Authority says "The self-regulation system works because it is powered and driven by a sense of corporate social responsibility amongst the advertising industry."[2]
Regulatory regimes vary by country and industry and by the degree of their involvement in organisations' actions, for example there are "light-touch" or "proportionate" forms of regulation.[3] Regulatory agencies are typically charged with overseeing a defined industry. Usually they will have two general tasks:[4][5][6]
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:
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 ofpublic utilities, which are subject toeconomic regulation. In this case, regulatory agencies have powers to:
The functions of regulatory agencies in prolong "collaborative governance" provide for generally non-adversarial regulation.[7]Ex post actions taken by regulatory agencies can be more adversarial and involve sanctions, influencingrulemaking, and creating quasi-common law.[8] However, the roles of regulatory agencies as "regulatory monitors" provide a vital function in administering law and ensuring compliance.[8]
| International | |
|---|---|
| National | |
| Other | |
