What are the key functions of regulatory agencies?

NRAs are national regulatory agencies responsible for ensuring that products released for public distribution (normally pharmaceuticals and biological products, such as vaccines and medical devices including test kits) are evaluated properly and meet international standards of quality and safety and efficacy. All countries need an NRA. Countries manufacturing medical products need to exercise six critical control functions, and they need to exercise them in a competent and independent manner, backed up with enforcement power. Market Authorization and post-marketing surveillance and adverse events following immunization (AEFI) monitoring are functions that all NRAs have to establish regardless of the production capacity, procurement policy i.e.; vaccine locally manufactured, vaccine directly imported or imported through UN procurement agencies. WHO provides technical assistance for the development and implementation of NRA strengthening plans. Support to countries for assessment of their NRA functions is ongoing. Moreover, the Global Training Network on Vaccine Quality (GTN/VQ) is available to provide support in accordance with identified gaps and national plans.
WHO provides technical assistance for the development and implementation of NRA strengthening plans. Support to countries for assessment of their NRA functions is ongoing. Moreover, the Global Training Network on Vaccine Quality (GTN/VQ) is available to provide support in accordance with identified gaps and national plans.

What are the key functions of regulatory agencies?

As one of the main actors in regulatory policy, regulators have an important and increasingly complex role in the delivery of regulatory regimes and regulations. The governance arrangements for regulators are a key factor in a regulator’s ability to operate effectively to achieve the social, environmental and economic outcomes it is responsible for.

The OECD Best Practice for Regulatory Policy: The Governance of Regulators detail the key principles for establishing and operating regulatory agencies. They also provide more detailed considerations that should be reflected upon to apply the principles to different cultural and political contexts. The seven governance principles for regulators are:

KEY PUBLICATIONS

  • OECD Best Practice Principles for Regulatory Policy: The Governance of Regulators (2014) - English / French / Flyer
  • OECD Best Practice Principles for Regulatory Policy: Regulatory Enforcement and Inspections (2014) - English / French
  • Governance of Regulators' Practices: Accountability, Transparency and Co-ordination (2016) - English
  • Being an Independent Regulator (2016) - English
  • Governance of Regulators' Practices: Accountability, Transparency and Co-ordination - Case Studies for Mexico (2017) - English
  • The Role of Economic Regulators in the Governance of Infrastructure (2017) - English 
  • Creating a Culture of Independence, Practical Guidance against Undue Influence (2017) English /  French / Spanish
  • Creating a Culture of Independence, Practical Guidance against Undue Influence (2017) (Brochure) English / French / Spanish
  • Ireland's Commission for Regulation of Utilities (2018) - English

COUNTRIES AND REGULATORS BUILDING ON THE PRINCIPLES 

CONTACT

For further information, please contact Anna Pietikainen.

MORE ABOUT

  • Regulatory policy and governance

A regulatory agency (regulatory body, regulator) or independent agency (independent regulatory agency) is a government authority that is responsible for exercising autonomous dominion 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 in the United States and the Medicines and Healthcare products Regulatory Agency in the United Kingdom; and, in the case of economic regulation, the Office of Gas and Electricity Markets and the Telecom Regulatory Authority in India.

Regulatory agencies are generally a part of the executive branch of the government and have statutory 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, regulatory law, secondary legislation, and rulemaking (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.

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 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, 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.[1] Ex post actions taken by regulatory agencies can be more adversarial and involve sanctions, influencing rulemaking, and creating quasi-common law.[2] However, the roles of regulatory agencies as "regulatory monitors" provide a vital function in administering law and ensuring compliance.[2]

  • Advertising regulation
  • Alcoholic beverages
  • Bank regulation
  • Consumer protection
  • Cyber-security regulation
  • Economic regulation
  • Environmental regulation
  • Financial regulation
  • Food safety and food security
  • Noise regulation
  • Nuclear safety
  • Minerals
  • Occupational safety and health
  • Public health
  • Regulation and monitoring of pollution
  • Regulation of acupuncture
  • Regulation of nanotechnology
  • Regulation of sport
  • Regulation of therapeutic goods
  • Regulation through litigation
  • Vehicle regulation
  • Regulation of ship pollution in the United States
  • Regulation and prevalence of homeopathy
  • Regulation of science
  • Wage regulation

  • Agencies of the European Union
  • Independent agencies of the United States government
  • Independent regulatory agencies in Turkey
  • List of regulators in the United Kingdom
  • List of regulators in India

  • Civil service commission
  • Code of Federal Regulations
  • Constitutional economics
  • Constitutional institution
  • Deregulation
  • Election management body
  • International regulation
  • Journal of Regulatory Economics
  • Law enforcement agency
  • Liberalization
  • Public administration
  • Public utilities commission
  • Quango
  • Quasi-judicial body
  • Regulation school
  • Regulatory capture
  • Regulatory compliance
  • Regulatory economics

  1. ^ Blomgran Bingham, Lisa (2009). "Collaborative Governance: Emerging Practices and the Incomplete Legal Framework for Public and Stakeholder Voice" (PDF). Journal of Dispute Resolution (2).
  2. ^ a b Van Loo, Rory (2018). "Regulatory Monitors: Policing Firms in the Compliance Era". Columbia Law Review.

  • Jordana J, Fernández-i-Marín X, Bianculli A (2018). "Agency proliferation and the globalization of the regulatory state: Introducing a data set on the institutional features of regulatory agencies". Regulation & Governance. 12 (4): 524–540. doi:10.1111/rego.12189. hdl:10230/46637.
  • Kohlmeier, Louis M. Jr. (1969). The Regulators: Watchdog Agencies and the Public Interest. New York: Harper & Row. ISBN 978-0-06-043747-3.
  • Quirk, Paul J. (2014). Industry Influence in Federal Regulatory Agencies. Princeton, NJ: Princeton University Press. ISBN 9781400854318.

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