What is a regulation and how is it made?
A regulation is a set of requirements issued by a federal government agency to implement laws passed by Congress. For example, the Federal Reserve Board over the years has issued regulations to help implement laws such as the Federal Reserve Act, the Bank Holding Company Act, and the Dodd-Frank Act.
When the Board issues a regulation, it follows the same basic process required of all federal agencies. In general, a federal agency first proposes a regulation and invites public comments on it. The agency then considers the public comments and issues a final regulation, which may include revisions that respond to the comments.
The process is designed to make the agency's views transparent and give the public and interested parties a chance to submit their views on a proposed regulation before it is finalized. Public input is critical to the rulemaking process because it provides important information about the potential impact of a proposed regulation.
The Board supervises a variety of financial firms and, through its regulations, seeks to promote an efficient, safe, and sound financial system that supports the growth and stability of the U.S. economy.
FAQs
A regulation is a set of requirements issued by a federal government agency to implement laws passed by Congress. For example, the Federal Reserve Board over the years has issued regulations to help implement laws such as the Federal Reserve Act, the Bank Holding Company Act, and the Dodd-Frank Act.
What is a regulation answer? ›
Regulations are rules made by a government or other authority in order to control the way something is done or the way people behave.
What is regulation and why is it important? ›
What are regulations and why are they important? Regulations are rules that are enforced by governmental agencies. They are important because they set the standard for what you can and cannot do in business. They make sure we play by the same rules and protect us as citizens.
What is a regulation quizlet? ›
Regulations. A law, rule or other order prescribed by authority, especially to regulate conduct. Legislators.
How are laws and regulations made? ›
After a measure passes in the House, it goes to the Senate for consideration. This includes consideration by a Senate committee or subcommittee, similar to the path of a bill in the House. A bill must pass both bodies in the same form before it can be presented to the President for signature into law.
Which is the best example of a regulation? ›
Examples of government regulations are financial regulations, taxes, and environmental protection regulations. Financial regulations explain the policies that influence the operation of the financial industry applied to banks, credit unions, insurance companies, etc.
What is the best definition of regulation? ›
1. : the act of regulating or state of being regulated. 2. : an authoritative rule. specifically : a rule or order issued by a government agency and often having the force of law see also Administrative Procedure Act.
What best describes regulation? ›
The legal concept of “regulation” is often perceived as control or constraint. For example, the definitive legal dictionary, Black's Law Dictionary, defines “regulation” as “the act or process of controlling by rule or restriction.” 11.
What is the process of regulation? ›
The regulatory process enters the compliance, interpretation, and review phase after a final rule is published. Individuals and industries affected by a rule, and the agency compliance officers and inspectors who must enforce a rule, may need guidance to better understand the regulatory requirements.
Who creates regulations? ›
Congress often grants agencies the authority to, and sometimes requires that agencies, issue regulations. Regulations are the means by which Federal agencies implement and enforce the laws and legislation passed by Congress.
Regulations are made under the authority of an Act. They set out the administrative detail that will operate under an act of Parliament. The regulations may be referred to as statutory rules or statutory instruments.
What is the main function of regulation? ›
Regulation involves enforcement by public sector agencies of controls and restrictions on certain activities.
What is considered a regulation? ›
Regulations play an important and necessary role in our society. They are laws created by government agencies that have been authorized through acts of congress. The legislative branch passes laws known as statutes which form the legal basis for establishing new governmental agencies.
What is an example regulation? ›
Common examples of regulation include limits on environmental pollution, laws against child labor or other employment regulations, minimum wages laws, regulations requiring truthful labelling of the ingredients in food and drugs, and food and drug safety regulations establishing minimum standards of testing and quality ...
What are the 3 types of regulation? ›
Three main approaches to regulation are “command and control,” performance-based, and management-based. Each approach has strengths and weaknesses.
How is a federal regulation made? ›
The process for creating federal regulations generally has three main phases: initiating rulemaking actions, developing proposed rules, and developing final rules. In practice, however, this process is often complex, requiring regulatory analysis, internal and interagency reviews, and opportunities for public comments.
How is regulation achieved? ›
Generally regulation will involve governments using their powers to alter, control, influence or constrain the behaviour of entities or individuals in the community. market based instruments such as levies or subsidies which are designed to influence or change behaviour.
