Functional Regulation

DEFINITION of 'Functional Regulation'

A concept stating that a company with a specific business should be supervised and reviewed by the proper regulating body. Functional regulation is there to ensure that the most qualified and knowledgeable people are overseeing the daily functions of a specialized field.

BREAKING DOWN 'Functional Regulation'

For example, ideally an insurance company would be supervised by state insurance commissioners, whereas sellers or underwriters of securities would be supervised and regulated by the Securities And Exchange Commission (SEC).

RELATED TERMS
  1. Dual Banking System

    The system of banking that exists in the United States in which ...
  2. Regulation F

    A regulation set forth by the Federal Reserve. Regulation F specifies ...
  3. Commissioner Of Banking

    A commissioner that oversees all of the banks in a state. The ...
  4. Revenue Cap Regulation

    A form of economic regulation generally applied to utility companies. ...
  5. Early Warning Tests

    A series of financial ratios and other performance criteria used ...
  6. Regulation 9

    A regulation that permits national banks to open and operate ...
Related Articles
  1. Markets

    Get To Know These Crucial US Options Market Regulations

    How are options regulated in the U.S and which organizations are involved in options market regulations?
  2. Markets

    Explaining the Federal Reserve System

    The Federal Reserve System is the central bank of the United States. It regulates monetary policy and supervises the nation’s banking system.
  3. Markets

    The Pitfalls Of Financial Regulation

    Regulatory actions usually have lofty intentions that end up with unintended and negative consequences.
  4. Investing

    Policing The Securities Market: An Overview Of The SEC

    Find out how this regulatory body protects the rights of investors.
  5. Investing

    Financial Regulations: Glass-Steagall to Dodd-Frank

    Here are some of the most important financial regulations that have been established.
  6. Investing

    Is The Series 24 Exam Hard?

    What makes the series 24 so challenging? The exam focuses very heavily on the supervision of trading and market making and the supervision of investment banking.
  7. Markets

    Understanding the SEC

    The SEC's triple mandate of investor protection, maintenance of orderly markets and facilitation of capital formation makes it a vital player in capital markets.
  8. Investing

    What are Articles of Association?

    Articles of association are a document that specifies the regulations for a company’s operations.
  9. Financial Advisor

    Hedge Funds and Alternative Funds Are Not Evil, Here's Why

    While disclosures and investor education need improvement, alternatives provide a valuable way to increase yield and hedge against declines.
  10. Markets

    Insurance Companies Vs. Banks: Separate And Not Equal

    Insurance companies and banks are both financial intermediaries. However, they don't always face the same risks and are regulated by different authorities.
RELATED FAQS
  1. What are some of the major regulatory agencies responsible for overseeing financial ...

    Discover the specific responsibilities of some of the major regulatory agencies that oversee financial institutions in the ... Read Answer >>
  2. What impact does government regulation have on the financial services sector?

    Learn about how the financial services industry is affected by government regulation, and the different types of regulations ... Read Answer >>
  3. How are asset management firms regulated?

    Find out how the asset management industry is regulated and how those regulations fit within the broader scope of financial ... Read Answer >>
  4. To what extent does government regulation impact the electronics sector?

    Learn more about production regulation in the electronics industry and how these regulations may contribute to lesser productivity ... Read Answer >>
  5. What is the difference between Series 9/10 and Series 24 qualification exams?

    Both Series 9/10 and 24 are the exams that must be completed by a principal before he or she can supervise certain sales ... Read Answer >>
  6. Should mutual funds be subject to more regulation?

    Understand whether mutual funds need stricter regulation. Learn what types of current and future regulations have been put ... Read Answer >>
Hot Definitions
  1. AAA

    The highest possible rating assigned to the bonds of an issuer by credit rating agencies. An issuer that is rated AAA has ...
  2. GBP

    The abbreviation for the British pound sterling, the official currency of the United Kingdom, the British Overseas Territories ...
  3. Diversification

    A risk management technique that mixes a wide variety of investments within a portfolio. The rationale behind this technique ...
  4. European Union - EU

    A group of European countries that participates in the world economy as one economic unit and operates under one official ...
  5. Sell-Off

    The rapid selling of securities, such as stocks, bonds and commodities. The increase in supply leads to a decline in the ...
  6. Brazil, Russia, India And China - BRIC

    An acronym for the economies of Brazil, Russia, India and China combined. It has been speculated that by 2050 these four ...
Trading Center