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Quasi-Autonomous Non-Governmental Organization. An organization, which itself is not part of the government, to which the government has given a large degree of power, as a regulator or in another capacity. A prominent example is the Water Services Regulation Authority, which regulates sewage in the UK, among other things. However, it is not part of the government. The term is most common in the British Isles.

quango (quasi-autonomous nongovernmental organization)

an executive body which is responsible for overseeing a designated area of public sector activities and spending.
References in periodicals archive ?
Schools will begin teaching new Wales-specific qualifications next September and a new arm's length body, Qualifications Wales, will be responsible for the regulation of all exams from 2016.
The PPA, which is an arm's length body of the Department of Health, employs about 50 people in its financial services department at Bridge House and it's thought around half will be affected.
In time, the new arm's length body, independent from government, will award most GCSEs, A-levels and the revised Welsh Baccalaureate.