Regulation

The set of rules and legislation governing certain actions. For example, the U.S. Tax Code and the rules the IRS publishes regulate federal taxation in the United States. In securities, regulations often require companies to disclose their actions to see to it that as much information as possible is publicly available. Other regulations govern business practices; for example they may set minimum or maximum wages and salaries, prohibit discrimination on certain grounds, and/or ban certain policies or practices deemed unfair for consumers or competitors. While nearly everyone agrees that some regulations are necessary, there is significant disagreement as to how many and what kind. Proponents of more regulation state that it ensures a fair market place and sustainable growth, while critics argue that many regulations do more harm than good.

regulation

the control of economic activities by the government or some other regulatory body, for example an industry trade association. Regulation can include PRICE CONTROLS to regulate inflation; FOREIGN EXCHANGE CONTROLS to regulate currency flows; and COMPETITION POLICY to regulate the operation of particular markets. More specific regulation may be imposed upon individual industries or activities, for example price control of denationalized industries (e.g. Oftel, which regulates telecommunication prices and Of gas which regulates gas prices in the UK); and the regulation of financial services by the BANK OF ENGLAND and the FINANCIAL SERVICES AUTHORITY. See DEREGULATION, RATE OF RETURN REGULATION.

regulation

the control of economic activities by the government or some other regulatory body, for example, an industry trade association. Regulation can include PRICE CONTROLS to regulate inflation, FOREIGN EXCHANGE CONTROLS to regulate currency flows, and COMPETITION POLICY to regulate the operation of particular markets. More specific regulation may be imposed upon individual industries or activities, for example, price control of privately owned PUBLIC UTILITIES (for example, Oftel, which regulates telecommunication prices in the UK), and the regulation of financial services by the BANK OF ENGLAND and the FINANCIAL SERVICES AUTHORITY.

There is a danger that regulators appointed to serve the interests of customers will instead serve the interests of the regulated firms (a so-called situation of‘regulatory capture’). This is particularly likely to occur when appointed regulators work with specific managers in regulated firms for a long time and are influenced by the public relations and lobbying activities of firms.

See DEREGULATION.

Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005

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References in periodicals archive

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The new proposed section 987 regulations

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IRS takes aim at service issues in transfer pricing: two important legal pronouncements that will affect transfer pricing compliance and planning for multinational corporations have come out recently. Two attorneys discuss some of the general highlights and the potential impact

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The regulation equation: factoring in the price of health

Insurance regulation now may be nearing its most fundamental change since McCarran-Ferguson.

Protecting the pledge: the quest for cohesive U.S. insurance regulation spans three centuries, and an end to the journey still isn't assured

Boris Feldman, a partner and securities litigator in law firm Wilson Sonsini Goodrich & Rosati's Palo Alto, California, office, advises publicly traded companies on regulation FD.

Regulation FD: coping in the trenches: CFOs tell how the SEC's stricter disclosure rules have changed the way they release financial information about their companies

This federal preemption is a matter of considerable consequence, since the 10th Amendment would otherwise preclude federal regulation in many of these areas.

Commercial regulation in the United States: a constitutional perspective

Many states have recently revised their assisted living regulations in an attempt to keep pace with the growth of the industry and the changing needs of the residents it serves.

Assisted living regulations come of age

"To free Americans from bureaucratic red tape," the Contract With America states, "we will require every new regulation to stand a new test: Does it provide benefits worth the cost?" But cost-benefit analysis, an essential element in private sector strategic planning, is an empty concept in government regulation.

The case for (some) regulation

When these regulations are fully implemented, EPA estimates that the cost to industry will be nearly $1 billion a year.

Where EPA regulations are taking the foundry industry

Then came Black Tuesday, down went Herbert Hoover and along came Franklin Roosevelt and the country's first substantive financial regulation, a desperate attempt to instill public confidence in public companies and stock markets.

Regulation: a help or hindrance to business growth?

"While there are things that need to be done to improve state regulation, it has successfully served customers over the years," said Tern Vaughan, Iowa Insurance Commissioner and president of the National Association of Insurance Commissioners.

State Vs. federal. (Industry Strategies)