An approach adopted in the Financial Services Modernization (Gramm-Leach--Bliley) Act, calls for functional regulation in the future--letting specialized regulators oversee those financial firms about which they know the most and then pooling their regulatory reports to get an overall picture of the condition of a large, complex financial company. A model of this kind may be called the "Functional Regulator"
Model.

Question

Quizplus · Accepted Answer

The Financial Services Modernization (Gramm-Leach-Bliley) Act indeed adopts an approach that can be described as the "Functional Regulator Model," where specialized regulators oversee specific types of financial firms and activities, and their reports are pooled to assess the overall condition of large, complex financial companies. This approach is based on the principle that regulators with expertise in particular areas of finance are best positioned to effectively supervise those areas.

An Approach Adopted in the Financial Services Modernization (Gramm-Leach--Bliley) Act