The Gramm-Leach-Bliley Act (Financial Services Modernization Act)calls for linking the government supervision of the financial-services firm to the types of activities that the firm undertakes.For example,the insurance portion of the firm would be regulated by state insurance commissions and the banking portion of the firm would be regulated by banking regulators.This approach to government supervision of financial services is known as:

Question

Quizplus · Accepted Answer

The approach to government supervision of financial services that is described in the question, where different types of activities are regulated by different government agencies, is known as functional regulation. This is in contrast to consolidated regulation and supervision, where a single regulator oversees all aspects of a financial services firm, without regard to the specific types of activities that it engages in.

The Gramm-Leach-Bliley Act (Financial Services Modernization Act)calls for Linking the Government