Regulatory approval is the formal authorisation by a regulator that permits an entity, product or activity to proceed under defined conditions.
Semantic Classification
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- Regulatory approval follows an assessment in which a regulator reviews an application against statutory and rule-based criteria. Approval may be granted unconditionally or subject to conditions and ongoing obligations.
- Examples include authorisation of financial firms, clearance of mergers and approval of products in regulated sectors. Approval processes typically require disclosure, documentation and demonstration of capability.