What is the primary function of a regulatory agency?

The primary function of a regulatory agency is to oversee economic activities within specific industries. Regulatory agencies are established by government legislation to monitor and regulate specific sectors of the economy in order to ensure compliance with laws, protect public interests, and maintain fair competition. They have the authority to create rules and regulations that govern the conduct of businesses within their jurisdiction, evaluate the impacts of industry practices, and enforce compliance with laws.

Unlike the implementation of new legislation, which is primarily the role of the legislative branch and the executive branch in terms of enforcement, regulatory agencies focus on applying and enforcing existing laws within the industries they oversee. Furthermore, while regulatory agencies may be involved in dispute resolution to some extent, their main purpose is not to settle disputes directly between citizens, which is typically the role of the judicial system. Issuing licenses is also a function of some agencies; however, this is usually a subset of their broader regulatory responsibilities rather than a primary function. Thus, the correct answer reflects the agency's core mission of industry oversight and regulation.