Background Part 1 – Regulatory Framework Requirements of category 2 regulators Section 14 – Exercise of regulatory functions
54.This section requires a category 2 regulator to exercise its regulatory functions independently of its other functions or activities, and properly in all respects. The regulator’s internal governance arrangements must include provision with a view to ensuring that it—
	always exercises its regulatory functions in this way,
	allocates sufficient resources to the exercise of these functions, and
	regularly reviews how effectively it is exercising them.
55.This is less prescriptive than the requirements imposed on a category 1 regulator which must set-up a regulatory committee to discharge its regulatory functions.