Also known as Statutory Regulation, this is a government-sanctioned process through which the right to work in a particular field - or perhaps the right to use a certain occupational title - is limited to those holding a license. The licensing body (also called the regulator) is established by government, with a mandate to set standards, assess candidates, issue licenses and monitor performance of practitioners within its jurisdiction. Because the regulatory mandate is to protect the public, regulators usually rely on competency-based standards that speak directly to safe and effective practice.

Licensing bodies may determine their own competency assessment mechanisms, or may choose to rely in part on a third-party certification process.

Catalysis Consulting assists regulators define regulatory standards and establish testing mechanisms.