Which of the following describes an "act and order"?

The term "act and order" refers specifically to a law that has been enacted by a legislative body. In regulatory contexts, it typically encompasses formal legislation that outlines specific rules or mandates that must be adhered to by individuals and organizations. Acts and orders are integral to establishing the framework within which financial regulations operate, providing clarity on the obligations and expectations placed upon various parties.

This understanding is crucial because it highlights the legal authority underpinning regulations. Unlike guidelines, which may suggest best practices without legal enforcement, an act carries statutory weight. Similarly, while countries may enter agreements that influence regulatory practices, these are not classified as acts or orders. Understanding the distinction between a law and other types of regulatory instruments enhances comprehension of the regulatory landscape within which financial institutions operate.