Foreign regulatory agencies are government bodies outside one's home country that oversee and regulate financial markets and trading activities. Examples include the FCA (UK), ASIC (Australia), and BaFin (Germany), each setting rules for brokers and financial firms in their jurisdictions.
Example
“A U.S.-based trader chose a forex broker regulated by both the FCA in the UK and ASIC in Australia, providing extra confidence since foreign regulatory agencies added layers of oversight and fund protection.”