Distributing financial services by financial agents in correlation with legal and managerial aspects: case study of the Slovak Republic

Abstract

Legal rules regulate various social relations, among them also performing of business on the financial market, which is connected with a certain level of risk and therefore needs to be permitted (via a license, registration or other kind of authorisation) by the state. This is also the case when performing the distribution of financial services. Here the authorization to act as financial agent is being granted by the National Bank of Slovakia via a registration or license. Legal rules are the “instruments“ which determine, by means of orders, prohibitions and permissions, the way in which financial services are being distributed by financial agents. In the Slovakian legal environment, the Act No. 186/2009 Coll. On Financial Intermediation and Financial Advisory and on the Change and Amendment of Certain Act as Amended, is regulating financial intermediation and financial advisory dominantly. This normative legal act is unique, because it represents an integrated legal framework of performing distribution of financial services in the essential sectors of the financial market. The paper focuses on selected legal aspects of the regulation of financial intermediation performed by financial agents, with a particular emphasis on de lege ferenda proposals that protect clients. Objectives: The objective of the paper is to provide de lege ferenda proposals. Methods/Approach: The analysis, synthesis, induction, deduction, abduction and the comparative method are being used. Results: Results of the research are de lege ferenda proposals. Conclusions: The regulatory framework should be improved in order to provide a higher level of protection of financial consumers.