IDEAS home Printed from https://ideas.repec.org/a/aip/access/v5y2024i2p357-379.html
   My bibliography  Save this article

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

Author

Listed:
  • Mykola SIDAK

    (Bratislava University of Economics and Management, Bratislava, Slovakia)

  • Andrea SLEZAKOVA

    (University of Economics in Bratislava, Bratislava, Slovakia)

  • Edita HAJNISOVA

    (Pan-European University, Bratislava, Slovakia)

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.

Suggested Citation

  • Mykola SIDAK & Andrea SLEZAKOVA & Edita HAJNISOVA, 2024. "Distributing financial services by financial agents in correlation with legal and managerial aspects: case study of the Slovak Republic," Access Journal, Access Press Publishing House, vol. 5(2), pages 357-379, February.
  • Handle: RePEc:aip:access:v:5:y:2024:i:2:p:357-379
    DOI: 10.46656/access.2024.5.2(11)
    as

    Download full text from publisher

    File URL: https://journal.access-bg.org/journalfiles/journal/issue-5-2-2024/distributing_financial_services_by_financial_agents_in_correlation_with_legal_and_managerial_aspects.pdf
    Download Restriction: no

    File URL: https://libkey.io/10.46656/access.2024.5.2(11)?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Berger, Allen N & Cummins, J David & Weiss, Mary A, 1997. "The Coexistence of Multiple Distribution Systems for Financial Services: The Case of Property-Liability Insurance," The Journal of Business, University of Chicago Press, vol. 70(4), pages 515-546, October.
    2. Falak Khan & Muhammad Ayub Siddiqui & Salma Imtiaz, 2022. "Role of financial literacy in achieving financial inclusion: A review, synthesis and research agenda," Cogent Business & Management, Taylor & Francis Journals, vol. 9(1), pages 2034236-203, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hasan, Iftekhar & Lozano-Vivas, Ana, 2002. "Organizational Form and Expense Preference: Spanish Experience," Bulletin of Economic Research, Wiley Blackwell, vol. 54(2), pages 135-150, April.
    2. Martina Eckardt & Solvig Räthke‐Döppner, 2010. "The Quality of Insurance Intermediary Services—Empirical Evidence for Germany," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 77(3), pages 667-701, September.
    3. Chang Vincent Y. & Wang Jennifer L. & Tzeng Larry Y., 2010. "A Reexamination of the Relationship between Organizational Forms and Distribution Channels in the U.S. Property Liability Insurance Industry," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 4(2), pages 1-26, July.
    4. J. David Cummins & Mary A. Weiss & Hongmin Zi, 1998. "Organizational Form and Efficiency: An Analysis of Stock and Mutual Property-Liability Insurers," Center for Financial Institutions Working Papers 97-02, Wharton School Center for Financial Institutions, University of Pennsylvania.
    5. Allen Berger & Robert DeYoung, 2001. "The Effects of Geographic Expansion on Bank Efficiency," Journal of Financial Services Research, Springer;Western Finance Association, vol. 19(2), pages 163-184, April.
    6. Shuji Yao & Zhongwei Han & Dan Luo, 2010. "Performance of the Chinese Insurance Industry under Economic Reforms," Books, Edward Elgar Publishing, number 12788.
    7. Byeongyong Paul Choi & Elyas Elyasiani, 2011. "Foreign-owned insurer performance in the US property-liability markets," Applied Economics, Taylor & Francis Journals, vol. 43(3), pages 291-306.
    8. J. David Cummins & Mary A. Weiss, 1998. "Analyzing Firm Performance in the Insurance Industry Using Frontier Efficiency Methods," Center for Financial Institutions Working Papers 98-22, Wharton School Center for Financial Institutions, University of Pennsylvania.
    9. Thomas R. Berry-Stölzle & David L. Eckles, 2019. "It’s about building a book of business: incentives of insurance salespersons from future renewals," The Geneva Papers on Risk and Insurance - Issues and Practice, Palgrave Macmillan;The Geneva Association, vol. 44(4), pages 702-731, October.
    10. L. Lee Colquitt & Kathleen A. McCullough & David W. Sommer, 2011. "An Analysis of Contingent Commission Use by Property–Liability Insurers," Risk Management and Insurance Review, American Risk and Insurance Association, vol. 14(2), pages 157-171, September.
    11. Maciejczak, Mariusz, 2015. "Will the institution of coexistence be re-defined by TTIP?," GMCC-15: Seventh GMCC, November 17-20, 2015, Amsterdam, the Netherlands 211478, International Conference on Coexistence between Genetically Modified (GM) and non-GM based Agricultural Supply Chains (GMCC).
    12. Chakraborty Kalyan & Dutta Anirban & Sengupta Partha Pratim, 2012. "Efficiency and Productivity of Indian Life Insurance Industry," Asia-Pacific Journal of Risk and Insurance, De Gruyter, vol. 7(1), pages 1-28, December.
    13. Damian Ward, 2003. "Can Independent Distribution Function as a Mode of Corporate Governance?: An Examination of the UK Life Insurance Market," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 7(4), pages 361-384, December.
    14. Parente, Ronaldo & Choi, Byeongyong Paul & Slangen, Arjen H.L. & Ketkar, Sonia, 2010. "Distribution system choice in a service industry: An analysis of international insurance firms operating in the United States," Journal of International Management, Elsevier, vol. 16(3), pages 275-287, September.
    15. Dionne, Georges & Harrington, Scott, 2017. "Insurance and Insurance Markets," Working Papers 17-2, HEC Montreal, Canada Research Chair in Risk Management.
    16. Baharin, Roziana & isa, zaidi, 2018. "Box Cox- Fourier Flexible Functional Forms in Stochastic Metafrontier Analysis: The Cost Efficiency of the Insurance Industry in Malaysia," Jurnal Ekonomi Malaysia, Faculty of Economics and Business, Universiti Kebangsaan Malaysia, vol. 52(1), pages 135-144.
    17. Jalal D. Akhavein & Allen N. Berger & David B. Humphrey, "undated". "The Effects of Megamergers on Efficiency and Prices: Evidence from a Bank Profit Function," Finance and Economics Discussion Series 1997-09, Board of Governors of the Federal Reserve System (U.S.), revised 10 Dec 2019.
    18. Martin Eling & Martin Lehmann & Philipp Schaper, 2022. "Optimal labor and capital utilization by financial firms: evidence from the German property and casualty insurance industry," Journal of Business Economics, Springer, vol. 92(5), pages 853-897, July.
    19. B. Elango & Yu‐Luen Ma & Nat Pope, 2008. "An Investigation Into the Diversification–Performance Relationship in the U.S. Property–Liability Insurance Industry," Journal of Risk & Insurance, The American Risk and Insurance Association, vol. 75(3), pages 567-591, September.
    20. Berger, Allen N. & Cummins, J. David & Weiss, Mary A. & Zi, Hongmin, 2000. "Conglomeration versus Strategic Focus: Evidence from the Insurance Industry," Journal of Financial Intermediation, Elsevier, vol. 9(4), pages 323-362, October.

    More about this item

    Keywords

    independent financial agent; subordinate financial agent; financial intermediation; National Bank of Slovakia; Slovak republic;
    All these keywords.

    JEL classification:

    • K2 - Law and Economics - - Regulation and Business Law
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • K22 - Law and Economics - - Regulation and Business Law - - - Business and Securities Law
    • K33 - Law and Economics - - Other Substantive Areas of Law - - - International Law
    • O20 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aip:access:v:5:y:2024:i:2:p:357-379. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Mariana Petrova (email available below). General contact details of provider: https://access-bg.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.