Martin Barto

Deputy Governor

National Bank of Slovakia

Workshop on Consumer Protection in Financial Services

Bratislava, June 13, 2007

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Reasons for consumer protection Products are becoming more sophisticated –

good knowledge of financial products is necessary Ageing of population – rising interest of publics in

long-term savings products Falling or low interest rates – shift of investment

risks to consumers Increased competition (banks, collective

investments, insurance companies) More free funds available as country’s economy

grows

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Consumer protectionConsumer protectionRegulation of financialRegulation of financial intermediariesintermediaries

Financial educationFinancial education

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0%

20%

40%

60%

80%

100%

120%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Other accounts receivableInsurance technical reservesShares and other equitySecurities other than sharesCurrency and depositsgrow th rate of financial assets (Y-to-Y)

Changing structure of assets Growing share of insurance reserves and shares

Financial assets of households

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Changing position of households

From passive investors to active investors Investments with higher risk profile Exposure to various types of risk Need for knowledge of financial markets,

instruments and practices

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Current situation in Slovak Republic Act No. 747/2004 Coll. on Supervision of the Financial

Market, Art. 1 (1) purpose of supervision – protection of customers

Act. No. 266/2005 Coll. on the Consumer Protection in Connection with the Distance Financial Services

The Manifesto of the Government of the Slovak Republic, August 2006

Conception of consumer protection in area of financial services (Ministry of Finance of the Slovak Republic)

Unified regulation of financial intermediaries and advisory (NBS)

Organisational structure of NBS – Clients´ Protection Section

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Global principles for consumer protection in financial sector International Association of Insurance

Supervisors (IAIS) International Organization of Securities

Commissions (IOSCO) Bank for International Settlements (BIS)

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