The impact of regulation on the protection of financial intermediary clients

Financial intermediation due to misselling harms consumers. The work concerns to regulation of financial intermediaries and relation between financial intermediary and his or her client. The main objective is to analyze how the regulatory of commissions impact financial intermediation. The paper analyzes the current form of legal status of financial intermediation in the European Union and the Czech Republic and results in analyzing the impacts of regulatory proposals that was discussed in Chamber of Deputies Parliament of the Czech Republic. It concludes that if the proposals were accepted, it will not improve the quality of consumer protection, but even can cause damage to the client. The current legislative base moreover provides sufficient resources to prosecuting financial intermediation, which does not respect the client's interest. For analyzing the relation between financial intermediary and his or her client is developed theoretical model based on theory of games