Hungarian Government Decrees for Financial Services, Insurance, and Banking

The Hungarian government has issued a series of decrees to regulate various aspects of financial services, insurance, and banking. Here’s an overview of the key topics covered in these decrees:

General Rules and Obligations

• General rules for intermediaries: Decree No. 53/2016 (XII. 21.) NGM outlines general obligations for intermediaries providing preliminary information on financial services.
  • Key points:
    • Intermediaries must provide clear and accurate information to clients
    • Information must be presented in a way that is easy to understand
    • Intermediaries are responsible for ensuring that clients have a complete understanding of the product or service

Payment Accounts and Switching

• Payment account switching: Government Decree No. 263/2016. (VIII. 31.) regulates payment account switching, including access to basic payment accounts and fees associated with them.
  • Key points:
    • Banks must provide clear information on switching costs and benefits
    • Switching procedures must be simple and efficient
• Payment accounts with basic features: Government Decree No. 262/2016. (VIII. 31.) provides rules for access to payment accounts with basic features, including characteristics and fees associated with them.
  • Key points:
    • Basic payment accounts must provide a range of essential services
    • Fees associated with these accounts must be clearly disclosed

Complaint Management Procedures

• Complaint management procedure: Government Decree No. 437/2016 (XII. 16.) provides detailed rules for complaint management procedures in insurance companies, multiple agents, and brokers.
  • Key points:
    • Insurers and intermediaries must have clear complaint handling procedures
    • Complaints must be handled efficiently and fairly

Anti-Money Laundering Regulations

• Internal regulations for anti-money laundering: Decree No. 21/2017 (VIII. 3.) NGM sets out the mandatory content elements of internal regulations for preventing money laundering and terrorist financing.
  • Key points:
    • Financial institutions must have clear policies and procedures in place to prevent money laundering
    • Staff must be trained on anti-money laundering procedures

Commissions and Training Requirements

• Commission for intermediaries: Government Decree No. 109/2010 (IV. 9.) regulates commission payable to commercial agents under a long-term agency agreement.
  • Key points:
    • Intermediaries are entitled to fair commissions for their services
    • Commissions must be clearly disclosed and paid in a timely manner
• Training and examination for financial services intermediaries: Decree No. 40/2015. (XII. 30.) NGM outlines the duties connected with official training and examination for financial services intermediaries, insurance intermediaries, and capital market traders.
  • Key points:
    • Intermediaries must complete regular training and exams to maintain their qualifications
    • Training programs must cover relevant topics such as product knowledge and regulatory requirements

Deposit Interest Rates and Returns on Securities

• Deposit interest rates and returns on securities: Government Decree No. 82/2010 (III. 25.) regulates the calculation and announcement of deposit interest rates and returns on securities.
  • Key points:
    • Banks must clearly disclose deposit interest rates and fees
    • Returns on securities must be accurately calculated and disclosed

Compulsory Motor Third-Party Liability Insurance

• Compulsory motor third-party liability insurance: Decrees Nos. 20/2009 (X. 9.) PM and 34/2009 (XII. 22.) PM regulate the categories of motor vehicles for compulsory motor third-party liability insurance coverage in Hungary and other Member States.
  • Key points:
    • Motorists must have minimum levels of insurance coverage
    • Insurance policies must cover damages to third parties

Liability Insurance Contracts for Multiple Agents and Brokers

• Liability insurance contracts for multiple agents and brokers: Government Decree No. 44/2015 (III. 12.) sets out the minimum content requirements of liability insurance contracts for multiple agents and brokers.
  • Key points:
    • Intermediaries must have clear liability insurance policies
    • Policies must cover damages to clients and third parties

Protecting the Information System of Financial Institutions

• Protecting the information system of financial institutions: Government Decree No. 42/2015. (III. 12.) regulates protecting the information systems of financial institutions, insurance undertakings, reinsurance undertakings, investment firms, and commodity dealers.
  • Key points:
    • Financial institutions must have robust security measures in place to protect their information systems
    • Staff must be trained on cybersecurity procedures