LEGISLATION OF FINANCIAL SERVICES IN HUNGARY

The hungarian law gives an exhaustive list of financial services occurring in Hungary. So the following service shall be deemed as financial services forint or foreign currency:
a) deposits and other repayable funds - in excess of equity - from the public for adoption;
b) credit and loan operations;
c) financial leasing;
d) provision of payment services;
e) the issuance of electronic money;
f) a paper-based non-cash payment instruments (eg paper traveler's checks, drafts) emissions and related services, which is not a payment service;
g) guarantees and bank guarantees, bankers and other obligations;
h) currency, foreign exchange - not including the foreign exchange activities - transmission and check their own account or as agent for commercial activity;
i) financial intermediation services;
j) deposit services, safe deposit services;
k) credit reference services;

The law defines additional financial services as well. They are the following activities that are also commercially engage in forints and foreign currencies:
a) currency exchange services;
b) payment system;
c) cash processing activities;
d) financial broking in the interbank market.

LICENSING FINANCIAL SERVICES IN HUNGARY It is important to note that the above activities can be carried out only with license provided by the authorities. The only authorized by the Financial Supervisory Authority (hereinafter the Authority) issued pursuant to the law as financial services and complementary financial services) and d) set out the case. In financial services, d)-f) the financial service activities in the authorization process - a plan for operating and cash management services related issues - the Hungarian National Bank participates as an expert authority.
Some of the additional financial services authorised and controlled by the Hungarian National Bank and the National Bank has the right to withdraw the license. In conducting activities on the approval of the National Bank's decision to notify the management. The Authority of the decision of the entity records.
Reduction in the law, that the bills for its own account as a commission agent or any other legal entity for a commercial activity may allow.

Financial services - if the act on financial services provides otherwise are allowed to be carried out only by financial institutions: financial institutions, credit institutions and financial companies.

COLLECTING DEPOSITS FORM THE PUBLIC Only credit institutions may collect deposits and equity capital in excess of - a bank or state guaranteed the repayment or without a bank guarantee - other repayable funds from the general public to adopt and foreign exchange activities.

The credit institutions, specialized credit institution or a cooperative credit institutions (savings or credit union) may be.

The act on financial services defines details the various financial services.

Collecting deposit and other funds payable back from the public individual pre-unspecified from individuals collected in a way that, with the deposit the owner may, but is obliged to - Interest and other advantages by providing or not - to pay back. Cooperative, the member's loan constitutes acceptance of deposits, if it exceeds the limit prescribed by law for cooperatives. Not classified as repayable funds from the public for the gathering of.

OTHER FINANCIAL SERVICES IN HUNGARY A loan between a lender and the borrower in writing, established a credit facility provided under a contract specified in compliance with the debtor, creditors and the fee in return for commitment to specific terms and conditions, contract, loan or other credit operations to perform.

Some of the following activities may be deemed as lending money according to Hungarian law: a) the creditor and the debtor is established between the credit or loan agreement based on the amount of money made available by the debtor at the time agreed in the contract - with or without a fee interest - an obligation to repay; b) claim - assuming the risk of the debtor or without - the purchase of advance (including factoring and forfeiting), and discounted, regardless of whether the payment is due on registration and collection of outstanding debts by whom; c) any agreement in which securities account and forward back to the derivation of and have been contracted securities, the buyer (lender) in favor of the consideration is security deposit as collateral are used, so that the transactions during any further transactions or dispose of any charge not possible; d) the mortgage and mortgage-credit institution letter on a separate independent statutory lien purchase and simultaneous sale by the activity; e) mortgage loans; e) parent companies, subsidiaries, or the latter with each other, in order to ensure liquidity in the financial operations carried out jointly (group financing).

FINANCIAL LEASING IN HUNGARY Financial leasing is the activity whereby the lessor of real estate or movable property ownership and property rights to the lessee under its mandate for the purpose of an entity, that the lessee is fixed term, specify so that the lessee's books are recorded. In use, rendering the lessee bears the passing of risk from risk, the benefits are prescribed will be entitled to, bear the direct burdens (including maintenance and depreciation costs), is entitled to a stipulated period of expiry of the lease the whole capital repayment and interest repayment of part, stipulated in the contract and paying the residual value of the thing he or the person designated by law to acquire property. If the lessee does not exercise this right, the subject of the lease is returned to the lessor and the possession of books. The parties are contractually bound to the portion of capital lease payments - which the leased property, property law, contract price for the same value - as well as interest and repayment of part of the schedule. Not classified as finance leases by the parent and the subsidiary between the lease, not including the financial institution with such a transaction.

PAYMENT SERVICES IN HUNGARY The payment service: a) the payment of cash to enable the account service, account management and payment required for all activities b) a cash payment from a payment account to enable service and bill payment required for all activities c) payments between accounts of payment performance, d) under c) service if the payment transaction the payment service user customer's available credit allocation is made, e) non-cash means of payment - not including the check and electronic money - the issue, f) transfer of funds, g) a payment transaction in which the payer's means of communication, digital devices, or other information technology devices to enter a payment order, and where the payment in telecommunication devices, digital devices, or other information technology equipment operator, who will only act as an intermediary your customers and clients for goods or services from third party suppliers of

The non-cash payment instrument issued under a contract of non-cash means of payment (check, electronic funds, the payment service provider and the customer between the framework contract is tailor-made thing or process that allows the customer to the payment order is taken) the customer disposal.

The non-cash payment instrument, the issue of provision of services to non-cash means of payment to issue, manage, and use provided under applicable law or with the customer and the seller or the service contract with all services undertaken by the issuer. Not classified as non-cash means of payment-related services for non-cash means of payment using the settlement-related transactions.

FINANCIAL INTERMEDIATION IN HUNGARY Financial intermediation services we can talk among major brokerage activity and agent activity. A key intermediary financial institution contracts with on the basis of the financial institution on behalf of, benefit and risk, financial services, additional financial service delivery, service contracts, the conclusion of the promotion of activities, including financial institutions on behalf of, benefit and risk of commitment or contract conclusion is;

The agency contracts with financial institutions on the basis of financial services, provision of additional financial services, for such a service contract for the promotion of activities in which the financial institution's own risk of liability will not accept a contract is not concluded;

The escrow service (cash custodian) on behalf of the client's money, earmarked deposit account interest rates or interest rates without holding and managing a specific statutory criteria. The credit reporting service does not violate bank secrecy bank information for remuneration or the provision of the CCIS is your company's financial data management.

CURRENCY EXCHANGE. CASH MANAGEMENT AND INTER-BANK FINANCIAL BROKERING The currency exchange foreign currencies traded against the legal tender, sale and purchase of foreign assets and foreign currency assets in return for payment. Not classified as foreign exchange activities in the payment services related to currency payment service provider by the conversion of foreign currency on the circulation or circulation is exchangeable currency notes and coins numismatic purposes, marketing and domestic commerce of the goods or services for transactions of payments performance.

The cash processing activity of banknotes and coins item counting, authenticity and fitness of the controls, as well as circulation and bundles of items and coin design.

Financial brokering inter-bank market participants between interbank forint and foreign currency lending and deposit transactions, foreign exchange brokering the sale to ensure that credit institutions and other participants in the interbank market for such categories of transactions are concluded directly with each other.


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