“The investorsʼ damages were not the result of issuer risk that came with the corporate bonds, but of the investment service providerʼs abuses,” Windisch said.
“One can speak about issuer risk – which is not covered by Beva – only if purchasers of the bonds had financed real economic activity with genuine bonds, and if the lending company or group of companies had gone bankrupt,” he added.
The National Bank of Hungary suspended Quaestor’s operating license on March 6 due to irregularities, and the brokerage is currently under investigation on suspicion of fraud with CEO Csaba Tarsoly being held in pre-trial detention. Quaestor reportedly issued about HUF 150 bln in unsanctioned bonds prior to its insolvency.
