MNB orders oversight commissioner at Dimenzió after court suspends licence revocation
MNB headquarters in Budapest (Image by Jessica Fejos)
The National Bank of Hungary (MNB) yesterday said it has ordered an oversight commissioner at insurance association Dimenzió after a court suspended its earlier decision to revoke the associationʼs licence and transfer its policies.
The commissionerʼs mandate will last until the MNB winds up a probe at Dimenzió, but no longer than 180 days.
The MNB had previously appointed an oversight commissioner at Dimenzió one year earlier after uncovering compliance shortfalls. Last November, the central bank (and financial market watchdog) revoked Dimenzióʼs operating licence because of an "unsustainable business model and unsolved capital problems" and ordered the transfer of Dimenzióʼs policies to a peer.
In February, CIG Pannonia Life Insurance and Pannonia Pension Fund won a bid to take over the policies. They included deferred annuity products with some HUF 41 billion of technical reserves, a life insurance portfolio with more than HUF 2 bln of technical reserves, and ongoing life annuities with about HUF 0.4 bln of technical reserves.
The central bank noted that the Municipal Court of Budapest had suspended its revocation of Dimenzióʼs licence and the order to transfer its policies in a binding decision on May 24.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.