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Amendment on brokerages approved

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In the wake of recent brokerage scandals, the Hungarian Parliament today approved amendments to legislation that broadens the scope of liability assigned to brokerages, Hungarian news agency MTI reported.

The law on "securing assets for the compensation of victims of brokerage scandals", is intended to prevent "the consolidation of companies affected by the brokerage scandal, cheating brokers, and company heads, owners, supervisory board members and certain auditors of the companies" from concealing their assets, according to justification attached to the bill, MTI noted. The law also requires them to "take responsibility for the damages they have caused," the report added.

In accordance with the law, all contracts, on personal and corporate assets, signed since the outbreak of the scandals need to be reviewed. Assets could be frozen if the court deems that any of the contracts served to salvage assets, the agency added. According to the justification of the bill, the frozen assets would be used to compensate the victims of broker scandals.

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