ADVERTISEMENT

HUF 12 bln compensation available through investor protection fund

Telco

Hungary's Investor Protection Fund (Beva) has assets of HUF 12 bln to pay clients of investment fund service providers in the event of an eventual insolvency, managing director Péter Farkas said in an interview with news agency MTI yesterday. 

The interview came after it was revealed that Bud-Cash brokerage may have caused as much as HUF 100 bln to its clients due to alleged mismanagement. Beva pays compensation of up to €20,000 or approximately HUF 6 bln per client.

The payments can only occur once the liquidation of the investment company in question had begun, Farkas said. The last time Beva was required to pay damages was in 2010, in the amount of HUF 30 mln. The fund paid a combined HUF 4.5 bln in 13 cases to more than 10,000 clients between 1998 and 2002.

ADVERTISEMENT

Consumer, business confidence reach 2-year high - GKI Analysis

Consumer, business confidence reach 2-year high - GKI

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

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.