HUF 12 bln compensation available through investor protection fund
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.
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