MNB fines Strategon Értékpapir HUF 20 mln

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The National Bank of Hungary (MNB) fined Hungarian investment consulting company Strategon Értékpapir for HUF 20 mln, part of which was a HUF 14 mln fine on Strategon's former main shareholder and president-CEO.

MNB also warned the former director of the supervisory board, MTI reported yesterday. MNB noted that Strategon had carried out transactions numerous times without permission from customers and without sufficient collateral. In some instances transactions were only recorded retroactively.

MNB also noted that the thorough risk management promised to clients in its investment policy were not practiced, bearing in mind that some of the portfolios had extremely high levels of risk. Strategon presented representative products to its clients, but rather that perform standardized practices, investment decisions were made on a case by case basis and the resulting yields varied greatly for each client despite their having chosen the same investment scheme. MNB took into consideration that the company’s new management had remedied much of the problems prior to the beginning of the investigation.

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