Banking association welcomes court decision on Quaestor top-up fund
The Hungarian Banking Association welcomed a decision by the Constitutional Court yesterday nullifying portions of a law instructing members of the Investor Protection Fund (Beva) to pay into a special fund established to compensate investors of failed brokerage Quaestor, over an existing insurance threshold, Hungarian news agency MTI reported.
The decision points in the right direction, especially because it establishes that society will not compensate, directly or indirectly, investors who "hunt for above average yields", Levente Kovács, the associationʼs chief secretary told MTI.
Risk is an inseparable part of consciously seeking higher yields, he said. It is a natural consequence of financial responsibility that those who make risky decisions also bear the consequences, he added.
The Hungarian banking sector operates fairly and according to the rules, and it cannot take any responsibility for the activities of brokerages and their management that operate outside of the banking sector, Kovács said.
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