Investment Fund Managers Press for Changes to New Rules

Analysis

The Association of Hungarian Investment Fund and Asset Management Companies (Bamosz) is urging the government to change new rules affecting investment funds and has sent its observations on the matter to the Economic Development Ministry, according to a report by state news wire MTI.

 In a statement issued on Wednesday, the association said that it supported government efforts to strengthen the financing of state debt through domestic savings and that fund managers would cooperate as partners in the endeavor, but expressed a "difference in professional opinion" over the means to achieve the goal.

Any regulatory intervention in the operation of investment funds that is not in harmony with the unified European regulatory framework is "counterproductive and could put the achievement of the original targets at risk in 1-2 years", Bamosz said.

The association noted that it hoped the government would weigh its observations, paving the way for a solution "satisfactory from all fair aspects".

Recently issued government decrees have stepped up mandatory holdings of government securities by investment funds and introduced a 13% social contribution on investment returns, on top of the 15% tax on capital gains. Returns on government securities are exempt from both taxes.

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