Lawmakers broaden definition of ‘yield’ for Quaestor investors
Parliament yesterday approved legislation broadening the definition of “yield” applied in compensation for clients of Quaestor and other failed brokerages to include “income actually achieved”, Hungarian news agency MTI reported.
The billʼs author, Justice Ministry state secretary Pál Volner, noted that interest had been included in the price of bonds sold by Quaestor, thus only that interest credited to investors” securities accounts “cannot be seen as the yield generated by the investment in its entirety”.
National Bank of Hungary (MNB) deputy governor László Windisch said earlier that the law on compensating the clients of failed brokerages, approved by Parliament late last year, poses a “problem of legal interpretation” when it comes to yields. The law deducts yields accounted from compensation due clients, but in some cases clients’ yields were not realized as they bought securities at a price over nominal value, he explained. Failing to consider these unaccounted yields goes against the purpose of the law as well as the limits imposed under an earlier decision by the Constitutional Court, he said.
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.