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PSZÁF imposes fines on two banks

The Hungarian financial market regulator PSZÁF has imposed a fine of HUF 6 million (€22,302) on Erste Bank Hungary and a fine of HUF 1 million (€3,717) on CIB bank through procedures initiated by a customer complaint.

One customer complained that the private banker employed by Erste Investment was not entitled to accept and fulfill money-transfer orders from his account kept with the bank; the private banker failed to identify the client during telephone calls and the client's bank account was debited although he did not give orders in writing to that effect to the bank.

PSZÁF said it expects the financial-service providers concerned to provide clear and accessible information to clients on the rules relating to private bankers.

PSZÁF established that Erste breached its internal regulations when it failed to identify the private banking client before accepting money transfer orders in telephone calls, and when the client's money transfer orders were not put into writing.

At CIB’s case, a customer complained that the bank provided incorrect coverage data for two weeks.

CIB admitted the mistake in its statement, adding that the client opened a futures position during this period that he should not have been able to open based on the actual coverage data and the transaction caused losses to the client.

PSZÁF established that the bank breached the provisions of the act on investment companies when it provided the wrong coverage data and called on the bank to keep accurate records at all times and to provide accurate information to its clients. (MTI-ECONEWS)