Bill could create individual sub-accounts for investors

Issues

MNB headquarters in Budapest (Image by Jessica Fejos)

The National Bank of Hungary (MNB) intends to present an amendment to Parliament which would create individual sub-accounts for investors at the central depository and clearing house Keler, as reported by Hungarian news agency MTI. The report followed statements made by MNB Deputy Governor, László Windisch, in an interview in Magyar Idők published today.

Concluding an investigation into failed brokerages, the Public Prosecutor’s office reached this decision regarding individual sub-accounts, although the implementation is pending further analysis to ensure the measure will not disrupt the capital market, Windisch explained in the interview. 

Windisch left the possibility open for the required use of the ESZLA platform for clients to receive payments, in the event of future fraud cases.

MNB launched ESZLA in February, and the platform allows clients of Hungarian investment companies to compare their securities and equities account statement with information provided by MNB, according to MTI.

Windsich also offered an opinion on the ongoing Quaestor case, saying he expects an “exemplary ruling” from the court. Csaba Tarsoly, the head of Quaestor, could receive up to 20 years in prison on fraud charges, according to Windsich.

The Quaestor case involves 232 investors seeking damages of at least HUF 50 million each, for a total of HUF 77 billion. The court may soon proceed with the case after support for the indictment came from the Public Prosecutor’s Office on May 27. 

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