Stricter sanctions for capital market violations on horizon
Photo by Jessica Fejos
Stricter sanctions for capital market offenses are expected to be adopted in Hungary as a result of a European Union directive that can be transposed onto member statesʼ national legislation from July 3, the National Bank of Hungary (MNB) said today, according to Hungarian news agency MTI.
“A stricter system of sanctions than the one in force at present as well as the criminalization of the most serious instances of illegal market manipulation can be expected as a result of the directive,” the MNB said.
The central bank and financial market watchdog noted that the EU directive raises the limit of fines for capital market offenses to €5 million for private individuals and €15 mln for companies. Fines must be determined based on the profit gained, or losses avoided, as a result of such illegal activity, it added.
The EU directive will be transposed into Hungaryʼs Criminal Code and in the Capital Markets Act from July 3, the MNB said.
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