ADVERTISEMENT

Parliament approves Quaestor law amendment

Issues

Parliament approved legislation today that will facilitate the compensation of investors for savings lost due to the failure of the Quaestor brokerage firm.

The legislation will establish a HUF 30 million compensation threshold for investors, minus yields, and an 11% deduction for losses over HUF 3 mln.

The legislation replaces an earlier investor compensation law, parts of which were invalidated by the Constitutional Court in November. That legislation was opposed by the banking association, whose members complained that it would force them to pay too much in compensation to money-losing investors.

The Constitutional Court nullified provisions of the law requiring members of the Investor Protection Fund (Beva) to cover the extra compensation. It also invalidated parts that outlined eligibility for the compensation due to their discriminatory nature, adding that the compensation, in and of itself, did not go against the basic law.

Investors earlier bought some HUF 150 bln of unsanctioned bonds from Quaestor, according to reports. Quaestor went bankrupt and investors have been seeking more compensation than the usual amount given by the government in such cases. The case was particularly unusual because the government pulled its investment with Quaestor just before the brokerage went under, stirring accusations that the government had insider information.

The law was approved with 154 voting for, eleven voting against and 31 abstentions.

ADVERTISEMENT

Regional income disparities remain pronounced Analysis

Regional income disparities remain pronounced

Parliament approves amendment to Competition Act Parliament

Parliament approves amendment to Competition Act

New CEO announced at Codic Hungary Appointments

New CEO announced at Codic Hungary

FAO–Food Bank convoy delivers food to those in need City

FAO–Food Bank convoy delivers food to those in need

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.