Amendment of the scope of activities of credit institutions

The addition of new financial services or ancillary financial services to the scope of activities of credit institutions is subject to authorisation by the Magyar Nemzeti Bank (MNB).

Kulcsszavak: bank, business plan, business regulations, internal regulations, accounting policy

The addition of new financial services or ancillary financial services to the scope of activities of credit institutions is subject to authorisation by the Magyar Nemzeti Bank (MNB). Detailed information on e-administration and on the substantive and formal requirements of electronic documents can be found on the MNB’s website under the following link:

https://www.mnb.hu/letoltes/tajekoztatas-az-e-ugyintezesrol-az-mnb-elotti-engedelyezesi-eljarasokban-1.pdf

The provision of financial services and ancillary financial services without authorisation constitutes a criminal offence, and the MNB may commence a market surveillance procedure if it suspects engagement in any unauthorised financial activities.

If the MNB finds that an activity is performed without authorisation, it will

a) prohibit the activity,

b) initiate criminal proceedings if, in its opinion, a criminal offence is involved under the Act on the Criminal Code,

c) apply measures or exceptional measures, and/or

d) impose a market surveillance fine.

If the submitted application contains insufficient information, within 45 days of receipt of the application the MNB will request that the applicant to submit supplementary information. In the case of complete applications, the MNB will make a decision within three months of receipt of the application.

A detailed guide to the authorisation of amendments to the scope of activities of credit institutions is available at:        https://www.mnb.hu/letoltes/1-1-2-2-1-engedelyezesi-utmutato-hitelintezet-tevekenysegi-korenek-modositasa.pdf.

Information about the policies on attachments to an application for the authorisation of activities for credit institutions can be accessed via the following two links: https://www.mnb.hu/letoltes/1-1-1-3-1-2-hitelintezetek-szamviteli-es-prudencialis-szabalyzatai.pdf

https://www.mnb.hu/letoltes/1-1-1-3-1-3-hitelintezetek-informatikai-szabalyzatai.pdf.

The authorisation procedure for the amendment of the scope of activities of credit institutions does not entail any fee payment obligation.

Magyar Nemzeti Bank, Money and Capital Markets Licensing Department

The MNB’s decision (resolution or ruling) may not be appealed; however, customers whose rights or legitimate interests are directly affected by the decision may initiate administrative court proceedings within 30 (thirty) days of the disclosure of the resolution or ruling on the grounds of infringement, by submitting an application initiating proceedings to the Budapest-Capital Regional Court.

Legal representation is mandatory in the court proceedings. The application must be addressed to the Budapest-Capital Regional Court, and submitted electronically through the MNB’s form submission support service.

The form submission support service can be accessed at: https://www.mnb.hu/felugyelet/engedelyezes-es-intezmenyfelugyeles/hatarozatok-es-vegzesek-keresese.

The submission of the application has no suspensive effect on the enforceability of the resolution or ruling, but the customer may request interim relief. As a general rule, the court rules in the proceedings without holding a hearing; however, the customer may request a hearing in the application.

An application for a remedy may be lodged by any party who goes over a time limit or misses a legal deadline during the procedure for reasons beyond their control.

Additional general information about the authorisation procedure is available at: https://www.mnb.hu/felugyelet/engedelyezes-es-intezmenyfelugyeles/engedelyezes/tajekoztatok

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Act CCXXXVII of 2013 on Credit Institutions and Financial Enterprises

Act CXXXIX of 2013 on the Magyar Nemzeti Bank (Central Bank of Hungary)

Act C of 2000 on Accounting

Government Decree No 250/2000 (XII. 24.) on the special features of the annual reporting and bookkeeping obligations of credit institutions and financial enterprises

MNB