Other services - Hungary
Disclosure requirements
Please refer to the Disclosure Requirements - Hungary.
Holding restrictions
Please refer to the Investment regulation section of the Market Profile - Hungary.
There are no general ownership restrictions imposed by the Hungarian securities market with regard to publicly available equities.
For tax reasons, customers may not hold non-listed Hungarian equities in CBL on behalf of beneficial owners that are individuals resident in Hungary. Any customer that does not comply with this holding restriction agrees that it shall indemnify and hold harmless CBL for any loss, expense, liability, damage or claims, whether direct or indirect, against or incurred by CBL arising out of or resulting from such non-compliance.
Registration
In order to protect future entitlement distributions on behalf of its customers, CBL has standing instructions in place with KELER Ltd to register automatically debt securities held in CBL’s depository securities account in CBL’s name prior to any entitlement distribution. Because of this, CBL is considered to be the legal and beneficial owner of securities.
The nominee concept is recognised for equities, therefore CBL is not considered to be legal and beneficial owner of equities securities.
Treatment of decimals in payment orders
According to the local payment system regulation (see “Cash payments in HUF” under Securities administration in the Market Profile - Hungary), customers are requested to submit payment orders in Forint with amounts rounded to whole numbers (that is, with no decimals).
If decimals are included in the payment order:
- The system of our local CCB will automatically round up the HUF amount in order to execute the instruction in the local payment system; and
- We will manually create a second cash instruction to adjust the amount to reflect the initial customer instruction.
Note: This second cash instruction will be charged as per the International Fee schedule.
Exception: An exception to the above-stated rule is in the case of book transfers in our CCB, as these payments are not passed to the local payment system.
To avoid the extra charge, customers are recommended to specify whole-number amounts in their cash instructions in Forint.
Tax services
Please refer to the Hungary tax area.
Note: Customers and/or beneficial owners of Hungarian securities deposited with CBL are responsible for any possible taxation of capital gains on such securities.