Authorisation to commence occupational retirement provision activity

The commencement of occupational retirement provision activity is subject to prior authorisation by the Magyar Nemzeti Bank (MNB).

Kulcsszavak: occupational retirement provision activity, institution for occupational retirement provision, authorisation procedure, activity licence, MNB, Magyar Nemzeti Bank

The foundation of institutions for occupational retirement provision is subject to the prior authorisation of the Magyar Nemzeti Bank (MNB).

Within the territory of Hungary, institutions for occupational retirement provision may be founded in the form of a private limited company or as a Hungarian branch office of an institution for occupational retirement provision registered in an EEA Member State.

Prior to granting an activity licence to an institution for occupational pension provision, the Supervisory Authority will request the opinion of a competent supervisory authority from another EEA Member State if the institution wishing to engage in occupational retirement provision activities:

a) is a subsidiary of an institution for occupational pension provision incorporated in another EEA Member State;

b) is a subsidiary of the parent company of an investment firm, credit institution, investment fund manager or insurance company incorporated in another EEA Member State;

c)  has a shareholder – whether a natural or a legal person – with a controlling interest in an institution for occupational retirement provision incorporated in another EEA Member State.

Institutions for occupational retirement provision may be founded by:

banks, insurance joint-stock companies, investment firms, or

an employer or several employers together if they undertake to pay employer’s contribution to their employees.

Institutions for occupational retirement provision may commence their activities once in possession of the MNB’s final activity licence.

Institutions for occupational retirement provision are required to submit their activity licence application to the MNB within fifteen days of receipt of the instrument confirming the submission of the application for the registration of the company.

Use of the Hungarian language is mandatory during the MNB activity authorisation procedure; the customer is required to provide certified Hungarian translations of all documents.

Non-resident applicants may communicate with the MNB only through their agent for service of process.

Applications for authorisation of occupational retirement provision activity and the relevant attachments must be submitted by economic operators acting as customers or their legal representatives through the MNB’s ‘ERA’ system (Electronic System for Receiving Authenticated Data). Detailed information on e-administration and on the substantive and formal requirements of electronic documents can be found on the MNB’s website at the following link:

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

The MNB will reject the application for authorisation if the applicant does not comply with the conditions prescribed in the Occupational Pension Act or other laws, or fails to demonstrate compliance with the conditions in a credible manner, or provides misleading or false data.

Moreover, the MNB will reject the authorisation application if a close link between the institution for occupational retirement provision and another person – as specified in the Act on Credit Institutions and Financial Enterprises – or the laws of another EEA Member State applicable to the person having close links with the institution for occupational retirement provision hinder the exercise of administrative supervision over the institution for occupational retirement provision. All information necessary to verify compliance with the conditions defined in this paragraph must be made available to the MNB.

Institutions for occupational retirement provision are required to submit their activity licence application to the MNB within fifteen days of receipt of the instrument confirming the submission of the application for the registration of the company.

 

The administrative time limit is three months starting from the working day following receipt of the application by the MNB.

If the application does not comply with the statutory requirements or it is deemed necessary for ascertaining the relevant facts of the case, the MNB will advise the applicant customer within forty-five days to remedy the deficiencies, also indicating the legal consequences of non-compliance. The MNB is entitled to repeatedly advise the applicant to remedy the deficiencies during the procedure. If the MNB has advised the applicant to remedy the deficiencies, the administrative time limit will be calculated from the day on which the deficiencies are remedied in full.

A detailed guide to the authorisation of commencement of occupational retirement provision activity is available at:

https://www.mnb.hu/letoltes/4-3-1-1-engedelyezesi-utmutato-a-foglalkoztatoi-nyugdijszolgaltatasi-tevekenyseg-megkezdesenek-engedelyezese.pdf

An FAQ (frequently asked questions and answers) page on the authorisation of the activities of institutions for occupational retirement provision can be accessed at the following link:               https://www.mnb.hu/letoltes/4-3-1-2-1-gyakori-kerdesek-es-valaszok-foglalkoztatoi-nyugdijszolgaltatoi-intezmeny-tevekenysegenek-engedelyezesevel-kapcsolatban.pdf

An FAQ (frequently asked questions and answers) page on the IT policies can be accessed via the following link: https://www.mnb.hu/letoltes/4-3-1-2-2-gyakori-kerdesek-es-valaszok-informatikai-szabalyzatokkal-kapcsolatban.pdf

An FAQ (frequently asked questions and answers) page on the anti-money laundering policy can be accessed via the following link: https://www.mnb.hu/letoltes/4-3-1-2-3-gyakori-kerdesek-es-valaszok-penzmosasi-szabalyzattal-kapcsolatban.pdf

A guide to the internal rules and regulations to be prepared in accordance with legislation on the prevention and combating of money laundering and terrorist financing is available at: https://www.mnb.hu/felugyelet/szabalyozas/penzmosas-ellen/szabalyzatok-segedletek/segedlet-a-belso-szabalyzat-elkeszitesehez

When preparing the internal risk assessment, the applicant is required to take into consideration the result of the national risk assessment, in relation to which further information is available on the MNB’s website at: https://www.mnb.hu/felugyelet/szabalyozas/penzmosas-ellen/fontos-informaciok-dokumentumok

The activity authorisation procedure for institutions for occupational retirement provision is subject to an administrative service fee of HUF 700,000.  The document confirming the payment of the fee must be submitted to the MNB as an attachment to the application for authorisation.

Additional information about the administrative service fee is available under the following link:

https://www.mnb.hu/letoltes/tajekoztatas-a-magyar-nemzeti-bank-altal-egyes-engedelyezesi-es-nyilvantartasba-veteli-eljarasokban-alkalmazott-igazgatasi-szolgaltatasi-dijrol.pdf

Magyar Nemzeti Bank, Insurance and Pension Funds Licensing and Legal Enforcement 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. If no hearing is requested, a hearing may not be requested later on during the appeal procedure.

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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