Authorisation of the termination of institutions for occupational retirement provision without a legal successor

The decision to terminate an institution for occupational retirement provision without a legal successor is subject to the prior authorisation of the Magyar Nemzeti Bank (MNB).

Kulcsszavak: occupational retirement provision activity, institution for occupational retirement provision, MNB, Magyar Nemzeti Bank, termination of activity, discontinuation, termination without a legal successor, licence withdrawal, prior authorisation

The MNB will grant prior authorisation if the institution has performed all of the obligations arising from its occupational retirement provision activity. Possible methods to achieve performance of obligations:

a) transfer of the pension scheme,

b) termination of the pension scheme, or

c) an agreement is reached with the employer, the members and the beneficiaries of the service.

Institutions for occupational retirement provision must submit to the MNB all documents suitable to confirm the above.

Simultaneously with granting prior authorisation, the MNB withdraws the activity licence of the institution for occupational retirement provision.

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 prior authorisation of the termination of institutions for occupational retirement provision without a legal successor 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 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.

The MNB will grant prior authorisation if the institution has performed all of the obligations arising from its occupational retirement provision activity. Possible methods to achieve performance of obligations:

a) transfer of the pension scheme,

b) termination of the pension scheme, or

c) an agreement is reached with the employer, the members and the beneficiaries of the service.

Institutions for occupational retirement provision must submit to the MNB all documents suitable to confirm the above.

The procedure for prior authorisation of the termination of institutions for occupational retirement provision without a legal successor is free of charge.

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 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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