Other services - Hungary

Disclosure requirements

Please refer to the Disclosure Requirements - Hungary.

Holding restrictions

There are generally no ownership restrictions on Hungarian listed equities. However, acquisitions of significant stakes in certain strategic sectors, such as banking, energy, utilities, defense, and media, may require regulatory or government approval. In addition, non-listed Hungarian equities may not be held through Clearstream on behalf of Hungarian-resident beneficial owners due to tax restrictions. Outside these specific cases, Hungarian equities are generally freely transferable.

Registration

In order to protect future entitlement distributions on behalf of its clients, 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), clients 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
• Clearstream will manually create a second cash instruction to adjust the amount to reflect the initial client 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, clients are recommended to specify whole-number amounts in their cash instructions in Forint.

Tax services

Please refer to the Hungary tax area.

Note: Clients and/or beneficial owners of Hungarian securities deposited with CBL are responsible for any possible taxation of capital gains on such securities.