Hungary

1. EEA UCITS Schemes

EEA Management Companies may exercise passporting rights for the management and marketing of an EEA UCITS Scheme in Hungary. In order to do so, the requirements of Sections 57 and 58 of the Hungarian Act XVI of 2014 on Collective Investment Funds and their Managers (the “Investment Funds Act”) must be met.

An operator of an EEA UCITS Scheme which is recognised under Sections 57 and 58 of the Investment Funds Act is automatically an authorised person for the purposes of the Investment Funds Act with permission to carry on the regulated activities relating to the establishment, operation or winding up of an EEA UCITS Scheme.

Notification

An EEA Management Company seeking to passport is required to notify their HMSA if they intend on marketing an EEA UCITS Scheme in Hungary. The HMSA will provide their consent notice to the Hungarian regulator; the Central Bank of Hungary (Magyar Nemzeti Bank) (the “MNB”)). The notification provided to the MNB must be accompanied by the necessary data in respect of the EEA UCITS Scheme to allow the MNB to monitor the EEA UCITS Scheme’s compliance with the MNB’s rules.

These rules relate to general prudential operations, conflicts of interest, investor complaint handling, segregation of client assets, undertaking a guarantee of invested capital or yield, outsourcing and risk management. Following the transmission of this notification from the HMSA to the MNB, the MNB will prepare to supervise the EEA UCITS Scheme within two months. The MNB will then issue its confirmation of recognition to the HMSA, and the EEA Management Company will be able to market the EEA UCITS Scheme in Hungary from the point when its HMSA has notified it and sent it the MNB’s confirmation.

Distribution of fund units

The EEA Management Company is not required to seek additional permission, however, if the units of the EEA UCITS Scheme are to be distributed by someone other than the EEA Management Company, that person will require to be reported to the MNB (in case of a tied agent) or authorised (in case of an investment enterprise) for the purposes of the Investment Funds Act.

If the EEA Management Company involves a third party in the distribution of the units of the EEA UCITS Scheme, the EEA Management Company must send the distribution agreement to the MNB to enable the MNB to check the proper preparations for the distribution. Such distribution must comply with the provisions of the Investment Funds Act on commercial communications, information to be provided to investors, purchase and redemption of fund units and reporting.

2. Fees

The MNB does not charge a fee for the recognition of an EEA UCITS Scheme.