The Hungarian National Bank (MNB) gave guidelines to the voluntary pension funds in a management circular on the possible use of the fund members’ self-care savings for real estate purposes. The goal is for the actors of the sector to detect and avoid liquidity and operational risks that may arise in connection with the process in time.
As is well known, according to the amendment of the Voluntary Funds Act (Öpt.), members can – if they decide to do so – in 2025, among other things, use the funds available in their individual member accounts on September 30 their accumulated amounts up to their limits. For pension funds in this context They had to provide information until December 31, 2024, and again until March 31 this year to its members about their account balances and the possibility of additional services for real estate purposes and its conditions.
According to the circular, to the cashiers
15 days after both information deadlines, they must prove to the MNB with documents that they have notified their fund members in accordance with the law.
Information can be provided to the given members in the manner of contact and communication accepted by the parties. The MNB also expects the funds to strengthen their customer service and call centers in order to respond to the increased member inquiries expected due to the real estate service.
Market participants must also pay special attention to the fact that cash payment – based on the provisions of the 2017 Act on the Prevention of Money Laundering (Pmt.) for any purpose, including real estate use – it can only be completed for members who have undergone customer due diligence. (The vetting means copying up-to-date personal documents, as well as a declaration about the status of a possible prominent public figure. Pmt. offers the possibility for small member payments to be made without a personal appearance, with an electronic signature for simplified customer due diligence is.)
The MNB drew attention to the fact that, with effect from January 1 of this year, with the convening of a (delegated) general meeting, for the real estate service, the funds they had to amend their constitutioncreating the condition for this. In this context, it is recommended that the funds review their other internal regulations as well. In addition to market participants They must send their financial plan to the MNB by January 31, 2025 (and in line with that, their liquidity plan) about the extent to which real estate use is expected and based on which scenarios.
Based on the circular, the MNB expects pension funds to regularly review their investment policy and the consistency of the asset composition of the cover (that is, the members’ individual accounts) reserve in relation to the amount of real estate payments incurred or expected. It is also necessary for the control committees of the funds to include in their work plan the control of how their institution fulfills the guidelines and expectations of the circular. In addition, the supervisory authority also prescribed monthly extraordinary data provision on the use of real estate services to the players of the sector – they write.
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This article does not constitute investment advice or investment recommendation. Detailed legal information
Source: www.portfolio.hu
