What is submission?

What is submission?

The submission is the statement of the financial service provider, made in writing or orally in a hearing and recorded, in which it agrees to submit itself to the proceedings of the Financial Arbitration Board, for lack of agreement, to the resolution adopted in such proceedings, i.e. it will accept the decision of the Board as binding on itself. The statements of submission may be granted generally or on a case-by-case basis (concerning one particular case only).

The provision of both the general and the case by case statements was optional for the service provider, there was no legal provision that would mandate the service providers to make a statement of submission in the proceedings, however, from 1 January 2017, as a result of a legal amendment applying to every service provider, in proceedings conducted by the Board submission by law was introduced up to a value limit of HUF 1,000,000.

This means that from 1 January 2017 it is not the unilateral decision of the service provider whether or not it submits to the decision of the Board, rather, in those cases that do not exceed the amount of HUF 1,000,000 an agreement, is reached between the parties, and the petition is substantiated, the Board will mandate the service providers. However, this legal amendment does not mean that the service providers are prevented from making general or case by case statements of ubmission.

In addition to submission by law, in its statement of submission the financial service provider may restrict the extent or validity of its commitment in a value of the legal dispute specified by it (e.g. it specifies the value limit within which its statement of submission is applicable to the amount claimed in the petition), or in some other way (e.g. it specifies that transaction to which the statement of submission does not apply).