Currently payment services are regulated by the Government Decree No. 227/2006 (XI. 20.) on payment services and electronic payment instruments as well as the MNB Decree No. 3/2007 on carrying out payment transactions.
The Government Decree first of all the civil, enforcement and bankruptcy law aspects of opening of a bank account, disposal of the bank account, restriction of the disposal right and the execution of payment orders. This Government Decree ensures the full harmonisation of the Recommendation 97/489/EC concerning transactions by electronic payment instruments and in particular the relationship between issuer and holder, as well as, together with the MNB Decree, also the full implementation of the Directive 97/5/EC on cross-border credit transfers.
The MNB decree primarily defines the specific criteria of providing and using payment services, particularly the structure of the unified account number system, the payment methods applicable in respect of domestic forint payment transactions, execution times, the information to be given to the bank account holders, and, in case of certain payment methods, the standardised payment forms to be used for the domestic payment transactions.
Clearing houses for credit institutions
The Decree No. 11/2006 (VIII.1.) of the Governor of the MNB on the requirements for the general terms and conditions and internal regulations of clearing houses for credit institutions defines the requirements concerning general terms and conditions and internal regulations of institutions performing clearing activities in broad extent.
The Decree requires the existence of binding content elements in relation to the general terms and conditions and other regulations (internal regulation for handling extraordinary situations and internal regulation for fees) and specifies the rules of modification and publication of the general terms and conditions, in case of internal regulation for handling of extraordinary situations and internal regulation for fees specifies the rules for the approval of the MNB and their availability to the interested parties.
The Decree No. 23/2005 (XI. 23.) of the Governor of the MNB on the material, technical, security and business continuity requirements related to carrying out clearing transactions specifies the relevant requirements in respect of clearing houses for credit institutions in a much more detailed way and with a wider scope than the earlier regulation.
Three fundamental expectations are formulated in the Decree: The clearing house for credit institutions
- shall meet such material, technical as well as personal and security criteria which ensure the continuous and smooth course of business, the operation of the clearing and settlement systems in conformity with the international recommendations as well as the data protection;
- shall have, for case of extraordinary events, operational breakdowns, such a business continuity plan that facilitates the recovery of the normal course of business the soonest possible as well as the continuation of the clearing and settlement activity even in a crisis situation;
- shall have an adequate security policy and internal rules in order to enforce the security requirements.
Organization performing capital market clearing house activity
In accordance with the principle of transparency, the Decree No. 2/2006 (II.15.) of the Governor of MNB on the requirements in respect to the General Terms and Conditions and operating rules of organizations providing clearing house activities under the Act on the Capital Markets defines the requirements to be complied with, in which case the Governor of MNB gives his agreement for the approval of the General Terms and Conditions and operating rules of the organizations providing clearing house activities by the Hungarian Financial Supervisory Authority.
The Decree supplements the provisions of the Act on Capital Market regarding the general Terms and Conditions and operating rules of those entitled for clearing house activities and the guarantee and collateral system operated by them. Within this framework, primary aim of the Decree is to ensure that the operational conditions, rights and obligations, the procedures established for handling of non-performance risks, guarantee and collateral systems of organizations providing clearing house activities shall meet the core principles and requirements set forth in the relevant international recommendations.