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Open Banking is Coming to Hungary

Open Banking is Coming to Hungary

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The revised payment services directive (“PSD2”) has already been implemented in Hungary, most of the provisions will be effective on 13 January 2018. PSD2 will open up the payment market to new players (“fintech companies”) in the payment services, particularly to payment initiation service providers (“PISPs”) and to account information service providers (“AISPs”), and introduces strict security requirements for the initiation and processing of electronic payments (strong customer authentication – “SCA”). 

The new regulation will have an effect on the banks as account servicing providers, since they will be required to enable fintech companies to access certain data in order to initiate payments and to access their customers account information. Also, there will be changes in the liability of the banks for payment transactions. If a payment transaction is not authorized by the consumer in line with the requirements, the account servicing bank of the payer must refund the amount of the payment transaction to the payer no later than the end of the workday following the day when it becomes aware or has been informed of such transaction, regardless of whether or not such transaction was initiated through a PISP. In addition, the account servicing bank will be obliged to prove that the consumer authorized the transaction and it was otherwise carried out in line with the requirements. An exemption from the above liability is when the bank suspects the fraud of the consumer and reports it to the supervisory authority. 

The banks will also need to adjust their framework agreements to the above and to notify their consumers thereon, so that they can exercise their right to terminate those agreements, which create significant administrative works for the banking system.  

By Rita Parkanyi, Partner, KCG Partners Law Firm

Hungary Knowledge Partner

Nagy és Trócsányi was founded in 1991, turned into limited professional partnership (in Hungarian: ügyvédi iroda) in 1992, with the aim of offering sophisticated legal services. The firm continues to seek excellence in a comprehensive and modern practice, which spans international commercial and business law. 

The firm’s lawyers provide clients with advice and representation in an active, thoughtful and ethical manner, with a real understanding of clients‘ business needs and the markets in which they operate.

The firm is one of the largest home-grown independent law firms in Hungary. Currently Nagy és Trócsányi has 26 lawyers out of which there are 8 active partners. All partners are equity partners.

Nagy és Trócsányi is a legal entity and registered with the Budapest Bar Association. All lawyers of the Budapest office are either members of, or registered as clerks with, the Budapest Bar Association. Several of the firm’s lawyers are admitted attorneys or registered as legal consultants in New York.

The firm advises a broad range of clients, including numerous multinational corporations. 

Our activity focuses on the following practice areas: M&A, company law, litigation and dispute resolution, real estate law, banking and finance, project financing, insolvency and restructuring, venture capital investment, taxation, competition, utilities, energy, media and telecommunication.

Nagy és Trócsányi is the exclusive member firm in Hungary for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+countries worldwide.

The firm advises a broad range of clients, including numerous multinational corporations. Among our key clients are: OTP Bank, Sberbank, Erste Bank, Scania, KS ORKA, Mannvit, DAF Trucks, Booking.com, Museum of Fine Arts of Budapest, Hungarian Post Pte Ltd, Hiventures, Strabag, CPI Hungary, Givaudan, Marks & Spencer, CBA.

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