On 12 March 2018 the Hungarian National Bank (“MNB”) published its recommendation on the criteria on how to stipulate the minimum monetary amount of the professional indemnity insurance or other comparable guarantee. The addressees of recommendation are fintech companies, i.e. payment initiation service providers (PISPs) and account information service providers (AISPs).
MNB requires that the minimum monetary amount of the insurance or comparable guarantee covers the costs and expenses incurred by payment service users and account servicing payment service providers (ASPSPs) who request the fintech companies to refund losses resulting from one or more of the liabilities established by the Hungarian Payment Services Act. The minimum monetary amount of insurance or comparable guarantee should not have any excess, deductible or any threshold that could prejudice repayments resulting from the requests for refunds.
The recommendation is largely based on the 2017/08 EBA Guideline with same title, which was published on 7 July 2017 and serves the purpose of the national compliance with such guideline.
By Tamas Virag, Attorney at law KCG Partners Law Firm