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).

This mostly occurs in the case of high volume projects where more than one general contractor performs construction work in parallel on the construction site (“multiple contractors”). It is possible to divide the tasks in a way that the contractors perform the same works but in different locations (e.g. different contractors for different buildings), while it may also happen that the client requires different contractors for different branches or distinct tasks (e.g. deep foundation phase, low voltage, BMS).

On the first anniversary of the introduction of Hungary’s long-awaited renewable energy support scheme (known as “METAR”), we look back at its first year and ahead to the future of renewable energy in Hungary from a legal perspective.

Francois d’Ornano, together with almost the entire Budapest office of Jeantet, has left the French firm to launch the D’Ornano Partners law firm, with offices in Hungary, Serbia, and Romania.

Balint Halasz and Pal Szabo have been promoted to Partner at Bird & Bird Hungary.

HBK Partners and Kertesz & Partners have advised Status Power Invest Zrt. on its acquisition of an additional 36% stake in Matrai Power Plant from EP Power Europe A.S., a Czech energy holding company. The seller was represented by Lakatos, Koves & Partners.

On May 1, 2018, Erika Papp will replace Gabriella Ormai as the new Managing Partner of CMS's Budapest office.

CMS and Freshfields have advised global private equity firm Cinven on the acquisition of Partner in Pet Food, a European pet food manufacturer, from Pamplona Capital Management. Kirkland & Ellis has advised Pamplona on the sale. 

“A new Civil Procedure Act concerning litigation processes is keeping lawyers wired right now in Hungary,” reports Kinga Hetenyi, Managing Partner at Schoenherr Budapest.

On Thursday, April 19, 2018, CEE Legal Matters hosted a round table discussion at the Dentons office in Budapest with leading real estate experts in the market.

Fighting cartels in public procurement requires 21st century tools. The Hungarian Competition Authority (GVH) and the Public Procurement Authority of Hungary (KH) cooperate to promote fair competition in public procurement procedures. KH runs a mobile application named “Daily public procurement”, which serves as a news channel, providing daily updates for the parties interested in public procurement. The app is available both on iOS and Android free of charge from May 2017.

On the basis of the information published by the Hungarian Ministry of National Economy, the National Tax and Customs Office (in Hungarian: NAV) has introduced a paper-free, online audit system.

HBK Partners has advised MKB Bank on the sale of its non-performing retail mortgage loan portfolio, secured mostly by residential mortgages, to MKK Hungarian Debt Management Company. Sarhegyi and Partners has advised MKK Zrt. on the acquisition. The face value exceeded EUR 300 million.

Lakatos, Koves & Partners has advised Waberer’s throughout the buyout of its minority partner, Lorand Szemerey, a 40% shareholder of Waberer’s-Szemerey Logisztika Kft. Szemerey was reportedly represented by the Botos Law Office. 

As of 1 January 2018, a new government decree (Decree) entered into force on the detailed regulations of the commercial activities of condominium managers, real estate managers, real estate agents, property evaluators and agents. In case of providing such activities on a commercial basis, the real estate company supervisor authority, i.e. the district and the county government offices or the notary of the municipality of the competent town must be notified. The content of the notification is also detailed by the new provisions.

A new official electronic register for general power of attorney has been established and is operating from 1 January 2018. The general POAs can be submitted in civil litigation and non-contentious cases and in administrative court procedures. The registration must be initiated at the competent regional courts. The register is not public, however it is available free of charge to the courts and other authorities, as well as to the parties concerned. The register is maintained by the National Office for the Judiciary (in Hungarian: “OBH”). 

According to a recent amendment to the Hungarian act on the general rules of electronic administration and confidential services and to its implementing decree, all state organisations providing electronic administration, including all the courts and the National Office for the Judiciary (in Hungarian: “OBH”), must ensure the electronic communication in all matters falling within their competence.

According to the new Hungarian tax procedural act entered into force on 1 January 2018, business associations are obliged to report data about their foreign bank accounts to the tax authority. The law requires that business associations having a foreign bank account number must report until 31 January 2018 such foreign bank account number and the name of the foreign bank on a special form applicable for this purpose.