Authorising the activity of voluntary mutual insurance funds

A voluntary mutual insurance fund must hold a binding activity licence issued by the Magyar Nemzeti Bank (MNB) to commence its activities.

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Voluntary mutual insurance funds must prepare their application for an activity licence in the form required by the MNB.

Within 60 days of submitting the application for registration to the court of registry, voluntary mutual insurance funds must submit their applications for an activity licence to the MNB through the ERA system (Electronic System for Receiving Authenticated Data) on the form designed specifically for this purpose by the MNB.

They are also required to indicate on the application form which type of fund activity they wish to pursue. The MNB grants activity licences separately for each organisation, i.e. fund type; accordingly, the funds can be pension funds, health funds, mutual aid funds or health and mutual aid funds.

Additional information on the annexes to be attached to the application for authorisation can be accessed at:

Detailed information on e-administration and on the substantive and formal requirements of electronic documents can be found on the MNB’s website under the following link:

A voluntary mutual insurance fund may commence its activities after it has obtained a definitive operating licence from the MNB. In the event of a breach of this provision, the persons acting on behalf of the fund will have unlimited, joint and several liability for the damage caused. The MNB may impose a fine between HUF 5,000 and HUF 100,000 on such persons for commencing the activity without a licence.

Engagement in voluntary mutual insurance fund activities without an authorisation constitutes a criminal offence. The MNB will commence a market surveillance procedure if it suspects any engagement in unauthorised fund activities. Should any engagement in unauthorised fund activities be established, the MNB will initiate criminal proceedings if, in its opinion, a criminal offence is involved under the Act on the Criminal Code.

If the MNB finds that an activity is performed without authorisation, it will

a) prohibit the activity,

b) initiate criminal proceedings if, in its opinion, a criminal offence is involved under the Act on the Criminal Code,

c) apply measures or exceptional measures, and/or

d) impose a market surveillance fine

The administrative time limit is three months starting from the working day following receipt of the application by the MNB.

If the application does not comply with the statutory requirements or it is deemed necessary for ascertaining the relevant facts of the case, the MNB will advise the applicant customer within forty-five days to remedy the deficiencies, also indicating the legal consequences of non-compliance. The MNB is entitled to repeatedly advise the applicant to remedy the deficiencies during the procedure. If the MNB has advised the applicant to remedy the deficiencies, the administrative time limit will be calculated from the day on which the deficiencies are remedied in full.

A detailed guide to the authorisation of voluntary mutual insurance fund activity is available at:

An FAQ (frequently asked questions and answers) page on the authorisation of voluntary mutual insurance fund activity can be accessed at the following link:

Information about the policies to be attached to the application for the authorisation of voluntary mutual insurance fund activity can be found at:

The voluntary mutual insurance fund activity authorisation procedure is subject to an administrative service fee of HUF 700,000. Furthermore, the document confirming the payment must be attached to the application for the commencement of the procedure.

Additional information about the fee can be accessed via the following link:

Magyar Nemzeti Bank, Insurance and Pension Funds Licensing and Legal Enforcement Department

The MNB’s decision (resolution or ruling) may not be appealed; however, customers whose rights or legitimate interests are directly affected by the decision may initiate administrative court proceedings within 30 (thirty) days of the disclosure of the resolution or ruling on the grounds of infringement, by submitting an application initiating proceedings to the Budapest-Capital Regional Court.

Legal representation is mandatory in the court proceedings. The application must be addressed to the Budapest-Capital Regional Court, and submitted electronically through the MNB’s form submission support service.

(The form submission support service can be accessed at:

The submission of the application has no suspensive effect on the enforceability of the resolution or ruling, but the customer may request interim relief. As a general rule, the court rules in the proceedings without holding a hearing; however, the customer may request a hearing in the application. If no hearing is requested, a hearing may not be requested later on during the appeal procedure.

An application for remedy may be lodged by any party who goes over a time limit or misses a legal deadline during the procedure for reasons beyond their control.

Additional general information about the authorisation procedure is available at:

Additional information on electronic administration and on the submission of the annexes (electronic documents) to be attached to the application for the authorisation procedure is also available on the MNB’s website:

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