A new era of EU-wide crowdfunding

The European Parliament’s negotiating team reached a deal with the Council on 18 December 2019 on EU-wide rules to help crowdfunding services function smoothly and to foster cross-border business funding. Crowdfunding is progressively more of an alternative form of finance for start-ups, as well as for small and medium enterprises (SMEs) at an early stage of company growth. Its latest method is the Initial Coin Offering (ICO), where companies can execute the crowdfunding via cryptocurrencies.

Green Loans – Green Capital Requirement Benefit Program started by the Hungarian Central Bank

The Central Bank of Hungary (MNB) has announced a new program, for the purpose of providing capital requirement benefits to those credit institutions based in Hungary that offer so called green loans for energy efficient housing goals (purchase, building or refurbishment) between 1 January 2020 and 31 December 2023. During this time period, these credit institutions will receive capital requirement benefits (5 to 7% depending on the energy efficiency of the related property) after the provided green loans, and the customers taking out these loans are eligible for lower, discounted rates.

Exchange of views with ECON, IASB and IFRS Foundation

On 19 March 2018 the annual exchange of views between the Committee on Economic and Monetary Affairs (ECON) of the European Parliament and the representatives of the IASB and the IFRS Foundation was significant in respect of information about IFRS 9 ‘Financial Instruments’ and IFRS 17 ‘Insurance Contracts’. During this annual exchange of views, the participants had the opportunity to discuss issues concerning the development of international accounting standards and their endorsement and application in Europe.

Recommendation on the insurance requirements of FinTech companies

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).