Hungary Broker Clients to Get Compensation in Hit to Banks
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Hungary’s investment insurance fund ruled that clients of failed brokerage Quaestor were entitled to compensation, in a decision that may force banks to bear the brunt of the costs.
The fund, which is known as Beva and is financed by fees from commercial banks and other financial institutions, said that investors who bought bonds illegally issued by Quaestor will be refunded. Compensation details will be decided after the liquidation of Quaestor, according to an e-mailed statement on Friday. The current legally warranted maximum amount is 20,000 euros ($21,200) per investor.