Recently, the Hungarian National Bank, acting as the supervisory authority of the insurers, imposed a significant fine (a total sum of HUF 100,000,000) on one of the leading insurers in Hungary stating, among others, that the insurer’s risk management and control systems did not meet the requirements set out in the Hungarian laws.

Gárdos Füredi Mosonyi Tomori represented the insurer in the court procedure on the judicial review of the lawfulness of the Hungarian National Bank’s decision. The court repealed the decision and accepted our argument that the Hungarian National Bank breached the procedural rules by determining the breach of the law retrospectively, based on one specific event without conducting a sufficient evidence procedure regarding the insurer’s actual risk management and control system. The judgement of the court was exceptional in terms of the court’s approach as well since the regulators’ decisions are hardly ever overruled by courts.