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CAPITAL MARKETS, REGULATORY

The largest sums of money in the world are channeled through capital markets; working in this domain is an experience in itself. Not surprisingly the area is governed by a tangled web of EU and Hungarian legislation. Finding a solution in this labyrinth that is to the client's satisfaction is a serious brain-twister.
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OUR LATEST POSTS

Zsombor Gere

Community Financing - Dying Opportunity or the Future of Fundraising?

Zsombor Gere | 25 April 2024

One of the measurable success stories of the fintech revolution is how donation and subscription-based community financing has become an alternative to traditional fundraising methods such as classical bank financing or venture capital investments. From this rapid development, it follows that there is a less uniform picture in the public consciousness about the phenomenon of "crowdfunding." How many forms are there? Which ones are regulated? Who are the actors in the process? What regulations apply to it? How are they taxed? Among many clarifications to be made, the main question, however, is whether specialized crowdfunding service providers for this purpose will emerge in Hungary as well.

Ádám Boross

Cryptocurrency Investments: What should I call you?

Ádám Boross | 21 February 2024

The decision of the U.S. Securities and Exchange Commission (SEC) on January 10 has stirred significant attention, as it granted approval for the listing of certain products based on Bitcoin on the stock exchange. The impact of this decision on the European and American securities markets, and whether similar steps will be taken, depends largely on the details – including the names assigned to cryptocurrency-based products.

The Hungarian capital markets landscape presents exceptional opportunities for international businesses seeking investment opportunities, growth and expansion in Central Europe. However, navigating the complex regulatory environment requires specialized expertise and deep understanding of local and EU-level market regulations and dynamics. At Jalsovszky, we serve as your trusted guide through Hungary's sophisticated financial regulatory and capital markets framework, ensuring your investment activities achieve both compliance and business success.

Capital market regulations in Hungary

As Hungary continues to strengthen its position as a regional financial hub, businesses operating in capital markets face increasingly sophisticated regulatory requirements. Capital market regulations in Hungary encompasses a comprehensive framework that governs everything from public offerings and private placements to ongoing disclosure obligations and market conduct rules. Our team brings decades of combined experience in helping international companies understand and navigate these requirements while maximizing their strategic objectives.

We understand that capital markets’ success depends not only on regulatory compliance but also on strategic positioning and market entry timing. Our approach combines technical legal expertise with commercial insight, ensuring that our clients receive advice that supports their broader business goals while maintaining full compliance with Hungarian and EU regulatory standards.

Comprehensive Capital Markets Legal Services

Our capital markets practice encompasses the full spectrum of financial market activities, from initial market entry strategies through complex structured transactions. As a leading capital market lawyer team in Budapest, we provide comprehensive legal support for equity and debt capital raising, regulatory compliance, and ongoing market operations.

Equity capital markets represent a core area of our expertise, where we assist clients with initial public offerings, secondary offerings, and private placements. We guide companies through the entire process, from initial structuring and regulatory filings through listing requirements and ongoing compliance obligations. Our experience spans various sectors and transaction sizes, enabling us to provide tailored advice that reflects each client's unique circumstances and market position.

Private equity and venture capital transactions form another significant component of our capital markets practice. We work with both fund managers and portfolio companies, providing legal support for fund formation, investment transactions, and exit strategies. Our understanding of the Hungarian private equity landscape helps clients identify opportunities and structure transactions that comply with local regulations while achieving optimal commercial outcomes.

Investment Fund Legal Expertise

The investment fund sector in Hungary has experienced significant growth and regulatory development in recent years, creating both opportunities and challenges for fund managers and investors. As an experienced investment fund law firm in Hungary, our team provides comprehensive legal support for all aspects of investment fund operations, from initial authorization through ongoing compliance and regulatory reporting.

Fund formation and authorization represent critical early-stage activities where proper legal structuring can significantly impact long-term success. We work closely with fund managers to develop optimal fund structures that meet regulatory requirements while providing operational flexibility and investor appeal. Our experience with the Financial Supervisory Authority Hungary authorization processes ensures efficient navigation of regulatory approval procedures.

Alternative investment fund management has become increasingly important in the Hungarian market, with growing interest from both domestic and international investors. We provide specialized advice on AIFM regulations, including authorization requirements, operational standards, and ongoing compliance obligations. Our practical approach helps fund managers implement effective compliance systems while maintaining focus on investment performance and client service.

Cross-border fund distribution presents unique regulatory challenges that require careful coordination between Hungarian requirements and international regulatory frameworks. We assist fund managers in developing compliant distribution strategies that enable access to Hungarian investors while meeting all applicable regulatory standards. In addition, we support foreign licensed entities in entering the Hungarian market, whether through the establishment of a branch or by passporting their activities. In doing so, we ensure that the operations of foreign enterprises fully comply with Hungarian regulatory requirements.

Bond issuances

Hungary’s bond market has developed significantly in recent years, offering an increasingly attractive financing tool for companies across various industries. Our Budapest based capital markets team provides full-scope legal support for both public and private bond issuances. Bond offerings require careful consideration of regulatory requirements, market conditions, and investor expectations. We guide issuers through the entire process – from structuring and documentation to regulatory filings and market launch.

Thanks to our experience with the Hungarian bond market, we deliver practical advice on timing, pricing, and structural aspects that can critically influence the success of a transaction.

Regulatory Compliance and Supervisory Relations

A deep understanding of the supervisory practice of the Hungarian Supervisory Authority and other regulatory bodies is a cornerstone of our successful capital markets operations. Our extensive experience working with the Hungarian Financial Supervisory Authority and other relevant regulatory bodies enables us to anticipate potential supervisory concerns and to provide strategic and risk minimizer compliance guidance based on the current market practice and regulatory interactions.

Regulatory capital requirements in Hungary continue to evolve in response to international standards and local market developments. We help financial institutions and investment firms not only understand and implement these requirements but also identify the business implications and structure their operations to balance compliance with commercial objectives. Our practical approach focuses on sustainable compliance solutions that support long-term business growth.

Ongoing regulatory reporting and disclosure obligations require systematic attention and regular updates to reflect changing requirements. We assist clients in developing effective compliance systems that ensure timely and accurate regulatory reporting while minimizing administrative burden and operational complexity.

Market conduct and investor protection rules form an increasingly important aspect of capital markets regulation. We provide guidance on best practices for client interactions, disclosure obligations, and conflict management that protect both clients and their regulatory standing and business reputation.

Payment Services and Financial Technology

The intersection of traditional capital markets with emerging financial technologies creates new opportunities and regulatory challenges. As forward-thinking payment services lawyers in Hungary, we help clients navigate the evolving regulatory landscape for fintech innovations, digital payments, and blockchain applications in capital markets contexts.

Payment services regulation has become increasingly sophisticated, with new requirements for authorization, operational standards, and consumer protection. We assist payment service providers in obtaining necessary licenses and maintaining ongoing compliance with Hungarian and EU regulatory requirements.

Digital asset and cryptocurrency regulations continue to develop, creating both opportunities and uncertainties for market participants. We provide strategic guidance on regulatory developments and help clients position themselves advantageously as the regulatory framework continues to evolve.

Open banking and API regulations are reshaping traditional financial services delivery models. We help established financial institutions and fintech companies navigate these changes while identifying new business opportunities and ensuring regulatory compliance.

As part of our broader fintech practice, we also support brokerage firms operating internet and app-based investment platforms in entering the Hungarian market. Our assistance covers not only regulatory compliance, but also a wide range of related matters, including taxation, data protection, and consumer protection issues.

Why Choose Our Capital Markets Expertise

Our reputation as a leading capital market lawyer team in Hungary reflects our commitment to delivering exceptional legal services that combine technical expertise with commercial insight. We understand that capital markets success requires more than just regulatory compliance – it demands strategic thinking, market knowledge, and practical execution capabilities.

Our client-focused approach ensures that we understand each business's unique challenges, market position, and growth objectives. This understanding enables us to provide tailored legal solutions that support broader business strategies while maintaining full compliance with Hungarian and EU regulatory requirements.

The trust that international companies place in Jalsovszky Law Firm stems from our consistent track record of successful transactions, market entries, proactive regulatory guidance, and strategic business insight combined with our ability to integrate tax planning and commercial considerations into capital markets work. We are committed to being more than legal advisors – we are trusted partners who contribute to our clients' capital markets success through expert guidance and practical business solutions.

When you engage our capital markets team, you gain access to Hungary's most experienced financial markets lawyers, comprehensive regulatory expertise, a sophisticated understanding of investment opportunities and related tax aspects and the confidence that comes from working with the country's most trusted capital markets legal advisors.