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ARTICLE · 15 MARCH 2019

Hungarian Legislation Introduces New Regulation On Asset Management Foundation

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The Hungarian Parliament has voted in favor of a bill to introduce a new form of asset management foundation (‘vagyonkezelő alapítvány'), which will serve as a special type of investment vehicle.

HungaryWealth Management

The Hungarian Parliament has voted in favor of a bill to introduce a new form of asset management foundation ('vagyonkezelő alapítvány'), which will serve as a special type of investment vehicle. The bill intends to enable the establishment of foundations for professional asset management purposes, which, according to the government, is a significant improvement to the current legislative framework as the existing legal forms of fiduciary asset management (also referred to as a 'trust') and ordinary foundation do not allow for the pursuit of business activities. This new form of foundation is intended to enable families to preserve the value of their estates for generations and would also help public bodies finance educational, cultural, sports or health-related activities.

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