Joining the IPF and paying the initial contribution

Entities wishing to join the IPF must declare their intention using the standard form published by the IPF Board Resolution No. 2/2002 (dated January22) specifies the form of the Declaration of Intended Membership. An organisation that applies for a license to engage in a covered line of business is required to submit a duly signed written copy of the Declaration of Intended Membership to the IPF before filing its application with the HFSA.

Before submitting its application to the HFSA for an operating license, a business organisation intending to join the IPF must also pay its initial contribution, at 0.5% of its registered capital, provided that the rate of contribution is at least HUF 500 000 and no more than HUF 3 million.

To calculate the initial contribution, the amount of registered capital shown in the corporate registration system upon receipt by the IPF of the Declaration of Intended Membership must be taken into account.

Joining business organisations determine the amount due in initial contribution themselves as described above and must credit the amount to the IPF current account No. 19017004-00220576 managed by the National Bank of Hungary.

IPF member may charge the initial contribution it has paid as other expense.

Once the IPF receives a Declaration of Intended Membership and the related initial contribution is credited to its bank account, the IPF issues a certificate, which the organisation intending to join must attach to its application to Hungarian Financial Supervisory Authority for an operating license.

If the application for the operating license is rejected, and hence the applicant does not become an IPF member, the initial contribution will be reimbursed in line with the provisions set forth in detail in sections 2.6-2.10 in the IPF Contribution Bylaws.