Update on the penalty mechanism

UniCredit Bank Hungary Zrt.
Summary: 
Penalty mechanism goes live in May 2022
Fri, 29/04/2022

KELER, the Hungarian CSD, has announced that in line with its' previous notification (CSDR – Update on penalty testing at CSD | Custody | UniCredit Group) the dry-run period of penalty testing will end on 29 April 2022, and the penalty mechanism will fully go live as of May 2022. The calculation and the distribution of the penalties for May 2022 will be processed according to the schedule of the international penalty calendar, with a scheduled penalty payment date of 23 June 2022.

Reporting for the retroactive period will be provided primarily in the form of excel sheets. In addition to the excel sheets, KELER is working on an IT solution to make available daily and monthly reports on retroactively calculated fines in a standard format (MT537) for the months of February and March. In order to avoid duplication, KELER is not planning to re-send the daily penalty reports already distributed for the month of April during the dry-run.

KELER's deadline for appeals of fines calculated for three months is 30 June 2022. The finalized report for the 3-month, via excel or MT537, is planned to be distributed to KELER's clients on July 15, 2022. The global net amount of three-monthly fines will be collected and distributed with a planned settlement date of 20 July 2022. Please find the relevant penalty dates included in the table below:

Impact on Investors: Clients should take note of the above details related to the go-live of penalty mechanism as announced by KELER.