WEBKINCSTAR ONLINE SECURITIES TRADING - TERMS AND CONDITIONS OF USE

Transcription

1 WEBKINCSTAR ONLINE SECURITIES TRADING - TERMS AND CONDITIONS OF USE The Hungarian State Treasury (hereinafter: Distributor) provides general information (on its website) and executes securities trading transactions and other securities transactions online (hereinafter: WebKincstar Service) for its clients. The Distributor has defined the method and detailed subject matter, technical rules and other conditions of the WebKincstar Service in the present Terms and Conditions (hereinafter: Terms and Conditions). Users of the WebKincstar service: Any natural person, legal person, and business association without legal personality may have access to the general information of the WebKincstar Service. Within the framework of the WebKincstar Service, the Distributor executes deals and securities transactions subject to identification procedure for natural persons, legal persons and business associations without legal personality under a supplementary agreement for securities trading services through the WebKincstar online and MobilKincstar application (hereinafter: WebKincstar Agreement). A WebKincstar Agreement may be concluded with clients holding a valid securities registration account agreement with the Distributor. No WebKincstar Agreement may be concluded for the WebKincstar Service with regard to securities registration accounts, where transactions are conducted, as a prerequisite, if ordered jointly by at least two persons, or if the Distributor is obliged to review special documents for executing the transactions (e.g. accounts of individuals who are incompetent or of limited legal capacity). The right of a natural person account holder to issue orders concerning the WebKincstar Service becomes effective when the natural person account holder (hereinafter: Account Holder) and the Distributor signed the WebKincstar Agreement. The right of the representative or Mandatory of the Account Holder to issue orders for the use of the WebKincstar Service becomes effective when the Account Holder has signed the WebKincstar Agreement and the Account Holder has authorised the relevant individual by completing the applicable document, the proxy has accepted the authorisation and the Distributor has accepted this document. The right of an official proceeding on behalf of a legal person or business association without legal personality, entitled to represent the organisation in writing (signatory or representative) may issue orders with regard to the WebKincstar Service when the represented client and the Distributor have entered into a WebKincstar Agreement. Officials proceeding on behalf of a legal person and business association without legal personality, entitled to represent the organisation in writing (signatory or representative) may be issued a [separate] password (hereinafter password) for a single login simultaneously with the signature of the Agreement or subsequently by completing and signing the respective document. With regard to legal persons and business associations without legal entity, the signatory right of the individual reported on the signature registration form of the Distributor by the official entitled to represent the relevant client in writing (signatory or representative) as the

2 individual entitled to issue orders for the client s securities registration account becomes effective when the client and the Distributor have signed the WebKincstar Agreement and the Account Holder has completed the respective document authorising the individual concerned and the Mandatory accepts the authorisation and the Distributor has accepted the respective document. The Distributor does not limit the number of individuals attached to the securities registration account with the right to use the WebKincstar Service. By using the WebKincstar Service, the authorised representative or Mandatory of the Account Holder or the authorised individual not classified as an officer of a legal person or business association without legal personality have the right to issue orders for any deal or transaction associated with the securities registration account that are available under the present Terms and Conditions of Use, with the exceptions of viewing the master data of the Account Holder within the framework of the WebKincstar service, which right is reserved for the Account Holder only. Parents are entitled to use the WebKincstar service with regard to the Start securities account pursuant to the provisions of specific other legislation and their rights are limited according to the rights of disposition specified for the Start securities account. Technical conditions of using the WebKincstar service The online system is not linked to a specific computer or network, because it has no local component installed at the client, and therefore it can be used from any computer connected to the internet providing that the computer satisfies the following requirements: - Any computer running one of the browsers specified on the website of the Distributor (Government securities trading > Government securities training through WebKincstar). - Any communication line (telephone line, ISDN, X.25, etc.) and other equipment required for communication (e.g. modem) with which the computer can be connected to an internet service provider of the user s choice. (Information and advice concerning the devices and communication options required in specific cases may be requested from the internet service providers.) - A screen setting of 1024X768 resolution is recommended for displaying the total screens used during the service. Operating hours of the WebKincstar: The WebKincstar service is available on the website, and at on a continuous basis, the service is available for 24 hours each day. Identification of the individual using the service, client ID, password and SMS code Officials of the Account Holder authorised for representation in writing require client ID and password specified in the supplementary agreement for the TeleKincstar service; other individuals having the right to issue orders for the account other than the officials (hereinafter: Authorised Officer) require a client ID and password specified in a separate document to use the services of the WebKincstar that contain data and information relating to the Account

3 Holder or involve securities deals. In terms of client identification once the client ID and password have been entered, the Distributor sends an SMS code, to be used once, to the telephone number indicated in the supplementary agreement for the WebKincstar Service, or in the respective special document and the Account Holder must type that code into the designated field on the screen within 10 minutes. After the lapse of this time, the SMS code is invalidated and the client identification process has to be restarted. If the WebKincstar Service is used, the user ID and password, or the password changed by the Account Holder/Authorised Officer, based on that password, and the code sent in a text message (SMS) are required for user identification. The password of the Account Holder/Authorised Officer are personalised passwords, which may be used only by the Account Holder/Authorised Officer. The Account Holder/Authorised Officer cannot write down or store their ID and passwords at the same place, and shall take all reasonable measure, generally expected in a particular situation in order to keep their ID and password safe, and prevent any unauthorised access to them. The Distributor excludes liability for any damages occurring as a result of any event triggered by any unauthorised use of the client ID and password. The Distributor s administrator cannot, under any circumstances, ask the Account Holder/Authorised Officer for the password to be used by the client, and the Account Holder/Party accessing the account cannot provide it in the course of the WebKincstar service. When the contract is concluded, the Account Holder/Authorised Officer collects the password (PIN code) authorising them for a single login to the WebKincstar system only in a manner recognisable by them. The Account Holder/Authorised Officer must change the password through the WebKincstar Service in the course of the identification process during the first online contact or and may change it at any time subsequently. At least 2 characters must be changed in order to change the password. Following 5 consecutive unsuccessful client identification attempts, the WebKincstar system invalidates the password for that day. On the subsequent day(s) the client can try and identify themselves on 5 occasions each day until identification is successful, or the client decides to ask for a new password. If the Account Holder/Authorised Officer forgot his password, then they may apply for a new password only in person, at the customer service of any Distributor of government securities. The Distributor invalidates the password in its securities trading system simultaneously with the request, which will no longer be accepted for client identification by the WebKincstar Service from that point in time. Simultaneously with the login, the Distributor provides the new password to the Account Holder/Authorised Officer, which must be changed during the first online identification process. Following the delivery of the new password, it will be accepted by the WebKincstar system from 8.01 a.m. of the first subsequent working day. The Distributor does not reactivate any blocked password, instead the Account Holder/Authorised Officer may apply for a new password as specified in these Terms and Conditions of Use.

4 The Account Holder/Authorised Officer must report to the Distributor immediately, through TeleKincstar and in writing (in person or by post), or change or cancel their password immediately by using the menu system of the WebKincstar, if others are known or presumed to have gained access to the password. The written report becomes effective when the Distributor has registered it in the securities trading system based on its receipt. The Distributor accepts requests for the cancellation of passwords through the WebKincstar on a continuous basis and simultaneously cancels the password in its securities trading system. In the case of transactions concluded within the framework of the WebKincstar service for a later value date, the Distributor executes the transaction on the value date specified in the transaction order even if the Account Holder/Authorised Officer requests the cancellation of their password after the order for the transaction through the respective WebKincstar service but before the later value date of the transaction, as the transaction is irrevocably registered in the Distributor s securities trading service when using the WebKincstar Service. Exceptions are those deals made for a later value date, for which the required funds are made available by way of transfer. Such orders/deals are irrevocably registered in the system by crediting the required funds in the Distributor s account, and therefore in case the request for password cancellation is received prior to that point in time, then the Account Holder/Authorised Officer may withdraw the order and cancel the deal. Any modification or revocation of a deal concluded for a subsequent value date may be made in the form of a written declaration submitted in person in the customer service office of any Government Securities Distributor. Approval of deals The deals requested by the Account Holder/Authorised Officer may be approved by entering the SMS code sent by the Distributor for each transaction. The SMS code is valid for 10 minutes after it has been sent. The system deletes and will not store the data of transactions that were initiated but not approved. Use of the service, execution of the orders The WebKincstar service is available from 8.01 a.m. of the first subsequent day after the conclusion of the WebKincstar Agreement. The WebKincstar service is available in Hungarian and English. The language to be used may be selected when the phone is first switched on, and the choice is saved in the settings. The order must be submitted by taking into account the terms and conditions of the Prospectus and the Public Offer issued for the specific government securities, such as: buyers of the specific government securities, nominal value (lowest denomination), minimum investment amount, etc., of which clients can find out more on the Distributor s website or in person, at the government securities trading customer services. Of the orders for government securities, issued in HUF, requested through the WebKincstar system, depending on the information stated therein for immediate execution, or for a later value date, the Distributor executes those that were received between a.m. and 4.00 p.m. from Monday to Thursday, and those which were received between a.m. and p.m. on Friday, or bbetween a.m. and p.m. on days, shifted due to public holidays, on the same day, on working days, providing that the Account Holder/Authorised Officer has logged on to the online interface of the WebKincstar service by not later than 3.30

5 p.m. from Monday to Thursday, and by p.m. on Fridays, or by p.m. on days, shifted due to public holidays, while if they log on at any other time, the orders will be executed on the subsequent working day. Any order placed for the purchase of any securities denominated in foreign currency is executed on the subsequent working day, if the transaction is executed in the Distributor s securities trading system by 12 a.m. on T-Day. After that time, the order will be executed on the second working day after it has been submitted. In case there is any change in the working hours due to public holidays, the Distributor publishes the changes applicable to the execution of orders in an announcement. Approval and irrevocability of the transactions: Once the transactions initiated by the Account Holder through the WebKincstar have been approved with the SMS code, they cannot be revoked. Exceptions: - in a reinvestment deal, the data of transactions initiated on the online interface for subscription, purchase or sales and approved with the SMS code may be modified or revoked on the WebKincstar interface prior to the financial closing of the transaction until the Account Holder/Authorised Officer approves the closing of the transaction with financial settlement with an order to make the payment. - transactions concluded for a later value date, where the funds are made available with a bank transfer. Such transactions may be modified and revoked until the funds are credited to the account of the Distributor, but not later than the value date specified in the transaction. Any modification or revocation of a deal concluded for a subsequent value date may be made in the form of a written declaration submitted in person in the customer service office of any Government Securities Distributor. Limits of transactions requiring client identification, executed through the WebKincstar Purchase limit: In each transaction the Distributor may enter into a purchase deal or execute a purchase transaction for a particular day as value date, for maximum HUF 10 million nominal value in one security series (a purchase transaction means a transaction when the Distributor is the buyer). The Account Holder may request a deal and its execution over that limit in person at the government securities trading customer service of the Distributor or, if it did not apply any restriction on that method, then in writing by post or via . Sales limit: In each transaction, the Distributor enters into or executes for a particular day as value date a sales transaction up to its available stock, but no more than HUF 40 million nominal value in each securities series (a sales transaction means a transaction when the Distributor is the seller). The Account Holder may request a deal and its execution over that limit in person at the government securities trading customer service of the Distributor or, if it did not apply any restriction on that method, then in writing by post or via .

6 Deals and other transactions requiring client identification and executed through the WebKincstar: - management of a subscription statement for securities; - purchase of securities for a spot or later value date; - sale of securities; - payment order for the bank transfer of due interest payment or redemption of maturing securities (with the exception of Treasury Start securities account and the Long-term Investment Account), or credit to a cash account, by the closing of the working day prior to the due date; - bank transfer of the amount available on the cash account; - transfer of the funds required for transactions; - order for the payment of the allocation amount; - supplementation of the funds, available on the cash account, with the use of a bank card; - specification of a new bank account number. The Distributor executes the securities transactions in compliance with the provisions of its currently effective Standard Service Agreement, where the date of acceptance of the order/transaction is the same as the date of approval with the SMS code of the transaction requested through the WebKincstar system. Through the WebKincstar, the following other securities transactions requiring client identification may be executed: - queries for the price and return and other specificities of the issue of securities traded by the Distributor at a particular time; - balance and turnover of the client s securities registration account; - queries for maturities and due interests; - queries for data registered in the Distributor s securities trading system as primary data of the Account Holder (only the Account Holder has the right to access such data, proxies cannot access the registered primary data of their principals); - viewing and management of messages sent by the Distributor to the client through the WebKincstar system. Supply of funds for the transactions requested through WebKincstar: The transactions requested through the WebKincstar can be funded from funds available in the client s client account, from due interest payment, or credited amount of redeemed maturing securities, or the client may transfer the required funds to the Distributor, or may settle them using a bank card. Rules of payment with a bank card: Transactions may be settled online also with a bank card (hereinafter: card). For online payments with cards the Distributor cooperates with OTP Bank Nyrt. (hereinafter: Settlement Bank), the information system of which is used for managing the data required for card acceptance and for crediting the funds into the Distributor s account, as well as the data of the fund, and for authorising the payment. Thus, the information below is only a summary, and the effective rules of the Settlement Bank apply to card payments. Types of cards accepted for online payments:

7 The list of the card types, acceptable for payment in WebKincstar transactions is published by the Distributor on its website. The Settlement Bank requests the following information for card payments: - Card number: digit number embossed or printed on the front of the card - Expiry date: the number in mm/yy format embossed or printed on the front of the card - Validation code: the last three digits of the numbers in the signature panel on the back of the card, CVV2, or CVC2. If there is no such code on the card, the respective field on the payment page must be left blank. Account Holders/Authorised Officers are advised to inquire in advance about the Contract Terms and Conditions of the issuing bank with regard to their cards in terms of the use of the cards for online payments. Prior to requesting a payment online, it is also advised to check whether according to the terms and conditions of the card issuing bank, the card held by the Account Holder/Authorised Officer can be used for online payments. Online card payment process The Account Holder/Authorised Officer may propose card payment online after having provided the data of the securities trading transaction on the WebKincstar internet interface. The amount payable for the financial closing of the requested transaction can be viewed on the WebKincstar interface (WebKincstar screen). The Distributor executes the transaction, if it is notified by the Settlement Bank of the successful card payment transaction. The Account Holder/Authorised Officer receives information on the success or failure of the payment transaction on the WebKincstar interface. The Distributor executes the securities trading transactions in its information system (WebKincstar interface) and data of the securities transactions are managed, stored and queries also in the Distributor s information system. In the case of card payment, the Distributor s information system identifies itself via a secure communication channel to the Settlement Bank and contacts the information system of the Settlement Bank, and then transfers the information about the payable amount. The Distributor information system redirects the Account Holder/Authorised Officer to the buyer page of the payment interface of the Settlement Bank. The amount payable, initiated by the card is requested, and payment authorisation is granted or rejected, the payment transaction ID is assigned and the required card data are requested, managed and stored on the payment interface, in the information system of the Settlement Bank. The information required for the authorisation of a card payment must be entered on the screen of the payment interface of the Settlement Bank (e.g., card number, expiry date of the card). The verification of the card data, entered for the transaction on the payment interface of the Settlement Bank, the availability of the funds and, consequently, the granting or rejection of payment authorisation and the reasoning of rejection are the responsibilities of the Settlement Bank. Consequently, the card data and codes required for the payment appear only in the information system of the Settlement Bank, those data are not communicated to the Distributor s information system by the system of the Settlement Bank, and they are not revealed to the Distributor. The card payment transaction is identified based on the identification number (authorisation code) generated by the Settlement Bank and indicated on the WebKincstar interface.

8 The Settlement Bank sends a response on the completed payment, on the screen of which the Account Holder/Authorised Officer may view the data of the payment transaction and the authorisation code and may print out those data. The authorisation code is required for requesting any information concerning the card payment or any subsequent administration. The Settlement Bank manages the data provided by the Account Holder/Authorised Officer in relation to the payment in compliance with the provisions of regulations on data management. Such data may be used only for executing the payment transaction and may not be disclosed to any third party unless otherwise provided for by law. The Distributor does not obtain the data of the bank card, and receives information about the payment transaction only concerning the amount and the completion or rejection of the transaction (acceptance of the payment transaction requested with a card by the card issuing bank), as well as the authorisation code assigned to the card payment transaction by the Settlement Bank. The Distributor cannot be held liable for any damages arising from the supply of erroneous or false data for the card payment transaction. Furthermore, the Distributor shall not be held liable for any error, disruption of operation or shutdown occurring on the payment interface of the Settlement Bank. Security components of card payments Payment transactions are executed on the online interface of the Settlement Bank in compliance with the rules and regulations and security requirements of the international card companies, where card data are provided only on the adequate online interface of the Settlement Bank (bank payment side). The WebKincstar sends electronically signed messages to the online interface of the Settlement Bank. The internet browser used by the client, the WebKincstar and the online interface of the Settlement Bank communicate with each other on a secure 128 bites SSL channel where the keys are authenticated by VerSign. The WebKincstar accesses the Settlement Bank s system via a SOAP interface with a HTTP communication protocol, where messages and data are communicated in XML format. Card payment types Payments for securities trading transactions, requested through WebKincstar, are considered card payment transactions. (The category is defined in the regulations of the international card companies.) Eligibility of card payment The Distributor does not check the lawfulness of card use in terms of the execution of a particular transaction or the legal relationship between the party placing the order and the client in terms of the card payment. In case a payment is made online, the Distributor is unable to check whether the individual executing the WebKincstar transaction makes the payment by using his own card, or the card

9 of another card holder, or if he was entitled to make a payment from the particular card to the Account Holder or the organisation for which it places an order to the WebKincstar in the transaction in the capacity of an Authorised Officer. (For each transaction requested online, the Distributor securities trading system checks whether the party requesting the transaction is the Account Holder or is entitled to execute the securities transaction in the name and on behalf of the Account Holder.) The Distributor is not liable for any damage arising from any unauthorised card use and shall not refund any amount paid with the card based on alleging unauthorised card use. Verification of card limits The purchase limits defined for each card are applicable to the payment transactions requested with the card. The Settlement Bank authorises the payment transaction if the other required conditions are fulfilled and if the requested payment is lower than the purchasing limit defined for the particular card. Exclusion of liability of the Distributor in relation to rejected payment transactions The Distributor is not responsible for any loss or damage suffered by the client that arises from the rejection of the card payment by the Settlement Bank. The Settlement Bank requests an authorisation for the payment transaction from the card issuing bank, the issuing bank checks the validity of the card and compliance with the other prescribed conditions of card payment before it gives authorisation. The issuing bank informs the Settlement Bank of the granting or rejection of the authorisation, which then sends a message thereof to the Distributor s information system. The Distributor conveys that response message to the Account Holder/Authorised Officer through the WebKincstar interface. The Distributor s system will not execute transactions relating to rejected payments. Finality and irrevocability of securities trading transactions relating to card payments By requesting a card payment, the Account Holder/Authorised Officer gives its consent to the Distributor to begin executing the securities transaction. The Distributor begins the execution of the securities trading transactions to be settled with the card simultaneously with a request made by the Account Holder/Authorised Officer for the financial closing of the transaction. Such transactions cannot be revoked or modified, if the Distributor has sent the authorisation number of the payment transaction received from the Settlement Bank through the WebKincstar interface, as simultaneously with that message the Distributors considers the securities transaction executed. Consequently, the Distributor finally and irrevocably executes the securities trading transaction, if it receives a response from the Settlement Bank concerning the success of the payment. In case of execution, the Account Holder/Authorised Officer cannot cancel the securities transaction and the Distributor does not refund the amount paid in the transaction with a card. In case a message is received on a failed payment transaction, the Account Holder/Authorised Officer may opt for another payment method to provide the funds for the transaction (debit to the available balance on the cash account, or transfer).

10 If the card payment failed and the Account Holder/Authorised Officer did not opt for another method for payment and the financial closing of the transaction was not successful, the Distributor s securities trading system will delete the securities transaction requested through the WebKincstar. Failure of a securities trading transaction In case the funds required for the transaction are debited on the card in relation to a card payment, but the securities transaction requested through the WebKincstar fails due to any reason, the Distributor may not refund the payment made with a bank card in cash. In such a case the Distributor performs a cancellation (void) transaction, notifies the Settlement Bank in writing thereof, and requests the Settlement Bank to credit the consideration. The Distributor arranges for the return of the consideration through OTP Bank Card Complaint Unit. The Distributor informs its client of the refund of the consideration in the same manner as specified for notifications. Management of complaints concerning online payments made with cards The process of complaint handling relating to card payment made through the WebKincstar interface is the same as the process of management of complaints concerning card payments made at the Distributor s government securities trading customer service offices. The authorisation code relating to the card payment for the WebKincstar transaction is required for the complaint. The rules of complaint administration are contained in the Standard Service Agreement on bank cards, the Contract Terms and Conditions and the contract of the card issuing bank. Submission of complaints concerning card payments The Card Holder may submit a complaint to its card issuing bank, if he assumes any fraudulent action to have been performed with the card because he did not request any card payment, but the securities transaction took place and the card has been debited. The deadline for submitting a complaint and the rules of indemnification are specified in the terms and conditions published by the issuing bank. In order to submit a complaint, the name and client ID of the Account Holder natural person or organisation, the securities data and the transaction number and the authorisation code of the card payment must be conveyed to the card issuing bank. The Card Holder may submit a complaint for failure if the funds required for a securities transaction have been debited to his account but the securities transaction did not take place at all, or did not take place pursuant to the transaction order placed by him, which can be proved with a statement or certificate issued by the Distributor. The complaint may be submitted at any government securities trading customer service of the Distributor in person or in writing by post, or electronically. Registration and accounting of the executed deals, notification on the transaction The Distributor registers and settles the executed transactions in compliance with the provisions of the securities registration account agreement established between the Account Holder and the Distributor. The Distributor s securities trading system assigns a transaction identification number to the executed transactions if the Account Holder has approved the transaction. The approved

11 transaction code appears on the screen. Once approval has been granted, the transaction data can be printed out. Modification of these Terms and Conditions of Use: The Distributor may unilaterally modify these Terms and Conditions. The Distributor publishes the amended Terms and Conditions by displaying them in its premises open to clients and on its website 15 calendar days prior to the effective date of the amendments. If the Account Holder does not accept the modification and informs the government securities trading customer service of the Distributor about it in writing, through the post, 15 days prior to the entry into force of the modification of the Terms and Conditions, then the agreement will be terminated on the same day when the modified conditions enter into force. Simultaneously with the termination of the agreement, the Distributor also invalidates the password of the Account Holder/Authorised Officer. Effective from 1 December Hungarian State Treasury