The Hungarian government completed implementation of the EAR by vote in parliament on 10 May 2016. The new rules will become effective on 17 June 2016.
The main elements of the Hungarian law are the following:
- For PIEs that are
- credit institutions,
- insurance undertakings,
- investment service providers,
- fund managers of listed funds
mandatory audit firm rotation must take place every 8 years.
- For all other PIEs, audit firm rotation must take place after 10 years.
- Hungary does not allow for the extension of this period by tender or joint audit.
- Key audit partners must rotate after 7 years.
- No additional items have been added to the EU list of prohibited non-audit services.
- Hungary has made use of its option to allow certain tax and valuation services (see information sheet).
- The fee cap for non-audit services is maintained at 70 %, as established in the EU legislation.
Information Sheet - The Hungarian Audit Reform Law