ING Investment Management is reportedly set to exit Hungarian fund management market on the back of unfavorable legal conditions in the country.

The company is keen to wind up the business by July 2014, after ending the operations by the end of the June, according to Protfolio.hu

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ING Investment Management was the third largest private pension fund in Hungary until 2010; however, the nationalization of private pension fund system came as a severe blow to the company with many of its members opting for the state system.

The fund managers’ assets of HUF566 billion ($2.54 billion ) dropped to HUF50 billion ($225 million), reported Portfolio.hu citing data from the Hungarian Association of Pension and Health Funds.

ING, meanwhile, is looking to transfer parts of asset management to ING Insurance, while the remaining responsibility is expected to be assumed by foreign investment management units including the Netherlands and Romania, according to the publication.

Also, it has planned to shift 50% of staff-force to the Investment Department of ING Insurance, while the rest will be employed to a special ‘Mobility’ program created to find a solution for the closure of the company.

Following the closure, ING will predominately function in its core insurance market, with the business also managing the HUF400 million ($1.8 million) asset in the company portfolio.