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Acquisition of banks under KNF supervision
The act of 9 November 2018 amending a number of laws, including the Banking Law, in order to reinforce oversight of the financial market entered into force at the beginning of this year. A new chapter was consequently added to the Banking Law concerning forced acquisition of banks coordinated by the Polish Financial Supervision Authority (KNF). The act has now been in force for several months, and it is a good occasion to examine in more detail the new powers vested in KNF.
Acquisition of banks under KNF supervision
If it comes to a “no-deal” Brexit, UK financial market firms will be given transition periods
On 5 March 2019, a legislative proposal was submitted to the Sejm to regulate business activity conducted from the United Kingdom of Great Britain and Northern Ireland and Gibraltar following Brexit. Similar laws are now being drawn up in a number of other EU countries. The bill is intended to protect Polish customers who have agreements with institutions of that kind. It is also intended to enable the firms to bring their business activities and relationships with customers to a close in an orderly fashion, or take the appropriate measures to remain on the Polish market according to rules that apply to third countries.
If it comes to a “no-deal” Brexit, UK financial market firms will be given transition periods
Financial market – changes, changes, and more changes
Only a month ago we posted an article on plans to change the way the capital market is regulated and market investors are protected. The act has now been passed and signed into law, and will come into force on 1 January 2019.
Financial market – changes, changes, and more changes
Strengthening financial market supervision
Recent difficult investor experiences have led to proposals for further regulatory changes aimed at increasing security and strengthening supervision of the financial market. Currently in a Sejm committee, a government bill is being read for the first time which would amend several acts, redefine the Polish Financial Supervision Authority, and impose an obligation to dematerialise some financial instruments.
Strengthening financial market supervision
Reverse solicitation
In July 2017 the Government Legislative Centre published a proposal to amend the Trading in Financial Instruments Act and certain other acts, to bring the Polish legal system into compliance with the EU laws governing the capital market, in particular MiFID II (Directive 2014/65/EU) and MiFIR (Regulation 600/2014). The amendment would significantly change the wording of a number of existing acts and require capital market entities to comply with the new regulations. One notable feature is the introduction of the notion of reverse solicitation, not previously regulated in Polish law.
Reverse solicitation
Could brokers also use mediation?
Mediation is becoming a more widely appreciated and applied alternative dispute resolution method. But there are categories of cases where it could be used more often. One of them is disputes between capital market participants, and in particular between brokerages and their clients.
Could brokers also use mediation?
Elimination of income tax exemption for closed-end investment funds
On the last day of October a notice was published on the Sejm website on filing of a parliamentarian’s bill to amend the Personal Income Tax Act and the Corporate Income Tax Act. The changes to the CIT Act, to enter into force on 1 January 2017, would eliminate the exemption from corporate income tax for closed-end investment funds (FIZ). This exemption has been used as a major instrument for tax optimisation, for example for entities involved in trading of debt and real property, and for taxpayers seeking protection against rules governing controlled foreign corporations (CFC).
Elimination of income tax exemption for closed-end investment funds
New system of penalties and administrative sanctions for violation of Public Offering Act now before the Parliament
The bill would significantly raise the sanctions for violation of reporting obligations—to PLN 40 million or 5% of annual turnover. The Polish Financial Supervision Authority could also publish the names of persons violating the act.
New system of penalties and administrative sanctions for violation of Public Offering Act now before the Parliament
Consideration of customer complaints by financial institutions
Financial services are not always performed as they should be, and procedures for considering customer complaints have not always been effective. Consequently, in May 2015 the Polish Financial Supervision Authority adopted a resolution on consideration of customer complaints, and in August the Sejm adopted the Act on Consideration of Complaints by Financial Market Entities and on the Financial Ombudsman. The act has just entered into force.
Consideration of customer complaints by financial institutions
Shareholder’s proxy at the general meeting of a public company
The season for annual general meetings is approaching with the deadline for approval of the financial statements of Polish companies. Shareholders need not participate in the meeting personally, but may appoint a proxy. However, the law provides for certain differences in appointment of proxies in listed and unlisted companies.
Shareholder’s proxy at the general meeting of a public company
New Bond Act
The Bond Act of 15 January 2015 will enter into force on 1 July 2015. Although it is a new law, for the most part it carries forward the regulations from the current law from 2005, with changes and additions where the need was revealed by the practice under the existing act.
New Bond Act
Changes in issuers’ reporting requirements
Companies listed on the main market of the Warsaw Stock Exchange and NewConnect will be required to release year-end and interim reports as well as disclose inside information. This is more of an evolution in reporting requirements than a revolution.
Changes in issuers’ reporting requirements