Financial Supervision Authority fines are for real
17.02.2011 banking & finance | capital markets
Information published on the website of the Polish Financial Supervision Authority (KNF) shows that the KNF takes full advantage of its authority to impose fines for failure to play by the rules on the financial markets.
Under Polish law, in exercising its oversight authority, the KNF may impose administrative fines for numerous types of infractions. The greatest number of fines in 2010, 15, were imposed for failure to disclose confidential information by the statutory deadline. In most such cases the companies themselves were fined, and in one case such a fine was imposed on the CEO of a public company. The fines ranged from PLN 40,000 to PLN 300,000.
In other cases, fines were imposed for improper preparation of current reports, failure to perform obligations related to acquisition of significant stakes in companies, as well as manipulation of information in a way that was misleading to investors.
In several instances the KNF decided to remove persons guilty of insider trading from the register of investment advisers.
Prior to imposing a fine, the KNF conducts an explanatory proceeding, during which interested persons (who may be represented by counsel) may submit statements, and the KNF’s decision itself is appealable. Before appealing from a KNF decision, the party should consider not only the legal aspects of the matter, but also the business and reputational consequences and other ramifications of the decision.
Jakub Koziński, Capital Market team, Wardyński & Partners