Tuesday , June 6 2023

Czerwińska: Financial market supervision will be strengthened – Business and commercial law – GazetaPrawna.pl


The minister reminded the PAP that the government had revised some legislation on Friday in connection with strengthening supervision of financial markets and protecting investors in this market.

"The bill prepared by the ministry has two goals: the first is the strengthening of the bureau, which depends on Mateusz Morawiecki, and the finance department, which means a sound financial market" – Czerwińska. She found that change was a strengthening of supervision on two levels. Increase financial independence and expand the PFSA structure.

"The amendment adopted transforms the Polish financial supervisory authority into a provincial entity that means a change in the way the PFSA secretariat manages its budget. Today, donations from the supervisory agencies support government funding, The stabilization spending rule, which is the upper limit of spending in the work phase, "- said the minister.

She said the financing will be financed by financial market institutions even after the changes, but the restrictions on financial spending will not be applied. "This increases the flexibility and independence of KNF in the area of ​​financial management, such as increasing employment, attracting new professionals, and raising wages," he said. She added that it means that the office can actually have more resources.

The amendment also extended the composition of the Polish Financial Supervisory Board to four additional members, as indicated by Czerwińska, including the prime minister, the special services minister and the chairman of UOKiK and BFG.

"The focus is on strengthening cooperation between these agencies and improving them with special services so that the flow of information will change as the sharing of information, including classified information discussed at the KNF meetings, will change." She said, , The new member states will not have the right to vote because they will act as observers.

A very important change regarding the protection of additional investors is the dematerialization of corporate bonds, the investment certificates issued by FIZ, and covered bonds.

"This will increase transparency and enhance investor protection. We introduce a central repository of the securities operated by our securities depository, which is a very significant change at this level."

She added that the amendment introduces the Financial Education Fund, which promotes Poland's financial awareness. "We remember that institutional and legislative protection of investors is important, but we must build public awareness in terms of financial mechanisms and financing instruments. Financial knowledge is not yet broad and broad, but must be evaluated by the minister.

He asks whether Gazeta Wyborcza and the Financial Times can influence the effectiveness of financial market supervision in connection with the prosecution's report to KNF Chairman Marek Chrzanowski. "The information provided should be verified by the authorities," she replied.

She also mentioned a question about the possibility of further amendments to the legislation in the Senate regarding legislation related to the way KNF chiefs dismissed. "This project we have now prepared meets all of the most important requirements for strengthening supervision and investor protection and meets international standards," she said.

On Friday, Sejm passed a bill to amend certain legislation related to financial market supervision and strengthening investor protection. This extended the composition of the Polish financial supervisory authority to the Prime Minister, the Special Services Minister, and the Chairman of UOKiK and BFG. Amendments were also adopted so-called frankowiczów.

Under the law, the KNF office becomes a legal person. The way in which funds are provided to the PFSA and PFSA offices has also changed, allowing the committee to manage funds more efficiently. The KNF and the PFSA Secretariat procure funds directly from commissions paid by financial market regulators and are funded through state budgets not too far from donations.

This document also establishes a legal framework for the transfer of information between the PFSA, Member States and other institutions, ie, internal security agencies, central banks, central banks, police and OCCP. We propose the possibility of extending KNF control from 6 months to 1 year and extending the possibility of blocking the account from 48 hours to 72 hours.

The Act also provides the creation of the Financial Education Fund, which raises Poles' financial awareness, including knowledge of the investment products offered. The supervision of the Financial Education Council, which consists of representatives of national institutions that influence the development and safety of the financial market, will oversee and supervise the fund.

In accordance with one of the adopted amendments, the Financial Ombudsman must be provided with funds at the request of the Financial Education Council. The fund is to receive funds from the administrative penalties imposed by the PFSA and the Financial Grievance Officer.

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