The Council of Ministers has adopted a draft act amending the act on trading in financial instruments and some other acts, submitted by the Minister of Finance, Funds and Regional Policy. The project aligns Polish law with the European Union’s requirements for investment firms, the Government Information Center (CIR) reported.
The idea is to establish a new prudential regime and ensure that investment firms across the EU operate on the basis of uniform regulations. In addition, a more proportionate and appropriate prudential framework for smaller investment firms will be introduced, which should improve the business environment and reduce barriers related to entering the market. The proposed solutions will ensure positive effects for the financial sector, according to the CIR.
In line with the proposed solutions, investment firms will be divided into three categories according to their size and interrelationships with other financial and economic entities.
The required level of initial capital of a brokerage house will depend on the services provided and types of activities for which a given brokerage house has a permit. An obligation to constantly meet the minimum capital requirement in the amount equal to the required initial capital was introduced, CIR reported
The catalog of supervisory measures available to the supervisory authority, ie the Polish Financial Supervision Authority, which, if necessary, will be able to establish additional own funds or liquidity requirements, will also be changed.
As indicated, changes were also made to the provision on the remuneration policy in brokerage houses. The remuneration policy will have to be, inter alia, gender neutral. It also clarified when there is an obligation to establish a remuneration committee, as well as the obligations to provide the PFSA with information on remuneration in brokerage houses.
A group capital test has been introduced for simpler group structures consisting only of investment firms, also stated.
The draft regulates the principles of cooperation between the competent authorities in the EU countries and the PFSA in the event of an emergency. There are also provisions on a reporting requirement for investment firms proportionate to the performance of firms and on the requirements of the prudential framework.
The new regulations are to enter into force 14 days after their publication in the Journal of Laws, with the exception of some articles that will come into force on other dates.
Source: CIR and ISBnews
