the polish financial supervision authority the polish fsa 2007 current state of mifid implementation...

The Polish FSA 2007

THE POLISH FINANCIAL SUPERVISION AUTHORITY

Current State of MiFID Implementation Process in Poland

Adam Blasiak

Split, 15 June 2007

The Polish FSA 2007


• Set up on 19th September 2006• New, integrated supervisor which took over

the tasks of the Insurance and Pension Funds Supervisory Commission and the Polish Securities and Exchange Commission

• Banking supervision to be included on 1st January 2008

The Polish Financial Supervision Authority (PFSA)

The Polish FSA 2007


Composition

Stanisław Kluza - The Chairperson (5-year term in office)

Iwona Duda -The Vice-Chairperson Marcin Gomoła - The Vice-Chairperson

Other members: Arkadiusz Huzarek - The Representative of the Finance Minister Anna Kalata - Labour and Social Policy Minister Krzysztof Rybiński- The Deputy President of the National Bank of

Poland Henryk Cioch - The Representative of the President of the Republic of

Poland

The Polish FSA 2007


Aims

• Co-operation with all market participants

(we all work for market growth)

• Clients’ protection and education

• Risk-based supervision in the future

The Polish FSA 2007


Scope of activity

• capital market supervision

• insurance supervision

• pension schemes supervision

• complementary supervision of financial conglomerates

• banking supervision, commencing 2008

The Polish FSA 2007


Supervised entities

• Open pension funds – 15• Life insurance companies – 32• Non-life insurance companies – 33• Issuers of financial instruments –

304• Investment fund corporations – 26• Brokerage houses – 37• Banks conducting brokerage

activities – 10• Custodian banks – 14

• Securities brokers – 1 819• Investment advisers – 238• Insurance agents – 36 780• Brokers - 868 • Actuaries – 154• Investment firms agents –

19• Pension fund agents – 111 099

The Polish FSA 2007


MiFID Implementation Process

July 2007:Anticipated notification of transposition

to the European Commission

Transposition of Directive requires adoption of:- a Parliamentary Act: amended Law on Trading in

Financial Instruments- secondary legislation in form of several

executive regulations, most important one: Regulation on the mode and conditions for acting of investment firms and fiduciary banks (transposing majority of detailed provisions)

The Polish FSA 2007


- Amended Law on Trading in Financial Instruments – passed on by the Ministry for Finance to the Parliament on 25th May- Regulation on the mode and conditions for acting of investment firms and fiduciary banks – still drafted in the Ministry by a working group.

Financial Market Development Council (est. 09/2006)- Consultative body of the Minister - Representatives of all institutions involved in financial market (platform for regulator’s cooperation with market participants e.g. investor associations, brokers chambers, issuers associations etc.) - Aim: formulating concrete proposals for development of financial market, in particular: „adapting the market to international standards and requirements with regard of market participants’ expectations (...)”

The Polish FSA 2007


Revolution or evolution?

„Revolution”: - Definition of “financial instrument”, incl. commodity derivatives- Remote transactions on regulated market- New CSDs- New regulations for an MTF- Right to choose clearing & settlement system- Transparency in OTC transactions- Organisational requirements (e.g. Conflicts Policy)- Outsourcing of services- Passporting and cross-border services

The Polish FSA 2007


- Investment services (core vs. ancillary)- Tied agents- Client classification- Best execution

„Evolution”:

Revolution or evolution?

The Polish FSA 2007


You can reach us at:

Pl. Powstańców Warszawy 100-950 Warsaw

Poland

tel. + 48 (0 22) 33 26 600fax. + 48 (0 22) 33 26 602

[email protected]://www.knf.gov.pl

the polish financial supervision authority the polish fsa 2007 current state of mifid implementation...

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