Poland: the financial markets' supervisory body reorganized as state legal entity

On 1 January 2019, further provisions of the Act of 9 November 2018 amending certain acts in connection with the strengthening of supervision over the financial market and investor protection on the Polish market entered into force.

Under the amendments, the financial supervisory body of the country changed its form of organization. Thus, the old KNF's (Financial Supervision Authority) functions have been overtaken by a the newly created Office of the Polish Financial Supervision Authority (UKNF). Its main organs are the Commission and the President of the Commission. The President of the Commission will manage the activities of the Office of the Polish Financial Supervision Authority and represent the Office externally and will direct the work of the Commission and represent it externally. Otherwise, the body will, as before, be associated with the jurisdiction over the supervision of the financial market. Despite the change in political solutions, the basic principles of exercising supervision over the financial market do not change. The Polish Financial Supervision Authority, like the legal status before January 1, 2019, will still have all the competences related to the supervision of the financial market, and the transitional provisions will retain all supervisory activities, administrative decisions, recommendations and recommendations issued by the Polish Financial Supervision Authority before 1 January 2019.

On the other hand, the President of the Council of Ministers will supervise the activities of the KNF Office as a state legal entity. The new status of the Office of the Polish Financial Supervision Authority is to serve primarily to ensure greater financial independence. Expenses constituting the operating costs of the Office will not be covered by the state budget and reimbursed to the state budget through payments to cover the costs of supervision, but will be covered directly from the payments of the supervised entities. The Office of the Polish Financial Supervision Authority will conduct its financial management based on the annual financial plan adopted by the Polish Financial Supervision Authority and approved by the Prime Minister. The annual financial report of the Polish Financial Supervision Authority will be audited by an audit firm selected by the Prime Minister.

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