Home / Regulatory Developments / Circular C221 (“the Circular”) dated 05.07.17 regarding new rules set by the Polish Financial Supervision Authority (the “KNF”) regarding persons that are allowed to provide activities in the territory of Poland

Circular C221 (“the Circular”) dated 05.07.17 regarding new rules set by the Polish Financial Supervision Authority (the “KNF”) regarding persons that are allowed to provide activities in the territory of Poland

Through the Circular, CySEC informs the CIFs which freely provide investment services in accordance with Article 79 of Law 144(I)/2007 as amended (“the Law”), in the territory of Poland, regarding KNF’s new rules that entered into force on 29.04.17, regarding the persons that are allowed to provide such services. Particularly:

  1. Pursuant to article 79(2)(a) of the amended Polish Act of 29.07.15 on Trading in Financial Instruments (‘the Act’), the activities of:
  • client/potential client acquisition;
  • advising on the range of the investment services provided by a (foreign) investment firm or on financial instruments (as these are specified in Part III of the Third Appendix of the Law) that are subject to those services, may be conducted, in the territory of Poland, only by:
  • a (foreign) investment firm, or
  • an agent of a (foreign) investment firm (supervised intermediary acting in the name and on behalf of the investment firm).
  1. The only exception to that rule is thereafter provided in Article 79(2)(b) of the Act, where the above listed activities may be conducted by entities other than a (foreign) investment firm or an agent of a (foreign) investment firm only if the information is, at the same time, communicated to a broad group of clients or potential clients of the investment firm or to an indefinite recipient (e.g. TV or radio advertisement).

CySEC’s expects that: CIFs shall consult with their legal consultants regarding the necessary actions / measures required to ensure compliance with KNF’s new regulatory requirements applicable from 29.04.17 onwards. CIFs may visit KNF’s website (accessible here) to read more information on the aforementioned provisions.

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