On 20 March 2020, the Polish Financial Supervision Authority ("PFSA") announced the introduction of the "Supervisory Impulses Package for Safety and Development" dedicated to the capital market in Poland ("Supervisory Package for Capital Market"). The Package comprises of PFSA's proposals and initiatives for supervised entities – e.g. for companies listed on Warsaw Stock Exchange – on how to deal with the coronavirus pandemic.
The Supervisory Package for Capital Market is divided into 4 objectives:
OBJECTIVE 1: TO ENSURE CONTINUOUS ACCESS TO LIQUIDITY
Under the Supervisory Package for Capital Market, PFSA will adjust its supervisory measures to the current situation and it will individually, and on a case-by-case basis, address any breaches of investment limits by investment funds. Additionally, PFSA will support investment funds' liquidity in the area of sovereign local debt instruments.
OBJECTIVE 2: TO ENABLE COMPLIANCE WITH REGULATORY REPORTING REQUIREMENTS BY EXTENDING REPORTING DEADLINES
PFSA proposes to extend deadlines for corporate actions that need to be taken by public companies, in particular, to extend deadlines for:
- preparing, approving and publishing annual financial statements;
- publishing of quarterly reports for the first quarter of the financial year starting on 1 January 2020;
- holding annual General Meetings;
- approving remuneration policy.
OBJECTIVE 3: TO FACILITATE CAPITAL RAISING BY COMPANIES
PFSA intends to significantly facilitate and speed up the process of preparation and review of offering documents required to raise capital by issuers.
OBJECTIVE 4: TO ENABLE FOCUS ON CUSTOMER SERVICE AND KEY PROCESSES
PFSA declares that it will present a pragmatic approach to its supervisory activities. In particular, PFSA states that it will review the supervisory process to minimise the obligations of companies in terms of day-to-day reporting. PFSA also stated that it understand that there may be a need to postpone the fulfilment of reporting obligations.
PFSA also states that it will postpone scheduled non-reporting activities (e.g. surveys, requests for information).
In case of breaches of capital adequacy standards, including limits on large exposures, when undertaking appropriate supervisory activities, PFSA will take into consideration the impact of the COVID-19 pandemic.
According to the Supervisory Package for Capital Market, the PFSA will also update the inspection schedule, taking into account supervisory objectives accordingly.
Additionally, it will adopt a pragmatic approach to the postponement of various supervisory deadlines, e.g. the deadlines for the implementation of post-inspection recommendations.
PFSA’s annual supervisory assessments to be carried out in 2020 will be based on simplified ratings and will take into account the extraordinary circumstances related to the COVID-19 pandemic.
Additionally, the PFSA will extend, for six months, the deadline for brokerage houses to adapt to the EBA Guidelines on outsourcing.
Notwithstanding all objectives presented above, PFSA declares that it will use electronic channels of communication with supervised entities more often, meaning it will expand the use of the PORTAL system, the e-PUAP system and e-mail.
Note: This newsletter has been prepared according to information available as of 23 March 2020.