Polish Financial Supervision Authority Cracks Down on Non-Compliance in Financial Institutions
The Polish Financial Supervision Authority (PFSA) has been granted sweeping powers to ensure the stability, security, and transparency of Poland’s financial market. Under the Act of 21 July 2006 on financial market supervision, the PFSA is tasked with regulating activities across various sectors, including:
- Banking
- Insurance
- Pensions
- Capital markets
- Cooperative banks
- Payment services
Primary Goal: Protecting Participants’ Interests
The authority’s primary goal is to protect participants’ interests by providing reliable information on the market while ensuring trust in the financial system. To achieve this, the PFSA implements a range of supervisory measures, including:
Licensing
Regulatory Oversight
Control Procedures
Disciplinary Action
Enforcing Compliance: Significant Powers Granted
The PFSA has been granted significant powers to enforce compliance, including the ability to:
- Impose financial penalties on non-compliant institutions
- Withdraw licenses from non-compliant institutions
- Issue individual recommendations or guidelines aimed at addressing specific issues or affecting entire sectors of the market
Ongoing Analysis and Control Procedures
In addition, the PFSA conducts ongoing analysis of reports submitted by financial institutions, assessing whether they meet legally defined capital requirements. The authority also carries out control procedures within supervised entities to ensure compliance with regulations.
Report Analysis
The PFSA’s supervisory measures are not triggered solely by reports of irregularities. However, these submissions do provide valuable information on the functioning of the market and can initiate further investigation.
Compliance Training: A Must for Financial Institutions
As such, financial institutions operating in Poland would be well-advised to prioritize compliance training to avoid potential penalties and maintain trust with customers and investors alike.