The lower house of the Polish Parliament has approved legislation bringing securities legislation in Poland into line with the European Union “single passport” requirements. Those requirements became effective on 1 July this year, following the admission of Poland to the European Union in May last year. The new laws become effective from 1 September, provided they are approved by the Senate and the President.
Importantly, the new laws abolish the Warsaw Stock Exchange monopoly, allowing an OTC equity market to develop. A new Law on Capital Market Supervision will also increase significantly the powers of the local regulator.
Local custodians have expressed disappointment at the failure of the new laws to include any of their recommendations. “Although the final shape of the regulations may still be amended, it seems that none of the proposals submitted by the local market participants, such as the introduction of omnibus accounts or the easing of documentation requirements, have been taken into account by the legislator,” says Krzysztof Pekrul of Bank BPH in Poland.