Recent developments in the area of European regulations concerning collective investments have made a significant impact on the European investment funds’ market and as well as on the Polish investment funds’ market. In particular, the introduction of the Alternative Investment Funds Managers Directive (the ‘AIFMD’) in July 2011 has required fund managers and entities, which haven’t been treated as regulated investment funds till now, to reshape their business, in particular to meet many new regulatory requirements.
MWW assumes that Poland’s investment fund market will undergo significant changes in 2015 as the government intends to finally implement the AIFMD (deadline for implementation of the former passed in July 2013)and at the same time to implement the UCITS V.
On 16th of January 2015 the draft bill amending the Polish Act on Investment Funds and other acts was published at Governmental Legislation Centre’s website. At the moment the draft is subject to public consultations and the Ministry of Finance plans to pass the law in the middle of 2015. The purpose of this draft is to ensure compliance of Polish law simultaneously with AIFMD and UCITS V:
- introduction of a new division of investment funds’ types: investments funds compliant with UCITS V Directive (open-ended investment funds) and investment funds compliant with AIFM Directive (other funds);
- regulating the legal forms in which the business of acquiring funds from many investors in order to invest it according to specific investment policy and to their benefit can be conducted (investment funds, limited partnerships, limited joint-stock partnerships, capital companies, including European companies);
- introducing a requirement to conduct business by national AIFMs under the license of Polish Financial Supervision Authority (PFSA) with the possibility to perform activities by AIFMs exclusively after obtaining an entry into the Register of Alternative Investment Funds Managers maintained by PFSA under the conditions stipulated by the AIFMD (i.e. low value of assets of managed funds);
- defining the conditions and organisational requirements of under the license of conducting business by AIFMs / UCITS management companies, including in particular remuneration policy, preventing of conflicts of interests, protection of information and risk management;
- defining the rules of entrusting to other entities the duties of the AIFMs and UCITS management companies;
- defining the rules of AIFMs taking over the management over non-public companies;
- specification of AIFs/UCITS depositary tasks and duties, including safekeeping of assets and supervisory duties and increase of depositary liability in case of loss of financial instruments;
- introducing the requirement to implement remuneration policy system by the management companies, which business activity has an essential impact for the risk profile in the investment funds managed by them;
- revision of sanctions and administrative measures.
If you are interested in further information or have any questions concerning the AIFMD/UCITS V implementation in Poland, please do not hesitate to contact us.