POLAND Law and Practice Contributed by: Wojciech Ługowski, Lawarton Lugowski Kapica Spolka Komandytowa
tions in a controlled environment, ensuring compli - ance with legal standards while fostering innovation. The aim was to promote the introduction of innovative technologies into the Polish financial market and test them in a safe environment. Another aim of the pro - gramme was to improve communication with legacy players and fintech companies. Poland’s Innovation Hub does not provide exemptions from financial regulations, but instead offers regula - tory guidance and support for fintech firms navigating compliance requirements. Eligible participants include start-ups, financial institutions and technology provid - ers developing innovative solutions. Applicants must demonstrate that their solutions involve a high degree of innovation and have potential benefits for the finan - cial sector. A key advantage of the programme is enhanced com - munication between fintechs, legacy financial institu - tions and regulators, allowing for a more flexible reg - ulatory approach while maintaining market stability. Although Poland has not yet introduced a full-scale sandbox that grants temporary regulatory relief, the Innovation Hub serves as a stepping stone towards a more structured fintech-friendly regulatory framework. 2.6 Jurisdiction of Regulators KNF is the primary financial regulator, overseeing banks, payment operators, investment firms, AML and CFT compliance. Under the proposed Crypto- Assets Act, which was adopted by parliament but subsequently vetoed by the president, KNF was des - ignated as the competent authority for supervising the crypto-asset market. The General Inspector of Financial Information (the “GIIF”), operating under the Ministry of Finance, enforces AML/CFT regulations, monitors transac - tions and co-operates with law enforcement to com - bat financial crime. Other key regulators include UOKiK, which ensures fair competition and consumer protection and the National Bank of Poland (NBP), which is responsible for monetary policy and financial stability.
The Ministry of Finance oversees financial legislation and tax policy. Polish regulators collaborate with EU bodies like the European Central Bank (ECB), the European Banking Authority (EBA), the European Securities and Mar - kets Authority (ESMA), and the European Insurance and Occupational Pensions Authority (EIOPA), which oversee major financial institutions and ensure market stability. 2.7 No-Action Letters KNF does not issue “no-action” letters. Although the Polish financial regulator does not issue formal “no- action” letters, market participants can seek regu - latory guidance on the compliance of their planned activities by asking for a written opinion from the regu - lator. While these opinions are not legally binding, they help reduce regulatory risk by clarifying supervisory expectations. Unlike “no-action” letters in other jurisdictions, these opinions do not guarantee immunity from enforcement actions, as the regulator retains discretion to intervene if needed. However, this approach supports innova - tion while ensuring regulatory compliance. Additionally, the regulator provides informal guidelines to market participants. These so-called “soft laws” provide essential insights into whether a particular activity aligns with regulatory requirements. The par - ticipants may expect that fulfilling those guidelines will result in no negative actions from the regulator. 2.8 Outsourcing of Regulated Functions Outsourcing regulated functions to external service providers is permitted but subject to strict require - ments, which vary depending on the nature of the out - sourced activity (eg, investment or payment services). Several general principles apply across nearly all regulated financial services. These principles primar - ily derive from the Act on Supervision of the Securi - ties Market, the Revised Payment Services Directive (PSD2) and DORA, as well as EU-level outsourcing guidelines, including the EBA Guidelines on out - sourcing arrangements (EBA/GL/2019/02), the ESMA
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