POLAND Law and Practice Contributed by: Wojciech Ługowski, Lawarton Lugowski Kapica Spolka Komandytowa
3.3 Issues Relating to Best Execution of Customer Trades Best execution ensures trades occur under the most favourable conditions, considering price, speed, costs and market factors. A major challenge is order routing transpar - ency, requiring robo-advisors to avoid conflicts of interest and ensure client-focused execution. Liquidity fragmentation across exchanges can lead to price discrepancies, complicating best execution. Market impact and slippage can affect execu - tion quality, especially in volatile or illiquid mar - kets. Robo-advisors must optimise execution algorithms to minimise delays and adapt to market shifts. Compliance with MiFID II regu - lations requires transparent execution policies, monitoring and reporting to ensure regulatory adherence. Poland’s commercial lending regulation varies significantly depending on the type of borrower. Consumers and SMEs Consumer lending is subject to strict regulations to protect individual borrowers from abusive and unfair practices. The primary legal framework governing these loans is the Consumer Credit Act, which mandates transparency in loan agree - ments, ensuring consumers receive clear and comprehensive information before signing any contract. This includes pre-contractual disclo - sures, standardised contract requirements and cost limitations such as interest rates and fees. 4. Online Lenders 4.1 Differences in the Business or Regulation of Fiat Currency Loans Provided to Different Entities
ing firms to reach Polish clients without a local presence or licence. While EU and Polish regula - tors actively work to enforce reverse solicitation rules, this remains a high-risk area for regulatory breaches and supervisory challenges. 3. Robo-Advisers 3.1 Requirement for Different Business Models Fintech companies utilising robo-advisers must adapt their business models based on the asset class they support. Traditional financial instru - ments, such as stocks and bonds, fall under MiFID II regulations, requiring strict risk profiling and investor suitability checks. Security tokens, classified as financial instruments, impose addi - tional licensing and transparency obligations. Cryptocurrencies and utility tokens, regulated under MiCAR, require compliance with AML/CFT rules and enhanced risk disclosures. Integrating digital assets into robo-advisory ser - vices presents challenges such as price volatil - ity, liquidity management and secure custody, requiring fintechs to align their models with evolving regulations. 3.2 Legacy Players’ Implementation of Solutions Introduced by Robo-Advisers Legacy financial institutions are integrating robo-advisory solutions through hybrid models, where AI-driven recommendations complement human advisors. Many are launching in-house robo-advisors or partnering with fintechs for automated portfolio management and AI-driven customer engagement.
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