Ostateczna decyzja ws. Eques Investment TFI SA

The Polish Financial Supervision Authority (KNF) has issued a press release to inform of its final decision in the matter of Eques Investment TFI SA. Specifically, the KNF reduced the company’s fine from PLN 300,000 to PLN 240,000 after reconsideration of the case following its decision in 2018.
To recall, in 2018 Eques Investment TFI SA was fined for breaching the investment limits pursuant to Article 93 of the Act of 27 May 2004 on investment funds and management of alternative investment funds which, among other things, restricts certain investments in securities to 10% of a fund’s net asset value (NAV) for example in securities not listed on an organized exchange and not meeting other defined requirements.
The company back then violated this 10% limit as regards investments in the Eques Bonds Subfund and the Eques Pieniężny Subfund with respect to securities traded on the alternative trading system NewConnect, among others. As it was unclear, so the KNF whether or not Eques Investment TFI SA would be subject to such restrictions at the time of the violation and as some securities were reclassified and thus not falling under the limit, the total number of offenses was reduced by the Authority. Also the value of the investment violations of the master fund subsequently declined leading to the above noted reduction in fines.
Details on the violations and the interim ruling of the Provincial Administrative Court in Warsaw (WSA) following a revision of the decision by the KNF in 2019 may be found in the enclosed statement.