Rafał Mikusiński w “Fireside chat: Głosem nadzorcy”

The Polish Financial Supervision Authority (KNF) has published a press release to encourage investment fund managers and management companies to read the most recent remarks made by Rafał Mikusiński, Deputy Chairman of the KNF, during the 17th IZFiA Forum of Funds.
According to the Chairman, the investment funds industry in Poland (TFI) is facing significant challenges primarily relating to changes in demographics and regulatory requirements. In fact it seems that the industry doesn’t reach the younger generation (any more) whose preferences are different to those of „older investors“. Instead of engaging in depth in capital markets, young people expect simple, non-complex products that are straight forward with an interesting rate of return. It is important that the TFI adapts to these changes in demographics and investor needs.
Furthermore, the Chairman points out that the conservative investment structure of many investment funds with a focus on debt instruments poses a challenge for the industry, as investors cannot adequately participate in economic growth. Experience has shown that there is a lack of growth in the number of investment fund clients AND assets, despite the positive development of the Polish economy and increasing wealth in society. Shifting away towards less conservative investment strategies is a must to attract more investors and ensure that they can adequately benefit from economic developments.
Another challenge highlighted by Mr. Mikusiński is the burden of regulations on the TFI industry. He believes that excessive regulatory requirements as currently in place leave little time for running the business effectively. Therefore, Mr. Mikusiński believes that there may be no way around market consolidation to cope with the increasing number of regulations and maintain profitability. The same issue (overregulation) is faced by listed companies, so the Chairman, further hindering attractive investment opportunities for investment funds and their clients.
To conclude Mr. Mikusiński notes that he appreciates the improved cooperation between the KNF and the industry, praising specifically the work and constructive dialogue with the Chamber (IZFIA). However, he also states the presence of „black sheeps“ in the market negatively affects the perception of the entire industry which in turn leads to the introduction of new regulatory measures to the dismay of all investment funds.