Sprawozdanie z działalności Urzędu Komisji Nadzoru Finansowego oraz Komisji Nadzoru Finansowego w 2022 roku

The Polish Financial Supervision Authority, KNF, has published a report summarizing its key activities in 2022 which primarily focused on ensuring financial market stability and the proper functioning of such. The key activities are briefly described below; for a detailed list and further detailed information on individuals measures, please refer to the original legal document.
#### Key activities of the KNF in 2022
(1) Settlement of disputes as regards foreign denominated loans: The KNF continued to promote the settlement of disputes related to loan agreements denominated in or indexed to a currency other than the Polish currency. Specifically, the KNF engaged in and referred to the Court of Arbitration a total of 18,511 cases, 14,980 of which reached a final settlement in 2022.
(2) Mitigation of financial market challenges in response to the Ukraine War: The outbreak of the war in Ukraine presented new challenges for the financial market and the proper functioning of such. The KNF took various actions to support supervised entities and to ensure the smooth functioning of the market which was especially hit by high inflation, rising interest rates and government security yields, and supply chain disruptions. Some of these actions included the exchange of information and interaction with market players regarding business continuity and physical security, the intense monitoring of liquidity and financial resources of supervised entities, the arrangement of insurance and banking services for Ukrainian citizens, the enhancement of disclosure obligations of issuers as regards the impact of the war on their financial outlook, and may others.
(3) Legal risks in the banking sector: The legal risk associated with mortgage loans denominated in foreign currencies – particularly after the ruling of the European Court of Justice – remained a major concern in the banking sector. Additional disputes and settlements are expected, which is why the KNF has urged banks to increased their reserves. In fact, the KNF has incorporated the results into the methodology for additional capital requirements. The KNF also took action to increase the deposit insurance requirements of cooperative banks so as to increase the financial resources of the Bank Guarantee Fund.
(4) Activities in the insurance sector: The KNF proposed legislative changes to introduce remote examinations for individuals applying to perform agency and distribution activities in the insurance sector. The KNF also participated in the review of the Solvency II and the introduction of a framework for the resolution of insurance and reinsurance undertakings. Finally, the KNF worked on new recommendations for insurance companies that offer life insurance contracts with an investment component (PRIIPS products) to ensure that the products are suitable for clients and offer an appropriate value.
(5) Capital market activities: The KNF focused on developing and consulting regulations to streamline securities lending, introduce structured products, and enhance sanction proceedings in the capital market. The regulator also participated in public consultations on crowdfunding regulations and implemented changes to reporting standards to require the electronic submission of documents and collect additional information needed to monitor the capital market. Affected entities from this measure included investment firms, fund management companies, fund managers, custodians, and others. Finally, the KNF continued to closely monitor the disclosures of issuers to ensure the timely, correct, and comprehensive distribution of financial reports and non-financial information