Do senior bank staff, including non-executive directors, have to be registered with your national regulatory authority?
According to Polish law and regulations, the chairman of the management board and at least one management board member of a bank must be approved by the Polish Financial Supervision Commission (Komisja Nadzoru Finansowego) (FSC). The FSC will not approve the appointment of a candidate who does not “guarantee prudent and stable bank management”. FSC must also approve entrusting any of the management board members with risk management responsibilities.
The appointment of other staff, including those holding key functions in banking regulation, is currently outside of the FSC’s scope of supervision; however the FSC does recognize the necessity of overseeing those functions in the future.
If your national regulatory authority requires registration of senior bank staff what are the requirements?
The management board members whose appointment must be approved by the FSC are subject to the FSC’s assessment as to whether or not the candidate “guarantees prudent and stable bank management”. The FSC will review the criminal record, education and professional experience record, including previous employers’ recommendations, and verify the Polish language capability of the candidate. The latter requirement may be waived by the FSC if it determines that language competence is not essential in any particular case.
Is there legislation specific to the banking sector that provides for penalties to be levied against senior staff for mis-managing a bank?
Following a supervisory review process executed by the FSC at a particular bank, the FSC may provide the bank with a set of recommendations which the bank is obliged to comply with. A management board member responsible for non-compliance with the above set of recommendations may be subject to a regulatory fine imposed by the FSC.
What is the maximum amount the regulator can fine an individual?
The maximum amount of the fine is PLN 20,000,000.
Is there legislation in place that requires banks to have in place remuneration policies and practices that are consistent with effective risk management?
Each bank is required to adopt a remuneration policy applicable to senior staff. The FSC has issued a resolution binding on banks which provides for the basic requirements of such policy.
Is there any legislation planned in your jurisdiction that will strengthen the accountability of senior bank staff?
There is no specific legislation proposed at the moment. However, in its public announcements, the FSC has repeatedly confirmed that it appreciates the necessity of strengthening the accountability of senior bank staff in the future and therefore, such legislation should be expected.