07 March 2019 Joanna Gawlicka - Maciej Pietron
Polish Government outlines certain relief measures for UK-based financial institutions in case of no-deal Brexit scenarioThe Polish Government has presented a draft bill regarding limited relief measures for UK entities conducting cross-border banking, payment and other financial services in case of a no-deal Brexit.
While the bill does not deal with all types of banking services, it allows UK-incorporated banks to be treated as EU credit institutions and to continue to hold and perform their portfolio of credit agreements concluded pre-Brexit on the basis of an EU cross-border passport or via Polish branches for a maximum period of 24 months from 30 March 2019, unless their activity is legalized by establishing a Polish subsidiary bank or a branch of a non-EEA bank pursuant to Polish law.
However, in the interim period UK banks will not be permitted to conclude new credit agreements or to make amendments to existing credit agreements, meaning an increased level of risk for such entities (including, in particular, risks relating to the inability to extend repayment dates or increase the amount of funds made available to customers).
Similarly, UK payment and electronic money institutions which were authorised to conduct payment services or issue electronic money in Poland on a cross-border basis, or through their branches, will be permitted to continue to conduct their activity within the scope of their pre-Brexit license to the extent necessary to carry out payment transactions, framework agreements or agreements for the issuance of electronic money concluded pre-Brexit, but not for longer than 12 months from 30 March 2019.
The Polish Financial Supervision Authority will be authorised to exercise supervision measurers in relation to such cross-border activity on the same basis as it would be with respect to EU credit institutions or EU payment and electronic money institutions.
The draft bill requires that entities seated in Poland conducting regulated financial services that wish to continue to conduct their activity in the UK following Brexit should notify the Polish Supervision Authority of such intention within one month from 30 March 2019.