On 22 April 2016 the President signed off an amendment to the act on investment funds (“Amendment”) which entails modifications, among others, to the act on public offering of 29 July 2005 (“APO”). The new regulations are intended to implement the EU directives in the Polish legal system.
The Amendment modifies many of the regulations currently in effect, inter alia those regarding notifications on major holdings of voting rights in a public company, as well as clarifies the provisions regarding, e.g. the public offer, retail cascade, prospectus validity period and promotion campaigns relative to securities.
The regulations on the administrative sanctions provided for in the APO have also been amended. The maximum amount of a penalty for violations of information obligations has increased from PLN 1 million to: (i) PLN 5 million or (ii) the amount equivalent to 5% of the comprehensive annual revenue disclosed in the last audited financial statements for the financial year, if higher than PLN 5 million.
Further, the amount of the fine that the Polish Finanacial Supervision Authority may impose on a person who during the period when a gross violation of information obligations occurred, held the position of the management board in a public company, has been increased from PLN 100 000 to PLN 1million. What is new is the possibility to impose a fine (up to PLN 50 000) on a person who during the period when a gross violation of information obligations occurred, held the position of the member of the supervisory board or another supervisory body of a public company.
Furthermore, the scope of information published by the Polish Financial Supervision Authority in connection with the sanctioning of violations has been enlarged. Such information, in a scope wider than up to now, will be available on the PFSA website for 5 years (as of the day of publication), and the name and surname of the person sanctioned for 1 year.
Following publication in the Journal of Laws and the 30-day period of vacatio legis, the Amendment should enter into effect in early June 2016.