Financial evolution, not revolution

The Financial Supervisory Commission (KNF) met for the first time last week. The new office, which has wide-ranging authority over Poland's financial market, was designed by the government of the former Prime Minister Kazimierz Marcinkiewicz.

The KNF replaces the Securities and Exchange Commission (KPWiG) and the Insurance and Pension Funds Supervisory Commission (KNUiFE). From the beginning of 2008 it will also take over the responsibilities of the Banking Supervisory Commission (KNB).

According to the laws defining its operations, the KNF can decide whether or not a company may enter Poland's stock exchange. Also, no bank or investment fund can begin operating in Poland without the KNF's permission. The new Commission has the power to veto mergers and its head can express an official opinion about candidates for the presidencies of Polish banks.

After the board's first sitting, Stanisław Kluza, the president of KNF and a former Minister of Finance, tried to calm the atmosphere around the office. "This is not an institution that will be focused on finding anyone's weak points," said Kluza. "What is really important here is the positive, permanent development of Poland's financial sector. I am a supporter of evolution, not revolution."

The KNF will meet six more times before the end of the year. It is currently involved in two cases which it hopes to have resolved by the end of October. One concerns IT company Optimus and the other involves Jaromir Netzel's position as head of PZU. 

The establishment of the financial super-controller has caused a lot of debate not only in Poland, but also from the European Commission, which expressed concern about the independence of finance supervision in Poland.