The growing interest of the Polish Financial Supervision Authority (KNF) in Alternative Investment Companies (ASIs) is a response to the increasing number of entities operating in this market and the associated risk for investors. Previously, ASIs operated with limited KNF supervision, which put investors in them in an uncertain situation.
The simplified process of registration in the ASI register consisted only of examining formal aspects, without taking into account the capital structure. This meant that ASIs could start investment activities, despite the significantly higher risk compared to entities supervised by the KNF, such as brokerage houses or investment funds.
“In response to irregularities in the ASI market, the KNF has intensified inspections and is conducting explanatory proceedings. Investment limits for ASIs have also been introduced and the scope of information they must provide to the KNF has been expanded. These changes aim to increase investor security and transparency’” attorney Rafał Wojciechowski of the Filipiak Babicz Legal, said.