New Approach to No-Deal Brexit in Poland – Polish Brexit Bill Will Grant a Transition Period for UK Financial Market Entities

By Marcin Wnukowski, Malgorzata Olech and Pawel Hoc on March 21, 2019 Posted in Banking, Finance

As the political turmoil regarding Brexit continues to grow in the UK, the spectre of a “no-deal” Brexit becomes a very realistic scenario. The shortness of time left to make the final decision is forcing businesses in the UK and EU to view the short-term future with unease and anxiety, particularly the uncertainty surrounding the legal standing of UK firms operating in the EU countries. This also applies to UK undertakings that conduct their economic activity in Poland.

With regard to the financial market, the Polish Financial Supervision Authority (KNF) announced on 29 January 2019 that there would be no transition period for UK entities in case of no-deal Brexit (see our previous article on this issue).

This approach has been reversed by the Polish authorities, through the drafting a bill that provides for a set of provisions to facilitate the legal situation of such undertakings. The main goal of the law passed on 15 March 2019 is to grant additional time to the UK companies following a Brexit where there is no general treaty between UK and EU to regulate such a process.

Is it safe?

By Ivan Chalupa and Tomas Lupac on March 19, 2019 Posted in Corporate

Under Czech law, can a statutory body member of a Czech company escape from the risk of his/her liability, if a certain action (e.g. entering into a contract on behalf of the company) is approved by GM or the sole shareholder in advance? Directors of Czech limited liability companies and members of boards of directors of Czech joint-stock companies from various countries and with different legal backgrounds and experience may well be asking themselves this single question. Is it safe? Continue Reading

Polish data protection authority announces which sectors will come under scrutiny in 2019

By Magdalena Gad-Nowak on January 31, 2019 Posted in Data Protection, GDPR

On 24 January 2019, the Personal Data Protection Office (UODO) published a sectoral inspection schedule for 2019. According to the schedule, as approved by UODO’s President, the inspections will aim at verifying the legitimacy of personal data processing in the following private sectors: telemarketing, data brokers (as regards legal grounds for personal data processing) and profiling in the banking and insurance sector.

KNF-Polish Financial Supervision Authority Announces No Transition Period for UK Entities in the Case of a No-deal Brexit

By Peter Swiecicki, Malgorzata Olech and Pawel Hoc on January 30, 2019 Posted in Banking, Finance

In the announcement of 29 January 2019, KNF-Polish Financial Supervision Authority confirmed that, in the case of no-deal Brexit, UK entities operating on the Polish financial market will be treated as third-country entities.

In the wake of the recent British Parliament vote rejecting the UK’s EU withdrawal agreement, the eventuality of a no-deal Brexit has become more likely than merely a month ago. This has been corroborated by the reactions of certain European politicians who – in response to the 29 January 2019 House of Commons vote indicating support for the Brexit deal would hinge upon amending certain provisions – now rule out the likelihood of any deal renegotiation. Therefore, EU Member States have been increasingly interested in weighing up the legal and business ramifications of a possible Brexit with no contractual provisions whatsoever.

Registration of a lease in CEE – should it be on your checklist or not?

By Lenka Nova, Nóra Szigeti, Edyta Dubikowska, Hubert Binkiewicz, Lenka Vagundová and Squire Patton Boggs on January 21, 2019 Posted in Contracts, Real Estate

When two do the same, it is not the same. This old saying is true especially when comparing legal regulations in different countries. Businesses that are present in various jurisdictions sometimes tend to expect the same, when, at first glance, the regulation seems to be similar. Continue Reading

Poland – immigration status of the UK nationals after Brexit

By Malgorzata Grzelak, Warsaw on January 16, 2019 Posted in Employment, Immigration

Pending Brexit, on January 11, 2019, the Polish government made available for consultation the draft act on the rules of residence of British nationals and their family members in the Republic of Poland due to the UK’s withdrawal from the European Union and the European Atomic Energy Community.

Poland’s New Energy Policy Until 2040 Goes Nuclear

By Peter Swiecicki and Igor Hanas on December 3, 2018 Posted in Energy, Finance, Infrastructure

On November 23 this year, the Ministry of Energy published its draft Polish Energy Policy until 2040 (PEP2040). This long-awaited document is significant for both the energy sector and the entire economy; however, it is subject to social consultations until January 15, 2019, and its assumptions may (but do not have to) evolve.

A Generational Structural Change

A key principle of PEP2040 is the declaration to alter the structure of fuels used to generate electricity. This is the first official statement by the government declaring a marked reduction in dependency on coal (virtually by 50%) and in favor of nuclear power plants.

Debt financing in Poland –New Developments

By Marcin Wnukowski on December 2, 2018 Posted in Banking, Finance, Legislation Update, Transactions

The Polish Parliament has recently adopted a new law implementing certain changes to the Polish financial system (“the Act”).[1] The aim is to strengthen supervision over capital markets and improve protection of investors, but it will significantly impact the timing and cost of raising capital through debt securities offered outside the public market.

The new law amends the Banking Law to implement the provisions of the Bank Recovery and Resolution Directive.[2] Currently, this is a very controversial issue, given the recent resignation of the Chair of the Polish Financial Supervision Authority and the fact that the new law allows the takeover of a bank with equity below certain thresholds or with a risk of such equity falling below certain thresholds. However, this post, in fact, deals with other issues raised by the new law.

High Court in Prague sheds some light over the definition of a significant part of an enterprise

By Hana Čekalová and Maros Kandrik on November 19, 2018 Posted in Contracts, Corporate, Legislation Update, Transactions

Like any other major change of legislation, the recodification of Czech private law in 2014 has raised a long list of interpretation issues. At the end of August 2018, the High Court in Prague outlined (since the decision has not yet been confirmed by the Supreme Court) an interpretation with respect to one of the items on the list. It clarified the meaning of the term “a part of an enterprise that would imply a significant change of the existing structure of the enterprise or a significant change in the scope of business of the company”. Continue Reading

How Poles Are Celebrating 100 Years of Independence

By Katarzyna Witkowska-Pertkiewicz on November 9, 2018 Posted in Employment

In Poland, every 11 November is National Independence Day, commemorating the day Poland regained its independence in 1918, following what historians refer to as the partitions, where Russia, Austria and Prussia annexed parts of Poland so that it disappeared from the map of Europe for 123 years.

To celebrate the day, Poles participate in a variety of events, such as military parades, national runs (wearing the official state colours) and, for gym lovers, 100-push-up challenges. They also indulge in baked goose with apples. Some get carried away and choose to celebrate in more radical ways – which is not always appreciated by law enforcement (let us not deliberate on that).

This year, 11 November is a Sunday – is it bad luck for Polish employees, who enjoy long weekends? Not at all. The Polish parliament has decided that the 100th anniversary is so seminal, 12 November will be a day off.