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

UK EUIn 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.

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

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

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.

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Poland’s New Energy Policy Until 2040 Goes Nuclear

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.

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Debt financing in Poland –New Developments

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.

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

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

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.

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Central Sea Port PPP Project in Poland – “Anchors Aweigh and Full Speed Ahead”

Large-scale public-private partnership (PPP) projects are not common in Poland. However, the amendment to the PPP law, which came into effect in September 2018, should change this.

Therefore, we welcome the fact that, recently, the Port of Gdańsk announced a tender for a PPP advisor for the Central Sea Port Project (available in Polish). Thus, the “anchors are aweigh” for this project, which is estimated to cost between €1.4 billion and €2.14 billion, consisting of a new quay to be equipped with two berths, enabling ships carrying various types of cargo to be serviced.

The contracting authority is seeking an advisor comprising a multidisciplinary team of (i) engineers, (ii) financial experts and (iii) lawyers for a multiyear contract that will run through the proposed tender for a private partner to commercial and financial close.

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RES Auctions in Poland Ready to Take Off

The RES auctions are fast approaching – the first one, for existing installations, is due to start on October 17.

The long-awaited RES auctions start tomorrow. This year, the President of the Energy Regulatory Office has divided the auctions into two rounds: 17-25 October for existing installations and 5-20 November for new installations.

The auction system is based on periodically held auctions during which renewable energy producers offer to generate a certain amount of energy for a guaranteed price over the course of 15 years. The Ministry of Energy has determined the amount of energy it intends to contract through the system. The auctions are divided into five “baskets”, with the bidding for each basket to be held on a different date:

  • The first basket is for installations burning biogas from a variety of landfills (e.g. waste and biogas from sewage treatment plants)
  • The second basket is for hydro energy, geothermal and offshore wind farm installations
  • The third basket is for installations utilizing agricultural biogas only
  • The fourth basket is for onshore wind farms and photovoltaic power plants
  • The fifth basket is for hybrid RES installations

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