Polish Financial Supervision Authority Proposes Simplifications in Acquiring Financial Instruments – Key Changes for Issuers and Investment Firms

On 2 June 2025, the Polish Financial Supervision Authority (UKNF) presented a legislative proposal package aimed at simplifying regulations and reducing administrative burdens for entities operating in the financial market. 

A significant part of the proposed measures, contained in Chapter 3 of the report prepared by the UKNF’s Simplification Task Force, focuses on facilitating investor access to financial instruments and improving communication with clients.

Review of MiFID II Regulatory Requirements

The proposed amendments address provisions of the MiFID II Directive which, in UKNF’s view, unnecessarily complicate the relationship between investment firms and their clients.

Key recommendations include:

• Suspension of ESG-related obligations, currently forming part of suitability assessments and product governance. UKNF proposes deferring the requirement to assess investors’ sustainability preferences pending an evaluation of the actual impact of existing ESG regulations.
• Review of product governance obligations, including limiting the requirement to update analyses and reports for products offered to professional clients. The proposal also includes simplifying documentation related to the distribution and suitability assessments of financial instruments.
• Revised criteria for recognising professional clients, involving the reduction of quantitative thresholds (e.g. portfolio value) and simplification of the documentation procedure. This would enable more experienced investors to access a wider range of advanced financial products.
• Removal of certain disclosure requirements, such as the obligation to report order routing practices, which UKNF argues adds no real value for clients and burdens firms with unnecessary reporting.

Reducing Informational Obligations Toward Clients

Another set of proposals concerns how and to what extent information on costs and charges is communicated to clients. UKNF suggests:

• Simplified reporting of ex ante cost disclosures – such information could be delivered via transaction platforms or upon request, especially benefiting professional clients for whom the level of detail currently required under MiFID II may be excessive.
• Elimination of cyclical ex post cost reporting for professional clients and eligible counterparties, provided that minimum transparency standards are maintained and the client consents to such a waiver.

According to UKNF, these simplifications are designed to enhance the competitiveness of Poland’s financial market and improve the operational efficiency of financial institutions, without compromising the high level of investor protection for retail clients.

Flexibility for Institutional and Professional Investors

The proposals of particular relevance to issuers and investment firms concern limiting or exempting certain regulatory obligations in relation to professional clients and eligible counterparties.

UKNF advocates restoring proportionality in informational duties. It also proposes allowing for the negotiation of exemptions, particularly in relation to cost documentation and product suitability, for clients with sufficient market knowledge and experience.

Changes in Securitisation Due Diligence

The proposed reforms also address securitisation transactions by simplifying due diligence requirements. UKNF recommends reducing the volume of information required from institutional investors and applying proportionality depending on the nature of the transaction.

These changes are particularly relevant for issuers and financial institutions active in the markets for derivatives and securitised assets.

What’s Next?

UKNF’s proposals are legislative recommendations directed to both EU and national authorities. They signal the direction of regulatory reform in the Polish financial sector. Entrepreneurs and investors involved in issuing or trading financial instruments should monitor the developments closely and consider adjusting their internal processes in anticipation of these potential changes.

Need guidance on how UKNF’s proposed changes might affect your business? Our Fintech team monitors all regulatory developments and advises financial institutions, issuers, and investors on compliance strategies. Contact us to assess your obligations and align your operations with the evolving MiFID II framework.