I recently mentioned the rulings of the Court of Justice of the European Union on the processing of personal data by credit information bureaus. Thus, staying on the topic of financial supervision reminded that January 1, 2024. another part of the amendments to the Law of May 12, 2011 enters into force. on consumer credit [1] , described by many as a revolution.

It stipulates that the activities of lending institutions in providing consumer credit will be subject to supervision by the Financial Supervisory Commission (hereinafter “FSC“). In view of this, they will be obliged to submit quarterly and annual activity reports covering the information indicated in the law, as well as information, documents or data requested by the FSC.

Importantly, the FSC will have a number of powers in the event that a lending institution is found to be failing to carry out the above-mentioned obligation or performing it incorrectly, failure to carry out recommendations within the prescribed period, or finding that the activity is being carried out in violation of the law or in violation of the conditions set forth therein.

Among them, the opportunity:

1. impose an administrative fine of up to PLN 150,000 or up to PLN 15,000,000 on the member of the board of directors of the lending institution directly responsible for the irregularities found,
2. to apply to the competent authority of the lending institution for the cancellation of the above. board member,
3. Suspension of a member of the board of directors until a decision is made on the aforementioned application,
4. deletion of the lending institution from the register of lending institutions (also from the register of credit intermediaries).

Significantly, entities listed in the register of lending institutions that do not meet the resulting requirements as of the date of entry into force of certain regulations[2] may carry out consumer lending activities until December 31, 2023. On the other hand, as of January 1, 2024, lending institutions that do not meet the new requirement for:

• legal form (the business can be conducted only in the form of a joint-stock company or a limited liability company in which a supervisory board has been established) or
• capital (the minimum share capital of a lending institution is PLN 1,000,000), are subject to deletion from the register of lending institutions.

The above, as well as the content of a previously published legal alert of mine, testifies to the intensification of the legislature’s interest in the financial market both nationally and internationally.

Observation of financial market legislation leads to the conclusion that this sphere is subject to increasing regulation and, at the same time, more intensive supervision by public authorities.

[1] Law of October 6, 2022. On amending laws to counter usury (Journal of Laws 2022, item 2239).

[2] See. Art. 12 paragraph. 1 of the Law of October 6, 2022. On amending laws to counter usury (Journal of Laws 2022, item 2239).