With the beginning of the year, significant changes came into force in Poland concerning the law related to the trading in financial instruments. The introduction of omnibus accounts opened up the Polish capital market for foreign investors and brokerage houses.
The reform reorganized the system of registration of financial instruments. For example, the potential foreign investor will now be able to enter into an agreement with the Polish authorized entity to run the omnibus account in Poland on his behalf. On this account it will be possible to combine transactions of multiple individuals. Legally, the title to the financial instruments will be held by the foreign investor’s clients. This was not possible under the previous system as it did not recognize the concept of beneficial ownership.
Foreign investors should be attracted to invest in this region – the Warsaw Stock Exchange, is thought to be the largest in Central and Eastern Europe. The Polish capital market will now be more accessible as the transaction costs related to the operation of multiple accounts are significantly reduced. Radosław Olszewski – CEO of DM BOŚ, a key brokerage house from Poland – comments: “The reform tidies up the current legal landscape in Poland. It will be easier for smaller brokerage houses to cooperate with partners from abroad – especially from the United States. We are hoping to seriously expand our client base.”
Forward-looking Polish brokerage houses are already searching for partners abroad to launch, before the competition does, their products in foreign countries. For them the reform means access to new customers.