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Poland KNF Issues 2018 Forex Broker Dividend Payment Criteria
06/12/2017
Poland KNF Issues 2018 Forex Broker Dividend Payment Criteria

We approach the end of the year, which implies that many regulatory bodies analyze the performance of the financial market and sketch some plans for the next year. In line with this trend, Poland KNF Issues 2018 Forex Broker Dividend Payment Criteria.

6 December, AtoZForex The key financial supervisor of Poland, Komisja Nadzoru Finansowego (KNF) has made issued directives addresses to the brokerage houses in regards to the dividend policy.

Poland KNF Issues 2018 Forex Broker Dividend Payment Criteria

Specifically, the KNF has recommended that the dividend in 2018 should only be paid by brokerage houses that are meeting the following criteria:

A. dividend in the amount not higher than 75% of the net profit for 2017:

This dividend requirement would apply to the entities that are subject to capital adequacy requirements in accordance with the Regulation 575/2013 as at 31 December 2017:

  • ratio common equity Tier I capital was at least 6%;
  • ratio Tier I capital was at least 9%;
  • the total capital ratio was at least 14%;

Also, the abovementioned dividend policy would apply to the firms that are not subject to capital adequacy requirements in regards to the Regulation 575/2013 as at 31 December 2017. The ratio being the share of the amount of equity in the total assets is at least 50%.

Moreover, the dividend policy also is applicable to the supervisory assessment granted in the BION process conducted in 2017 is 1 or 2. Also in case if in 2017, the entity did not violate the regulations regarding capital requirements enclosed in Regulation No. 575/2013 and the Act on Trading in Financial Instruments and provision regarding large exposure limits.

Additional Note from KNF

Following on this, the KNF outlines that dividend in the amount not higher than 100% of the net profit for 2017:

“(i). fulfills all the criteria listed in the letter A;

(ii). for entities subject to capital adequacy requirements in accordance with Regulation 575/2013 the criteria referred to in point A(i) are fulfilled at the end of each quarter of 2017;

(iii). for entities not subject to capital adequacy requirements in accordance with Regulation 575/2013 the criteria referred to in point A(ii) are fulfilled at the end of each quarter of 2017.”

Also, the key Polish regulator has noted that the brokerage houses should consider the additional capital needs in the decision making process on the amount of dividend in regards to 2018.

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