During the Investment Firms Forum, organised by the Chamber of Brokerage Houses (IDM), Dariusz Adamski, Deputy Chair of the KNF, took part in a fireside chat dedicated to the prospects for the development of the Polish capital market, the role of financial institutions, and investor engagement initiatives.

During the chat, he emphasised that despite positive tendencies observed in the Polish capital market, including the increase in stock market capitalisation and pension product assets, the market has still a lot to do. He indicated Canada as an ambitious point of reference, since the Canadian capital market is based on strong, advanced pension funds, among others. In his opinion, it is impossible to build a strong capital market without strong financial institutions, and pensions funds specifically should be the foundation of that market. What is also crucial is the formation of real investment banks, capable of taking risk and financing the development of the economy. In this regard, the Deputy Chair noted that the dominant state control over major financial institutions might limit their appetite for risk and impede the development of this kind of business.

Dariusz Adamski has made it clear that market development also requires a change of approach to the responsibility of financial institutions for their products and customer relations. The role of the financial supervisor is not only to monitor security but also to stimulate competition and market activity. In the case of capital markets, this also involves supporting competition and development, while eradicating risk-generating practices.

Referring to the efforts of the UKNF for market development, he said that the UKNF’s priority is to boost competition and encourage institutions to be more active. Brokerage services for institutional clients are of key importance. He announced talks with the market and actions aimed at the development of this segment, emphasising that its stagnation may lead either to its takeover by foreign entities or to the inhibition of its development in Poland. He also pointed to the need for a broader perspective on product governance and communication with clients. The UKNF is willing to create more flexible conditions for the provision of investment products, more intense marketing and more frequent interactions with clients, provided that financial institutions will take responsibility for their actions.

This is particularly important in the context of the overall low level of financial literacy in the society. As Dariusz Adamski said, many clients still cannot distinguish basic financial instruments and this is why what they need is not only access to products but also support to understand their own situation and investment needs. In this context, financial plans can play an important role, allowing clients to identify investment objectives and needs, with the support of employees of financial institutions. He also invited investment firms to develop investment advisory services, which they should not only treat as an additional burden or risk. He emphasised that clients needed such support, even if they are not fully aware of it.

A part of the conversation was also dedicated to the plans regarding Personal Investment Accounts. Dariusz Adamski advocated their gradual and cautious development. In his view, the design of Personal Investment Accounts in which eligible assets are exposed exclusively to the Polish market should consider the current economic situation and the risk of its reversal. He stressed that the accounts should not be treated as an alternative for retirement-based investment products, but as its supplement. He pointed out that the long-term multiplication of savings by specialised institutions remains a solution that better protects investors from hasty decisions made under the influence of short-term market fluctuations.

In conclusion, the Deputy Chair of the KNF stated that the future of the Polish capital market depends mostly on the development of strong private financial institutions, the restored relevance of pension funds, greater competition, and a responsible approach to clients. He also stressed that the task of supervisors is to ensure that market development does not come at the expense of investor safety and that individual product failures do not undermine long-term confidence in the entire market.