Mateusz Morawiecki, Minister of Finance

On July 13th Polish Ministry of Finance submitted a draft of a new law, which aims in further limiting maximum leverage and stronger supervision of unregulated entities operating on domestic market.

Maximum leverage 1:25

The draft of new low prepared on July 10th 2017, suggests change in article 73 of current law. Point 2a would be changed:

“2a. Investment company can take buy or sell orders of investment instruments […] made by retail clients just when margin deposit needed for financial instrument is not less than 4% of nominal value of this instrument”.

Ministry of Finance justifies its decision:

“We predict increasing margin deposit needed to secure position on FOREX market from 1% to 4% – lowering maximum leverage to 1:25 like in other countries”.

Current minimal deposit was introduced on July 16th 2015. Ministry of Finance claims that during last dozen months European regulators clearly limited leverage available on the market, the example is United Kingdom, where the leverage for inexperienced investors is 1:25.

Higher financial penalties and blocking websites of unlicensed brokers

The draft of new law will let the Polish supervisors (KNF) to give higher penalties to unlicensed brokers. So far the limit was 5 M PLN (about 1,2 M EUR), now it is twice higher.

What’s more, there will be registry of blocked websites created, new law will let supervisors to publish illegal brokers on this list, so the situation will be the same as with betting websites – now illegal in Poland.

The negotiations about changes in law will be held until the end of July.

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