Poland

Implementation of the Directive on Financial Collateral the Act on certain financial collateral arrangements

Grzegorz Dyczkowski, and Andrzej Stosio, from Norton Rose’s Warsaw office

The Act of 2 April 2004 on Certain Financial Collateral Arrangements implements the European Directive on Financial Collateral (Directive 2002/47/EC) in Poland. In force since 1 May 2004, the Act is intended to improve the certainty of financial collateral arrangements, to remove the formalities for their creation and for the enforcement of collateral. It is also in place to sanction netting provisions designed to facilitate settlements and limit the financial risk of a solvent party in the event of insolvency of the counterparty.