KNF asks FCA for increased supervision over Revolut
The Polish Financial Supervision Authority (KNF) sent out a statement to the media in which it informed that it has asked the British supervisory body to provide and maintain increased supervision over Revolut.
The request is a result of a breakdown which took place on 1 July 2018. Revolut’s IT system was malfunctioning for several hours. For this reason Revolut’s users were unable to make payments or withdraw cash. Revolut ensured that clients will get their money back. The company explained that the breakdown was caused by technical issues and Revolut will build its own transaction system soon.
Revolut is an electronic money institution which gained a license from the British supervisory body. It means that only the Financial Conduct Authority may supervise the company. KNF has no legal or operational possibility of “identifying possible inappropriate practices or actions of such businesses early enough, which would enable them to prevent the infringement of the interests of Polish customers”.
The same situation relates to the insurance sector. So the Ministry of Finance is preparing new regulations on the supervision of European Union (EU) insurance companies which perform insurance activity in the territory of Poland under the Freedom Of Establishment (FOE) or the Freedom Of Services (FOS). The institution wants to extend KNF’s supervision activities on companies which run trans-border activities in Poland. The KNF will receive additional possibilities to inspect these companies and oblige them to change their practices which pose a threat to financial stability on the Polish market. Read more: Financial Ministry works on extension of foreign insurers supervision