This year, the FinTech team has already helped three firms to register with the Polish Financial Supervision Authority (KNF) as operators acting on the basis of the limited network exclusion.
The KNF has revised its approach to interpretation of a very limited range of goods and services under the limited network exclusion (article 6(11) of the PSA). The quantitative interpretation used in the past (“a number of…”) has been fully replaced by an objective-oriented interpretation in the EBA/GL/2022/02 guidelines (range of functionally connected goods and services).
The KNF takes a strict approach to the definition of functional connection. In particular, it does not accept that it can exist through reference to categories distinguished under other laws – the act of law itself states this (for example ticketing under article 6(12)(b) of the PSA) as do generally applicable provisions of civil law (for example, minor matters of daily life under article 384 § 2 of the Civil Code).
Equally, under the strict definition of the functional connection (for example transport/travel) the KNF does now accept a broad range of goods and services (for example from use of various types of transport, through day-to-day activities relating to those types of transport (fuel, loading, washing, repairs) to breakdown recovery services and travel insurance).”