One of the key tasks of KDPW S.A. is to supervise the operation of securities depositories by KDPW Participants and to monitor their compliance with the participation conditions in accordance with the KDPW Rules (hereinafter “Rules”), which lay down the rights and obligations of the participants of the depository system, define the area of supervision of their compliance, set out the mode of supervision and the measures to be taken in case of identified irregularities.
The operation of the securities depository by KDPW and the Participants relies on the rules of keeping securities registers set out in the Rules and adequately transposed into internal regulations of the participants, as well as KDPW regulations defining the scope and mode of performing other actions relating to keeping securities registers.
Supervision of the operation of securities depositories by Participants with respect to compliance with the Rules and the provisions of Resolutions of the KDPW Management Board and, within the limits applicable to the operation of securities depositories, with the provisions of generally applicable legislation, includes the following: analysing documents, information and reports submitted by participants inspections at the offices of the Participant.
KDPW checks compliance with the participation requirements set out for participants in the depository system and reviews the compliance with the requirements of entities which apply for KDPW participant status on the basis of documents attached to the participation application.
This includes a check of compliance with the following conditions: material and technical requirements for direct participants, which ensure the required connectivity with the KDPW depository system and the secure exchange of electronic documents sent to and received from that system, material and technical requirements for participants operating securities accounts or omnibus accounts, which ensure in a secure and legal way that entries are made in accounts, information on such entries is processed and archived, and contents of documents on the basis of which the entries are made are reproduced, for the purposes of securities registration, direct participants employ an adequate number of persons who have the appropriate expertise and experience or qualifications in keeping securities registers.
The title of Securities Registration Specialist is deemed to constitute confirmation of appropriate qualifications and expertise in keeping securities registers. The functions listed above are allocated in the KDPW S.A. organisation to the Supervision Department.
