Polish Financial Supervision Commission clarifies National Working Group’s advisory role in benchmark reform

The Polish Financial Supervision Commission (KNF) published clarifications on Poland’s benchmark reform, emphasizing that the National Working Group on Benchmark Reform (NGR) is a market-led expert advisory body formed by consensus among public authorities and market participants. It has no administrative or legislative powers, cannot issue binding decisions or determine loan instalments, and instead develops recommendations to support an orderly benchmark transition, financial stability and legal certainty. The target benchmark was selected using published criteria and multiple rounds of public consultation, with the outcome aligned with prevailing market feedback. KNF also clarified that statutory provisions allowing designation of a replacement for a domestic critical benchmark under the EU Benchmarks Regulation were introduced through the government’s standard legislative process, not as a late-stage parliamentary amendment. It cited the European Commission-mandated replacement of CHF LIBOR with SARON, including in retail mortgage agreements, as precedent for replacing a benchmark in existing contracts.