The management board of the WSE on the fire of questions. Slimming reports and a new bull on a greasy bull market
During the WallStreet 29 conference in Karpacz, the president of the Security Stock Exchange Tomasz Bardziłowski and a member of the board of the stock exchange Michał Kobza answered a number of questions of individual investors, discussing the WSE strategy, plans for the development of the capital market and challenges it faces, and even about the future of a bull in the building center building.
The meeting of investors with the Management Board of the WSE during the WallStreet 29 conference in Karpacz was opened by the presentation of Tomasz Bardziłowski. The president of the stock exchange emphasized the excellent results achieved this year by the Warsaw parquet, which was noticed by the world media. He pointed out that, despite this, over 50% of Poles' savings were kept on bank deposits. – This is a huge, unused potential that could be directed to the capital market, supporting the development of the economy and investments – said the president of the GPW.
Tomasz Bardziłowski emphasized that a strong capital market is crucial for financing investments and the development of the Polish economy. To strengthen it, it is necessary to develop the investors' ecosystem (OFE, PPK, IKE/IKZE), introduce new products, financial education and tax incentives – pointed out the president of the stock exchange. The presentation ended with wishes that ongoing increases become a real generational bull market. Then the questions to the board of the stock exchange could be sent by each participant of the meeting.
How is the implementation of the WSE strategy and NewConnect revitalization?
Answering the first question about the implementation of the WSE strategy and its efforts to revive NewConnect, Tomasz Bardziłowski pointed out that the key goal of the stock exchange is the development of the capital market, which will positively affect not only the stock exchange, but also on the Polish economy (instead of short -term maximization of profits). The President of the WSE emphasized that by presence in working groups, the company tries to simplify the regulations and introduce tax incentives for investors. He also works on REITs and strengthens the offer.
Referring to the development of NewConnect, Bardiłowski explained that the promotion of the best companies is to be an important element of the development plan of the small stock exchange (including by providing them with analytical coverage, which is to happen in July) and improving liquidity. The WSE also began talks about the creation of a fund investing in NewConnect via TFI. Although this process will take some time, there are already preliminary agreements.
Risk permit
In what areas and with what products the management of the WSE would see the possibility of permission to investors and issuers for a greater risk, to what extent and how to do it, taking into account the dominance of EU regulations? – asked Tomasz Prusek from the Friendly Country Foundation.
President Tomasz Bardziłowski replied that he did not quite agree with the thesis about “risk permit”, claiming that it is rather about better risk management, which is based on diversification. In this context, he pointed out that the stock exchange promotes long-term and ETFs. He noted that instruments at a higher risk (“higher dopamine level”) are needed, but the main Focus of the WSE will be building long -term investment culture.
A member of the management board of the WSE Michał Kobza added that there would be no “revolution” on the financial market, but “evolution”, although he agreed that the current “excessive protection of the investor” may limit access to knowledge and instruments. This should be done “with the head” and “step by step” – Kobza emphasized, paying attention to the large role of independent investment advisers (as in the US) who can educate clients of various assets. A member of the management board of the WSE stated that they should “loosen the regulatory screw” so that they could easily reach customers with information.
Tax incentives
– I know that what can really move money from banks to the capital market is tax solutions. My question is: how much and how do you work on changing tax solutions, especially since the finance minister is a person from our market, which may not be repeated quickly? – another participant in the meeting asked.
Tomasz Bardziłowski noted that the stock exchange is not a regulator, but it publicizes this topic and conducts tax analyzes regarding other countries. The President of the WSE said that in a situation where the risk is taxed more than e.g. real estate, it will be difficult to attract new investors to the capital market. He recalled an example of Sweden, where the size of the capital market corresponds to 150% of GDP, while in Poland this rate is only 25%.
– This shows that our market is underdeveloped in relation to the needs of the economy and we must do a lot to change it, otherwise we will have a problem with financing the development of the economy. We look at Sweden, where the investment and saving accounts system was used, in which the tax depends on the risk of the risk – the higher the refund, i.e. the risk, the lower the tax rate. Currently, discussions are underway at European level, whether such a solution can be implemented in other markets to attract investors – said the president of the WSE.
Polish champion of Europe – in the length of reports
– Issue coils in Poland are the longest in Europe. The average emission prospectus has 400 pages. Why are they so long, Mr. President? But I will also ask why quarterly reports are so long? The WSE quarterly report has 60 pages. And the Deutsche Börse quarterly report has 9 pages. Mr. President, why? – asked Tomasz Prusek.
– My day began with a response to the e-mail from the president of Euronext, who sent us a European investment prospectus with a proposal that the WSE would join this initiative. After internal consultations, we agreed to participate. We already work with the PFSA and key Polish brokers and offices to simplify processes, including listing – commented the president of the GPW.
In terms of quarterly reports of companies, Tomasz Bardzdziowski rhetorically asked investors if they would like to liquidate them. He mentioned that in some European countries there is no requirement for such reports that are often complicated and long. He drew attention to the last quarterly Allegro report, which consisted of presentations with financial data in Excel.
On the other hand, Bardzdziowski said that some people believe that higher reporting requirements in Poland are an asset that provides better protection to investors. The President of the WSE stated that he sees the space to reduce the volume of reports to 20 pages, and in case shorter should be consulted with market participants, which should be found in them.
New transaction system and bull tailor -made bullshit
Michał Masłowski from the Association of Individual Investors asked members of the WSE board about the Wats system and confidence in its timely implementation in autumn. Tomasz Bardzdziowski replied that the stock exchange maintains the plan to launch the system on November 10. – The new platform will open for us many products and orders development opportunities. It will allow the market for derivatives and bonds faster – commented the president of the WSE.
During the session of questions and answers with the stock exchange management, the topic of the exchange of a bull's sculpture standing in the building of the Stock Exchange Center in Warsaw was also asked. “Poland deserves a little better bull” – said one of the participants of the meeting, proposing to provide a new symbol of the stock exchange. The management did not refer directly to this proposal, but the WSE spokesman Robert Stankiewicz proposed to announce a competition for what to do with the old bull. “We will do it and introduce a new, much better for such greasy times” – announced Stankiewicz.
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