Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 1

Securities Systems* have a primary responsibility to their users** and other stakeholders. They must provide effective low cost processing. Services should be priced equitably.

* Securities Systems = depositories, settlement and clearing systems
** Users = customers of the securities system, and all other parties to whom the securities system owes a duty of care

1.	Is the board that governs the depository answerable to its users?	The National Depository for Securities (KDPW) is supervised by its owners (these being the Warsaw Stock Exchange, the State Treasury and the National Bank of Poland), through the Supervisory Board, which is made up of representatives of the Depository's shareholders, as well as other institutions operating in the capital market. The interests of market participants and investors are also supported by the Polish Securities and Exchanges Commission, whose duties include the ratification of the National Depository's Rules of Operation.
2.	Does any single organisation, or sector (e.g. brokers, custodians, Stock Exchange) have a large voting position at the board of the depository?	The Supervisory Board (also known as the Depository Board) is made up of 8 members. None of the participant bodies that comprise the Board has a dominant representation in Depository's supervisory bodies, which prevents any particular institution having a controlling influence over the policies of the Management Board.
3.	Is there cross subsidisation of products (e.g. international services subsidised by local ones or transaction costs subsidised by asset servicing charges)?	The National Depository's chief source of income comes from fees charged according to the Table of Fees ratified by the Supervisory Board and adopted by the Polish Securities and Exchanges Commission. The level of the fees is set according to expenses incurred while at the same time upholding the principle that no form of operation may subsidise any other.
4.	What process is in place at the depository to ensure that it meets the needs of all its stakeholders (e.g. institutions, broker dealers, retail investors, issuers)?	The National Depository for Securities has three shareholders: the Warsaw Stock Exchange, the State Treasury and the National Bank of Poland. Each shareholder owns 33.3% of shares in the Depository. The Supervisory Board is made up of the shareholders' representatives. The Supervisory Board convenes at least once a quarter.
5.	What is the communications strategy of the depository to its stakeholders and how is this run?	The General Meeting takes place at least once a year. Every year, the National Depository for Securities publishes its Annual Report and Financial Statement containing an auditor's report. The Depository publishes the "KDPW Newsletter" and the monthly report "The Depository - Settlement System". The National Depository's web-site (www. kdpw.com.pl) also provides an extensive source of information.