CLAIMS PROCEDURE RULES IN KDPW
1. Participant – an entity being a participant or a member of the depository system, the exchange clearing house, the investor compensation scheme, or trade repository, which are managed by KDPW, as well as pension fund management companies or open-end pension funds.
2. Service – an activity performed by KDPW on behalf of a Participant on the basis of, respectively, the KDPW Rules of Operation, the Rules of the KDPW Exchange Clearing House, the Trade Repository Rules, the Rules of the Investor Compensation Scheme, or activities performed on behalf of a pension fund management company, or open-end pension fund on the basis of the Act on the Organisation and Operation of Pension Funds of 28 January 1997 (Dz. U. (Journal of Laws) of 2013 item 989), of an Ordinance of the Polish Council of Ministers of 28 January 2014 on the Pension Guarantee Fund (Dz. U. (Journal of Laws) of 2014 item 141), of an Ordinance of the Polish Council of Ministers of 23 January 2014 on the terms and conditions for the notification of the Polish Social Security Office (Z.U.S.) by open-end pension funds on concluding agreements with members and performing transfer payments (Dz. U. (Journal of Laws) of 2014 item 143) or the Rules of Transfer Payments between Open-end Pension Funds.
3. KDPW – Krajowy Depozyt Papierów Wartościowych; the Central Securities Depository of Poland
4. KDPW Regulations – The KDPW Rules of Operation, the Rules of the KDPW Exchange Clearing House, the Trade Repository Rules, the Rules of the Investor Compensation Scheme and the Rules of Transfer Payments between Open-end Pension Funds.
II. Scope of claims under the procedure
The claims procedure shall be initiated in instances where a Participant has forwarded a complaint or lodged a claim (henceforth “claim”) related to a failure to perform a Service, or a negligent performance of a Service on the Participant’s behalf.
III. Claim form
1. The Compliance Officer shall prepare a template of the claim form, which shall be published on the KDPW website.
2. The claim form should contain the following:
1) The date the claim was presented,
2) The details of the Participant presenting the claim – company name and address,
3) The details of the person authorised by the Participant to act as contact in the claims procedure, including position, telephone and fax number, and e-mail address, as well as authorisation for that person to provide additional clarifications related to the claim on behalf of the Participant,
4) A description of the event in connection with which the claim is being submitted, including:
a) The date of the event and its progress, as well as an indication of the Service for which the claim is submitted and the failures being the reason for the claim,
b) If the event relates to a specific transaction – the number of the transaction, its value and type,
c) If the event relates to a specific settlement instruction – the instruction ID code.
5) A description of the Participant’s actual claim,
6) The Participant’s justification for the validity of the claim.
IV. Administration of the claims review procedure
1. A claim submitted by a Participant shall be registered in the Electronic Document Distribution System (ESOD).
2. The claim shall be reviewed by the Director of the organisational department, which performs the Service to which the claim relates, or by an employee of that department indicated by the Director.
3. The KDPW Management Board shall determine how the claim is to be settled.
4. General oversight for the review of the claim shall be performed by the Compliance Officer, who in addition shall examine each event with respect to the effectiveness of the compliance system.
V. Rules for reviewing claims
1. Claims shall be reviewed on the basis of: determining the course of the event and verifying whether the description of the event submitted together with the claim corresponds with the actual facts; an examination of whether the Service was performed correctly on behalf of the Participant and a response to the actual claims themselves; and in the event that it is established that there were any irregularities in the performance of the Service, the identification of the cause of these irregularities and determining whether the responsibility lies with KDPW or with another entity. If a Participant’s claim that is deemed either fully or partially valid shall indicate an expectation on the part of KDPW to perform actions to remedy the existing deficiency within the Service performed on behalf of the Participant, the review of the claim should also include an assessment of the validation of these actions, or potentially propose alternative actions within this scope, on condition that performance of these actions would be justifiable in the specific instance, subject to the provisions of Point 3 below.
2. The results of the review described in Point 1 above and its conclusions shall be submitted as part of the response to the claim, which shall be prepared in written form and sent to the Participant.
3. During the claim review, the validity of any claims for compensation shall not be determined, unless the Management Board decides otherwise.
4. If the claim has not been submitted in written form, or has not been signed according to the Participant’s authorised representation procedures disclosed to KDPW, the Director of the relevant department responsible for reviewing the claim shall prepare a letter to the Participant, which should contain a request, respectively, for the submission of the claim in written form, or for the presentation of a signature in accordance with the Participant’s authorised representation procedures, or submission of documents confirming the right of the person or persons signing the claim to represent the Participant accordingly. The letter should be prepared within 3 days of the receipt of the claim and shall be signed on the basis of authorised KDPW representation procedures.
5. If the claim does not indicate in a sufficiently clear and unambiguous manner the Service or event to which it pertains, or raises other uncertainties, whose clarification remains essential for the proper review of the claim, the Director of the department responsible for the review of the claim shall prepare a letter to the Participant with a request for written clarification of these ambiguities. The letter should be prepared within 3 days of the receipt of the claim and shall be signed on the basis of authorised KDPW representation procedures.
6. In instances described in Points 4 and 5, the letter to the Participant should contain an instruction on the possibility of using a claim form template available for download from the KDPW website.
VI. Procedure for reviewing claims
1. The review of the claim and preparation of a response shall take place no later than 30 days from the date of its receipt. In instances described in points V.3 and V.4 above, this period shall run, respectively, from the date the claim is lodged in written form or signed in accordance with the Participant’s authorised representation procedures, or from the date of the submission by the Participant of documents confirming the authorisation of the person or persons signing the claim to represent the Participant, or from the date of the receipt from the Participant of a written response to the claim submitted by the Participant, depending on which of these dates is the later.
2. The submission of a claim shall not result in the suspension of any obligations of the Participant with respect to KDPW, nor shall it prevent KDPW from performing any Services for the Participant, unless the Management Board determines otherwise.
3. In instances where the review of a claim requires clarification of uncertainties of legal provisions, or of KDPW Regulations, the Director of the organisational department responsible for reviewing the claim shall request the Director of the KDPW Legal Department for an opinion.
4. A draft response to the claim containing the proposed manner of settlement should be prepared within 20 days of its receipt and be submitted to the Management Board and the Director of the Legal Department. The provisions of the first sentence of Point 1 above shall apply accordingly.
VII. Rules for adopting the claims procedure and their publication
1. The Claims Procedure Rules in KDPW shall be adopted by the KDPW Management Board.
2. The Director of the Corporate Affairs Department shall ensure the publication of the Claims Procedure Rules in KDPW on the KDPW website.