Prospectus - Notowania

In addition, BiFin conducted an inspection in HVB's Markets & Investment Banking business,
focusing on the validity of market data, the adequacy of valuation models and the limitation of
market risk, among other things. As a result of this review, BaFin formulated its comments on
data processing and monitoring procedures related to risk exposition models. As at the Date of
the Prospectus, HVB is already adopting the necessary measures to remedy these comments.
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As part of its business, Bank Pekao is subject to standard supervisory activities: inspections,
reviews, and investigations or inquiry proceedings by various regulatory authorities,
specifically including, (i) PFSA; (ii) the supervisory authority for market competition
(“UOKiK”), regarding antitrust issues and consumer rights; (iii) the supervisory authority for
personal data protection, regarding collecting, processing, managing and protecting personal
data; and (iv) the competent authorities for preventing money laundering and the financing of
terrorist activities.
The PFSA regularly carries out reviews on all activities carried out by the bank as well as its
financial situation.
The most recent general review was carried out in 2008, for which PFSA formulated some
comments in reference to transactions and the internal organisation of the bank, including
liquidity and credit risk management, supervision of management processes, IT infrastructure,
as well as comments in reference to compliance with Polish banking law, the Polish
Consolidated Accounting Act and internal statutes and regulations. The PFSA developed
specific recommendations for Bank Pekao, but no fines were imposed. As a result, the bank
developed an implementation plan for the recommendations, providing periodic updates to
PFSA. Most of the recommendations have already been implemented.
Between 2007 and 2009, the PFSA conducted regulatory reviews on specific issues.
Specifically, the following reviews were carried out:
• inspections of Bank Pekao activities related to the custody of assets of certain open
pension funds and employer pension funds;
• a review of Bank Pekao regarding compliance with regulations regarding money
laundering and the financing of terrorist activities;
• a review of the activities performed by the brokerage house of Bank Pekao. Following
these reviews, the PFSA formulated certain recommendations which Bank Pekao
implemented.
In the last three years, other regulatory proceedings have been initiated, including:
• antitrust proceedings against the operators of the Visa and Europay systems and the
Polish banks that were issuing Visa and Mastercard credit cards in relation to the use of
alleged improper anti-competitive practices that influenced the Polish payment card
market. The UOKiK has determined these practices to be contrary to free market
principles and forced the bank to terminate said practices by imposing sanctions. The
sanctions imposed on Bank Pekao were Zloty 16.6 million (or €4 million), against
which the bank has filed an appeal. On November 12, 2008, the Antitrust Court
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