Auditor

The procedure for appointment of the audit firm by Giełda Papierów Wartościowych w Warszawie S.A. is defined in its internal document: Audit Firm Selection Policy and Procedures, drafted in accordance with:

• Regulation 537/2014 on specific requirements regarding statutory audit of public-interest entities, and
• Act of 11 May 2017 on Auditors, Audit Firms, and Public Supervision.

The document defines the maximum period in which an audit firm or a member of its network may provide audits of financial statements. The period is five years. After the end of the period, the audit firm or a member of its network may not be selected to audit financial statements of GPW for a period of another 4 years.

The selection of an audit firm is a responsibility of the Exchange Supervisory Board. The selection of an auditor is opened with a resolution of the Exchange Supervisory Board concerning the selection of an auditor. Next, audit firms are invited to submit offers. The Exchange Supervisory Board selects the offer of an audit firm following a procedure which ensures independent and equitable selection of the best offer according to a number of criteria (including experience and position of the audit firm, knowledge of the financial market, audit services provided to public companies, price of the service). The Audit Committee is responsible for presenting a recommendation of an audit firm to audit financial statements to the Exchange Supervisory Board. As the body responsible for the selection of the auditor, the Exchange Supervisory Board passes a resolution appointing the auditor. The Exchange Management Board signs the contract with the audit firm.

The entity authorised to audit the separate financial statements of GPW and the consolidated financial statements of the GPW Group for the financial year ended 31 December 2019 and to review the interim financial statements of GPW and the GPW Group in the year ended 31 December 2019 was BDO PL spółka z ograniczoną odpowiedzialnością sp. k., with its seat in Warsaw at ul. Postępu 12, 02-676 Warsaw, entered by the National Chamber of Auditors in the list of entities authorised to audit financial statements, entry no. 3355.

Auditor’s fees for services provided to GPW Group (net) [PLN’000]

With respect to control and monitoring of the independence of the audit firm which audits the issuer’s financial statements, BDO submitted a written declaration concerning:

• all relations (including non-audit services) impacting the independence of audit;
• risks to continued independence caused by any relations; and
• security measures mitigating the risks.

BDO provided no non-audit services and no prohibited services to GPW or its subsidiaries in 2020.

The terms and conditions of the auditor’s non-audit services are defined in the “Policy of Buying Non-audit Services from the Auditor and Companies of Its Network”.

The audit firm which audits financial statements of GPW and consolidated financial statements of the GPW Group and members of its network cannot provide directly or indirectly any prohibited services to entities of the GPW Group. Such services cannot be provided in the following periods:

• from the start of the audited period to the issuance of the audit report; and
• in the financial year directly preceding the audited period – with respect to design and implementation of internal control procedures or risk management procedures related to the preparation or controlling of financial information or the preparation and implementation of technological systems for financial information.

Allowed services may only be provided where their scope is unrelated to the tax policy and the Audit Committee performs a threat assessment and an analysis of independence.

Fees for allowed services, which are not statutory audit services, are capped. Where the audit firm which reviews and audits financial statements of GPW and consolidated financial statements of the GPW Group provides such services to GPW or entities controlled by GPW at least in three successive financial years, the total fee for such services is capped at 70% of the average fee paid to the auditor in the last three successive financial years for statutory audits of financial statements of GPW and the GPW Group.

Following the expiry of the agreement with the auditor, on 2 September 2020 the GPW Supervisory Board appointed the certified auditor for the audit of the financial statements of the Company and the consolidated financial statements of the capital group of the Company for the years 2021-2023.

The GPW Supervisory Board appointed KPMG Audyt Spółka z ograniczoną odpowiedzialnością sp.k., seated in Warsaw, adress Inflancka 4A Street, registered in the register of statutory auditors under the number 3546.

More information in the Current Report no. 19/2020