On October 6, 2004 the European Commission published its Regular Report on Bulgaria’s Progress toward Accession.    The development of the non-banking financial sector is analyzed in three chapters related to the activity of FSC –  freedom to provide services, free movement of capital and economic and monetary union.
In regard to the freedom to provide services the European Commission confirms the progress made in this area  in  2003, as it is compared to the previous report. The general recommendation is that the development and the implementation of the European legislation in the area of the insurance and the collective investment schemes should continue.

European Commission considers the establishment of FSC a positive step. Also positive step is the establishment and functioning of the Consultative Board for Financial Stability which main objective is to facilitate the cooperation between Bulgarian National Bank and FSC, and to promote the development of the financial sector.

The Commission with the support of the Ministry of Education and Science organizes a seminar “Non-banking financial sector – perspectives and recent developments” which is to be held on October 7, 2004 in city of Smolyan. The seminar will be attended by more then 40 directors of high economic schools.

The Deputy Chairman of FSC, Head of  Social Insurance Supervision Division  Bisser Petkov determined the minimum return rate of 7.04% on annual basis  for  the management of the assets of universal pension funds for the preceding 24-months period (01/10/2002 – 30/09/2004). The minimum return rate for the management of the assets of occupational pension funds for the same period is 6.86% on annual basis.

The Commission approved a draft Ordinance on the obligatory insurance. The draft will be discussed with the interested parties and published in the Bulgarian version of our web site.

In connection with publications in the media regarding unlawful deals with property of  public company “Sofia Film”, the Deputy Chairman of FSC,  Head of Investment Supervision Division, took a decision for initiation of revision of “Sofia Film”. The revision has to establish whether the requirements of the Law on Public Offering of Securities are abided.

In case violations of the law are established further actions will be undertaken.

The Commission approved prospectus for secondary public offering of bonds issued by company  “Chernomorsko zlato” AD,  Pomorie. The bonds issue has the following characteristics :

Issuer : Chernomorsko zlato” AD, Pomorie
Type of securities: ordinary, dematerialized, fully transferable, corporate bonds
Size of the issue: 10 000 bonds
Nominal value:  BGN 1000  per bond

The Commission approved the request of two investment intermediaries – “East Finance” and “ABV – Investments”   to limit  the scope of their activity. According to the decision the investment intermediaries can not execute transactions with securities for their own account, as well can not underwrite issues of securities and manage individual portfolios of securities and/or money.

The Commission revoked the license of investment intermediary “Fix Plus Financial House” AD. The main reasons are that the company  does not comply with the legal requirements for capital adequacy and liquidity.

The Deputy Chairman of FSC, Head of Insurance Supervision Division  approved Mrs. Albena Lilova as an actuary  of Bulgarian Agency for Export  Insurance.

The Deputy Chairman of FSC, Head of Insurance Supervision Division issued license to operate as an insurance broker to the following company “Avitzena – Bionet” EOOD.