1. The Commission approved a tender offer submitted by Radino AD, Sofia City, for the purchase of shares of Krameks JSC, Sofia City, from the company’s other shareholders through Financial House Ever Inc. Investment Intermediary, Sofia City. The price offered per one share is BGN 11.42.

2. The Commission issued a licence to Elana Fund Management Inc. Management Company to organise and manage Elana Balanced Eurofund Contractual Fund. The Commission approved a prospectus for public offering of the Fund’s units. The Fund and the unit issue have been entered into the FSC’s Public Registry.

3. The Commission issued an actuarial licence of pension assurance companies and of the supplementary pension insurance funds managed by these to Albena Mladenova Petrova.

1. The Commission confirmed a prospectus for secondary public offering of an issue of naked corporate debentures, issued by UBB AD, Sofia City. The issue is to the amount of BGN 80,000,000, distributed into 80,000 pieces of debentures, having a nominal value of BGN 1,000 each, a 36-month maturity, maturity date: July 15, 2008, annual interest rate to the amount of 3.55%, and interest payments every six months.

2. The Commission imposed a temporary prohibition on a tender offer submitted by Energoremont Holding JSC for the purchase of shares of Energoremont Russe AD from the company’s other shareholders through First Financial Brokerage House Ltd. Investment Intermediary.

1. The Commission entered Advance Terrafund REIT as a public company. The Commission also entered an issue of the company’s shares for the purpose of trading these on a regulated market. The said issue amounts to 150,000 pieces of shares, having a nominal value of BGN 1 each. The issue’s initial public offering has been successfully completed.

2. The Commission issued a licence to BenchMark Asset Management AD Management Company to organise and manage a BenchMark Fund – 1 Contractual Fund. The Commission approved a prospectus for public offering of the Fund’s units. The Fund and the unit issue have been entered into the FSC’s Public Registry. The Contractual Fund is of the conservative type. Each unit’s nominal value is BGN 100.

3. The Commission issued a licence to DSK Asset Management Management Company to organise and manage a DSK Balanced Fund Contractual Fund. The Commission approved a prospectus for public offering of the Fund’s units. The Fund and the unit issue have been entered into the FSC’s Public Registry. Each unit’s nominal value is BGN 100.

4. The Commission imposed a final prohibition on a tender offer submitted by Bul-Vin EOOD, Petrich, for the purchase of shares of BRAVO JSCo, Kolarovo Village, from the company’s other shareholders through Zagora Finacorp JSCo Investment Intermediary, Stara Zagora.

5. The Commission passed Ordinance on Amendments to Ordinance No. 11 on authorizations to carry out activity as Stock Exchange, organiser of unofficial securities market, investment intermediary, investment company, management company and special investment purpose company. The publication of the said Ordinance in the State Gazette is forthcoming.
Under the above Ordinance, it is provided for amendments to the Ordinance valid until now with a view to its alignment with the amendments to the POSA (SG, Issue 39 of May 10, 2005). The term ‘permit’ has been substituted by ‘licence’. The requirements with regard to the documentation required for issuance of a licence to organise and manage a contractual fund; for issuance of an approval to amend the contractual fund’s rules and regulations, and/or the portfolio evaluation rules, and fixing the contractual fund’s assets’ net value, and for issuance of an approval to amend the depository services contract are established. Upon issuance of a licence to an investment intermediary and to a management company, the requirement to submit a document for initiation fee deposited with the Investors in Securities Compensation Fund, and a bank document certifying that each person of those subscribed units or shares has deposited the full amount of the installments due is introduced. A requirement is introduced with reference to the investment intermediaries to submit an activity plan and rules and regulations regarding the private transactions in securities of the members of the management and supervisory bodies of the investment intermediary, the investment intermediary’s employees, and the persons related to these. Similar requirement is also introduced with reference to the management companies.

The following grounds for the divestiture of the aforesaid licence to perform insurance activity have been established:

Upon an on-site inspection undertaken and while carrying out current supervision, it has been ascertained that the company is in bad financial standing and it may not duly perform its obligations under insurance contracts.

Numerous breaches have been established, such as considerable understatement of the insurance reserves with at least BGN 909 thousand, considerable shortage of assets needed to cover the reserves with at least 95.2 per cent, fictitious considerable enhancement of the company’s financial result resulting from incorrect accountability with at least BGN 3,519 thousand. The company has been submitting erroneous financial information to the supervisory institution, where by so doing the said company has obstructed the establishment of its actual financial standing.

Unjustified non-payment, delayed payment and partial payment of exigible and liquid liabilities under insurance contracts have been ascertained.
It has also been established that the company does not pay or delays payments on liabilities under insurance contracts incontestably established through the court (13 execution actions to a total amount exceeding BGN 200 thousand).

Upon an inspection undertaken at the company and at the judicial executive office, it has been ascertained that the said insurer has not been implementing the coercive administrative measure imposed by the FSC in 2004, under which the above insurer was obligated to remove the infringements established in its activities with regard to liquidation of damages and to undertake the necessary measures for the prompt payment of all amounts due under insurance contracts.

The breaches established are substantial and numerous, and each one of these alone is a legal basis for licence divestiture.

With its actions, the company has injured social relations of considerable importance with regard to the insured persons, the stability, the transparency of and trust in the insurance market. As of the present moment, the measures undertaken by the supervisory authority have not led to a positive change in the irregular practices established in the insurer’s activity.

With a view to protecting the interests of the insured persons and maintaining the insurance market’s stability, the FSC has imposed the only adequate measure – divestiture of the licence issued to Hildon AD Insurance Company to perform insurance activity.

In order to perform direct supervision over the insurer’s activities during the period prior to the appointment of a liquidator or an assignee in bankruptcy, the Financial Supervision Commission has appointed a quaestor.