A roundtable was held on the problems related to automobiles marking

Roundtable on topic: Marking with stickers in relation to Casco insurance – yes or no, took place on 7 February, 2011. The event was organized by the Association of Bulgarian Insurers under the aegis of the Ministry of Interior and the Financial Supervision Commission.
The event gathered representatives of the insurance companies, FSC, MoI, insurance experts, representatives of marking companies, brokers.
The discussion was opened by Borislav Bogoev, Deputy Chairman of FSC, in charge of Insurance Supervision Division, who emphasized the importance of the problems and the necessity reasoned presentations of the different viewpoints on the issue to be made.
The Minister of the Interior, Tsvetan Tsvetanov, was actively involved in the roundtable, defending the position that the stickers for the Motor Casco Insurance must be removed and that the passive marking must cease to be an element of the insurance. During the forum, it has become clear that within shortest time texts, complied with the discussion, will be prepared for legislative amendments on this matter, and they will be presented to the Parliament.

Decisions of FSC’s meeting held on 2 February, 2011

At its meeting on 2 February 2011, FSC took the following decisions:

1. Approved a prospectus for public offering of issue of shares, which will be issued as a result of increase in the capital of Industrial Holding Bulgaria AD. The issue is to the amount of 9 713 679 common shares with a par value of BGN 1 and issue value BGN 1,03 each. Entered the above issue of shares in the Register kept by FSC.

2. Issued approval to I N G Insurance Brokers Ltd., city of Sofia to carry out activity as an insurance broker under the freedom to provide services on the territory of Austria, Germany, France, the United Kingdom, Italy, Spain, Poland, Romania, the Netherlands, Greece, Cyprus, Portugal, Belgium, Luxembourg, Czechia, Hungary, Sweden, Denmark, Slovakia, Finland, Ireland, Lithuania, Latvia, Slovenia, Estonia and Malta.

Decisions from the meeting of FSC held on 24 January, 2011

At its meeting on 24 January 2011, FSC took the following decisions:

1. Approved a prospectus for public offering of an issue of shares, which will be issued by Asenova Krepost AD, town of Asenovgrad.  The issue is to the amount of 800 000 common shares with a par value of BGN 3 and an issue value of BGN 12,50 each. The issue is issued as a result of increase in the company capital from BGN 1 232 568 to BGN 3 632 568. Entered the above issue of shares in the Register maintain by FSC.

2. Approved a prospectus for public offering of an issue of shares, which will be issued by Energetics and Energy Savings Fund – EESF REIT, city of Sofia. The issue is to the amount of 5 213 496 common voting shares, with right to dividend and liquidation quota, proportionate to the share’s par value. With a par value of BGN 1 each and issue value of BGN 1,30. The issue is issued as a result of increase in the capital of the company from BGN 1 303 374 to BGN 6 516 870. Entered the above issue of shares in the Register kept by FSC.

3. Approved a prospectus for public offering of an issue of shares, which will be issued by Investor BG AD, city of Sofia. The issue is to the amount of 239 892 common shares with a par value BGN 1 each and issue value BGN 12,40. The issue is issued as a result of increase in the company’s capital from BGN 1 199 460  to BGN 1 439 352. Entered the above issue of shares in the Register kept by FSC.

4. Management company Raiffeisen Capital Management GmbH, Austria, can start offering on the territory of the Republic of Bulgaria units of the managed by it mutual funds:  Raiffeisen-Active-Commodities, Raiffeisen-Energy-Equities, Raiffeisen-Inflation Protection-Fund and  Raiffeisen-Infrastructue-Equities.

5. Issued approval to I P S Services Ltd., city of Varna, to carry out activity as an insurance broker under the freedom to provide services on the territory of the Republic of Romania.

The Chairman of FSC participated in the inaugural meeting of the General Board of the European Systemic Risk Board (ESRB) in Frankfurt am Main

The General Board of the European Systemic Risk Board (ESRB) held its inaugural meeting in Frankfurt am Main today. Attending were 82 Board members, among whom the twenty seven Governors of the national central banks of the EU Member States; the President and the Vice-President of the European Central Bank (ECB); the representative of the European Commission Olli Rhen, EU Commissioner for economic and monetary affairs, the Chairpersons of the three new European Supervisory Authorities; high-ranking representatives of the national supervisory authorities of the Member States and the President of the Economic and Financial Committee (EFC).  
Bulgaria was represented by Mr. Ivan Iskrov, Governor of the Bulgarian National Bank, Mr. Stoyan Mavrodiev, Chairman of the Financial Supervision Commission and Mrs. Antonia Gineva, member of the Financial Supervision Commission. At the meeting a package of documents was adopted, defining the framework of the ESRB activities, and the work-program for 2011 was approved. Elected were also the members of the ESRB Steering Committee – Mr. Mare Belk, Governor of the Markdown Bank Polka; Mr. Mario Draught, Governor of the Bianca d’Italia; Mr. Athanasios Orphanides, Governor of the Central Bank of Cyprus and Mr. Axel Weber, President of the Deutsche. Mr. Stefan Ingves, Governor of the Sveriges Riksbank was elected Chair of the Advisory Technical Committee. The General Board approved the procedure and criteria for selection of the members of the Advisory Scientific Committee.

The next meeting of the General Board will take place in Frankfurt am Main on 18 March, 2011.

Conducting of a second stress-test on the European insurance market

The launch of the second Europe-wide stress-test for the insurance sector is prepared on request of the EU Economic and Financial Committee (EFC), which will be conducted by the European Insurance and Occupational Pensions Authority (EIOPA). The stress test will be conducted in cooperation with the European Systemic Risk Board (ESRB) and the respective national supervisory authorities, and it is expected to be launched in the beginning of the second quarter of 2011. The purpose of the stress-test will be determination and quality assessment of the impact of various stress scenarios on the financial situation of the insurers in the conditions of adverse and difficult economic environment.
The test will be targeted at the European insurance sector and will include a minimum of 50% of insurance companies per country measured by gross premium income. The first stress-test covered only the thirty biggest European insurance groups. Currently, EIOPA is preparing a stress test proposal including the scope of the exercise, framework and economic scenarios under which the insurers’ capital positions will be tested. Before defining the final framework of the stress-test, EIOPA will seek the cooperation of the national supervisory authorities and the insurers associations.

Study of the state of the non-banking investment intermediaries for the period June – November, 2010

On the web site of the Financial Supervision Commission, under Statistics heading, Capital Market section for 2010, there has been posted a Study of the state of the non-banking investment intermediaries for the period June – November, 2010
The study makes a review of the basic indicators of this type of companies on an aggregate basis. The statistics show that the number of the non-banking financial intermediaries decreases, and the changes in the equity of the companies with minimum required capital of BGN 1 500 000 is considerably less than that of the other companies for the period under review. Nevertheless, there are not any non-banking investment intermediaries, which are in violation of the requirements for capital adequacy and liquidity, and the market value of the trade and non-trade book of these companies increased, except for the months of August and October. The market value of the securities, provided for fiduciary management, as well as their client assets grew for the period June – November, 2010 by respectively 3.08% and 5.63% (calculated as geometric mean for the reviewed period).

The three new European Supervisory Authorities of the bank, capital, insurance and the pension insurance market have begun work since the beginning of the year

On 1 January, 2011, the three new European Supervisory Authorities – the European Banking Authority (EBA), European Securities and Markets Authority (ESMA) и European Insurance and Occupational Pensions Authority (EIOPA) officially began work.  The new Authorities are successors respectively of the Committee of European Banking Supervisors, Committee of European Securities Regulators and the European Insurance and Occupational Pensions Committee. On 10, 11 and 12 January, 2011 the first meetings were held of the three Boards of Supervisors – the main decision-making structure in the EBA, ESMA and EIOPA. As Chairpersons were elected respectively Andrea Enria (EBA), Steven Maijoor (ESMA) and Gabriel Bernardino (EIOPA). The election of the three Chairpersons has to be confirmed also by the European Parliament. The first six-person Management Boards of EBA, ESMA and EIOPA were also appointed. The task of the new Authorities is to contribute to improvement of the functioning of European financial market, coordinating the activities of the national supervisory authorities, propose standards and guidelines and monitor for their application.
Within this context, the national supervisory authorities preserve their powers and will continue to exercise daily supervision over the individual; financial institutions. In case of established inconsistencies in the European regulations, settlement of disputes between the national supervisory authorities, as well as in crisis situation at European Union level, EBA, ESMA and EIOPA will be able to issue legally binding decisions to the national supervisory authorities and individual financial institutions.
Representatives of Bulgaria in the Board Supervisors of the new Authorities are Rumen Simeonov, Deputy Governor of the Bulgarian National Bank in charge of Banking Supervision Department (EBA) and Stoyan Mavrodiev, Chairman of the Financial Supervision (ESMA and EIOPA).
At its meeting on 12 January, 2011, the Board of Supervisors of the European Banking Authority adopted a work program for conducting an EU-wide stress test of the system in the first half of 2011, and the results will be published towards the middle of the year. This activity will be carried out jointly with the national supervisory authorities, the European Systemic Risk Board, the European Central Bank and the European Commission.

The European Commission published a list of the credit rating agencies in the Official Journal of the European Union and on its web page

Pursuant to Regulation (EC) № 1060/2009 of 16 September, 2009 on credit rating agencies (CRA Regulation), the credit rating agencies are legal persons whose occupation includes the issuing of credit rating on a professional basis. The credit rating agencies established in the Union must file an application for registration according to Article 14, paragraph 1, in relation to Article 2, paragraph 1
of the CRA Regulation. The competent authorities of the home Member State approve the registration when all requirements stated in the CRA Regulation have been satisfied. The registration is valid for the whole territory of the Union. In consistence with Article 18, paragraph 3 of the CRA Regulation, the Commission published in Official Journal of the European Union and on its web page a list of the registered credit rating agencies. This list is updated within 30 days after the date the Commission is notified of registration made by a competent authority of a home Member State.
The registration according to the CRA Regulation does not mean automatic recognition as an external credit rating agency (ECRA) in accordance with Part 2 of Annex VI
to Directive 2006/48/EC.

You can find the list of the agencies on the following address:

http://ec.europa.eu/internal_market/securities/docs/agencies/list_bg.pdf