The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from “UnipolSai Assicurazioni S.p.A.” to “Unipol Gruppo S.p.A.”
The Financial Supervision Commission (FSC) has been notified by the competent authority of Italy (INSTITUTO PER LA VIGILANZA SULLE ASSICURAZIONI (IVASS)) of the merger from the insurance undertaking “UnipolSai Assicurazioni S.p.A.” to “Unipol Gruppo S.p.A.”, including insurance contracts on which Bulgaria is a Member State where the risk is located. After reviewing the portfolio documents, the FSC decided to send a letter to the national competent authority of Italy on granting consent of the merger of “UnipolSai Assicurazioni S.p.A.” to “Unipol Gruppo S.p.A.”
After the merger “Unipol Gruppo S.p.A.” will change its name to “Unipol Assicurazioni S.p.A.” and will continue to operate on the territory of the Republic of Bulgaria under the conditions of the freedom to provide services.
There are prepared private pensions amendments whose primary objective is increasing old-age income and guaranteeing adequate pension benefits
In 2024 the Insurance and Private Pensions Committee of the Organization for Economic Co-operation and Development (OECD) carried out a research mission in Sofia which reviewed the supplementary pension insurance and assessed the compliance of the Bulgarian legislation and the supervisory activity with the OECD recommendations on the key principles for private pensions regulation.
As a result of the good partnership between the co-chairs – the Ministry of Finance and the Financial Supervision Commission (FSC), as well as the efforts of the Ministry of Labour and Social Policy, the representatives of other institutions, social partners and the industry, the review of the private pensions has already been successfully completed.
The Chair of the Working party on Private Pensions at the Insurance and Private Pensions Committee of the Organization for Economic Co-operation and Development (OECD) acknowledges the strengths of the supplementary pension insurance, including:
the multi-pillar pension model;
the stable legal framework;
the competent risk-based supervision.
The ability of the country to implement the OECD legal instruments and the excellent cooperation with the Bulgarian authorities during the review have been highly valued.
In this regard the OECD also notes the possibility for considering certain aspects that could contribute to improving the pension system that are in line with the philosophy of the possibilities for legislative amendments such as:
introduction of consumer choice between different investment strategies according to their life-cycle and risk tolerance (the so-called “multifunds model” encompassing funds with different investment profile);
review of the rules determining the investment opportunities to achieve growing profitability.
For this purpose, the competent institutions in the country should state clearly and in sync their commitment to the development of legislative amendments, the philosophy of which is supported in the context of the recommendations given by the OECD.
Joining the Organization for Economic Co-operation and Development is a key priority for the Republic of Bulgaria, in view of which the Financial Supervision Commission confirms its readiness and commitment to participate in the development of the pension system in the country in order to guarantee trust, fairness, stability and transparency.
The Financial Supervision Commission and the Bulgarian Association of Supplementary Pension Security Companies have started a dialogue and are ready to propose changes to the regulatory framework in the field of supplementary pension insurance, the ultimate goal of which is to increase the profitability of the management of the funds on the individual accounts of the citizens, respectively achieving an adequate replacement income upon withdrawal from the labor market (retirement).
The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from UK P&I Club N.V to TT Club Mutual Insurance Limited
The Financial Supervision Commission (FSC) has been notified by the competent authority of the Kingdom of Netherlands (De Nederlandsche Bank (DNB)) of the forthcoming partial portfolio transfer from the insurance undertaking UK P&I Club N.V to TT Club Mutual Insurance Limited, including insurance contracts on which the Republic of Bulgaria is a Member State where the risk is located. After reviewing the portfolio documents, the FSC decided to send a letter to the national competent authority of the Kingdom of Netherlands on granting consent for the transfer of the insurance portfolio from UK P&I Club N.V to TT Club Mutual Insurance Limited.
Pursuant to art. 10, par. 5 of the Financial Supervision Commission Act, Mr. Petar Dzhelepov, Member of the Financial Supervision Commission (FSC), supporting the policy of analysis and assessment of risks in the financial markets, improvement of supervisory practice and protection of the interests of investors, insured and socially insured persons, has been designated as a deputy to carry out the functions of a Deputy Chairperson of FSC, leading “Investment Activity Supervision” Division.
The Financial Supervision Commission (FSC) has been notified by the competent authority of the Kingdom of Denmark (Danish Financial Supervisory Authority) of the concluded on March 31st 2024 portfolio transfer from the insurance undertaking Codan Forsikring A/S to Alm. Brand Forsikring A/S, including insurance contracts on which the Republic of Bulgaria is a Member State where the risk is located.
In October 2023 Danish Financial Supervisory Authority has notified about the forthcoming portfolio transfer. After the review of the documents the FSC has already informed Commissariat aux Assurances of granting its consent for the insurance portfolio transfer.
The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from Foyer Sante S.A. to Globality S.A.
The Financial Supervision Commission (FSC) has been notified by the competent authority of the Grand Duchy of Luxembourg (Commissariat aux Assurances) of the concluded on February 20th 2024 portfolio transfer from the insurance undertaking Foyer Sante S.A. to Globality S.A., including insurance contracts on which the Republic of Bulgaria is a Member State where the risk is located.
In November 2023 Commissariat aux Assurances has notified about the forthcoming portfolio transfer. After the review of the documents the FSC has already informed Commissariat aux Assurances of granting its consent for the insurance portfolio transfer.
After the transfer Globality S.A. changes its name to Foyer Global Health S.A. and will run the portfolio of Foyer Sante S.A. which ceases its activities.
Which, in your view, are the global trends in 2024 we could expect in the Fintech industry?
Boyko Atanasov: The Fintech industry is in a dynamic evolution state, whereat it incessantly reveals spectrum of innovations in front of us putting into question the established regulations. It is this industry, which namely provokes us to analyze the necessity of introducing progressive solutions accessible to a wider audience. I am deeply convinced that in the transforming financial ecosystem in 2024, services focused on personalized, secure and sustainable financial relationships, reflecting unprecedented technological advancement and consumer-centric innovation, will resonate.
In response to global trends in sustainability and environmental protection, this year we shall witness the rise of green (ESG) fintech trends, which will align financial technology with environmental considerations. Fintech solutions will evolve, so that by emphasizing both the sustainable investments and green financial activities, we will strive towards the goal of reducing the carbon footprint. The approach in question aims to connect technology with sustainability by strengthening the role of the financial sector in promoting practices that positively contribute to the environment and support global sustainability goals.
We are witnessing digitization in all of its aspects, including the use of blockchain and artificial intelligence (AI). In our role as regulator of the non-banking financial sector, it is very important for us to track innovative financing, evaluate new tools and practices, but at the same time protect consumers and act as a guarantor of the stability of the non-banking sector.
The advanced integration of artificial intelligence (AI) and machine learning (ML) will have significant impact on the customer experience, on the more precise detection and mitigation of fraudulent activities, and will optimize risk management strategies as well.
The development of these algorithms will lead to faster and more accurate financial solutions, invented to meet the unique needs and goals of individual users, so that we expect to enhance the level of their satisfaction and to increase their engagement.
The increased need for high cyber security will provide the basis for the protection of user data, tightly integrated in financial platforms. Improved features including advanced biometrics, multi-factor authentication and advanced encryption protocols will become ubiquitous elements of fintech security structure. These improvements will strengthen security barriers, protecting sensitive consumer information against potential threats and breaches, and maintaining integrity and trust in digital financial services.
How has the Financial Supervision Commission ensured adaptation of regulation to accommodate the evolving FinTech landscape in 2024?
Boyko Atanasov: It is important to note that regulatory approaches can vary in all jurisdictions. Specific adaptations will depend on regulations and priorities for each country or region, taking into account both technological progress and innovation as well as the European legislative framework.
FSC finalized the project for “Building a Unified Information System (UES). Since the autumn of 2023, the UES has been functioning successfully, and with its introduction, we report a significant improvement in the process of administrative service to citizens, businesses and supervised entities. All administrative services are fully accessible digitally. In addition to being part of the state administration system, in real time they are integrated with the activities and processes, and an exchange of information with the regulatory authorities of the EU – European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA).
Of particular importance for 2024 will also be the regulations of crypto assets, as the dynamic nature of financial markets accentuates digital financial services, which are an increasingly important part of the European economic environment. Although the FSC has not been unequivocally designated as the national competent authority in this area, our daily work with the European regulators, in the face of ESMA, gives us the reason to be directly involved in this process and to follow the legislative changes, still at an initial level, but with the expectation that they will completely change the financial landscape of Europe. We are monitoring the implementation of the two acts: the European Digital Resilience Act (DORA) and the Markets in Crypto Assets Regulation (MiCA). The DORA Regulation, which entered into force in January 2023, aims to create a regulatory framework for digital operational resilience through which all companies can ensure that they can withstand all types of disruptions and threats related to information and communication technologies (ICT), with the aim of preventing and mitigating cyber threats. On the other hand, MiCA’s goal is to create a regulatory framework for the crypto asset market that supports innovation and harnesses the potential of crypto assets in a way that preserves financial stability and protects investors. EU countries must adopt national laws aligned with the regulation by June 2024, with full implementation starting in stages. DORA and MiCA will support innovation and the deployment of new financial technologies while ensuring an appropriate level of protection for consumers and investors.
Are there specific regulatory challenges or opportunities that the Bulgarian FinTech business may face in the current and the following years?
Boyko Atanasov: It is important for the Bulgarian FinTech business to keep up with the evolving regulatory environment, to engage in constant dialogue with the relevant industry associations and to seek legal advice in order to navigate the specific challenges and opportunities in the country. Some common challenges and opportunities for FinTech businesses in Bulgaria are the regulatory framework, licensing and authorization, data protection and privacy, risk management and cyber security.
As for the opportunities, they are: digital transformation, financial inclusion, cooperation with traditional institutions, government support and initiatives, and cross-border expansion.
How does the Financial Supervision Commission promote cooperation between traditional financial institutions and FinTech startups, especially in the non-banking sector?
Boyko Atanasov: The Financial Supervision Commission always proactively participates in cooperation programs and initiatives, provides regulatory guidance and support. Showing regulatory flexibility and sharing information is paying off. I believe that our continued partnership with the Bulgarian FinTech Association will contribute to promoting the creation of innovation centers and incubators.
The role of the FSC is to provoke the achievement of synchrony between the regulatory requirements and their implementation in a digital environment, with the ultimate goal being to reduce the administrative burden.
Part of the concrete results is the functioning Innovative Hub, providing a single point of contact with FinTech companies and the changed regulations for accessibility to the capital markets of small and medium-sized enterprises, the successfully functioning UES and the mobile application – FSC Mobile, the purpose of which is to help users and supervised entities, through the use of the most popular operating systems – Android and iOS.
The Financial Supervision Commission will continue to actively work and be in dialogue with the non-banking financial sector participants, as the result of the partnership between the national regulator and the business is the maintenance of a sustainable and innovation-friendly business environment.
The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from Foyer Sante S.A. to Globality S.A.
The Financial Supervision Commission (FSC) has been notified by the competent authority of the Grand Duchy of Luxembourg (Commissariat aux Assurances) of the forthcoming portfolio transfer from the insurance undertaking Foyer Sante S.A. to Globality S.A., including insurance contracts on which the Republic of Bulgaria is a Member State where the risk is located. After reviewing the portfolio documents, the FSC decided to send a letter to the national competent authority of the Grand Duchy of Luxembourg on granting consent for the transfer of the insurance portfolio from Foyer Sante S.A. to Globality S.A.
