You can find the list of the non-licensed Investment intermediaries in the attached file – 04.04.2023
Chair ofthe Financial Supervision Commission– Boyko Atanasov opened the „FinTechandInsurtechSummit”
On March 29 the Chair of the Financial Supervision Commission (FSC) – Boyko Atanasov opened the Capital forum – “Fintech and Insurtech Summit”. At the special invitation of Mr. Alexey Lazarov – editor-in-chief of Capital magazine, he spoke about the main challenges, among which are: clarity about the functioning and implementation of innovations in the FinTech sector, the balance of the innovation risks versus consumer benefits ; equilibrium between promoting innovations and maintaining levels of customer and business protection against potential negative events; assessment and adjustment of the regulatory framework against changes or completely new business models and the resulting potential risks.
The FSC Chair raised questions about why we need innovative FinTech products and how to create a regulatory framework that triggers development rather than restrictions, promotes progress rather than maintaining the status quo, provokes creative thinking rather than looking for legal obstacles to growth. “My belief is that laws and regulations change namely because of new products, services and technologies. I am convinced that the administration should support the business and be in a position of exceptional visibility and audibility, both for new products and for development trends”, Mr. Boyko Atanasov also shared.
The digital future of Europe and working in sync with pan-European regulations were within the scope of the topics covered by Mr. Atanasov. The creation of the European Blockchain Sandbox, the legislative proposal for a Regulation on Markets in Crypto-Assets (MiCA) and the Digital Operational Resilience Act (DORA), as part of the Digital Finance Package, aim to increase the quality of the services offered in the financial sector by stimulating the development of financial innovations, while establishing the appropriate levels of security and their protection. Relative to the Bulgarian capital market, this would mean an increase in its attractiveness, both for local and foreign investors.
The FSC Chair – Boyko Atanasov, assured the participants of the event that the FSC is focused on its main functions – the protection of users of financial services, ensuring a stable non-banking financial sector and creating an environment in which the business can operate without obstacles. In this regard, he pointed out that the purpose of the FSC is to consider financial innovation through the prism of these main functions of the Commission for the capital, insurance and pension insurance market.
Since 2020, the Financial Supervision Commission has been on the innovation map through the Innovation Hub, the mobile application presented a few months ago – FSC Mobile, as well as the building of a Unified Information System (UIS), the idea of which is to reduce the administrative burden, to obtain full digitization of administrative services and to have connectivity with European regulators at a modern digital level. The ultimate goal is to save business and people time.
Users and supervisees are also currently facilitated with access to information via FSC Mobile – the Commission’s own mobile application, which provides additional convenience by providing non-banking financial sector participants with up-to-date news, a calendar of events and a reference facility.
“In the last 3 years, the FSC has been the balancer of the non-banking financial sector, as well as a business partner. I believe that the FinTech industry and the regulator are one system, and together we will ensure that customers are protected when using some of the most innovative FinTech financial products, and together we will continue to build the digital future”, said the FCS Chair to the participants of the event.
Notification regarding Euroins Romania Asigurare-Reasigurare S.A.
The Financial Supervision Commission (FSC) has received a notification of a decision adopted on 17.03.2023 by the national supervisory authority of the Republic of Romania (Autoritatea de Supraveghere Financiara – ASF) to withdraw the license of the Romanian insurer Euroins Romania Asigurare-Reasigurare S.A., to open bankruptcy proceedings against this company, as well as to impose a ban on free disposal of the company’s assets.
Euroins Romania Asigurare-Reasigurare S.A. is a subsidiary, part of the group of “Euroins Insurance Group” AD, in respect of which the FSC is a group supervisory authority.
In this regard, the FSC informs that Euroins Romania Asigurare-Reasigurare S.A. does not carry out insurance activity in the Republic of Bulgaria. The decision of the Romanian supervisory authority does not affect the insured persons within the Bulgarian insurance companies of the Euroins Insurance Group AD group. The FSC has not identified solvency risks and compliance issues with the Individual companies of the Euroins Insurance Group AD and the group as a whole, resulting from the decision of ASF.
The Financial Supervision Commission will notify the Bulgarian public upon receiving additional information on this case in Romania.
The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from “Societa Cattolica di Assicurazione S.p.A.”to“Generali Italia S.p.A.”
The Financial Supervision Commission (FSC) has been notified by the competent authority of the Republic of Italy (IVASS) of the forthcoming portfolio transfer from the insurance undertaking “Societa Cattolica di Assicurazione S.p.A.” to “Generali Italia S.p.A.”, both with head offices in the Republic of Italy. After reviewing the portfolio documents, the FSC decided to send a letter to the national competent authority of the Republic of Italy on granting consent for the transfer of the insurance portfolio from the “Societa Cattolica di Assicurazione S.p.A.” to “Generali Italia S.p.A.”.
After the insurance portfolio transfer “Societa Cattolica di Assicurazione S.p.A.” to “Generali Italia S.p.A.” will continue to operate on the territory of the Republic of Bulgaria under the conditions of the freedom to provide services.
List of entities which are not authorised by FSC
You can find the list of the non-licensed Investment intermediaries in the attached file – 07.02.2023
Financial Supervision Commission put on the innovation map
In the “Annual Report of the Bulgarian Fintech Association” (BFA) for the year 2022 dedicated to the most significant fintech achievements, challenges and opportunities, the Bulgarian Fintech Mapping’2022, the progress in the fintech education and the latest fintech regulations in Bulgaria and the EU as well, Mrs. Maria Filipova – Deputy Chair of the Financial Supervision Commission and Head of the “Investment Supervision” Department took part through delivering a speech on the implementation of financial innovations in the non-banking financial sector.
One of the first steps in this direction was the Innovation Hub established by the FSC. It secures a single contact point for submission of proposals, but also for identification of obstacles relevant to the sector, which shortens the time for responding to inquiries received through facilitated communication and data exchange between the interested parties and the regulator.
“We are convinced that an active dialogue among all interested parties lies at the basis for achieving balance between the benefits of the introduction of financial innovations that are applied in the offering of products and services in the non-banking financial sector and ensuring stability and confidence in financial markets and protection of investors’ rights. For this purpose, a working team was created in the Financial Supervision Commission which has to monitor financial innovations in the non-banking financial sector. Its activity is aimed at intensive tracking the benefits and controlling the risks arising from the integration of financial innovations, as well as promoting the dialogue between the regulator and business. In this regard, of main importance are the regular studies and analyzes carried out by the FSC in order to establish the level of innovations used. It is essential to note that such type of studies involve a specially developed methodology for the effective extraction of information, and the results of these studies serve to plan the subsequent and targeted actions“, Mrs. Filipova stressed.
The Financial Supervision Commission declares its readiness to continue its successful cooperation with the business, in sync with the Financial Innovation Monitoring Strategy for the period 2021-2024, which outlines the long-term planned commitments. The regulator will continue to actively work towards the development of financial innovations, by monitoring the development of financial technologies, assessing possible risks for the market and for consumers, and initiating actions and measures to minimize them.
New technologies are changing the non-bank financial sector and the ways in which consumers and companies access services. Moreover, they create opportunities for solutions, which provide better access to finance and improve the financial inclusion of citizens within the digital society. Financial technologies support the operational efficiency and further increase the competitiveness of the economy of the countries in which they are used and contribute to the deepening and expansion of capital markets in the European Union.
Mrs. Filipova’s speech about financial innovations as a way to develop the non-banking financial sector is available here.
To present the report, the BFA organized a conference on “Bulgaria on the European Fintech Map – 2022”. On December 15, the hybrid event brought together leading experts from the world of fintech and presented findings on regulations, fintech education and innovation. Among the panelists, from the University of Sofia, VUZF, the European Commission, etc., was Mr. Vladislav Matev – chief expert in the “Public Companies, Securities Issuers and SPV” department of the Financial Supervision Commission, who presented fintech regulations in the non-banking financial sector.
He emphasized that the activity of the Financial Supervision Commission is fully aligned with the development of financial technologies. As a result of their use, not only the growth of the activity of individual participants in the capital market is expected, but also the transformation of the capital market as a whole.
Mr. Matev outlined the key topics in the fintech sector, such as the adoption of new pan-European regulations including those with direct effect in all member states, which is aimed at accelerating the growth of the single European capital market.
He also drew attention to the strategic goals set for the new business model: facilitating access to the capital markets of emerging and small and medium-sized enterprises; increasing the financial literacy of society; protecting the interests of investors and users of financial services and maintaining the stability of the capital market.
Mr. Matev concluded his participation by saying: “I am convinced that through the ever wider application of financial innovations, the Bulgarian capital market will increase its attractiveness for both local and foreign investors.”
The entire report for 2022 of the Bulgarian FinTech Association is published here.
The Chair of the FSC participated in a round table organized by the UNWE
Right on the birthday of Prof. DrEconSc Mihail Dinev, December 15, a large round table was held – “The work of Prof. DEconSc Mihail Dinev and the future of control” in UNWE.. Assoc. Prof. Dr. Daniela Petrova, head of the Financial Control Department, launched the event by reminding that Prof. Dinev is the founder of the Financial Control Department at UNWE and has great merits for the development of financial control in the country
The Chair of FSC – Boyko Atanasov, was among the official participants in the event, among other professionals distinguished by their contribution to the development of control in Bulgarian institutions: Prof. Ognyan Simeonov, Chair of the Commission for Public Oversight of Statutory Auditors; Boris Mihaylov, Executive Director of the National Revenue Agency; Tsvetan Tsvetkov, Chair of the National Audit Office, Boyko Kostov, Chair of ICPA; Vesela Karaivanova, Deputy Governor of the National Insurance Institute; Prof. Dr. Grigoriy Vazov, president and rector emeritus of the Higher School of Insurance and Finance and many others.
The round table began with acknowledgments to Prof. DrEconSc Mihail Dinev for his undeniable authority as a scientist and expert in his field. The participants in the event also shared memories full of respect for a person who marked the history of UNWE with his remarkable professional experience, brilliant ideas combined with energy, modern thinking and positive approach.
During the discussion dedicated to the new control environment, Mr. Atanasov shared that for him it is the result of the new economic reality. “When the environment changes, we must be keep up in taking control actions, we must be flexible, because our role is above all to protect the public interest. I see the control activity and the work in the Commission not in terms of hibernation, but rather in a proactive strategic position”, he added. The Chair of the FSC pointed out the challenges facing the non-banking sector – alternative investment funds, financial innovations, the Green Deal and the European legislative framework for digitalization, as defining the equation of the new economic reality – they provide new horizons, but also bring new risks.
Mr. Atanasov also commented on the relationship between academia and practice, stating that “the symbiosis between theory and practice is a valuable way of thinking and acting. The new economic realities must predetermine the preparation of young people and provoke the need for new knowledge, and that is precisely why it is important that the cooperation between the FSC and UNWE is based on a two-way sharing of practical experience by experts and the academic environment.”.
Boyko Atanasov, Chair of the FSC, Tsvetan Tsvetkov – Chair of the National Audit Service, Prof. Dr. Dimitar Dimitrov, Rector of UNWE, Prof. Dr. Rumen Brusarski, Dean of the Faculty of Finance and Accounting, UNWE, Boyko Kostov – Chair of ICPA
The commemorative event ended with the presentation of honorary plaques by the Faculty of Finance and Accounting to: Tsvetan Tsvetanov, Chair of the National Audit Service and Boyko Kostov, Chair of the Institute of Chartered Professional Accountants in Bulgaria.
The Chair of the FSC and the rector of UNWE discussed cooperation between the two institutions
The Chair of the Financial Supervision Commission – Boyko Atanasov and the Rector of the University of National and World Economy – Prof. Dr. Dimitar Dimitrov discussed the possibilities for the implementation of an analysis and assessment of the development of the non-banking financial sector until 2030. The study aims to predict and plan how the markets will develop, to help companies to plan their income and expenses, and to find out how regulations affect the insurance sector.
“I believe that a future cooperation between the Financial Supervision Commission and the UNWE will be extremely useful for the research process of preparing analyzes and evaluation of the macroprudential policy for the non-banking financial sector, the determination of national policies and strategies, and will contribute to the economic growth of the country. I am also convinced that our joint efforts and our common commitment will yield an excellent result.” shared Mr. Atanasov.
Prof. Dimitrov, on his part, expressed his belief that the implementation of scientific research, which will be supported by the FSC, will facilitate, enrich and support the professors of the university who are ready to work for its realization.
As a subsequent step in the initiated inter-institutional relations, the Financial Supervision Commission will organize a presentation of the goals and methods for the implementation of the UNWE study to the Bulgarian insurance community.
The Chair of FSC, Boyko Atanasov, participated in a conference on the occasion of Banker’s Day
On December 6, 2022, the Association of Banks in Bulgaria (ABB) gathered prominent representatives of the financial sector on the occasion of Banker’s Day. The official event began with a conference, which was opened by Mrs. Diana Miteva – Chair of the ABB Board of Directors.
The first panel of the conference – moderated by Mrs. Miteva, with participants – Radoslav Milenkov, Deputy Governor of the Bulgarian National Bank, Boyko Atanasov, Chair of the Financial Supervision Commission, Lyudmila Petkova, Deputy Minister of Finance, was dedicated to the new realities – macroeconomic factors and regulatory environment.
The Chair of FSC congratulated the banking community on the occasion, sharing his belief that the banking and non-banking sectors are actually 2 sides of the same coin in the equation of the new economic reality.
“Regulators must place emphasis on those regulations that enable businesses to make informed and ethical decisions in a changing environment. We must create new principles that are relevant in the new reality. The understanding is that the regulators are the anchor of the sailing ship is incorrect, we are the compass that protects it from hitting underwater rocks, we are partners of businesses and investors. My vision for FSC is not one of hibernation, but rather a proactive strategic position in which to look for challenges, both at the macroeconomic level and at the operational business level. I believe that regardless of the new economic reality and geopolitical situation, today we all declare our willingness to work together for the stability and future of the Bulgarian economy, upholding the global digitalization, the European Green Deal and the upcoming entry into the euro area- trends that provoke us to be united in order to be sustainable, on the one hand, and on the other – to boldly face any change,” he stated.
According to him, the biggest challenge is undoubtedly the introduction of the euro, on which the future of the Bulgarian economy and life in the country depends. Leading among other challenges are financial innovations, which can position the capital market at a new level, but also must be carefully introduced. The Chair of FSC also shared that “we ourselves are actively working for the digitalization of the Financial Supervision Commission – reducing the administrative activity for the supervised persons, so that Bulgaria is a place where it is easy to do business”. He announced the launch of a mobile application of the FSC within days, for the convenience of users and supervised persons.
After the adoption of the new regulations, the Financial Supervision Commission will have the important task to create regulatory certainty and increased operational resilience of digital technologies in the financial sector by encouraging the development of innovation, but also by continuing to maintain a secure environment for optimal, but above all secure user experience.
The second panel was dedicated to “Looking ahead – banks and their clients” with the participation of Atanas Pekanov, Acting Deputy Prime Minister for the Management of European Funds, Tsvetanka Mincheva, Deputy Chair of the Board of Directors of ABB and Miroslav Vichev, CEO of Borika AD.
The conference was followed by a celebratory cocktail on the occasion of Banker’s Day.
List of entities which are not authorised by FSC
You can find the list of the non-licensed Investment intermediaries in the attached file – 01.12.2022