On 27.11.2021 an examination was held for acquiring professional qualification of insurance brokers and for recognition of qualification acquired in a Member State under Ordinance No. 28 of 10.05.2006 of the FSC on the terms and procedure for conducting an examination for the professional qualification of insurance brokers and for the recognition of a qualification acquired in a Member State and for the registration of vocational training materials. (Ordinance No. 28 of 10.05.2006).

The admitted 7 (seven) candidates took the exam, and 3 (three) of them successfully passed.

Pursuant to Art. 10, para. 2 of Ordinance No. 28 of 10.05.2006, the Financial Supervision Commission announces the results of the examination for professional qualification of insurance brokers, held on 27.11.2021, as follows:

List of candidates who have passed the examination:

Reference number          Name    Score

РГ-14-159-1/15.10.2021               Ivan Vasilev Todorov      94 p.

РГ-14-165-1/04.11.2021               Nikoleta Stoyanova Moldovanska-Aleksieva       86 p.

РГ-14-163-1/01.11.2021               Mihail Dimitrov Daskalov             82 p.

List of candidates who have not passed the examination:

Reference number

Score

РГ-14-160-1/19.10.2021               68 p.

РГ-14-161-1/20.10.2021               66 p.

РГ-14-162-1/01.11.2021               62 p.

РГ-14-164-1/02.11.2021               56 p.

Certificates signed by the Chairman of the Financial Supervision Commission will be issued to the persons who have successfully passed the professional qualification examination.

On 23 November 2021 a conference entitled “Bulgaria on the European Fintech Map” was held to present the Annual Report of the Bulgarian Fintech Association for 2021. The event was dedicated to investments in the sector and the place of our country in Europe and the world.

Fintech regulations in the non-banking financial sector were presented by Ms. Neda Muzho – Head of Supervision of Public Companies, Issuers of Securities and SPVs, who took part in the conference.

She noted that the last year, marked by the Covid-19 pandemic, not only changed our understanding of reality, but imposed new rules and gave a strong impetus to the digital transformation in the non-banking financial sector.

Ms. Muzho outlined the key topics in the fintech sector for the period 2021-2025, namely: creating “strategic autonomy”, ensuring a level playing field, strengthening EU oversight, competition and the clash of digital policies.

She also drew attention to the strategic goals set for the new business model:

 Financial literacy;

 Dialogue within the framework of creating an ecosystem of connections within 2020-2030. on “Fintech and establishing conditions for stimulating sustainable business models through smart regulations”;

 Development of cybersecurity.

Ms. Muzho ended her address with the words: “We are here together at this conference with responsibility, because we are building a new pillar that is very important and necessary for sustainable development, and this is perhaps the most important role of the Financial Supervision Commission, offering financial stability in the long run.”

Mr. Petar Dzhelepov – Member of the Financial Supervision Commission (FSC) took part in the Annual Report of the Bulgarian Fintech Association for 2021, dedicated to investments in the sector and the place of our country in Europe and the world, with an address on fintech regulations in the non-banking financial sector in Bulgaria and the strategy of the regulator for monitoring the financial innovations.

In the report, Mr. Dzhelepov analyses and outlines the successful development of the fintech sector in Bulgaria, the high technological progress in the non-banking financial sector, the regulations of these important innovations and digitalisations, the Financial Innovation Monitoring Strategy for the period 2021-2024, the introduction of the Innovation hub and its subsequent development, as well as the overall future of the fintech regulations applied by the Financial Supervision Commission.

One of the main goals of the Commission is the introduction of more innovations in the insurance, investment and pension insurance sector in Bulgaria, and at the same time protecting the interests of consumers to the possible maximum.

“In order to keep up with the new digital environment and the expectations of both participants and end users, we must constantly assess and, where necessary, adjust the regulatory framework to adequately deal with the changing risks and business models.” In order to ensure and adequately evaluate new product and business models, we conduct regular surveys on how innovations work and how innovations are applied and accepted among the companies under the Commission’s control. In addition, the main goal set by the Chairman of the FSC, Boyko Atanasov is the organization and implementation of educational programs aimed at increasing the financial literacy of consumers of financial services.”- said Mr. Dzhelepov.

The Financial Supervision Commission pursues a consistent innovation policy and in response to the digital financing package adopted by the European Commission, the FSC has adopted a Financial Innovation Monitoring Strategy for the period 2021-2024. It builds on the previous strategy and outlines a long-term directions in which the FSC would be committed to developing its supervisory activities and implementing the harmonization of the national regulatory framework and practices in the field of financial innovation at EU level.

The Higher School of Insurance and Finance (VUZF) and the Laboratory for Scientific and Applied Research VUZF Lab, together with the Bulgarian Stock Exchange (BSE), organized a round table on “The Green Deal and the Future of Investment and Banking”.

Mr. Boyko Atanasov, Chairman of the Financial Supervision Commission, opened the event. He personally congratulated the organizers and Assoc. Prof. Dr. Grigory Vazov, Rector of the VUZF, for initiating the professional and expert debate, which aims to discuss aspects and expected effects of the Green Deal with the banking and investment community in Bulgaria.

Mr. Atanasov said that “The Green Deal is a huge opportunity for our country, because it can be the catalyst we need to achieve accelerated economic growth and increase the economic level of business and important economic and social processes”. He also noted that on the one hand through the European Green Pact and through the Investment Plan for Sustainable Europe Bulgaria will receive large investments, and on the other hand, the Green Deal will provide stability and sustainability of processes in terms of competitiveness in Europe and nationwide, which will affect energy efficiency. It is through the Green Pact Investment Plan that a framework will be created to facilitate and stimulate public and private investment in the transition to an independent, environmentally friendly and competitive economy.

The FSC Chairman pointed out that “against the background of the turbulent times we live in – times of pandemics, economic crises and inflation, the financial community must be predictable and prepared for the challenges ahead and which we will face tomorrow.”

Mr. Boyko Atanasov also sent a strong message to the participants in the debate that discussion and sharing of various expert points of view will outline the vision, strategies and specific goals for the future of the financial sector as a result of the Green Deal.

The Deputy Chairpersons of the FSC, heads of the Investment Supervision Department and the Insurance Supervision Department, were also special guests at the event. They joined the discussion with the representatives of the investment community on the challenges arising from the implementation of the new regulatory framework related to sustainable finance and the opportunities for creating and offering new financial products. Both Ms. Filipova and Mr. Savov noted that the direction of work is to further the awareness of market participants and investors so that they can review opportunities for sustainable investment. For this reason, the roles of issuers, including insurers in the process of transition to sustainable investment, as well as investment firms and management companies, which will provide the necessary information to their current and potential clients about the prospect of sustainable finance, are particularly important.

The representatives of the FSC expressed confidence that the joint efforts of business and the regulator will achieve the necessary balance between business activities, environmental protection and social aspects to ensure lasting added value for Bulgarian society.

The Financial Supervision Commission draws the issuers’ attention to the fact that the deadline for announcing a public notification on a consolidated basis of financial position for the third quarter of 2021 before the FSC and the media expires on 29.11.2021.

According to Art. 100 o1, para. 2 of the Public Offering of Securities Act (POSA), the issuer is obliged to submit to the FSC a public notification / report on a consolidated basis on its financial position for the third quarter of 2021 within 60 days from the end of the respective quarter. The public notification / report on the financial position of the company shall be submitted to the FSC by the procedure of Art. 100t, para. 4 of the POSA, namely through the unified system for providing information electronically – e-Register. The public notification / report on the financial position of the company shall be disclosed to the public in the manner provided in Art. 100t, para. 3 of the POSA, through an information agency or other media selected by the company within the statutory term for the third quarter of 2021, namely until 29.11.2021 inclusive.

The Social Insurance Supervision Department of the FSC announced the results of the supplementary pension insurance activity for the first nine months of 2021. The information was obtained on the basis of the reports and references submitted by the pension insurance companies to the Financial Supervision Commission. The data on distribution of insured persons by sex and age in the supplementary pension insurance funds as of 30.09.2021 have also been published.

The total number of insured persons in the four types of supplementary pension insurance funds as of 30.09.2021 is 4,827,412 people, increasing compared to 30.09.2020 by 0.37 per cent.

As of 30.09.2021, net assets in the amount of BGN 18,833,129 thousand have been accumulated in the supplementary pension insurance funds. Compared to the first nine months of 2020, the net assets of pension funds increased by 14.41 percent.

The total revenues of the pension insurance companies for the first nine months of 2021 amount to BGN 248,545 thousand. The net financial result of the companies as of 30.09.2021 amounts to BGN 73,702 thousand.

In September 2021, the first persons insured in the universal pension funds reached retirement age. For the due payments to these persons in September 2021 from the universal pension funds BGN 334 thousand were set aside for lifelong pensions, BGN 824 thousand for deferred payments and BGN 7 thousand for one-off payments. The funds set aside for lifelong pensions and deferred payments go to funds for payment of lifelong pensions and funds for deferred payments, from where the respective payments will be made. More data on the activity of the payment funds will be announced as of 31.12.2021.

Information on the results of the supplementary pension insurance activity for the first nine months of 2021 and on the insured persons and the accumulated funds in the supplementary pension insurance funds as of 30.09.2021 by sex and age are available in the section: Social Insurance activity / Statistics / Statistics and analysis.

The Social Insurance Supervision Department of the FSC announced the results of the supplementary pension insurance activity for the first nine months of 2021. The information was obtained on the basis of the reports and references submitted by the pension insurance companies to the Financial Supervision Commission. The data on distribution of insured persons by sex and age in the supplementary pension insurance funds as of 30.09.2021 have also been published.

The total number of insured persons in the four types of supplementary pension insurance funds as of 30.09.2021 is 4,827,412 people, increasing compared to 30.09.2020 by 0.37 per cent.

As of 30.09.2021, net assets in the amount of BGN 18,833,129 thousand have been accumulated in the supplementary pension insurance funds. Compared to the first nine months of 2020, the net assets of pension funds increased by 14.41 percent.

The total revenues of the pension insurance companies for the first nine months of 2021 amount to BGN 248,545 thousand. The net financial result of the companies as of 30.09.2021 amounts to BGN 73,702 thousand.

In September 2021, the first persons insured in the universal pension funds reached retirement age. For the due payments to these persons in September 2021 from the universal pension funds BGN 334 thousand were set aside for lifelong pensions, BGN 824 thousand for deferred payments and BGN 7 thousand for one-off payments. The funds set aside for lifelong pensions and deferred payments go to funds for payment of lifelong pensions and funds for deferred payments, from where the respective payments will be made. More data on the activity of the payment funds will be announced as of 31.12.2021.

Information on the results of the supplementary pension insurance activity for the first nine months of 2021 and on the insured persons and the accumulated funds in the supplementary pension insurance funds as of 30.09.2021 by sex and age are available in the section: Social Insurance activity / Statistics / Statistics and analysis.

The protection of consumers of financial products and services in the non-banking financial sector is one of the statutory objectives of the FSC. The program reflects the set priorities and the main strategic goal of the EU, namely the consumer protection policy related to improving the quality of life of European citizens. The program is aimed at establishing the proper functioning of the single internal market and at the same time – effective protection of consumers’ financial interests. It is therefore important that consumers have access to information about the people who provide the services, the products they offer, and the risks associated with them.

For the period from 01.10.2021 to 31.10.2021 the FSC received notifications from the competent authorities of Member States regarding the intention of 41 (forty-one) insurers and insurance intermediaries based in other EU Member States to operate (entry or termination of the notification) on the territory of the Republic of Bulgaria under the terms of the freedom to provide services.

1 (one) notification was received regarding the intention of an insurance company based in the Republic of Croatia to operate on the territory of the Republic of Bulgaria under the terms of freedom to provide services, and by the end of October 2021 the total number of insurance companies based in other EU and EEA Member States which intend to operate in Bulgaria under the terms of freedom to provide services, increased to 414 (four hundred and fourteen).

For the period, the FSC received 8 (eight) notifications regarding the intention of insurance intermediaries based in EU Member States to carry out insurance mediation activities in Bulgaria under the terms of freedom to provide services, as well as 17 (seventeen) notifications for termination of such activity in the country. As a result, as of 31.10.2021, the number of insurance intermediaries based in EU Member States that have stated their intention to carry out cross-border insurance intermediation activities in Bulgaria decreased to 2,218 (two thousand two hundred and eighteen).

For the period 01.10.2021 – 31.10.2021 the FSC has not sent notifications to the national competent authorities of the EU Member States regarding the intention or withdrawal of the intention of the insurance companies and insurance intermediaries based in the territory of the Republic of Bulgaria to carry out cross-border activity.

As of the end of October 2021, the total number of local insurance companies that have stated their intention to carry out insurance activities in the territory of other EU and EEA Member States under the terms of freedom to provide services is 17 (seventeen), and the total number of insurance intermediaries based in the Republic of Bulgaria, which have stated their intention to carry out insurance intermediation activities on the territory of EU Member States under the terms of freedom to provide services or the right of establishment, remains 53 (fifty-three).

The updated lists of notifications are available on the FSC website in the section “Supervised entities” – “Notifications”.

After checking all submitted applications and accompanying documents, the Deputy Chairperson of the FSC, head of the Insurance Supervision Department, decided to admit the following candidates to the exam:

Reference number          Decision No.

РГ-14-159-1/15.10.2021               791-ЗБ/28.10.2021         admitted

РГ-14-160-1/19.10.2021               793-ЗБ/01.11.2021         admitted

РГ-14-161-1/20.10.2021               792-ЗБ/01.11.2021         admitted

РГ-14-162-1/01.11.2021               801-ЗБ/02.11.2021          admitted

РГ-14-163-1/01.11.2021               802-ЗБ/02.11.2021         admitted

РГ-14-164-1/02.11.2021               810-ЗБ/09.11.2021         admitted

РГ-14-165-1/04.11.2021               807-ЗБ/05.11.2021         admitted

The examination will be conducted in accordance with all adopted anti-epidemic measures. In connection with Order No. РД-01-856 of 19.10.2021, supplemented on 21.10.2021, of the Minister of Health (MH) and in particular with item 2 and item 31, the admitted candidates should meet the requirement to be vaccinated or have recovered from COVID-19 or have a negative test result, certified by valid documents for vaccination, recovery or testing within the meaning of Order No. РД-01-733 of 27.08.2021 of the Ministry of Health.