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.

At today’s meeting of 02.11.2021, the FSC decided to initiate proceedings for the issuance of a general administrative act – Decision to determine the amount of contributions to the Guarantee Fund under Art. 554, item 1 of the IC in the Uninsured Vehicle Fund and the contribution under Art. 563, para. 2, item 3 of the IC in the Security Fund in 2022, as well as the deadlines for their implementation.

The Guarantee Fund manages two funds – the Uninsured Vehicle Fund and the Security Fund. The Uninsured Vehicle Fund pays compensation in case of damage from an unidentified motor vehicle or, if the driver is without Motor Third Party Liability Insurance, and the Insurance Fund pays claims to persons with an insolvent insurer.

At present, the contribution to the Uninsured Vehicle Fund is BGN 10.50 for each insured motor vehicle under Motor Third Party Liability and BGN 0.15 for each seat in a public transport vehicle for Public Accident Insurance for Passengers in Public Transport. The contribution to the Security Fund is BGN 2.50 for each vehicle insured for Motor Third Party Liability.

At the proposal of the Guarantee Fund Council, the contribution of insurers offering in the Republic of Bulgaria compulsory motor third party liability insurance to the Fund for Uninsured Motor Vehicles in the Guarantee Fund remains at BGN 10.50 for each insured motor vehicle. The amount of the contribution of the insurers who offer in the Republic of Bulgaria compulsory Accident insurance for the passengers in public transport under Art. 461, item 2 of the IC also does not change and remains BGN 0.15 for each seat, excluding the driver’s seat in the vehicles.

The contribution to the Security Fund also remains BGN 2.50 for each insured vehicle under the Motor Third Party Liability.

The total contribution to the GF of each insured motor vehicle under the Motor Third Party Liability remains BGN 13.00, which is distributed in the two funds in question.

Pursuant to Art. 66, para. 1 of the APC, the opening of the proceedings for issuing the general administrative act shall be announced publicly by publishing the draft act on the FSC website in the section “Public consultations”.

Pursuant to Art. 69, para. 1, item 1 of the APC, the form for participation of the interested parties in the procedure for issuing the act is “Written proposals and objections”.

Pursuant to Art. 69, para. 2 of the APC, the term for submitting the written proposals and objections is one month from the date of publication of the announcement for initiating the procedure for issuing the administrative act on the FSC website and expires on 02.12.2021 inclusive.

To clarify the reporting of information by investment firms in accordance with the applicable requirements of Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014 (Regulation (EU) 2019/2033), the Financial Supervision Commission shall inform investment firms of the stage of implementation of the new prudential supervision at European level and the expected reporting format. Investment firms are provided with template reporting forms developed by the European Banking Authority, as well as information on draft regulatory technical standards, available on the websites of the European Banking Authority and the European Commission.

Draft regulatory technical standards based on Regulation (EU) 2019/2033 are available on the European Banking Authority’s website here.

Draft regulatory technical standards based on Regulation (EU) 2019/2033 are available on the European Commission’s website as follows:

Draft Delegated Regulation with regard to regulatory technical standards specifying the methods for measuring the K-factors;

Draft Delegated Regulation with regard to regulatory technical standards specifying the notion of segregated accounts to ensure client money’s protection in the event of an investment firm’s failure;

Draft Delegated Regulation with regard to regulatory technical standards specifying the methods for adjusting the K-factor “daily trading flow” (K-DTF);

Draft Delegated Regulation with regard to regulatory technical standards specifying the methods for adjusting the K-factor “clearing margin given” (K-CMG);

Draft Delegated Regulation specifying the criteria for subjecting certain investment firms to the requirements of Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/2012;

The applicable reporting forms developed by the European Banking Authority, as well as instructions for filling in, can be downloaded here.

You can send your questions on the implementation of the new prudential supervision to delovodstvo@fsc.bg.

In order to inform the supervised entities and the public in the Republic of Bulgaria and to the commitments made by the Financial Supervision Commission in the person of Boyko Atanasov, Chairman of the Commission to EIOPA and ESMA, the Communications Directorate presents the statement of the European Securities and Markets Authority (ESMA). The EU Securities Regulator explains the rules that apply when someone established inside or outside the EU disseminates information offering an investment solution for financial instruments issued in the EU (e.g. stocks or bonds) aimed at wide audience. Dissemination of information would involve, for example, sharing an opinion on the current or future price of a share.

In EU law, this is called an investment recommendation.

What is an investment recommendation? EU law defines an investment recommendation as information that recommends or proposes an investment strategy, directly or indirectly, on one or more financial instruments or their issuers, including opinions on the current or future value or price of such instruments intended for dissemination channels or for the public. Dissemination channels can be analytical reports, articles, traditional media or even social media.

Who should read this statement? Anyone who recommends investment in any way or form through any platform, and anyone who makes investment decisions based on investment recommendations made on any platform. This includes social media.

What’s the problem here? The possibility of investors being misled. Investment recommendations must be made in a specific and transparent way so that investors, before making an investment decision, can know and evaluate: 1) the reliability of the recommendation and its purpose; and 2) all the interests of the authors of the recommendations. In this way, everyone is free to express an opinion without harming other people in the process.

Who prepares investment recommendations? Usually companies such as banks and brokers, but also financial analysts. However, other persons proposing an investment strategy may be deemed to make an investment recommendation when the proposal is intended for wider dissemination. This includes social media posts. In addition, if someone often makes investment recommendations with the aim of reaching a wide audience and he presents himself as having financial expertise, this may mean that the person could be considered an expert. In this case, the law requires more disclosures.

Where are the rules? The rules are contained in EU Regulation (EU) No. 596/2014 on market abuse. They require those who make investment recommendations to disclose their identities, present recommendations in an objective manner and disclose any relationships or circumstances that could impair objectivity. Additional rules must be followed by experts.

What happens if the rules are not followed? EU regulators proactively monitor the behaviour, orders and transactions of market investors. An investigation shall be carried out if there are grounds for doing so. If the rules related to investment recommendations are not followed, fines or further supervisory actions may be imposed, which may include a referral to the prosecutor’s office.