Amendments to the FSC Ordinance N3 adopted

The Commission adopted amendments to the Ordinance N3 for the methods for change of participation and transfer of the accumulated sums of an insured person from one supplementary social insurance fund to a relevant fund managed by other social insurance company.

Amendments to Ordinance N 6 adopted

The Commission adopted amendments to Ordinance N 6 from Oct 22, 2003 for the capital adequacy and the liquidity of the investment intermediaries.


 

Amendments to Ordinance N 4 on the obligatory insurance

FSC adopted amendments to  Ordinance N 4 on the obligatory insurance. According to the amendments the insurance companies are forbidden to provide any goods, services or discounts which are not part of approved by the supervisory body general conditions, tariff and technical plan of the insurance.

FSC also adopted instructions for implementation of par. 129, art.1, item 3  and par. 201, art.1, item 1  from the Social Insurance Code.

Amendments to Ordinance N 12

FSC adopted amendments to  Ordinance N 12 on the method and system for assessment of the minimal return  on the assets of supplementary obligatory pension insurance funds; for covering the difference up to the minimal return, and for forming and using the reserves in order to guarantee minimal return

FSC also adopted instructions under par. 13, art.1, item 1 from LPOS related to par. 170, art.1 from the Social Insurance Code.

AIG Life Bulgaria permitted to invest reserves abroad

Nuredin Kafelov, Member of the FSC, Head of Insurance Supervision Division, gave a permission to AIG Life Bulgaria to invest insurance reserves of the insurances denominated in EURO in government securities abroad. The insurance company can invest up to 100 % in government bonds, issued by European governments having  S&P rating “A” or higher, and up to 20% in corporate securities (bonds) with rating “A+” or higher.
In order to guarantee the rights and interest of the insured persons AIG Life Bulgaria must submit with the FSC monthly reports providing information on the premium income, on the amount of the insurance reserves of the insurances denominated in EURO, as well data  about the investment portfolio, formed as a result of the investments made abroad.

Achieved investment results in the management of the supplementary pension funds for the period 2006 – 2010

By 31st of March every year, the pension insurance companies must announce the achieved investment results (rate of return and investment risk) of the managed by them pension funds. The content and form of this information is specified in the Requirements to the advertising and written information materials of the pension funds and of the pension insurance companies. According to Item 23 of the above stated document, the information of the achieved investment results of the pension funds covers:

  • the nominal rate of return, as a percent, from the management of the pension fund’s assets for each calendar year from the preceding five-year period;
  • the average nominal rate of return, as a percent, from the management of the pension fund’s assets for the preceding five-year period, calculated as geometric mean of the rate of returns for each ear of the period;
  • the level of investment risk in the management of the pension fund’s assets for each calendar year from the preceding five-year period, measured by the indicator standard deviation of the rate of return;
  • Sharp coefficient, in case that the achieved nominal rate of return is higher than the risk-free rate of return for the relevant year;
  • a graph about the value per one unit as at the last business day of each month for the preceding five-year period.

In relation to Item 23 of the Requirements to the advertising and written information materials of the pension funds and of the pension insurance companies and in consistence with the adopted practice for enhancement of the insured persons’ knowledge, Social Insurance Supervision Division of the Financial Supervision Commission announces the investment results, achieved for the period 2006 – 2010, in the management of all supplementary pension insurance funds.

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.

A Memorandum of Understanding on Mutual Assistance and Exchange of Information was signed by and between the Financial Supervision Commission and the Hellenic Capital Market Commission


On this 28th day of March, 2005, in Sofia City, a Memorandum of Understanding on Mutual Assistance and Exchange of Information was signed by and between the Financial Supervision Commission and the Hellenic Capital Market Commission. The Memorandum was signed by the Chairmen of both Institutions – Mr. Apostol Apostolov and Mr. Alexios Pilavios.

This is a further step forward towards extension of the co-operation between the two supervisory institutions, which is to contribute to the establishment and improvement of efficient mechanisms for exchange of information and relative experience in connection with the development of the capital market in both countries.