Resolutions Passed at a Session of the FSC Held on February 15, 2005
22/02/2005The Financial Supervision Commission adopted the following resolutions at a meeting held on February 15, 2005:
1. The Commission imposed a temporary prohibition on a tender offer submitted by ET Zaara – Yancho Ivanov, Stara Zagora, for the purchase of shares of Parvomai BT AD, Parvomai, from the company’s other shareholders through the Investment Intermediary Aval In AD, Sofia.
2. The Commission imposed a temporary prohibition on a tender offer submitted by Bulgaria – Tex AD, Svilrengrad, and Bulgaria 2000 AD, Kazanlak, for the purchase of shares of Bulgaria – K AD, Kazanlak, from the company’s other shareholders through the Investment Intermediary Bulbrokers AD, Sofia.
3. The Commission imposed a temporary prohibition on a tender offer submitted by Lukoil Europe Holdings B.V., Holland, for the purchase of shares of Lukoil Neftochim Burgas AD, Burgas, from the company’s other shareholders through the Investment Intermediary Raiffeisenbank (Bulgaria) EAD, Sofia.
4. The Commission approved a prospectus for public offering of 7,150,000 pieces of shares, having a nominal value of BGN 1 each, issued by BenchMark Fund Estates REIT as a result of increase in the company’s share capital to the amount of BGN 7,800,000. The capital increase shall be performed through issuance of 650,000 rights, each one entitling the shareholders to the right to subscribe for 11 shares of the capital increase.
5. The Commission adopted a Procedure for holding examinations to gain the right to perform activities as a broker or an investment consultant in year 2005. The Procedure for holding the examinations, as well as the topical synopsis for the examinations, shall be published on the Commission’s website.
The Commission fixed dates for holding the examinations as follows:
May 28, 2005 – Examination to gain the right to perform activities as a broker
May 29, 2005 – Examination to gain the right to perform activities as an investment consultant
6. The Commission adopted Regulations on Introducing Amendments to the Rules Governing the Organization and the Activities of the Guarantee Fund.
By adopting the Law on Introducing Amendments to the Insurance Act in October last year, the status of the Guarantee Fund /GF/ was also amended. The adoption of Rules Governing the Organization and the Activities of the Guarantee Fund, as well as the current supervision on conformity with the law, which is exercised by the Commission over the fund, fall within the scope of the Financial Supervision Commission’s prerogatives. The said fund is managed by a managing board comprising a chairperson and four members, elected by the Management Board of the Association of Bulgarian Insurers /ABI/ among representatives of the insurers who conduct activities on the conclusion of the compulsory Civil Liability insurances with the owners, users, holders and drivers of vehicles, as well as Accident insurance. The new points introduced under the Rules are as follows:
- The GF’s funds, decreased by the reserve for forthcoming payments, may not be less than BGN 3 mln.; when the Fund’s funds drop below this minimum amount for more than a month, the deficit shall be made up for with funds of the insurers who conclude compulsory insurances;
- The timeframe for delivering a judgment on a claim may not be longer than 30 days, where in the case of expiration of the said timeframe, default interest shall be due to the damaged person from the date, on which the timeframe for delivering the judgment on the claim expired.
The new Draft Rules were submitted by the ABI, amended by the experts with the FSC, adopted on today’s session of the Commission, and is to be promulgated in the State Gazette.