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.
On May 19, 2022, for the fourteenth year in a row, the most prestigious annual awards in the insurance and pension insurance sector in our country were presented – Insurer of the Year, Pension Insurance Company of the Year and Insurance Broker of the Year for 2021, as well as the annual awards of the Prof. Dr. Veleslav Gavriyski Foundation.
The prestigious awards are organized by the Higher School of Insurance and Finance (VUZF), the Association of Bulgarian Insurers (ABI), the Association of Supplementary Pension Insurance Companies (BASPSC), the “Prof. Veleslav Gavriyski” foundation and the Bulgarian Association of Insurance Brokers (BAIB). The criteria by which the winners are determined are announced publicly, and an expert jury of representatives of the organizers nominates the awardees in 9 categories.
Among the official guests at the ceremony this year were Boyko Atanasov, Chair of the Financial Supervision Commission, Diana Yordanova – Deputy Chair of the Financial Supervision Commission, Head of the Social Insurance Supervision Department and Vladimir Savov – Deputy Chair of the FSC, head of the Insurance Supervision Department.
“I believe that, together with the professional community, we will continue to work for the sustainable stability of the non-banking financial sector in Bulgaria, to preserve trust and confirm the standards of good insurance and insurance practices“, said Mr. Boyko Atanasov. He presented the grand prize Insurer of the Year in the Non-Life Insurance category to IC Bulstrad Vienna Insurance Group AD.
Ms. Diana Yordanova, Deputy Chair of the FSC, Head of the Social Insurance Supervision Department presented the Pension Insurance Company of the Year 2021 award in the category Supplementary Mandatory Pension Insurance. The winner was PIC Doverie AD.
The Insurance Broker of the Year award in the Non-Life Insurance category, which went to SDI Group OOD, and the Insurer of the Year – Life Insurance award, winner DZI Life Insurance EAD, were presented by Mr. Vladimir Savov, Deputy Chair of the FSC, Head of the „Insurance Supervision department.
Nearly 200 students participated in the initiative of the Financial Supervisory Commission „The Super Power of the Young Investor“, dedicated to risk prevention in the use of investment products in the financial markets. With the initiative, the Financial Supervision Commission aims to establish both good partnership relations with schools and to contribute to increasing the financial literacy of high school students, some of whom have a targeted interest in the field of capital markets and future investors.
The first to participate in the pilot events were the teenagers from the 11th and 12th grades of the National Financial and Business School, the National Commercial and Banking School and the National Natural Science and Mathematics School.
Students were introduced to basic concepts from the world of investments, new technologies and integrated financial solutions. How the Bulgarian stock exchange functions, what is hidden behind the abbreviations DLT and NTF, what are Bitcoin, cryptocurrencies, quantum computers, what are the risks and how to react when they are established, are only some of the topics that were discussed with interest together with the teachers and their high school students.
„The Financial Supervision Commission is an institution directly involved in the process of increasing the financial literacy of society, especially young people. In our role as a regulator who creates conditions for security and stability in financial markets, this remains one of our strategic priorities, along with protecting consumers and strengthening public confidence in the capital market. By gradually starting to prepare teenagers for their encounter with the digital financial reality and innovation in the field of investments, we create the basis for this trust“, shared Boyko Atanasov – Chair of the Financial Supervision Commission.
The „Superpower of the young investor“ will continue to happen, covering all schools that have expressed their interest in joining the initiative.
The Chair of the Financial Supervision Commission (FSC) Mr. Boyko Atanasov and the Deputy Chairs of FSC – Mr. Vladimir Savov, Head of the Insurance Supervision Department and Ms. Diana Yordanova, Head of the Social Insurance Supervision Department, held an official meeting with Ms. Petra Hielkema, President of the European Insurance and Occupational Pensions Authority (EIOPA).
During the meeting, strategic priorities were discussed in two of the most important directions in the non-banking sector – insurance and pension insurance. The management of the Financial Supervision Commission declared its readiness to cooperate with EIOPA, within committees, taskforces and the implementation of common goals aimed at ensuring financial stability in the insurance and pension sectors.
The FSC expressed its gratitude to the European institution for its constant efforts to increase the expertise of national regulators. Through focused trainings, Commission staff will continue their participation in EIOPA events to improve and expand supervisory capacity.
The two institutions expressed mutual agreement on the common priorities facing them, namely digitization, sustainable finance, effective cooperation within the European Union (EU), financial innovation and consumer protection, as well as working in sync to achieve the – great convergence in the EU on the mentioned topics.
EIOPA, for its part, declared its readiness to be of assistance to national regulators and, in particular, to the needs of the FSC, as well as to assist in the achievement of common EU priorities. Both bodies agreed that with the upcoming Solvency 2 review legislation, the future legal framework for insurers recovery and resolution of insurers (IRRD), digitalisation and sustainable finance, there are new challenges that will be met through the established partnership.
“In 2022, the Financial Supervisory Commission started a new strategic period, and in it we will once again be in favor of consumers, through effective communication, objective decisions and predictable actions. Our meeting today gives us even more confidence, because in EIOPA we have not only a successful partnership, but also shared professional experience“, stated Mr. Boyko Atanasov, Chair of FCS.
On October 5, 2022, in the presence of officials and guests, an anniversary conference was held on the occasion of 140 years since the beginning of insurance in Bulgaria and 30 years since the establishment of the Association of Bulgarian Insurers (ABI). The prestigious event is organized by ABI, a long-standing partner of the Financial Supervision Commission (FSC).
The conference was opened by Mr. Konstantin Velev – Chair of the Board of ABI, Mrs. Daniela Dobreva – Deputy Minister of Finance and Mr. Boyko Atanasov – Chair of the Financial Supervision Commission. Leading figures of European insurance were also present – Mrs. Petra Hielkema, President of the European Insurance and Occupational Pensions Authority (EIOPA), Michaela Köhler – Director General of the European Federation of Insurers Insurance Europe and Didier Millero – Head of the Insurance and pension insurance Sector in the Directorate General „Financial Stability, Financial Services and Capital Markets Union“ of the European Commission.
Mr. Velev set the highlights of the conference – regulations, competitiveness and the growing climatic, demographic and digital risks of the modern age, as well as the search for appropriate protection against them.
In her speech, the Deputy Minister of Finance – Ms. Daniela Dobreva emphasized the successful partnership of the Ministry of Finance with the FSC and the ABI, as „the goal is to increase the protection of users of insurance services, guarantee financial stability and preserve the competitiveness of Bulgarian insurers“.
The Chair of the FCS – Mr. Boyko Atanasov welcomed the participants and shared that „the role of the Association of Bulgarian Insurers is to be a pillar of security, a balancer for diplomacy, a visionary for conquering new horizons. I believe that the words that best describe our joint work with the insurance sector in Bulgaria are dialogue, technological orientation and cause“.
The Financial Supervision Commission will continue to support the insurance industry and work to achieve a smooth implementation of the new regulations affecting this sector in the country. As of the first half of the year, it represented 3.9% of GDP calculated on the basis of gross premium income (insurance penetration), and 8.2% calculated on the basis of insurers’ assets (2021 data). For the first six months of 2022, Bulgarian insurers realized gross premium income in the amount of BGN 1.7 billion, taking into account an increase in written premiums of 11%, and for the same period benefits were paid in a total amount of BGN 684 million , with the same growing by 10% on an annual basis.
The cited data are an indicator of a stable insurance market, which is a prerequisite for a higher level of competitiveness and at the same time for maintaining confidence in it. Innovation is about to be created and introduced, with the potential to position insurance companies and their customers at another level.
During the conference, Mr. Vladimir Savov, Deputy Chair of the FSC, Head of the Insurance Supervision Department, took part in the discussion part of the panel „Insurance Market: Regulations and Competitiveness – in Search of the Balance“. Topics fundamental to insurance were discussed and effective policies were outlined to stimulate the development of the sector, with all the resulting benefits for the economy and society.
On October 21, Mr. Boyko Atanasov – Chair of the Financial Supervision Commission (FSC) opened the 20th edition of the educational program for students „The non-banking financial sector in Bulgaria“. The traditional initiative is organized in partnership with the Ministry of Education and Science (MES) and the Atanas Burov Foundation. In the anniversary edition of the event, 22 students from vocational schools with an economic and financial profile from the cities of Blagoevgrad, Gorna Oryahovitsa, Varna, Kyustendil, Plovdiv, Sofia, Burgas, Stara Zagora, Veliko Tarnovo, Shumen, Gotse Delchev, Sliven, Smolyan will take part. , Montana, Silistra, Petrich, Kardzhali, Ruse, Varna, Yambol and Dryanovo.
The educational program is unique in Bulgaria. In its anniversary edition, it presents a balanced content between online-based presentations and virtual interactions, dedicated to the pension insurance, insurance and capital market, with speakers – FSC experts and business representatives.
„I am honored to launch the 20th anniversary edition of the program, the focus of which is to increase the financial literacy of society. The sustainability of the program, its 20-year history, speaks of consistency, of commitment and, above all, of our responsibility to the generation that grows and is educated in the challenging environment of digitization and innovation.“ shared Mr. Atanasov.
During the training, students and their teachers will learn about the three-pillar model of pension insurance, the development of the insurance market in Bulgaria, the mechanisms for consumer protection, the types of insurance and insurance supervision. The capital market and stock exchange trading are also part of the program during which the topic of the digital field of safe investing is presented, as well as the ways in which investors are protected.
To make the content even richer and more comprehensive, in sync with the latest trends in the non-banking financial sector, in 2022, lectures on fintech business models, prevention of money laundering and terrorist financing, the “green deal”, cyber security and cryptocurrencies and more.
„I believe that the shared experience of the experts with whom you will work will help you to be more responsible for your finances, to be drivers of change, but above all with the awareness of financial culture, to have the confidence and courage to pursue your dreams you are.“ said Mr. Boyko Atanasov in his address to the participants.
The program continues until the middle of November, when all students will receive a certificate for their participation in the educational initiative.
Which, in your view, are the global trends in 2024 we could expect in the Fintech industry?
Boyko Atanasov: The Fintech industry is in a dynamic evolution state, whereat it incessantly reveals spectrum of innovations in front of us putting into question the established regulations. It is this industry, which namely provokes us to analyze the necessity of introducing progressive solutions accessible to a wider audience. I am deeply convinced that in the transforming financial ecosystem in 2024, services focused on personalized, secure and sustainable financial relationships, reflecting unprecedented technological advancement and consumer-centric innovation, will resonate.
In response to global trends in sustainability and environmental protection, this year we shall witness the rise of green (ESG) fintech trends, which will align financial technology with environmental considerations. Fintech solutions will evolve, so that by emphasizing both the sustainable investments and green financial activities, we will strive towards the goal of reducing the carbon footprint. The approach in question aims to connect technology with sustainability by strengthening the role of the financial sector in promoting practices that positively contribute to the environment and support global sustainability goals.
We are witnessing digitization in all of its aspects, including the use of blockchain and artificial intelligence (AI). In our role as regulator of the non-banking financial sector, it is very important for us to track innovative financing, evaluate new tools and practices, but at the same time protect consumers and act as a guarantor of the stability of the non-banking sector.
The advanced integration of artificial intelligence (AI) and machine learning (ML) will have significant impact on the customer experience, on the more precise detection and mitigation of fraudulent activities, and will optimize risk management strategies as well.
The development of these algorithms will lead to faster and more accurate financial solutions, invented to meet the unique needs and goals of individual users, so that we expect to enhance the level of their satisfaction and to increase their engagement.
The increased need for high cyber security will provide the basis for the protection of user data, tightly integrated in financial platforms. Improved features including advanced biometrics, multi-factor authentication and advanced encryption protocols will become ubiquitous elements of fintech security structure. These improvements will strengthen security barriers, protecting sensitive consumer information against potential threats and breaches, and maintaining integrity and trust in digital financial services.
How has the Financial Supervision Commission ensured adaptation of regulation to accommodate the evolving FinTech landscape in 2024?
Boyko Atanasov: It is important to note that regulatory approaches can vary in all jurisdictions. Specific adaptations will depend on regulations and priorities for each country or region, taking into account both technological progress and innovation as well as the European legislative framework.
FSC finalized the project for „Building a Unified Information System (UES). Since the autumn of 2023, the UES has been functioning successfully, and with its introduction, we report a significant improvement in the process of administrative service to citizens, businesses and supervised entities. All administrative services are fully accessible digitally. In addition to being part of the state administration system, in real time they are integrated with the activities and processes, and an exchange of information with the regulatory authorities of the EU – European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA).
Of particular importance for 2024 will also be the regulations of crypto assets, as the dynamic nature of financial markets accentuates digital financial services, which are an increasingly important part of the European economic environment. Although the FSC has not been unequivocally designated as the national competent authority in this area, our daily work with the European regulators, in the face of ESMA, gives us the reason to be directly involved in this process and to follow the legislative changes, still at an initial level, but with the expectation that they will completely change the financial landscape of Europe. We are monitoring the implementation of the two acts: the European Digital Resilience Act (DORA) and the Markets in Crypto Assets Regulation (MiCA). The DORA Regulation, which entered into force in January 2023, aims to create a regulatory framework for digital operational resilience through which all companies can ensure that they can withstand all types of disruptions and threats related to information and communication technologies (ICT), with the aim of preventing and mitigating cyber threats. On the other hand, MiCA’s goal is to create a regulatory framework for the crypto asset market that supports innovation and harnesses the potential of crypto assets in a way that preserves financial stability and protects investors. EU countries must adopt national laws aligned with the regulation by June 2024, with full implementation starting in stages. DORA and MiCA will support innovation and the deployment of new financial technologies while ensuring an appropriate level of protection for consumers and investors.
Are there specific regulatory challenges or opportunities that the Bulgarian FinTech business may face in the current and the following years?
Boyko Atanasov: It is important for the Bulgarian FinTech business to keep up with the evolving regulatory environment, to engage in constant dialogue with the relevant industry associations and to seek legal advice in order to navigate the specific challenges and opportunities in the country. Some common challenges and opportunities for FinTech businesses in Bulgaria are the regulatory framework, licensing and authorization, data protection and privacy, risk management and cyber security.
As for the opportunities, they are: digital transformation, financial inclusion, cooperation with traditional institutions, government support and initiatives, and cross-border expansion.
How does the Financial Supervision Commission promote cooperation between traditional financial institutions and FinTech startups, especially in the non-banking sector?
Boyko Atanasov: The Financial Supervision Commission always proactively participates in cooperation programs and initiatives, provides regulatory guidance and support. Showing regulatory flexibility and sharing information is paying off. I believe that our continued partnership with the Bulgarian FinTech Association will contribute to promoting the creation of innovation centers and incubators.
The role of the FSC is to provoke the achievement of synchrony between the regulatory requirements and their implementation in a digital environment, with the ultimate goal being to reduce the administrative burden.
Part of the concrete results is the functioning Innovative Hub, providing a single point of contact with FinTech companies and the changed regulations for accessibility to the capital markets of small and medium-sized enterprises, the successfully functioning UES and the mobile application – FSC Mobile, the purpose of which is to help users and supervised entities, through the use of the most popular operating systems – Android and iOS.
The Financial Supervision Commission will continue to actively work and be in dialogue with the non-banking financial sector participants, as the result of the partnership between the national regulator and the business is the maintenance of a sustainable and innovation-friendly business environment.
The Financial Supervision Commission – with a commitment to stable results in a time of digitalization, green investments and regulatory changes
In the context of the post-Covid pandemic, global digitization, the European Green Deal, the hostilities in Ukraine and on the threshold of the euro area the Financial Supervision Commission continues to work for stability of the insurance market in Bulgaria, to introduce innovations in the regulation of the capital market, as well as ensure absolute strictness and complete transparency of the actions and processes of the pension insurance market. The development trend of the capital market is headed towards digitization and creation of conditions for more participants and reduced administrative burden. The positive relationship between innovation and financial technology has already reshaped standard consumer behavior and thinking, and this process has led to new opportunities for realizing optimized business models. At the same time, we, the participants in the financial sector, have the task of analyzing and forecasting potential risks. It is in this direction that the FSC focuses its activity on the balance between the promotion of innovation on the part of companies for investment purposes and the protection of consumers from the negative aspects that the new online space implies. In order to achieve results with the set development strategy, the Financial Supervision Commission has passed through specific steps such as the development of financial literacy of users of financial services and investors, improving the communication process by conducting regular meetings with FinTech companies to discuss minimal risks and maximum benefits from technologies, promoting the development of start-up companies by activating the capabilities of the Innovative Hub, as well as adapting the new regulatory framework for crowdfunding. Together with the participants in the non-banking financial sector, we create a sustainable and innovation-friendly business environment, with an emphasis on the need for a partnership between the national regulator and business. Dynamics in the development of technologies and digitization have a key role in changing consumer attitudes and growth expectations. The role of the FSC is to provoke the sync between the regulatory requirements and their implementation in a digital environment, with the ultimate goal being to reduce the administrative burden. Part of the specific results are the functioning Innovation Hub, providing a single point of contact with FinTech companies and the changed regulations for access to the capital markets of small and medium-sized enterprises. The FSC mobile application, building a unified information system for submitting and receiving information from supervised persons in an electronic standardized format is also in progress. An interesting moment in the current situation is that, within the framework of integrating innovations to reduce the administrative burden, the European Commission presented a Proposal for a Regulation of the European Parliament and the Council establishing a European single access point (ESAP). Its purpose is to provide the public with centralized access to all necessary information relevant to financial services. The European single access point will give investors easy, fast and comparable access to data on European companies, thereby also facilitating access to financing for European companies. ESAP is expected to contribute to the further integration of financial services and capital markets in the EU single market and to promote the development of smaller national capital markets and economies by providing greater visibility to them. The Financial Supervision Commission, in sync with the European Commission, introduces measures to implement the new regulations and creates conditions for the realization of the vision of a European single access point. Certainly one of the extremely meaningful and cause-oriented topics is that of the “Green Deal”. Ecology, social responsibility and transparent management are already part of the worldview and way of thinking of institutions and regulators in Europe. In accordance with the objectives of the European Union, the Financial Supervision Commission in Bulgaria supports through specific actions the targeting of national and European funding towards a sustainable economy, the planning of tools for business recovery after crises, as well as the balanced regional development of the country. I believe, and I see the specific results, that the Bulgarian regulator in the non-banking sector strategically arranges its actions in support of achieving the goals of the “Green Deal”. In this line of thinking, we all as a society are tasked with turning our attention to renewable energy, energy efficiency, green buildings, clean transportation, products created by the circular economy. After the adoption of the European Green Deal, the focus of the FSC will be on financial risks for institutions and the financial system, as well as on sustainability risk (ESG risks). When we talk about achieving sustainable goals, examples are always important. Green bonds are a suitable financial instrument for large-scale sustainability projects, by giving access to a robust financing tool for green projects compliant with the EU taxonomy. On the other hand, investors in such bonds will be able to more easily assess and compare the sustainability of their investments, which will reduce risks and strengthen their confidence in the market. The new EUGBS voluntary standard will be open to all EU and non-EU issuers, including corporations, financial institutions and issuers of covered bonds and asset-backed securities, as well as governments and other public bodies. In this regard, the challenges to the FSC to exercise its supervisory powers over capital market participants in compliance with the requirements laid down in the legislative package for Sustainable finance, namely the Disclosures Regulation, the Climate and Sustainable Finance Benchmarks Regulation and the Taxonomy Regulation. The FSC is also a major participant in the process of creating the National Plan for the Introduction of the Euro in Bulgaria. The FSC’s vision for this key process for the Bulgarian economy , includes the systematization of the necessary measures and actions in connection with the conversion of financial instruments. We intend to carry out the necessary monitoring of the expected stages for the adaptation of the clearing and settlement systems to work with the euro. In the context of the complicated international situation caused by the war in Ukraine and the sanctions and restrictions imposed by the EU, USA, Canada, the UK against the Russian Federation, the Russian Central Bank, credit institutions and companies, as well as individuals, the Commission took timely measures such as issued recommendations and guidelines to the investment, insurance and insurance sector for increased caution and the implementation of a strengthened risk management policy before proceeding with investments in financial instruments issued by issuers related to the Russian Federation. The challenges we face provoke us to be vigilant, focused on achieving the set goals of increasing consumer protection, as well as promoting investors, of a stable, regulated and transparent non-banking sector. Amid this global transformation, the FSC is starting a new strategic period for 2022 – 2024. The change for the regulator includes long-term planning, a strong expert team and determination to implement innovation in the field of digitization and regulations to stimulate the capital market. All this will be accompanied by constructive dialogue with all stakeholders in the processes regulated by the FSC. An important part of the development of the Bulgarian capital, insurance and social insurance market is the active and effective communication with businesses in the direction of developing concepts and sustainable strategies. Our goal is to be predictable in our actions and to show objectivity when making decisions on which the development of Bulgaria depends.
In sync with new technologies, to improve the level of public awareness related to the non-banking financial sector and to protect consumers of financial products and services, the Financial Supervision Commission (FSC) in December last year launched the digital campaign #invest safely. Increasing financial literacy in the field of safe investing remains among the leading chief goals of the FSC, which continues its initiative to popularize the campaign during the World Money Week (March 21-27).
Experts from the Financial Supervision Commission, in partnership with industry organizations, represented by the Bulgarian Association of Licensed Investment Brokers and the Investor Compensation Fund, will present to students a series of public lectures under the title „Investment Security in the Digital World“, dedicated to the protection of investors, the recognition of legitimate investment firms and the functioning of the capital market.
The initiative marks the beginning of meetings between experts and students, within the framework of the first event, with graduates of one of the most authoritative and largest business universities in Bulgaria – the University of National and World Economy. The main objective of the #invest safely – campaign will be presented to the audience to meet the needs of society with up-to-date information regarding the areas regulated by the Financial Supervision Commission in the non-banking financial sector – capital markets, insurance and pension insurance.
“Our participation in the World Money Week and our partnership with higher education institutions, within whose reach are the economic professionals in the country, is one of the steps in the strategy of our commitment to increase financial literacy among young people. Our vision is also to position Bulgaria among European countries whose young people have basic preparation for their meeting with the world of investments, in the conditions of a digitized non-banking financial sector”, said Mr. Boyko Atanasov, Chair of the Financial Supervision Commission
Within the educational initiative of the Financial Supervision Commission, future economists from 5 leading universities in the country – UNWE, Faculty of Economics of Sofia University, AUBG, VUZF and EU-Varna will acquire key competencies for investing in the capital markets and protecting against financial fraud through the digital events specially organized for them.
On the website https://investsafely.fsc.bg/, and YouTube in the LinkedIn channels of #investsafely, anyone interested can find useful tips and be introduced to investing, through news, video content and a list of licensed investment firms.
On the occasion of World Money Week, FSC experts will take part as guest speakers in the events „From Zero To Fintech“, organized by the Bulgarian Fintech Association and the webinar on „Security of digital financial instruments: Pay safely on the Internet!” initiated by Junior Achievement. They will also contribute as part of the jury of the „My Business“ competitions – for the youngest and financial #LIFEHACK – for adolescents in high school.
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 availablehere.
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.
