1. The Commission issued a new licence to Argo-Invest AD, Sofia City, to perform activities as an investment intermediary.

 2. The Commission issued a new licence to Frontier Finances AD, Sofia City, to perform activities as an investment intermediary.

 3. The Commission issued a new licence to Fico Invest OOD, town of Varna, to perform activities as an investment intermediary.

 4. The Commission issued a new licence to Euroforum Ltd., Sofia City, to perform activities as an investment intermediary.

 5. The Commission issued a new licence to KD Securities AD, Sofia City, to perform activities as an investment intermediary.

 6. The Commission issued a licence to Alfa Asset Management EAD to set up and manage the following contractual fund: Alfa Index Imoti. The Commission confirmed a Prospectus for public offering of contractual fund’s units. The Commission entered the issue of units in the FSC’s Public Register and entered the contractual fund as an issuer into the said Register.

 7. The Commission issued a licence to KD Investments EAD to set up and manage the following contractual fund: KD Bonds Bulgaria. The Commission entered the contractual fund into the Register. The Commission confirmed a Prospectus for public offering of contractual fund’s units. The Commission entered the issue of units in the FSC’s Public Register and entered the contractual fund as an issuer.

 8. The Commission issued a licence to KD Investments EAD to set up and manage the following contractual fund: KD Equities Bulgaria. The Commission entered the contractual fund into the Register. The Commission confirmed a Prospectus for public offering of contractual fund’s units. The Commission entered the issue of units in the FSC’s Public Register and entered the contractual fund as an issuer.

 9. The Commission issued a licence to Premier Fund REIT to pursue the following activities as a special purpose vehicle: investment of funds raised through issuance of securities in real estates /securitization of real estates/.
The Commission confirmed a Prospectus for public offering of 150,000 pieces of ordinary, registered, dematerialized, freely transferable voting shares, having a nominal value of BGN 1 each, issued by Premier Fund REIT as a result of primary increase in the company’s capital.
 The Commission entered the issue of shares in the FSC’s Public Register.

 10. The Commission issued a licence to HypoCapital REIT to pursue the following activities as a special purpose vehicle: investment of funds raised through issuance of securities in receivables /securitization of receivables/.
The Commission confirmed a Prospectus for public offering of 15,000 pieces of ordinary, registered, dematerialized, freely transferable voting shares, having a nominal value of BGN 10 each, issued by HypoCapital REIT as a result of primary increase in the company’s capital.
 The Commission entered the issue of shares in the FSC’s Public Companies Register.

 11. The Commission adopted amendments to Instructions on the application of Art. 12, paras. 3 and 4 of Ordinance No. 2 on the prospectuses in the case of public offering of securities and on the disclosure of information by the public companies and other issuers of securities.

 12. The Commission issued a licence to ING Insurance Joint Stock Company, Republic of Hungary, to undertake insurance activities to a foreign insurer through a branch in the Republic of Bulgaria on the following types of insurances:
 – Life and Rent Insurances;
 – Accident Additional Insurance.

 13. The Commission adopted at second reading Ordinance on the procedure for and methods of setting up the technical reserves of the insurers and of the health assurance reserves.
The said Ordinance transposes the European directives in the part related to the requirements set towards the technical reserves and is in conformity with the amendments introduced to the Insurance Code. The obligation to allocate at least 90 per cent of the yield upon investments realized into the accounts of the life insured persons is abolished. The yield allocation shall be based on the individual policies of the insurance companies on market principle. Certain restrictions connected with forming and disposing with the reserve fund are amended. Some approvals of parameters where forming the technical reserves are abolished, and at the same time greater responsibilities are entrusted to the companies with a view to the specifics of their portfolio.

 14. The Commission adopted a resolution on setting internationally acknowledged credit rating agencies and defined the criteria which the other credit rating agencies are to meet in order to acknowledge the credit ratings awarded by these to re-insurers where setting the percentage of allowable receivables for cover of the insurance reserves. /for the purposes of Art.75, para. 2 of the IC/
The internationally acknowledged credit rating agencies specified are as follows: Standard & Poor’s; Moody’s Investors Service; Fitch Ratings; AM Best Company.
The criteria which the other credit rating agencies are to meet in order to gain recognition by the Financial Supervision Commission are related to their experience and history; objectivity of the methodologies these apply; independence of the agencies and the availability of adequate resources required undertaking the activities on assessing the enterprises.
In order to gain recognition by the FSC to award a credit rating to the re-insurers, it is necessary for the other agencies to submit documents, proving that they meet the criteria established.

1. The Commission confirmed a prospectus for initial public offering of shares issued by Bulstrad PLC Insurance and Reinsurance Company, Sofia City. The issue is a result of an increase in the company’s stock capital and amounts to 564,000 pieces of ordinary dematerialized shares, having nominal and issue value of BGN 10 each.

2. The Commission entered into the Public Register a subsequent shares issue issued by BenchMark Fund Estates REIT, the purpose of which issue being trade on a regulated securities market. The issue results from an increase in the company’s stock capital from BGN 7,800,000 to BGN 23,394,706 through new issuance of 15,594,706 pieces of ordinary shares having a nominal value of BGN 1 each and issuance value of BGN 1.50 each.

3. The Commission confirmed a prospectus for secondary public offering of bonds issued by FairPlay International JSC. The issue, having ISIN Code: BG2100025050, amounts to EUR 5,600,000, distributed in 5,600 pieces of ordinary, secured, non-convertible bonds having a nominal value of EUR 1,000 each, having a floating interest percentage rate amounting to a six-month Euribor + 4% per year, and with interest payments at every six-month period, where the time period of the debenture loan is 5 years as of September 30, 2005, the maturity being September 30, 2010.
The Commission entered the issue and the issuer into the FSC’s Public Register.

4. The FSC issued a new licence to Ever Inc. Financial House, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, including underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 1,500,000. 

5. The FSC issued a new licence to Zlaten Lev Brokers Ltd., Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000. 

6. The FSC adopted a resolution to issue a new licence to STS Finance JSC, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, including underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 1,500,000.  The licence shall be issued under the condition that within a 14-day period the Company proves that it has fully paid in the exigible capital and the initiation fee at the Security Investors Compensation Fund.

7. The FSC registered Sevdalin Rusanov, Emil Atanasov, Plamen Dermendjiev as professional investors.

8. The Commission adopted an Ordinance on the requirements towards the activities of the investment companies and the contractual funds. The promulgation of the aforesaid Ordinance in the State Gazette is forthcoming.

Under the Ordinance, the main underlying provisions and the structure of the Ordinance on the requirements towards the activities of the investment companies adopted by Council of Ministers Decree No. 268 of 2000 have been included, where the texts referring to the activities of the investment companies have been brought in conformity with the amendments introduced in the POSA, the CA and the AA. The requirements toward the activities of the contractual funds have also been listed under the Draft, introduced as a collective investment scheme, along with the investment companies under the last amendments to the POSA (SG, Issue No. 39 dated May 10, 2005).
Under the Ordinance, the requirements toward the contents of the contract have been provided in detail, which contract the management company concludes with the fund’s depository bank in connection with the safe-keeping of the contractual fund’s assets.
The terms and conditions and the procedure under which, in the cases where the licence to perform activities has been withdrawn, as well as in the cases of dissolution or declaration of bankruptcy of a management company that manages a contractual fund, the fund’s management is undertaken by a different management company, have been provided.
Terms and conditions are introduced, under which the Commission issues an authorization for transformation and dissolution of the contractual fund.
The rules under which evaluation of the assets of the investment company and the contractual fund is performed have been provided, and for each type of securities and financial instruments a specific procedure has been introduced in order to perform a subsequent evaluation, where it is provided in the cases where the said procedure is impossible to be implemented, these to be evaluated under conventional methods that have been explicitly alluded to under the Ordinance or under methods specified in the investment company and the contractual fund’s assets evaluation rules.

9. The Commission adopted an Ordinance on the requirements towards the activities of the management companies. The promulgation of the aforesaid Ordinance in the State Gazette is forthcoming.

Under the Ordinance, the structure and the principle provisions underlying the Ordinance on the requirements towards the activities of the management companies adopted by Council of Ministers Decree No. 269 of 2000 have been retained, and amendments and supplements have been provided in order to bring the legislative act in compliance with the amendments introduced in the POSA (SG, Issue No. 39 dated May 10, 2005), and more specifically:
Under the Ordinance, additional requirements toward the management companies are provided with a view to extending their activities with the additional services under Art. 202, para. 2 of the POSA.
The minimum contents of the rules for personal transactions in securities of the members of the management and supervisory bodies, of the investment consultant working under a contract for the management company, of the management company officers and of the persons related to these is regulated.
The contents of the general terms and conditions are expanded, under which terms and conditions a management contract is concluded with the management company in connection with the management of an individual securities portfolio using one’s own discretion without specific orders on the part of the customer.
Stricter requirements towards natural persons are introduced, who accept orders for purchase and sale of shares of an investment company and units of a contractual fund on behalf of the management company, where a possibility is given to the management company to perform this through a contract concluded with a bank or a non-banking financial institution as well.
A regime is established, under the terms and conditions of which the management company may invest the funds of the collective investment schemes in derivatives.
The requirements set towards the capital adequacy of the management company are specified and the regime of investing its own capital is liberalized.

10. The Commission adopted Instructions on the interpretation and application of Art. 176, para. 1, items 9 and 13 of the Social Insurance Code.
Under the Instructions on the interpretation and application of Social Insurance Code’s provisions adopted, the subject scope of the shares and/or the units issued by collective investment schemes that fall into the application field of Art. 176, para.1, item 9 and item13 of the Social Insurance Code is defined.
The Instructions are to be published on the FSC’s website under the Documents Section, Instructions and Requirements.

The electronic hotline – hotline@fsc.bg – is a service, which the FSC shall provide to the general public in order to maximally facilitate consumers when searching the information they need. At the following address: hotline@fsc.bg, citizens may forward queries with regard to the Commission’s activities, on the capital, insurance and assurance markets. A team of experts shall be entrusted with the task to provide the information requested within short time periods.
The FSC’s wish is to facilitate to a maximum degree the access to the information regarding non-banking financial sector, where consumers may pick the method that is most suitable and convenient for them – via electronic means – by forwarding a query to address: hotline@fsc.bg, via telephone (0900 32 300), or by visiting the information centre on the FSC’s premises.

Meanwhile, as of today, the citizens may acquaint themselves with the updated version of Questions and Answers Section on the FSC’s website: www.fsc.bg. The new Section contains interesting and useful information on the work principles and mechanisms of the capital, insurance and assurance markets, on the supervisory institution’s role, on the main products and services. Under the Practice Issues Sections, answers have been provided to the most frequently asked and most interesting questions of citizens.

1. The Commission adopted an Ordinance on compulsory insurance under Art. 249, paras. 1 and 2 of the Insurance Code and on the methodology of claims settlement of damage indemnities caused by motor vehicles. The Ordinance’s publication in the State Gazette is forthcoming.

The Ordinance regulates the terms of and the conditions for performing compulsory insurance under the Third Party Liability of the Motorists Insurance and Accident of the Passengers Insurance by conforming these to the new requirements set under the Insurance Code. The insurers may also apply terms and conditions different to those specified under the Ordinance only in the case where these are more favourable to the customers.

The Ordinance specifies the minimum requirements towards the contents of the policies on these insurances, such as data on the insurer, data on the insured person and car, premium due, etc. The documentation that is to be submitted by the injured persons in order to consider their claim and specify the insurance indemnity is also listed. The requirement stating that the insurer is to compulsorily provide a sticker to the insured is preserved. The said sticker is to be placed on the automobile’s windscreen. The requirement stating that the driver is always to also carry with him/her the counterfoil (control sheet) along with the sticker, which is to be submitted along with the insurance policy in the case of inspection by the controlling authorities is newly introduced.

The minimum amount of the indemnity against damages caused to automobiles shall be specified by utilizing the methodology which is an addendum to the Ordinance. The said methodology establishes a procedure for specifying the actual value of the different automobiles and the factors that are to be considered when calculating the indemnity’s amount. The methodology shall be applied by insurers and by the Guarantee Fund; where the insurers may also utilize a different methodology at their own discretion should such methodology be more favourable to the customers and provide for forming higher indemnities in terms of amount.

2. The FSC issued a new licence to Elana Trading JSC, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, including underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 1,500,000. 

3. The FSC issued a new licence to Balkan Advisory Company Ltd., Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000. 

4. The FSC issued a new licence to Aval In AD, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000. 

5. The FSC issued a new licence to Sentinel Asset Management JSC to perform activities as a management company.

6. The Commission confirmed a prospectus for secondary public offering of an issue of ordinary dematerialized voting shares issued by Bulgarian-American Credit Bank PLC, Sofia City. The issue amounts to BGN 12,624,725, distributed in 12,624,725 pieces of ordinary shares having nominal value of BGN 1 each, having ISIN Code: BG1100098059. The issue represents the company’s authorised capital stock. Bulgarian-American Credit Bank PLC shall be entered as a public company into the FSC’s Registry, and the issue of shares shall be traded on the stock exchange.
Bulgarian-American Credit Bank PLC is part of the economic group of its main shareholder – The Bulgarian-American Enterprise Fund (BAEF), which directly holds 99.08% of the bank’s stock.

7. The Commission confirmed a prospectus for secondary public offering of an issue of secured corporate bonds issued by BM Leasing JSC, having ISIN Code: BG2100023055. The issue amounts to EUR 3,500,000, distributed in 3,500 pieces of ordinary, registered, dematerialized, interest-bearing, secured bonds having a nominal and issue value of EUR 1,000 each one, 36-month maturity, a fixed interest percentage rate amounting to 6.40% simple interest on an annual basis, a three-month interest payment period, date of issuance: September 20, 2005, and maturity: September 20, 2008. BM Leasing JSC shall be entered as an issuer into the FSC’s Public Registry.
The BM Leasing JSC’s subject of activity is mainly connected with leasing assets: machines, production equipment, cars and lorries, specialized transport equipment, real estates. The issuer’s majority owner, holding 67.55% of its capital stock, is The Bulgarian-American Enterprise Fund (BAEF).

8. The Commission confirmed a prospectus for secondary public offering of an issue of non-secured corporate bonds issued by SV. SV. KONSTANTIN I ELENA HOLDING PLC, Varna, having ISIN Code: BG2100041057. The issue amounts to EUR 5,000,000, distributed in 5,000 pieces of ordinary, registered, dematerialized, interest-bearing, secured bonds having a nominal and issue value of EUR 1,000 each one, 72-month maturity, with floating interest percentage rate to the amount of 6-month EUROBOR plus a margin of 5 points simple interest rate on an annual basis, a six-month interest payment period, date of issuance: December 20, 2005, and maturity: December 20, 2011.
The funds raised through the issue shall be used for construction development and sales of houses, tourism development and shares acquisition, related to the company’s direct activity.
The company’s main shareholders are Andezit Ltd., Ital Commerce 75 Single Person LLC, Rent-a-Park Single Person LLC, each one holding 28.17% of the issuer’s stock capital.

9. The Commission registered Pravin Benker as a professional investor.

1. The FSC issued a new licence to Varna Investment Intermediary /VIP-7/ AD, Varna, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000. 

2. The FSC issued a new licence to Eurodealing PLC, Burgas, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000. 

3. The Commission entered a subsequent shares issue, the purpose of which being trading these on a regulated securities market, issued by Active Properties REIT as a result of increase in the company’s capital stock from BGN 650,000 to BGN 5,200,000 through issuance of new 4,550,000 shares having a nominal value of BGN 1 each and issue value of BGN 1.10 each.

4. The Commission acknowledged the qualifications acquired by Stanislav Ivanov Voynovski to exercise activities as an investment advisor.

5. The Commission adopted an Amendment Ordinance to Ordinance No. 21 of March 16, 2005 on the own funds and solvency margin of insurers and health insurance companies.
Under the said Ordinance, the European directives with regard to the requirements for the solvency margin of the insurers are fully transposed in our legislation. New elements are introduced where calculating the insurer’s own funds. In compliance with the new provisions, the insurer’s shareholding and equity participations in the capital of other financial institutions are to be deducted from the insurer’s own funds. An opportunity is also provided for to report the data on the health insurance companies’ financial standing where calculating the adjusted solvency of the insurers.
The aforesaid Ordinance’s publication in the State Gazette is forthcoming.

6. The Commission adopted at first reading a Draft Amendment Ordinance to Ordinance No. 9 of November 19, 2003 on the terms and procedures for valuation of assets and liabilities of supplementary pension funds and pension insurance companies, the value of the fund’s net assets, on calculation and announcement of the value of a unit, as well as on the requirements for maintaining individual accounts.

The amendments introduced in the Ordinance result mainly from the Amendment Act to the Social Insurance Code’s entry into force, promulgated, State Gazette, Issue No. 17 of February 24, 2006, in connection with the regulation of new types of instruments, in which the funds of pension funds may be invested. Several stylistic adjustments in order to specify separate texts for the purpose of avoiding their contradictory interpretation and practical implementation are also proposed.
The Draft Ordinance shall be forwarded to the interested parties in order to be co-ordinated with the latter and shall be published on the FSC’s website.