At a session held on September 19, 2006, the Financial Supervision Commission (FSC) adopted the following resolutions:

1. The Commission issued a licence to Alfa Property 1 REIT to pursue the following activities as a special purpose vehicle: investment of funds raised through issuance of securities in real estates.
The Commission confirmed a Prospectus for public offering of 150,000 pieces of ordinary shares having a nominal value of BGN 1 each, issued by the company as a result of primary increase in the company’s capital.
Alfa Finance Holding AD (holding 35.2% of the capital), Bulbrokers Consulting EOOD (holding 4.8% of the capital), Albena Invest Holding AD (holding 30% of the capital), and Alfa Index Imoti REIT (also holding 30%), are founders of the company.
Alfa Property 1 REIT envisages that the funds raised throughout the following two years are to be invested as a priority in the following sectors: “administrative areas” and “commercial areas”, and it intends to develop its activities primarily on the territory of Sofia, Varna, Plovdiv, Burgas. The company will invest in properties securing income in the form of rents and other current payments, and in purchase, construction and/or renovation of real estates for the purpose of subsequent sale or running of these.

2. The Commission imposed temporary prohibition on a tender offer submitted by Intertrust EAD, Sofia City, to purchase shares of Lead and Zinc Complex Plc., town of Kardjali, from the company’s other shareholders through Standard Investment AD Investment Intermediary.

3.  The Commission withdrew the licence to pursue activities as a securities broker granted to  Aleksander Draganov and Hristo Tanchev. The motives for the aforesaid decision are non-pursuance of activities as a securities broker for more than two years.

In relation to one person, namely Stanimir Mihaylov, the procedure on divestiture of the right to pursue activities as a securities broker was discontinued in connection with submission of explanations and additional information.

4.  The Commission adopted at second reading a Draft Ordinance on the Individual Applications for Participation in a Supplementary Compulsory Pension Insurance Fund.
Under the Ordinance, the procedure on submitting an application for participation in a universal and professional pension fund and the requirements towards its form and contents were provided. It is envisaged that the application for participation is to be submitted personally to the pension insurance company into which the person would like to participate, or through an insurance intermediary, or as an electronic document. The persons are obligated to notify the pension insurance company, managing the fund into which the aforesaid persons effect an insurance of each amendment to the personal details as entered into the application submitted by them.
The promulgation of the Ordinance in the State Gazette is forthcoming.

5.  The Commission adopted at first reading amendments to Ordinance No. 8 on the Central Securities Depository.

The amendments are related to an Ordinance defining the procedure on payment of dividends by public companies and issuers of securities. These are necessitated due to the fact that under Art.38, para. 1 of the Ordinance, a word is not contained stating that the indicated procedure is imperative and hence the public companies and the issuers of securities arrange their own procedures for payments of dividends, interest rates and principals. Such procedures (different for each public company) may lead to slowdown in payments and increase in the investors’ costs.
For the purpose of non-admission of an alternative procedure for payment of dividends, interest rates and principals, a supplement of Art.38, para. 1 of the Ordinance was adopted, where before the expression “Central Depository”, the word “only” is added.

“Art.38 (1) The public company and the issuer of debt securities pay dividends, interest rates and principals only through a Central Depository on the basis of the calculations made under the procedure of Art.37а.”

A new Chapter Five of Ordinance No. 8 is also adopted, under which administrative and penal liability of the persons who have committed breaches of the Ordinance, as well as of the persons who have allowed the perpetration of such breaches is introduced.

“Art.50 (1) Persons who have perpetrated violations of the Ordinance, as well as persons who have allowed perpetration of such violations shall be penalised pursuant to Art. 221, para. 1 of the LPOS.
(2) The statements of ascertainment regarding violations of the Ordinance established shall be drawn up by officers authorised by the Deputy Chair, and the penal enactment shall be issued by the Deputy Chair.
(3) Establishment of the violations, the issuance, the appeal against and the enforcement of the penal enactments shall be performed under the procedure set under the Administrative Violations and Penalties Act.”

The Draft Ordinance shall be co-ordinated with all interested persons and organizations.