The Financial Supervision Commission (FSC) has been notified by the competent authority of the Republic of Ireland (Central Bank of Ireland) of the forthcoming portfolio transfer from the insurance undertaking Aetna Health Insurance Company of Europe Designated Activity Company to AWL Health & Life, including insurance contracts on which the Republic of Bulgaria is a Member State where the risk is located. After reviewing the portfolio documents, the FSC decided to send a letter to the national competent authority of the Republic of Ireland on granting consent for the transfer of the insurance portfolio from the Aetna Health Insurance Company of Europe Designated Activity Company to AWL Health & Life.
The Financial Supervision Commission presented the project Unified Information System
The contractor of the project “Scale Focus” AD presented the Unified Information System (UIS) and its functionalities to more than 170 representatives of companies and associations from the non-banking financial sector, as part of the implementation of the Project “Building a Unified Information System (UIS) for the needs of the Financial Supervision Commission”, carried out with the financial support of the Operational Program “Good Governance”, co-financed by the European Union through the European Social Fund, under a Grant Agreement aid No. BG05SFOP001-1.011-0001-C01 / 23.07.2020 with the beneficiary Financial Supervision Commission.
The Secretary General of FSC – Ms. Denitsa Kirova shared with the large audience her thoughts saying that “with the implementation of UIS, the Bulgarian regulator is improving the process of serving citizens and businesses. Digital access to our administrative services saves time, integrates the activities and processes of the Commission with the systems of the European regulators. The UIS is designed to streamline regulatory and supervisory processes. It creates a sustainable and positive work environment which consolidates different data sources, automates reporting and provides a new model of communication in the non-banking financial sector.”
The digitization of the Commission is part of e-governance. It represents a constant priority in all national strategies and programs in the Republic of Bulgaria over the last decade. Digital solutions in the interest of citizens and businesses are a fundamental change in the administrative service model, as well as an opportunity for standardization, interoperability and resource sharing by institutions. It is the automated exchange of data between the information systems of different administrations and the national scheme for electronic identification which remains basic condition for effective e-governance in the country.
“Today, in a fast-paced digital world, it is of key importance to anticipate and respond to changes, in order to ensure efficiency, transparency, and above all, communication at a whole new level between the regulator and all non-banking financial sector actors. I believe that digital transformation is not just a modern term, but rather a positive challenge and a real necessity. The implementation of digital technologies in the work of the Financial Supervisory Commission is far from an ordinary modernization of our systems, but it is also a reassessment of the way we interact with citizens and businesses. By the today’s presentation of the digital FSC, we are not only declaring our firm position to work to increase the investment potential of our country, but we are building a standard, by dint of which the Commission fully stands on the map of European regulators,” said Boyko Atanasov, Chairman of the FSC.
The UIS of the FSC comprises key horizontal components of e-government by implementing the National strategy for the development of e-government in the Republic of Bulgaria 2019-2025. As consequence of its introduction, it becomes possible to review, track, control, validate and analyze the incoming and processed information. It also provides opportunity of automated data transfer, including from and to external systems at the national and international level; the electronic administrative services (EAS) provided by the FSC are being upgraded and the Commission’s registers are being improved.
UIS implements a reliable, modern and secure way of communication with EAU applicants when submitting applications, notifications, periodic information, as well as other documents. Business processes and procedures for processing, control and analysis of data and documents are automated. The regulatory and supervisory activity of the FSC is improved by consolidating information flows and processes and creating an effective mechanism for implementing risk-based control.
The UIS also aims at guaranteeing transparent, fast and secure digital supervision, which will increase the competitiveness of Bulgaria as an investment destination, as well as upgrade the achieved level of regulatory and supervisory standards.
The Financial Supervision Commission will continue to be part of the development of technologies and digitalization, as well as actively working to achieve synergy between regulatory requirements and their implementation in a digital environment.
Part of the concrete results achieved over the past years constitute the functioning Innovation Hub, which secures a single point of contact with fintech companies; the digital campaign – #INVEST SAFELY, which through the online space provides basic guidelines on how users can distinguish between legitimate and dishonest investment intermediaries; the mobile application FSC Mobile – to help users and supervised persons, using the most popular operating systems – Android and iOS, as well as UIS providing automation to all basic business processes in FSC.
More information about the project is available here (available only in bulgarian).
List of entities which are not authorized by FSC
You can find the list of the non-licensed Investment intermediaries in the attached file – 09.08.2023
FSC and FID SANS carried out jointly training regarding the update of the NRA of the Republic of Bulgaria
In June 22nd, 2023 the Financial Supervision Commission and the Financial Intelligence Directorate – SANS conducted a training focused on topics related to the implementation of the AML/CFT measures provided for in the Law on Measures Against Money Laundering, the Law on the Measures Against the Financing of Terrorism and the acts on their implementation, organized by the Association of the Insurance Brokers in Bulgaria for its members. The event was attended by 30 representatives of members of the Association of the Insurance Brokers in Bulgaria.
In the course of the meeting were discussed the following topics:
- update of the NRA of the Republic of Bulgaria, adopted in 2023;
- CDD measures.
The conducted training aimed to deepen the understanding of the representatives of the insurance intermediaries which have obtained a licence under the terms and according to the procedure established by the Insurance Code, where carrying on one or more of the classes of insurance referred to in Section I of Annex No. 1 to the Insurance Code, of the importance to comply with the requirements of the preventive legislation and their essential role in the process of maintaining the stability of the financial sector and in assisting to the competent state authorities in preventing and detecting money laundering and terrorist financing activities.
List of entities which are not authorised by FSC
You can find the list of the non-licensed Investment intermediaries in the attached file – 12.06.2023
Notification regarding Euroins Romania Asigurare-Reasigurare S.A.
The Financial Supervision Commission (FSC) has received a notification of a decision adopted on 17.03.2023 by the national supervisory authority of the Republic of Romania (Autoritatea de Supraveghere Financiara – ASF) to withdraw the license of the Romanian insurer Euroins Romania Asigurare-Reasigurare S.A., to open bankruptcy proceedings against this company, as well as to impose a ban on free disposal of the company’s assets.
Euroins Romania Asigurare-Reasigurare S.A. is a subsidiary, part of the group of “Euroins Insurance Group” AD, in respect of which the FSC is a group supervisory authority.
In this regard, the FSC informs that Euroins Romania Asigurare-Reasigurare S.A. does not carry out insurance activity in the Republic of Bulgaria. The decision of the Romanian supervisory authority does not affect the insured persons within the Bulgarian insurance companies of the Euroins Insurance Group AD group. The FSC has not identified solvency risks and compliance issues with the Individual companies of the Euroins Insurance Group AD and the group as a whole, resulting from the decision of ASF.
The Financial Supervision Commission will notify the Bulgarian public upon receiving additional information on this case in Romania.
The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from “Societa Cattolica di Assicurazione S.p.A.”to“Generali Italia S.p.A.”
The Financial Supervision Commission (FSC) has been notified by the competent authority of the Republic of Italy (IVASS) of the forthcoming portfolio transfer from the insurance undertaking “Societa Cattolica di Assicurazione S.p.A.” to “Generali Italia S.p.A.”, both with head offices in the Republic of Italy. After reviewing the portfolio documents, the FSC decided to send a letter to the national competent authority of the Republic of Italy on granting consent for the transfer of the insurance portfolio from the “Societa Cattolica di Assicurazione S.p.A.” to “Generali Italia S.p.A.”.
After the insurance portfolio transfer “Societa Cattolica di Assicurazione S.p.A.” to “Generali Italia S.p.A.” will continue to operate on the territory of the Republic of Bulgaria under the conditions of the freedom to provide services.
List of entities which are not authorised by FSC
You can find the list of the non-licensed Investment intermediaries in the attached file – 07.02.2023
Financial Supervision Commission put on the innovation map
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 available here.
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.
The Chair of the FSC participated in a round table organized by the UNWE
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.