Diana Yordanova, Deputy Chairperson of the FSC, Head of the Social Insurance Supervision Department, issued a decision approving the technical interest rate and biometric mortality tables to be applied in the calculation of pension reserves as of 31.12.2021 by the pension insurance companies who manage a supplementary voluntary pension insurance fund.

Decision No. 918 – ПОД of 20.12.2021 can be found in the section “Administrative documents”, and the annexes to it – in the section “Administrative documents”, “Forms and templates”, “Social Insurance activity”, 2021 (available only in BG version).

On 15 and 16 April 2021, the next module of the FIN-TECH project of the University of Economics – Varna was launched, funded by the Horizon 2020 program of the European Commission. The online session was attended by experts from the Financial Supervision Commission, the University of Economics – Varna, the Bulgarian Fintech Association and representatives of fintech companies in Bulgaria.

Within the two days of the training, the Bulgarian fintech ecosystem was discussed, as well as real cases of using blockchain in fintech, cyber risk management through models based on rank scale and explicable artificial intelligence, smart contracts – management, opportunities and risks , the cryptocurrency market and methods for its analysis by applying various cluster techniques based on prototypes, etc.

The event is held within the project FIN-TECH “A FINancial supervision and TECHnology compliance training program”, funded by HORIZON 2020, in which the University of Economics – Varna and the Financial Supervision Commission represent Bulgaria in a consortium of 24 countries. Each of them is presented by an educational institution in the field of higher education and a regulatory body for the non-banking sector.

Since the start of the project, in early 2019, the experts of the FSC and the University of Economics – Varna participated in two more sessions for knowledge exchange in the fields of big data and artificial intelligence. The University of Economics – Varna and the FSC jointly organized and held an International Round Table “Peer to peer lending in Europe and the Balkan Peninsula”.

The Financial Supervision Commission is actively continuing to study the implementation of financial innovations in the non-banking financial sector.

The Chairperson of the Financial Supervision Commission (FSC) Mr. Boyko Atanasov, as well as its Vice Chair in charge of the Insurance Supervision Division Mr. Vladimir Savov and the Vice Chair in charge of the Social Insurance Supervision Division Ms. Diana Yordanova held an official meeting with the Chairperson of EIOPA Ms. Petra Hielkema.

During the meeting, they discussed the strategic priorities in two main aspects of the non-banking sector, namely the insurance and the pension insurance area. The FSC management body emphasized its readiness to cooperate with EIOPA within the framework of various committees, working groups, as well as when attempting to achieve common goals in order to secure financial stability in both the insurance and pension insurance area.

The FSC management body expressed its gratitude to the European institution for its continuous efforts aimed at boosting the expertise of the national regulators. Due to its specialized trainings, the FSC officers will continue with their participations in various events organized by EIOPA which are meant to improve and enlarge their supervisory capacity.

Both institutions agreed upon their joint priorities set by them, namely digitalization, sustainable finance, effective cooperation at the EU level, financial innovations and consumers’ protection, as well as their synchronized functioning aimed at achieving stronger convergence in the EU, as regards the specified issues.

On its part, EIOPA emphasized its preparedness to support the national regulators, more precisely the FSC needs, and to facilitate the achievement of the common EU priorities. Both authorities agreed on the concept that the forthcoming new legislation dedicated to the Solvency II review, the future insurance recovery and resolution framework (IRRD), the digitalization and the sustainable finance poses a new challenge, which has to be met based on the developed partnership.

“In 2022 the FSC commenced a new strategic period. In the course of it, we shall continue to be of consumers’ use through effective communication, unbiased decisions and foreseeable actions. Our present-day meeting makes us more self-confident due to the successful partnership with EIOPA and the shared professional experiences” pointed out Mr. Boyko Atanasov.

In December 2020, the FSC received notifications from the competent authorities of Member States regarding the performance (registration or termination of notification) of activities by insurance companies and insurance intermediaries for a total of 56 (fifty-six) companies based in other Member States of the EU, incl. notifications for extension of the scope of the performed activity or provision of information for the change of addresses and representatives and transfer of insurance portfolios.

For the period 01.12.2020 – 31.12.2020 the FSC received a notification from the supervisory competent authority of Iceland regarding the intention of an insurance company based in Iceland to operate in the territory of the Republic of Bulgaria under the terms of freedom to provide services , as well as 7 (seven) notifications regarding the withdrawal of notification in respect of insurers, established in EU Member States, which have declared their intention to operate on the territory of the Republic of Bulgaria under the terms of freedom to provide services.

As of the end of December 2020, the number of insurance companies based in other EU and EEA Member States which have notified the FSC of their intention to operate on the territory of the Republic of Bulgaria under the principle of freedom to provide services, amounts to 649 (six hundred and forty-nine).

In December, the FSC decided at its meeting held on 10.12.2020 to send a notification to the competent supervisory authority of the Republic of Austria, which provided information in connection with the notification received by the FSC about the conditions under which a branch of Porsche Versicherungs AG may carry out insurance activities on the territory of the Republic of Bulgaria, under Class 3 “Land vehicles (other than railway rolling stock)” of Section II of Annex № 1 to the IC, under the terms of the right of establishment (through a branch).

In December 2020, the FSC received 29 (twenty-nine) notifications from the competent EU supervisory authorities regarding the intention of insurance intermediaries based in EU Member States to carry out insurance intermediation activities in the territory of the Republic of Bulgaria under the terms of freedom to provide services.

There are 6 (six) insurance intermediaries for which notifications has been received by the competent authorities of the EU Member States of their intention to suspend the activity of insurance intermediation on the territory of the Republic of Bulgaria under the terms of freedom to provide services or the right of establishment.

As of 31 December 2020, the insurance intermediaries from Member States that have stated their intention to carry out insurance intermediation activities on the territory of the Republic of Bulgaria under the terms of freedom to provide services or the right of establishment (through a branch) are 3,123 (three thousand one hundred and twenty and three).

In December 2020, the FSC sent 6 (six) notifications to the competent authorities of EU and EEA Member States about the intention of insurance companies based in the Republic of Bulgaria to operate on their territory, or to withdraw their intention.

The FSC has sent a notification to the competent supervisory authority of the United Kingdom regarding the intention of Euroins Insurance AD to operate on the territory of the UK under the terms of the right of establishment (through a branch).

At the same time, 5 (five) notifications were sent to the competent supervisory authority of the United Kingdom regarding the withdrawal of the intention of Bulstrad Vienna Insurance Group AD, Bulstrad Life Vienna Insurance Group EAD, Asset Insurance AD, DallBogg: Life and Health AD and BAEZ EAD to operate on the territory of the UK under the terms of freedom to provide services.

The total number of insurance companies based in the territory of the Republic of Bulgaria which have stated their intention to carry out insurance activities on the territory of other EU Member States under the terms of freedom to provide services, remains 18.

For the period 01.12.2020 – 31.12.2020, 1 (one) notification was sent to the competent supervisory authorities of Romania, Italy, Germany, France, Greece, Spain, the Netherlands, Malta, Croatia, Poland and Cyprus regarding the intention of insurance company broker Accord EOOD to carry out insurance intermediation activities on their territory under the terms of freedom to provide services.

At the end of the period, the total number of insurance intermediaries based in the Republic of Bulgaria which declared their intention to carry out insurance intermediation activities in the territory of EU Member States under the terms of freedom to provide services or the right of establishment, increased to 52 (fifty two) intermediaries.

The updated lists of notifications are available on the FSC website in the section “Supervised entities” – “Notifications”.

 For the period 01.12.2021 – 28.02.2021 the FSC received 2 (two) notifications regarding the intention of insurance companies based in other Member States of the EU to operate in the territory of the Republic of Bulgaria under the terms of freedom to provide services , as well as 7 (seven) notifications regarding the withdrawal of intention of one insurer established in an EU Member State, to operate on the territory of the Republic of Bulgaria under the terms of freedom to provide services.

 During the same period, the FSC received 30 (thirty) notifications from the competent supervisory authorities regarding the intention of insurance intermediaries based in EU Member States to carry out insurance intermediation activities on the territory of the Republic of Bulgaria, as well as 16 (sixteen) notifications of the intention of insurance intermediaries based in EU Member States to suspend the activity of insurance intermediation on the territory of the country.

 As of 28.02.2021, the number of insurance companies based in other EU Member States which have notified the FSC of their intention to operate on the territory of the Republic of Bulgaria amounts to 427 (four hundred and twenty-seven). At the same date, the insurance intermediaries from Member States for which the FSC received a notification of intention to carry out insurance intermediation activities on the territory of the Republic of Bulgaria are 2,226 (two thousand two hundred and twenty-six).

 Given the expiry of the transitional period following the withdrawal of the United Kingdom of Great Britain and Northern Ireland from the EU as of 1 January 2021, insurance companies and insurance intermediaries established in the United Kingdom shall be treated as insurers and insurance intermediaries established in a third country. As a result, insurance companies based in the UK are included in a separate list, in order to protect the public interest and given the fact that all insurance contracts concluded with such insurers before 31.12.2020 for risks located in the Republic Bulgaria, remain valid and can be serviced. The insurance companies based in the United Kingdom, for which the FSC received notifications before 31.12.2020 regarding their intention to operate in the country, are 222 (two hundred and twenty-two). The insurance intermediaries based in the United Kingdom, for which the FSC received a notification before 31.12.2020 for their intention to carry out insurance intermediation activities on the territory of the country, are 908 (nine hundred and eight). After 31.12.2020 the FSC did not receive any notification regarding the intention of an insurance intermediary based in the UK to establish a subsidiary or a new intermediary on the territory of the Republic of Bulgaria.

 For the period 01.01.2021 – 28.01.2021, the FSC did not send notifications to the competent authorities of EU Member States about the intention of local insurance companies to operate on their territory. During the same period, the FSC sent 1 (one) notification regarding the withdrawal of the intention of a local insurance company to operate in another Member State under the terms of freedom to provide services. As of 28.02.2021, the total number of insurance companies based in the Republic of Bulgaria which have stated their intention to carry out insurance activities on the territory of other EU Member States under the terms of freedom to provide services, remains 18.

 For the period 01.01.2021 – 28.02.2021 the FSC has not sent notifications to the competent supervisory authorities of the EU Member States about the intention of local insurance intermediaries to carry out insurance intermediation activities on their territory under the terms of freedom to provide services or the right of establishment. As of 28.02.2021, the total number of insurance intermediaries based in the Republic of Bulgaria which have declared their intention to carry out insurance intermediation activities on the territory of EU Member States, remains 52.

 The updated lists of notifications are available on the FSC website in the section “Supervised entities” – “Notifications”.

 For the period 01.03.2021 – 31.03.2021 the FSC received 1 (one) notification from the competent national authority of an EU Member State regarding the intention of an insurer based in its territory to operate on the territory of the Republic of Bulgaria under the terms of the freedom to provide services.

 During the same period, the FSC received notifications from the competent EU supervisory authorities regarding the intention of 26 (twenty-six) insurance intermediaries based in EU Member States to carry out insurance intermediation activities on the territory of the Republic of Bulgaria under the terms of freedom to provide services, as well as 1 (one) notification for termination of the activity of insurance mediation on the territory of the Republic of Bulgaria under the terms of the freedom to provide services.

 As of 31.03.2021, the number of insurers based in other EU Member States which have notified the FSC of their intention to operate on the territory of the Republic of Bulgaria amounts to 428 (four hundred and twenty-eight). At the same date, the insurance intermediaries which intend to carry out insurance intermediation activities on the territory of the Republic of Bulgaria are 2,251 (two thousand two hundred and fifty-one).

 For the period 01.03.2021 – 31.03.2021, the FSC did not send notifications to the competent authorities of EU Member States about the intention of local insurance companies to operate on their territory. As of 31.03. 2021, the total number of insurance companies based in the Republic of Bulgaria which have stated their intention to carry out insurance activities on the territory of other EU Member States under the terms of freedom to provide services, remains 18.

 For the period 01.03.2021 – 31.03.2021 the FSC has not sent notifications to the competent supervisory authorities of the EU Member States about the intention of local insurance intermediaries to carry out insurance intermediation activities on their territory under the terms of freedom to provide services or the right of establishment. As of 31.03.2021, the total number of insurance intermediaries based in the Republic of Bulgaria which have declared their intention to carry out insurance intermediation activities on the territory of EU Member States, remains 52.

 The updated lists of notifications are available on the FSC website in the section “Supervised entities” – “Notifications”.

For the period 01.04.2021 – 30.04.2021 the FSC has not received any notifications from competent national authorities of EU Member States regarding the intention of insurer companies based in their territory to operate on the territory of the Republic of Bulgaria under the terms of the freedom to provide services or right of establishment (through a branch). For the same period the FSC received 1 (one) notification regarding the withdrawal of intention of an insurer based in its territory to operate on the territory of the Republic of Bulgaria under the terms of the freedom to provide services.

During the period, the FSC received notifications from the competent EU supervisory authorities regarding the intention of 23 (twenty-three) insurance intermediaries based in EU Member States to carry out insurance intermediation activities on the territory of the Republic of Bulgaria under the terms of freedom to provide services, as well as 3 (three) notifications for termination of the activity of insurance mediation on the territory of the Republic of Bulgaria under the terms of the freedom to provide services.

As of 30.04.2021, the number of insurers based in other EU Member States which have notified the FSC of their intention to operate on the territory of the Republic of Bulgaria amounts to 427 (four hundred and twenty-seven). At the same date, the insurance intermediaries which intend to carry out insurance intermediation activities on the territory of the Republic of Bulgaria are 2,271 (two thousand two hundred and seventy-one).

During the period, the FSC sent 1 (one) notification to the competent supervisory authorities of an EU Member State regarding the intention of an insurer based in the Republic of Bulgaria to operate on their territory under the terms of freedom to provide services and 1 (one) notification of withdrawal of the intention of an insurer based in the Republic of Bulgaria to carry out insurance activity on the territory of another Member State.

As of the end of April, the total number of insurance companies based in the Republic of Bulgaria which have stated their intention to carry out insurance activities on the territory of other EU Member States under the terms of freedom to provide services, remains 18.

For the period 01.04.2021 – 30.04.2021 the FSC has sent 1 (one) notification to the competent national authority of an EU Member State regarding the intention of an insurance broker based in its territory to carry out insurance intermediation under the terms of the freedom to provide services. As of 30.04.2021, the total number of insurance intermediaries based in the Republic of Bulgaria which have declared their intention to carry out insurance intermediation activities on the territory of EU Member States, remains 52.

The updated lists of notifications are available on the FSC website in the section “Supervised entities” – “Notifications”.

The persons are obliged to stop offering investment services within 3 days from the publication of the list.

With its decision of 28.09..2021, the Financial Supervision Commission published websites through which investment services are provided by persons who do not have the right to do so in the territory of the Republic of Bulgaria. The decision is based on Art. 281, para. 1 and 2 of the Markets in Financial Instruments Act. Decision No. 716-ИП of 28.09.2021 published a list of websites through which investment services should not be provided.

The publication of the decision is considered a notification regarding the obligation of the persons to stop offering investment services through the published websites within 3 days from the date of publication of the decision with the list.

Today, 28 July 2021, the Financial Supervision Commission organized an online meeting with representatives of all investment firms on the occasion of new regulations on prudential supervision of investment firms becoming effective, and in order to facilitate the bringing of investment firms in line with the applicable requirements. The topic of the meeting drew great interest and was attended by over 100 business representatives.

During the meeting, the FSC experts presented the general legislative framework for the prudential supervision of investment firms and provided an opportunity for discussion on specific issues for its practical implementation.

It was clarified at the meeting that the new legislation is largely in line with the typical business model of investment firms and focused on changing the approach to implementing capital adequacy and liquidity requirements at the consolidated level compared to current legislation.

The following topics were discussed at the online meeting:

the categories of investment firms under the new prudential regime;

own capital;

capital requirements;

liquidity requirements;

disclosures by investment firms;

reporting to the competent authorities and the European Banking Authority, including new business and technical formats;

remuneration requirements.

The meeting was held in the understanding that the new legislative framework will have a serious practical effect on the activities of investment firms, respectively good knowledge of it will enable its proper implementation and will contribute to maintaining the financial stability of the sector, a higher level of protection for investors, as well as to increasing the efficiency of the securities market as a whole.