One year to go for T+1 settlement: the regulatory framework is complete, now let’s make it happen

The European Union (EU) will switch to T+1 settlement on 11 October 2027. Ahead of the transition, the European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, calls on market participants to finalise technical preparations, assess readiness across their entire ecosystems and begin testing as soon as possible throughout the trading and settlement chain.

With the publication of the RTS and ESMA Guidelines on standardised procedures and messaging protocols, the regulatory framework is now ready. The first deadline is for investment firms and their clients to comply with the new requirements on allocations and confirmations from 7 December 2026.

Verena Ross, ESMA’s chair, said: 

“The transition to T+1 is one of the most impactful recent market structure initiatives. It will fundamentally improve the efficiency and international competitiveness of the EU markets.  The date is known, the roadmap is clear, and, with the final piece of regulatory guidance published today, the framework is now in place for all players in the trading and settlement chain to prepare for 11 October 2027. 

A successful transition is a shared effort by the industry and the public authorities. The focus now shifts to market participants to comply with the regulatory requirements, ready their systems and processes, and test their preparedness for the change, considering the recommendations of the EU T+1 Industry Committee.” 

Delivering the final piece of regulatory work

ESMA’s revised guidelines on standardised procedures and messaging protocols clarify how market participants should meet the new requirements on allocations and confirmations introduced by the amended RTS on Settlement Discipline, in particular, as of 7 December 2026, the mandatory use of:

  • electronic, standardised communication channels and international messaging standards; and
  • machine-readable communication methods, except in cases of temporary technical disruptions.

The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from “Anderzorg N.V.” to “Menzis Zorgverzekeraar N.V.”

The Financial Supervision Commission (FSC) has been notified by the competent authority of Netherlands of the merger from the insurance undertaking “Anderzorg N.V.” to “Menzis Zorgverzekeraar N.V.”, including an insurance contract on which 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 Netherlands on granting consent of the merger of “Anderzorg N.V.” to “Menzis Zorgverzekeraar N.V.”.

Preparations and testing become the focus of the transition to the T+1 settlement cycle

There is just over a year left until the EU transitions to T+1. The readiness of the Bulgarian market will depend on whether all the market participants will be able to work together within this shorter timeframe – said the Chairman of the Financial Supervision Commission, Vasil Golemanski, who opened the third meeting of the National Forum on the Transition to T+1.

The meeting focused on the topics of testing, operational readiness, and coordination among institutions and market participants to ensure that processes can be completed within the significantly shorter timeframes.

The event featured presentations on the updated key dates, the testing schedule, changes to the European regulatory framework, and the progress made by the institutions involved in the preparations. The coordinator of the National Forum, Mira Dobreva-Hilton, emphasized on the need to complete the main part of the analysis, the development of solutions, and their implementation within the current preparation phase by the end of 2026, in accordance with ESMA’s recommendations.

Particular attention was paid to the topic concerning practical testing of the processes. The participants must verify the transaction processing times, the data exchange channels as well as the procedures for handling discrepancies and the interaction between individual systems and institutions. Alongside the technical preparations, the legal framework was also discussed. Petya Hantova, advisor to the Chair of FSC, presented the latest updates at the European level, the mandatory requirements for participants as well as the necessary changes to the national regulatory framework.

The discussion that followed addressed specific technical issues, including partial settlement, corporate events, and the necessary tests, as well as the progress made by individual institutions.

The Executive Director of Central Depository AD, Georgi Karadzhov, presented the key European recommendations regarding the settlement system, the extent to which they have been implemented and the company’s current level of readiness.

Representatives of BSE, ABB, BNB, CD AD, ABIRD, BICA, BASPSC, BALII and BAAMC also presented the actions their institutions have undertaken and planned and discussed the technical issues that need to be resolved before the transition to T+1.

At the end of the meeting, the Chair of FSC put an emphasis on the market’s tasks and challenges, highlighting the need for individual institutions not only to complete their own preparations in the coming months, but also for the entire process to be tested in coordination among the participants – from the processing and confirmation of transactions to settlement and the management of any discrepancies that arise.

The next official meeting of the National Forum on the Transition to T+1 is scheduled for November 2026.

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The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from “Europäische Reiseversicherung Aktiengesellschaft” to “Europ Assistance S.A.”

The Financial Supervision Commission (FSC) has been notified by the competent authority of Austria of the merger from the insurance undertaking “Europäische Reiseversicherung Aktiengesellschaft” to “Europ Assistance S.A.”, including insurance contracts on which 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 Austria on granting consent of the merger of “Europäische Reiseversicherung Aktiengesellschaft” to “Europ Assistance S.A.”

From July 1: Only licensed companies may offer crypto-assets within the EU

July 1, 2026, marks the end of the transitional period under the Markets in Crypto-Assets Regulation (MiCA), during which entities registered with the Financial Supervision Commission (FSC) are permitted to provide crypto-asset services without a license.

From that date onwards, only licensed providers are authorized to offer crypto-asset services within the EU.

How can you check if your provider is licensed?

Customers should use services only from companies that hold the required license:

•             Licensed by the FSC: To date, the Financial Supervision Commission (FSC) has licensed two companies as crypto-asset service providers. You can find the list of the licensed companies here.

•             Notified companies: Companies licensed in other EU Member States are permitted to operate in Bulgaria following notification to the FSC. You can find the list of companies notified for Bulgaria and the services they can provide here.

•             Pan-European register: The European Securities and Markets Authority (ESMA) maintains a register of all crypto-asset service providers licensed by the competent authorities of the Member States. You can find the ESMA register here.

What should you do if you are a client of an unlicensed provider?

If you are a client of an unlicensed crypto-asset service provider, you should terminate your relationship with that provider. The provider is required to prepare a plan to wind down its operations and assist you in the process of terminating the relationship. You have the option to transfer your crypto-assets to a licensed crypto-asset service provider, store them in your own wallet, or close your positions.

An unlicensed provider is not permitted to offer you new services and may only execute crypto-asset transactions in connection with the method you have chosen to terminate the relationship with the provider. Further information regarding the instructions issued to licensed providers can be found in ESMA’s statement the end of the transitional period.

If issues arise in connection with the termination of relationships with an unlicensed crypto-asset provider, you may submit a report to the FSC using the electronic form published on the website or by sending an email to delovodstvo@fsc.bg.

 

The Financial Supervision Commission withdraws the insurance licence of “ZAD DallBogg Life and Health” JSC

With a decision of today, June 9, 2026, the Financial Supervision Commission (FSC, the Commission) withdrew the insurance licence of “ZAD DallBogg: Life and Health” JSC.

Based on the finding that the insurer does not comply with the minimum capital requirement under the Solvency II regime, the Commission requested it to submit a short-term realistic plan for restoring its solvency. Within the deadline set, the company submitted a plan, which the Commission examined and assessed in detail and found that the plan was manifestly inadequate for restoring the insurer’s solvency. Therefore, the Commission refused to approve it by decision of today.

The presentation of a manifestly inadequate recovery plan, in case of the most severe regulatory breach, namely non-compliance with the minimum capital requirement – ​​is grounds for withdrawal of the insurer’s licence. This ground for withdrawal of the licence stems directly from the provisions of the Solvency II Directive. In these circumstances, the Commission, as the national authority that licenced the insurer, has no discretion in the matter and is required to withdraw the licence.

In addition, the Commission found that the insurer had not complied with several coercive administrative measures imposed by effective decisions of the Commission and the Deputy Chairman, Head of the Insurance Supervision Division, as well as by decisions subject to immediate enforcement by law.

The Commission further found that the insurer had committed multiple serious or systematic infringements when operating in the EU Internal Market and the Green Card system. Information on these infringements was received from the national supervisory authorities in Italy, Poland, Romania, Greece and Spain, as well as from the European Insurance and Occupational Pensions Authority (EIOPA), which showed that the insurer had repeatedly breached applicable law over an extended period of time in relation to claims handling, payment of insurance compensations and complaints management. Several coercive administrative measures have been imposed for these violations by both FSC and other national supervisory authorities, but they have not led to a correction of the insurer’s market behaviour, which is incompatible with the rules of the EU Internal Market.

Finally, the Commission found that the insurer had unlawfully refused to pay due and liquid monetary obligations established on the basis and in the amount of final court decisions. Such non-performance was established both based on information received from national supervisory authorities of other EU Member States and from consumer complaints submitted directly to the Commission.

An English version of the operative part of the decision will be published additionally. The Bulgarian version of the decision is legally binding, while the English version is for informational purposes only.

From the date of today’s decision – June 9, 2026, “ZAD DallBogg: Life and Health” JSC is not entitled to conclude new insurance contracts or extend the terms or expand the coverage under current insurance policies. The insurer is not entitled to freely dispose of its assets.

As of today, the insurer is managed and represented by two quaestors. All rights of the previous management and supervisory bodies of the insurer have been terminated, except for their right to appeal the decision to withdraw the licence. Until the decision to withdraw the licence is appealed and the competent court has not issued a final decision, the company remains under quaestorship, which is supervised by the Commission.

Information for insurance policy holders

The withdrawal of the licence does not affect the validity of the insurance contracts already concluded with “ZAD DallBogg: Life and Health” JSC.

All insurance policies concluded with this insurer remain valid and provide the necessary coverage for the relevant risk until the term for which they were concluded. Only after the decision to withdraw the licence and initiate insolvency proceedings enters into force will the insurance policies be terminated by virtue of the law. Until that time, the insurer may collect contributions for insurance premiums, as well as accept, consider and settle all insurance claims filed against it, as well as pay the due insurance compensations.

The insurance compensations under the Motor Third Party Liability (MTPL) policies are guaranteed by the Bulgarian Guarantee Fund. It is responsible for claims that the insurer cannot pay from the moment the licence is withdrawn. In this way, all persons who have claims against the insurer will receive their guaranteed insurance compensations.

Q&A for consumers

  • I have a “ZAD DallBogg: Life and Health” JSC MTPL policy.

What happens now that “ZAD DallBogg: Life and Health” JSC ‘s licence has been withdrawn?

Your MTPL insurance policy remains in force until the expiry of the term for which it was concluded or until a decision is made to open insolvency proceedings against “ZAD DallBogg: Life and Health” JSC by the competent Bulgarian court. After the occurrence of any of these circumstances, the contract ceases to be effective. Until that moment, the contract remains valid and “ZAD DallBogg: Life and Health” JSC is obliged to accept, consider and settle the submitted insurance claims, as well as to pay the due insurance compensations.

After the withdrawal of the licence of “ZAD DallBogg: Life and Health” JSC, the payment of the due compensation under the MTPL is guaranteed by the Bulgarian Guarantee Fund.

Persons who do not maintain valid MTPL are subject to the administrative sanctions provided for in the law. Driving a motor vehicle without valid insurance is not permissible.

After the expiration of the insurance contract, the clients of “ZAD DallBogg: Life and Health” JSC should conclude a new contract for MTPL with another insurer.

Where necessary, insured persons should seek advice from the competent national supervisory authority, professional organisation, insurance intermediary or consumer protection organisation before taking any action regarding their insurance.

  • I was involved in a car accident (which involved a “ZAD DallBogg: Life and Health” JSC’s policyholder) and I am still waiting to receive compensation from “ZAD DallBogg: Life and Health” JSC. What can I do?

In this case, the payment of the due compensation will be ensured by the Guarantee Fund of the Republic of Bulgaria. Given the withdrawal of the licence of “ZAD DallBogg: Life and Health Insurance” JSC, it is possible that the consideration and settlement of claims may take longer than the terms applicable to the usual settlement of claims under national legislation.

  • I have suffered damage from a driver insured by DallBogg: Life and Health Insurance Company. Where can I file my claim?

If you are a resident of a Member State of the European Union or the European Economic Area, you can file your claim directly with DallBogg: Life and Health Insurance Company. This rule also applies when the insurance contract of the person who caused the damage has terminated in accordance with national law, provided that the accident occurred before the date of termination of the contract.

  • I purchased an MLTPL policy from “ZAD DallBogg: Life and Health” despite the ban.

What happens now that “ZAD DallBogg: Life and Health” JSC ‘s licence has been withdrawn?

If you are a Bulgarian citizen and have concluded a contract after April 2, 2026, you should keep in mind that the contract does not produce legal effects. You must immediately file an official complaint with the competent authorities and conclude a new contract with an insurer who is entitled to carry out insurance activities.

  • I hold a “ZAD DallBogg: Life and Health” JSC policy which is not MTPL (e.g. credit and suretyship). What happens now that “ZAD DallBogg: Life and Health” JSC ‘s licence has been withdrawn? Does the protection of the Bulgarian Guarantee Fund apply to all types of insurance?

No. The Guarantee Fund’s protection is only applicable to compulsory MTPL insurance and does not cover other types of insurance, including Credit insurance or Guarantee insurance.

If your claim is related to another type of insurance, your right to compensation will be determined according to the applicable national legislation and there may not be a mechanism for guaranteed payment of compensation.

In this case, insured persons should seek assistance from the competent national supervisory authority, professional organisation, insurance intermediary or consumer protection organisation.

  • Where can I find more information?

It is essential that consumers know their rights and obligations under the concluded insurance contracts and are familiar with the consequences of the decisions of the Financial Supervision Commission regarding the activities of “ZAD DallBogg: Life and Health Insurance” JSC.

Additional information can be found on the websites of the Bulgarian supervisory authority and the competent supervisory authority in the country of residence of the respective consumer.

Disclaimer: This English-language press release is provided for information purposes only. The legally binding version of the Commission’s decision is the original Bulgarian text.

MoU to strengthen regional integration on capital markets of regulators from Central and South-Eastern Europe

The Slovenian Securities Market Agency hosted the signing of a Memorandum of Understanding (MoU) on cooperation in the field of coordinated regulation and supervision of markets operating in Slovenia, Croatia, Slovakia, Poland, Bulgaria, Romania, Hungary and North Macedonia with the aim of ensuring a coordinated approach to the exercise of their competences. Regulators will support the initiative as proposed by the regulated markets in the region and adopted in November 2024.

The MoU establishes closer cooperation and promotes regional cooperation in defining and implementing key initiatives for the development of regional capital markets. The purpose of the MoU is to cooperate on matters of mutual interest under the principles of mutual trust, consultation and proportionality and to identify gaps in the regulation of these markets and to implement activities to harmonise the regulations governing the capital market. Through more frequent cooperation, coordination and occasional meetings, we will further strengthen the already good cooperation between supervisors.

In August 2025, the finance ministers of the aforementioned countries signed a cooperation agreement for the regional integration of markets in Central and South-Eastern Europe, thus confirming the highest-level political commitment to support activities for the development of the capital markets of the signatory countries.

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Denitsa Velichkova, Deputy Chair of the FSC, participated in the “Ring the Bell for Gender Equality” ceremony at the BSE

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Denitsa Velichkova, Deputy Chair of the Financial Supervision Commission (FSC) in charge of the Investment Supervision Division, participated in the twelfth “Ring the Bell for Gender Equality” ceremony, organized with the support of the United Nations Global Compact and UN Women under the auspices of the United Nations. This year’s campaign message was “Right. Equality. Empowerment. For all women and girls.” The event took place at the premises of the Bulgarian Stock Exchange.

The ceremony was opened by the Chief Executive Officer of the Bulgarian Stock Exchange, Assoc. Prof. Dr. Manyu Moravenov, who presented data from the “Women on Boards” initiative regarding the participation of women in the management bodies of listed companies. The statistics presented show that the number of women CEOs in public companies has increased by 10% over the past year.

Denitsa Velichkova noted that the financial sector is often an example of the strong presence of women both as professionals and as leaders; however, sustainable success is achieved when there is balance and partnership between women and men in decision-making processes and in building sustainable organizations.

The ceremony was also attended by Diana Yordanova, Diana Yordanova, Deputy Chair of the Financial Supervision Commission, Head of the Social Insurance Supervision Division..

Within the framework of the event, the special guest speaker was Krasimira Hadzhiivanova, founder of the platform “Maiko Mila” and the social enterprise “Ole Male”, who delivered a lecture titled “Social Entrepreneurship as a Form of Leadership.” She shared examples of how social enterprises create opportunities for financial independence and leadership for women in Bulgaria.

The ceremony concluded with the symbolic ringing of the stock exchange bell, marking the participants’ support for equal opportunities and for building a more open, fair, and sustainable business environment.

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The Financial Supervision Commission has sent notification about its consent for the portfolio transfer from “Allianz Risk Transfer AG” to “Allianz Global Corporate & Specialty SE”

The Financial Supervision Commission (FSC) has been notified by the competent authority of Liechtenstein of the merger from the insurance undertaking “Allianz Risk Transfer AG” to “Allianz Global Corporate & Specialty SE”, including insurance contracts on which 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 Liechtenstein on granting consent of the merger of “Allianz Risk Transfer AG” to “Allianz Global Corporate & Specialty SE”