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The Financial Supervision Commission (FSC) warns the public to financial frauds committed by the following unauthorized investment intermediaries: “Capital Engineering AD”, “Grand Eastern Market EOOD”, “International Management Brokers EOOD” and others


The Financial Supervision Commission pursues consequent policy aimed at protection of the interests of financial services users, as well as at circumvention of the performance of investment activities and services by unlicensed persons.
Numerous complaints have been received in FSC against the enumerated companies: “Capital Engineering AD” (former denomination “Finance Engineering”), “Grand Eastern Market EOOD”, “Market Progress EOOD”, “International Management Brokers EOOD” (former denomination “Alternative Financial”), “Alternativa BG EOOD” (later renamed “Bullion Vault EE”), “Positiva Front Office EOOD” (former denomination “Positiva Capital”) and “Positiva Europe Headquarters EOOD”.
The Financial Supervision Commission warns users, potential investors and the public that the abovementioned companies have not been granted any licence for acting as investment intermediaries. For that reason, the enumerated companies are not entitled to perform activities in connection with provision of investment services and/or investment activities on the territory of the Republic of Bulgaria within the meaning of Art.6 of the Markets in Financial Instruments Act, nor are they authorized to receive any pecuniary resources on their bank accounts, for the purpose of investing them in financial instruments.
The provision of investment services and the performance of investment activities may be put into practice solely by a stock company or a limited liability company whose registered office or head office is situated on the territory of the Republic of Bulgaria, and which have been granted a licence for acting as investment intermediary upon the sequence and conditions set in the Markets in Financial Instruments Act. In this context, investment services on the territory of the Republic of Bulgaria may be provided solely by:
  • Investment intermediaries licensed by FSC;
  • Investment intermediaries – banks licensed by the Bulgarian National Bank;
  • Investment intermediaries licensed by competent authorities of other EEA member states which provide investment services on the territory of the Republic of Bulgaria according to the law (chapter 4, section II of the Markets in Financial Instruments Act);
  • Investment intermediaries from third countries providing investment services on the territory of the Republic of Bulgaria in accordance  with Chapter 4, section III of the Markets in Financial Instruments Act.
Detailed information about the licensed investment intermediaries and banks authorized to provide investment services on the territory of the Republic of Bulgaria is available on the internet site of the FSC: http://212.122.187.59/public/index.php?lang=bg.
As indication of the issue that the potential investor is a fraud victim could be considered the circumstance that the denomination of the company indicated in the contract as investment intermediary differs from the denomination of the company on whose account the respective pecuniary resources should be transferred. The latter is being designated as “service company” or “custody company”. Neither in the Markets in Financial Instruments Act, nor in the other regulatory framework in force related to the investment intermediaries’ activity, exist any notions such as “service company” or “custody company” for the purposes of providing investment services and activities, in the sense of the quoted legislative act.
FSC warns potential investors that before transferring their pecuniary resources aimed at financial instruments trading, they should always check the FSC’s website, in order to get information whether the respective person on whose account they intend to transfer money has been granted a licence to act as an investment intermediary.
This check has to be completed on the FSC’s website, namely: http://www.fsc.bg/bg/ and/or on the websites of the respective EU competent authorities, as well as on the internet site of the European Securities and Markets Authority (ESMA) - https://www.esma.europa.eu/.
A list of investment intermediaries which have not notified FSC of their intention to provide investment services on the territory of the Republic of Bulgaria is available on the FSC’s website at: https://www.fsc.bg/bg/podnadzorni-litsa/notifikatsii/notifikatsii-polucheni-v-kfn/.
Trading by intermediary which is not registered in the lists in question means that the latter performs its activity unlawfully, thus without the licence required for this purpose. This leads to a lack of security as regards the invested resources.