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Warning to potential investors


The Financial Supervision Commission (FSC) pursues consistent policy of protecting the interests of financial services users, as well as preventing unauthorized companies from performing investment activities and/оr investment services.
Numerous complaints have been filed with the FSC against the following companies: “Grand Spot Market” EOOD, “Post Grand Research” EOOD (previously named “Grand Research” EOOD), “Grand Eastern Market EOOD”, “Market Progress EOOD”, “Mini-Market 1920EOOD, Super-Market 2020EOOD, “Global Strategy” EAD, “Post Fin Engineering Income” EOOD (previously named “Fin Engineering Income” EOOD) and “Virginia FinCorp” EOOD. At present, the following websites related to “Grand Spot Market” EOOD and “Grand Eastern Market” EOOD have been identified: https://grandspotmarket.com and https://grandeasternmarket.com.
The FSC warns users, potential investors and the public that the abovementioned companies have not been granted any licence for acting as investment intermediaries under the provisions of Art. 6 of the Markets in Financial Instruments Act. Therefore, those companies are not entitled to carry out investment services and/or investment activities on the territory of the Republic of Bulgaria; neither they are authorised to receive any funds on their bank accounts for the purpose of investing them in financial instruments.
Investment services may be provided and investment activities may be performed solely by a joint-stock company or a limited liability company with registered office or headquarter on the territory of the Republic of Bulgaria. Such companies must be granted a licence for acting as investment intermediaries under the provisions of the Markets in Financial Instruments Act. Within the context of the above, investment services and activities on the territory of the Republic of Bulgaria might be performed by:
  • Investment intermediaries licensed by the 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 with 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.
The FSC warns potential investors that before transferring funds they should always check the FSC’s website to make sure that the company they are dealing with has all permissions for the regulated services and activities. A typical indication of a fraudulent behavior for the potential investors is the circumstance that the company indicated in the contract as investment intermediary differs from the company on whose account the respective funds should be transferred. Also, aggressive marketing practices are frequently used i.e. unsolicited emails and/or cold calls to the potential investors.
A List of the licensed investment firms is available on the FSC’s website, namely: http://www.fsc.bg/ and/or on the websites of the respective EEA 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 notified FSC about their intention to provide investment services on the territory of the Republic of Bulgaria is also available on the FSC’s website at: https://www.fsc.bg/bg/podnadzorni-litsa/notifikatsii/notifikatsii-polucheni-v-kfn/.
Trading via an intermediary which is not included in the Lists mentioned above means that the latter carries out its activity unlawfully i.e. without the licence required for this purpose. Hence, the investor is not protected and is not covered by the protection mechanism provided by the Investor Compensation Fund in Bulgaria.
Further, potential investors can check the sites of ESMA - https://www.esma.europa.eu/investor-corner/warning-and-publications-investors/, and the International Organization of Securities Commission (IOSCO) - www.iosco.org/investor_protection/?subsection=investor_alerts_portal for warnings about possible scams.