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Offering of units in the Republic of Bulgaria by UCITS with a seat in another Member State

Directive 2009/65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS) provides and regulates the notification procedure in respect of competent authorities of UCITS which intend to offer their units in a Member State which is not their home Member State. The prescriptions of the directive regarding units offered by UCITS established in another Member State on the territory of the Republic of Bulgaria are incorporated in the Bulgarian legislation, namely in articles 128-135 of the Collective Investment Schemes and Other Undertakings for Collective Investments Act.
If any UCITS whose official office is in another Member State intends to offer its units in the Republic of Bulgaria, first of all it has to send notification letter to its home Member State competent authority. The notification letter contains information on the measures taken by it, in order to offer its shares on the territory of the Republic of Bulgaria including, where applicable, measures on offering the respective share classes. The following documentation must be attached:
1. Articles of incorporation of the respective UCITS, its prospectus and the last annual report or half-year report composed either in Bulgarian, or in English;
2. Key investor information document in Bulgarian language.
After the respective competent authority of the UCITS home Member State has forwarded to the Bulgarian Financial Supervision Commission (FSC) all documents mentioned above, accompanied by attestation verifying the UCITS compliance with the requirements of Directive 2009/65/EC, the UCITS has the right to offer its units on the territory of the Republic of Bulgaria, without being obliged to pay any fee to the FSC. The notification letter and the attestation shall be composed in English. A message about completed notification procedure has to be sent to the respective UCITS by the competent authorities of its home Member State.
UCITS offering its units in the Republic of Bulgaria must take all necessary measures to ensure redemption of units, payments to unitholders and provision of information, in accordance with the Bulgarian legislation. The respective UCITS is obliged to provide investors in the Republic of Bulgaria with the whole information and documentation, which the investors of its home Member State have access to, composed either in Bulgarian, or in English. The same requirements have to be fulfilled in case of further change or information update. In case of posterior alteration in the information included in the notification letter, the respective UCITS should notify in writing the FSC before having altered it.
The respective UCITS is obliged to publish in an appropriate manner information about the emission value and the redemption price of its units traded on the territory of the Republic of Bulgaria, whereat the frequency of the publication should be set in the legal framework of its home Member State. UCITS shall notify the FSC about the frequency and the manner in which it publishes the information required.