Periodic reports and statements of insurance brokers

The package of reports, statements and appendices in connection with the submission to the Financial Supervision Commission of the periodic reports of the insurance brokers as of 31.12.2021, on the grounds of Art. 311, para. 3, item 2, in connection with para. 4 of the Insurance Code has been updated.

In connection with the above, the completion of the above reports and statements, and their submission through the electronic portal of the FSC, must begin after downloading the mandatory updated format (version 31.12.2021), published on the FSC website at:

www.fsc.bg, section “Administrative documents”, subsection “Forms and templates”, “Insurance market“.

IMPORTANT:

Attachments must meet the following conditions:

  • The main file containing the reference package according to Appendices 2.1-2.8 and 3.1-3.4 with basic information must be in .xls format (Microsoft Excel 2003);
  • The content of the main file with basic information must be filled in according to the templates approved by the Financial Supervision Commission, observing all rules for data validity (these rules are not part of this instruction and can be downloaded from the Financial Supervision Commission website) ;
  • The name of the main file with basic information must be formatted according to the rules set by the Financial Supervision Commission;
  • For Appendix No. 2.4, Appendix No. 2.8, Appendix No. 3.2 and Appendix No. 3.4 of the main file with basic information contained in the reference package, the Note section should indicate the country in which the insurer / reinsurer has its registered office and the territory on which the risk under the concluded insurance / reinsurance contract is located
  • Appendix No. 1 shall be filled in according to the attached template contained in the reference package, the information must be in .xls format;
  • The Insurance Code stipulates an obligation for insurance brokers to submit information on the ongoing professional training and development of the persons under Art. 303, para. 2 and 3 and Art. 304, para. 1 of the IC within the year. The reports shall be submitted to the Commission annually by January 31 of the following year. For this purpose, Appendix No. 3 in .xls format should be filled in, according to the attached template contained in the reference package;
  • Files must be signed with a universal electronic signature in p7m or p7s format (PKCS # 7), and encryption should NOT be used when signing;
  • The signature on the files must belong to the same employee who logged in the system.

Parliament Elected Two New Members of the FSC Board

The Parliament elected two new members of the Financial Supervision Commission proposed by the Chairman of the FSC – Mr. Stoyan Mavrodiev, according to his legislative prerogatives. The new members are Ms. Ralitsa Agayn – Guri  elected for a  Deputy  Chairperson  in charge of „Insurance supervision“ and Mr. Vladimir Savov for a member of the regulator, responsible for policy analysis and risk assessment in financial markets, improving supervisory practice and protecting the interests of investors and insured persons.  

Their term of office is six years.

The candidatures of Ralitsa Agayn-Guri and Vladimir Savov were approved by the Parliament with 128 votes „for“, 9 votes „against“ and 7 „abstain“ and were supported by all parliamentary groups.

The proposal  was based on Art. 84, 8 and Art. 86 , para. 1 of the Constitution of the Republic of Bulgaria in connection with Art. 5 para. 2 of the Act on the Financial Supervision Commission .

In  their speeches  the  two new members expressed their willingness and readiness to improve the mechanisms for protecting the rights of consumers of non-banking financial services,  for the development of financial markets and  for maintaining the financial stability in Bulgaria. 

Order of the Sofia Regional Court

At its meeting on 01.12.2020 the FSC decided to send a request to the Chairperson of the Sofia Regional Court to order all enterprises providing public electronic communications networks and / or services to suspend access to websites duly described in the FSC Decision No. 862-ИП/ 19.11.2020. According to the cited decision, the sites should have stopped offering investment services by 23.11.2020, because they belong to persons who are not entitled to carry out investment activities.

 The Chairperson of the Sofia Regional Court ordered all enterprises providing electronic communications networks and / or services within 24 hours from the publication of the order on the FSC website (14.01.2021) to suspend access from the territory of the Republic of Bulgaria to 4 the websites explicitly mentioned in the FSC’s request.

 The suspension of access to the described websites is necessitated by the fact that investment services are provided through them by persons who are not entitled to provide such services on the territory of the Republic of Bulgaria.

 The order of the Chairperson of the Sofia Regional Court which lists the websites to which access should be suspended can be found in the attached file (available in BG version).

Order of the Sofia Regional Court

At its meeting on 23.03.2021 the FSC decided to send a request to the Chairperson of the Sofia Regional Court to order all enterprises providing public electronic communications networks and / or services to suspend access to websites duly described in the FSC Decision No. 128-ИП/ 11.03.2021. According to the cited decision, the sites should have stopped offering investment services by 15.03.2021, because they belong to persons who are not entitled to carry out investment activities.

 The Chairperson of the Sofia Regional Court ordered all enterprises providing electronic communications networks and / or services within 24 hours from the publication of the order on the FSC website (05.04.2021) to suspend access from the territory of the Republic of Bulgaria to 8 the websites explicitly mentioned in the FSC’s request.

 The suspension of access to the described websites is necessitated by the fact that investment services are provided through them by persons who are not entitled to provide such services on the territory of the Republic of Bulgaria.

 The order of the Chairperson of the Sofia Regional Court which lists the websites to which access should be suspended can be found in the attached file (available in BG version).

Order of the Sofia Regional Court

At its meeting on 07.10.2021 the FSC decided to send a request to the Chairperson of the Sofia Regional Court to order all enterprises providing public electronic communications networks and / or services to suspend access to websites duly described in the FSC Decision No. 716-ИП/28.09.2021 and which by 07.10.2021 have not stopped offering investment services and activities by persons who are not entitled to carry out such services.

The Chairperson of the Sofia Regional Court ordered all enterprises providing electronic communications networks and / or services within 24 hours from the publication of the order on the FSC website (14.10.2021) to suspend access from the territory of the Republic of Bulgaria to the four websites explicitly mentioned in the FSC’s request.

The suspension of access to the described websites is necessitated by the fact that investment services are provided through them by persons who are not entitled to provide such services on the territory of the Republic of Bulgaria.

The order of the Chairperson of the Sofia Regional Court, together with the websites to which access should be suspended can be found in the attached file (available in BG version only).

On the 6th and 7th of March 2012 a training for financial and economic literacy of students from 11th Grade of the Economic and Trade High Schools in Sofia was held

On the 6th and 7th of March 2012, the Financial Supervision Commission (FSC), jointly with the High School of Insurance and Finance (VUZF) and the Ministry of Education, Youth and Science, held a two-day training on „Financial and Economic Literacy“ for students from the 11th Grade of the National Business and Finance School and the National Trade and Banking High School in Sofia. This is a new educational module developed by the three institutions to increase financial literacy of young people in Bulgaria.

Fulfilling one of its priorities by implementing an active educational policy to increase the financial competence of the general public, the FSC has developed several training modules for different social groups. One of the week-long training programs for students held annually enjoys strong public support, which is why FSC has also developed shorter training modules within one or two days.

The current two-day program, implemented jointly with the Center for Continuing and Vocational Training to VUZF and the Ministry of Education, Youth and Science, is a pilot project for students from Sofia, with the prospects of including young people from all over the country. The program was divided into two parts: a theoretical and a practical one. In the first part, lecturers from VUZF and FSC gave presentations about the functioning and the specificity of the capital, insurance and pension insurance markets and the role and functions of the FSC to the students.

During the second day, the students paid a visit to the Bulgarian Stock Exchange, where experts explained to them practical aspects of the functioning of the market and the pupils had the opportunity to observe stock trading in real-time.

Later on, the participants in the program visited the Insurance Company „Interamerican“ and got acquainted with the specifics of the insurance business.

The training was attended by twenty students and four teachers who were extremely satisfied with the program and expressed their willingness to attend future training modules.

On October 3, 2005, the Financial Supervision Commission passed a resolution on divestiture of the licence issued to Hildon AD Insurance Company (formerly Jupiter AD Insurance Company) to perform insurance activity.

The following grounds for the divestiture of the aforesaid licence to perform insurance activity have been established:

Upon an on-site inspection undertaken and while carrying out current supervision, it has been ascertained that the company is in bad financial standing and it may not duly perform its obligations under insurance contracts.

Numerous breaches have been established, such as considerable understatement of the insurance reserves with at least BGN 909 thousand, considerable shortage of assets needed to cover the reserves with at least 95.2 per cent, fictitious considerable enhancement of the company’s financial result resulting from incorrect accountability with at least BGN 3,519 thousand. The company has been submitting erroneous financial information to the supervisory institution, where by so doing the said company has obstructed the establishment of its actual financial standing.

Unjustified non-payment, delayed payment and partial payment of exigible and liquid liabilities under insurance contracts have been ascertained.
It has also been established that the company does not pay or delays payments on liabilities under insurance contracts incontestably established through the court (13 execution actions to a total amount exceeding BGN 200 thousand).

Upon an inspection undertaken at the company and at the judicial executive office, it has been ascertained that the said insurer has not been implementing the coercive administrative measure imposed by the FSC in 2004, under which the above insurer was obligated to remove the infringements established in its activities with regard to liquidation of damages and to undertake the necessary measures for the prompt payment of all amounts due under insurance contracts.

The breaches established are substantial and numerous, and each one of these alone is a legal basis for licence divestiture.

With its actions, the company has injured social relations of considerable importance with regard to the insured persons, the stability, the transparency of and trust in the insurance market. As of the present moment, the measures undertaken by the supervisory authority have not led to a positive change in the irregular practices established in the insurer’s activity.

With a view to protecting the interests of the insured persons and maintaining the insurance market’s stability, the FSC has imposed the only adequate measure – divestiture of the licence issued to Hildon AD Insurance Company to perform insurance activity.

In order to perform direct supervision over the insurer’s activities during the period prior to the appointment of a liquidator or an assignee in bankruptcy, the Financial Supervision Commission has appointed a quaestor.

 

 

OECD assessed highly the supplementary pension insurance in Bulgaria and supports the future measures for its improvement

There are prepared private pensions amendments whose primary objective is increasing old-age income and guaranteeing adequate pension benefits

In 2024 the Insurance and Private Pensions Committee of the Organization for Economic Co-operation and Development (OECD) carried out a research mission in Sofia which reviewed the supplementary pension insurance and assessed the compliance of the Bulgarian legislation and the supervisory activity with the OECD recommendations on the key principles for private pensions regulation.

As a result of the good partnership between the co-chairs – the Ministry of Finance and the Financial Supervision Commission (FSC), as well as the efforts of the Ministry of Labour and Social Policy, the representatives of other institutions, social partners and the industry, the review of the private pensions has already been successfully completed.

The Chair of the Working party on Private Pensions at the Insurance and Private Pensions Committee of the Organization for Economic Co-operation and Development (OECD) acknowledges the strengths of the supplementary pension insurance, including:

  • the multi-pillar pension model;
  • the stable legal framework;
  • the competent risk-based supervision.

The ability of the country to implement the OECD legal instruments and the excellent cooperation with the Bulgarian authorities during the review have been highly valued.

In this regard the OECD also notes the possibility for considering certain aspects that could contribute to improving the pension system that are in line with the philosophy of the possibilities for legislative amendments such as:

  • introduction of consumer choice between different investment strategies according to their life-cycle and risk tolerance (the so-called “multifunds model” encompassing funds with different investment profile);
  • review of the rules determining the investment opportunities to achieve growing profitability.

For this purpose, the competent institutions in the country should state clearly and in sync their commitment to the development of legislative amendments, the philosophy of which is supported in the context of the recommendations given by the OECD.

Joining the Organization for Economic Co-operation and Development is a key priority for the Republic of Bulgaria, in view of which the Financial Supervision Commission confirms its readiness and commitment to participate in the development of the pension system in the country in order to guarantee trust, fairness, stability and transparency.

The Financial Supervision Commission and the Bulgarian Association of Supplementary Pension Security Companies have started a dialogue and are ready to propose changes to the regulatory framework in the field of supplementary pension insurance, the ultimate goal of which is to increase the profitability of the management of the funds on the individual accounts of the citizens, respectively achieving an adequate replacement income upon withdrawal from the labor market (retirement).

Notification of the license withdrawal of BINTERNATIONAL UNION INSURANCES S.A.

The Financial Supervision Commission (FSC) notifies all concerned parties that on 22 July 2013 the competent authority of Greece (Bank of Greece) has informed about the approval of the authorization withdrawal and the opening of winding-up proceedings of the following undertaking BINTERNATIONAL UNION INSURANCES S.A.

FSC has not been notified on the intention of the aforementioned insurance undertaking to operate on the territory of Bulgaria under the right of establishment or the freedom to provide services.