At a meeting on 16.03.2011, FSC adopted Practice on implementation of Art. 92, para 1, Item 3, last proposition, of the Law on Public Offering of Securities (LPOS) on the requirements to the content of the prospectuses for public offering and admission to trading on a regulated market of bond issues in connection with possible changes in the conditions under which the bonds were issued. The practice aims at clarifying the scope of the disclosed in the prospectuses information in relation to the possibility for change in the conditions under which the bonds were subscribed, with the purpose of protecting the interests of investors in bonds, including through enhancement of their knowledge, and as consequence, improvement of the transparency, stability and trust in the capital market.
Which, in your view, are the global trends in 2024 we could expect in the Fintech industry?
Boyko Atanasov: The Fintech industry is in a dynamic evolution state, whereat it incessantly reveals spectrum of innovations in front of us putting into question the established regulations. It is this industry, which namely provokes us to analyze the necessity of introducing progressive solutions accessible to a wider audience. I am deeply convinced that in the transforming financial ecosystem in 2024, services focused on personalized, secure and sustainable financial relationships, reflecting unprecedented technological advancement and consumer-centric innovation, will resonate.
In response to global trends in sustainability and environmental protection, this year we shall witness the rise of green (ESG) fintech trends, which will align financial technology with environmental considerations. Fintech solutions will evolve, so that by emphasizing both the sustainable investments and green financial activities, we will strive towards the goal of reducing the carbon footprint. The approach in question aims to connect technology with sustainability by strengthening the role of the financial sector in promoting practices that positively contribute to the environment and support global sustainability goals.
We are witnessing digitization in all of its aspects, including the use of blockchain and artificial intelligence (AI). In our role as regulator of the non-banking financial sector, it is very important for us to track innovative financing, evaluate new tools and practices, but at the same time protect consumers and act as a guarantor of the stability of the non-banking sector.
The advanced integration of artificial intelligence (AI) and machine learning (ML) will have significant impact on the customer experience, on the more precise detection and mitigation of fraudulent activities, and will optimize risk management strategies as well.
The development of these algorithms will lead to faster and more accurate financial solutions, invented to meet the unique needs and goals of individual users, so that we expect to enhance the level of their satisfaction and to increase their engagement.
The increased need for high cyber security will provide the basis for the protection of user data, tightly integrated in financial platforms. Improved features including advanced biometrics, multi-factor authentication and advanced encryption protocols will become ubiquitous elements of fintech security structure. These improvements will strengthen security barriers, protecting sensitive consumer information against potential threats and breaches, and maintaining integrity and trust in digital financial services.
How has the Financial Supervision Commission ensured adaptation of regulation to accommodate the evolving FinTech landscape in 2024?
Boyko Atanasov: It is important to note that regulatory approaches can vary in all jurisdictions. Specific adaptations will depend on regulations and priorities for each country or region, taking into account both technological progress and innovation as well as the European legislative framework.
FSC finalized the project for „Building a Unified Information System (UES). Since the autumn of 2023, the UES has been functioning successfully, and with its introduction, we report a significant improvement in the process of administrative service to citizens, businesses and supervised entities. All administrative services are fully accessible digitally. In addition to being part of the state administration system, in real time they are integrated with the activities and processes, and an exchange of information with the regulatory authorities of the EU – European Insurance and Occupational Pensions Authority (EIOPA) and the European Securities and Markets Authority (ESMA).
Of particular importance for 2024 will also be the regulations of crypto assets, as the dynamic nature of financial markets accentuates digital financial services, which are an increasingly important part of the European economic environment. Although the FSC has not been unequivocally designated as the national competent authority in this area, our daily work with the European regulators, in the face of ESMA, gives us the reason to be directly involved in this process and to follow the legislative changes, still at an initial level, but with the expectation that they will completely change the financial landscape of Europe. We are monitoring the implementation of the two acts: the European Digital Resilience Act (DORA) and the Markets in Crypto Assets Regulation (MiCA). The DORA Regulation, which entered into force in January 2023, aims to create a regulatory framework for digital operational resilience through which all companies can ensure that they can withstand all types of disruptions and threats related to information and communication technologies (ICT), with the aim of preventing and mitigating cyber threats. On the other hand, MiCA’s goal is to create a regulatory framework for the crypto asset market that supports innovation and harnesses the potential of crypto assets in a way that preserves financial stability and protects investors. EU countries must adopt national laws aligned with the regulation by June 2024, with full implementation starting in stages. DORA and MiCA will support innovation and the deployment of new financial technologies while ensuring an appropriate level of protection for consumers and investors.
Are there specific regulatory challenges or opportunities that the Bulgarian FinTech business may face in the current and the following years?
Boyko Atanasov: It is important for the Bulgarian FinTech business to keep up with the evolving regulatory environment, to engage in constant dialogue with the relevant industry associations and to seek legal advice in order to navigate the specific challenges and opportunities in the country. Some common challenges and opportunities for FinTech businesses in Bulgaria are the regulatory framework, licensing and authorization, data protection and privacy, risk management and cyber security.
As for the opportunities, they are: digital transformation, financial inclusion, cooperation with traditional institutions, government support and initiatives, and cross-border expansion.
How does the Financial Supervision Commission promote cooperation between traditional financial institutions and FinTech startups, especially in the non-banking sector?
Boyko Atanasov: The Financial Supervision Commission always proactively participates in cooperation programs and initiatives, provides regulatory guidance and support. Showing regulatory flexibility and sharing information is paying off. I believe that our continued partnership with the Bulgarian FinTech Association will contribute to promoting the creation of innovation centers and incubators.
The role of the FSC is to provoke the achievement of synchrony between the regulatory requirements and their implementation in a digital environment, with the ultimate goal being to reduce the administrative burden.
Part of the concrete results is the functioning Innovative Hub, providing a single point of contact with FinTech companies and the changed regulations for accessibility to the capital markets of small and medium-sized enterprises, the successfully functioning UES and the mobile application – FSC Mobile, the purpose of which is to help users and supervised entities, through the use of the most popular operating systems – Android and iOS.
The Financial Supervision Commission will continue to actively work and be in dialogue with the non-banking financial sector participants, as the result of the partnership between the national regulator and the business is the maintenance of a sustainable and innovation-friendly business environment.
At its meeting as of July 14, 2016 FSC took a decision to appoint independent external reviewers to five insurers. With this the procedure for appointing independent external reviewers for review of the pension fund assets and the balance sheets of insurers successfully completed and the reviews start on time and as planned on 15 July 2016.
The FSC decision is adopted in full compliance with the decision of the Steering Committee (SC). The Steering Committee, which oversees the reviews, includes representatives from the FSC and European Insurance and Occupational Pensions Authority/EIOPA (voting members), as well as representatives from the Ministry of Finance, the Bulgarian National Bank, European Commission and European Securities and Markets Authority/ESMA (observers with advisory powers). All FSC decisions on the organization and conduct of both reviews until present are adopted in full compliance with the SC decisions.
At its meeting as of July 14, 2016 FSC took a decision to appoint independent external reviewers to five insurers. With this the procedure for appointing independent external reviewers for review of the pension fund assets and the balance sheets of insurers successfully completed and the reviews start on time and as planned on 15 July 2016.
The FSC decision is adopted in full compliance with the decision of the Steering Committee (SC). The Steering Committee, which oversees the reviews, includes representatives from the FSC and European Insurance and Occupational Pensions Authority/EIOPA (voting members), as well as representatives from the Ministry of Finance, the Bulgarian National Bank, European Commission and European Securities and Markets Authority/ESMA (observers with advisory powers). All FSC decisions on the organization and conduct of both reviews until present are adopted in full compliance with the SC decisions.
Тhe Financial Supervision Commission has started today a procedure for public procurement for the selection of an independent external entity to conduct the organization and carrying out the stress tests of the Bulgarian insurers and reinsurers. Based on a recommendation of the Steering Committee the Financial Supervision Commission (FSC) took a decision to assign to representatives of EIOPA the preparation of the Methodology for carrying out of stress tests of the Bulgarian insurers and reinsurers (on solo and group level). The price for the public procurement announced by the FSC reflects the narrowed scope of the task.
The Steering Committee, which oversees the process for preparation the stress test exercise, includes representatives from the FSC and European Insurance and Occupational Pensions Authority/EIOPA (voting members), as well as representatives from the Ministry of Finance, the Bulgarian National Bank, European Commission and European Securities and Markets Authority/ESMA (observers with advisory powers).
The development of the Methodology and the organization and carrying out the stress tests of the Bulgarian insurers and reinsurers are performed on the grounds of § 10, Paragraph 4 of the Interim and Final Provisions of the Recovery and Resolution of Credit Institutions and Investment Firms Act.
Additional information for the public procurement procedure for the selection of an independent external entity to conduct the organization and carrying out the stress tests of the Bulgarian insurers and reinsurers is available on the following link.
Тhe Financial Supervision Commission has started today a procedure for public procurement procedure for the selection of an independent external entity to conduct the organization and carrying out the stress tests of the Bulgarian insurers and reinsurers. Based on a recommendation of the Steering Committee the Financial Supervision Commission (FSC) took a decision to assign to representatives of EIOPA the preparation of the Methodology for carrying out of stress tests of the Bulgarian insurers and reinsurers (on solo and group level). The price for the public procurement announced by the FSC reflects the narrowed scope of the task.
The Steering Committee, which oversees the process for preparation the stress test exercise, includes representatives from the FSC and European Insurance and Occupational Pensions Authority/EIOPA (voting members), as well as representatives from the Ministry of Finance, the Bulgarian National Bank, European Commission and European Securities and Markets Authority/ESMA (observers with advisory powers).
The development of the Methodology and the organization and carrying out the stress tests of the Bulgarian insurers and reinsurers are performed on the grounds of § 10, Paragraph 4 of the Interim and Final Provisions of the Recovery and Resolution of Credit Institutions and Investment Firms Act.
On 10 June 2016 FSC approved the appointments of independent external reviewers (IERs) to all pension funds and to the majority of the insurers. With regard to the rest of the insurers, a decision for appointment of IERs shall be taken on a later stage, but not later than 30 June 2016, after presenting of all evidences for compliance of their respective teams with the selection criteria described in paragraph 10 of the insurance sector invitation.
Regarding the companies from point 46 to point 54 of Annex 6 from the Methodology for the review of the balance sheets of the insurers, the question on the review of the balance sheets of the insurance groups and sub-groups shall be decided on a next FSC meeting. This is necessary in view of the complaints received at FSC.
The assessment of compliance with the invitations’ criteria performed by FSC is supported by the Steering Committee recommendations. The Steering Committee, which oversees the reviews, includes representatives from the FSC and European Insurance and Occupational Pensions Authority/EIOPA (voting members), as well as representatives from the Ministry of Finance, the Bulgarian National Bank, European Commission and European Securities and Markets Authority/ESMA (observers with advisory powers).
The list of the independent external reviewers appointed in compliance with the applicable legal framework to the respective participating undertaking could be found in the files below.
All IER’ fees entailed by the BSR/AR will be paid by the respective participating undertaking.
The field work of the reviewers shall start on 15 July 2015.
On 10 June 2016 FSC approved the appointments of independent external reviewers (IERs) to all pension funds and to the majority of the insurers. With regard to the rest of the insurers, a decision for appointment of IERs shall be taken on a later stage, but not later than 30 June 2016, after presenting of all evidences for compliance of their respective teams with the selection criteria described in paragraph 10 of the insurance sector invitation.
Regarding the companies from point 46 to point 54 of Annex 6 from the Methodology for the review of the balance sheets of the insurers, the question on the review of the balance sheets of the insurance groups and sub-groups shall be decided on a next FSC meeting. This is necessary in view of the complaints received at FSC.
The assessment of compliance with the invitations’ criteria performed by FSC is supported by the Steering Committee recommendations. The Steering Committee, which oversees the reviews, includes representatives from the FSC and European Insurance and Occupational Pensions Authority/EIOPA (voting members), as well as representatives from the Ministry of Finance, the Bulgarian National Bank, European Commission and European Securities and Markets Authority/ESMA (observers with advisory powers).
The list of the independent external reviewers appointed in compliance with the applicable legal framework to the respective participating undertaking could be found in the files below.
All IER’ fees entailed by the BSR/AR will be paid by the respective participating undertaking.
The field work of the reviewers shall start on 15 July 2015.
The Social Insurance Supervision Department of the FSC announced the final results of the supplementary pension insurance activity for 2020. The information was summarized on the basis of the audited annual financial statements and the annual statements for supervision purposes for 2020, submitted by the pension insurance companies to the Financial Supervision Commission. The data on distribution of insured persons by sex and age as of 31.12.2020 have also been published.
The total number of insured persons in the four types of pension funds as of 31.12.2020 is 4,819,139 people, increasing compared to 31.12.2019 by 1.18 per cent.
In the system of the supplementary pension insurance as of 31.12.2020, BGN 17,294,294 thousand of net assets have been accumulated. Compared to the end of 2019, the net assets of pension funds increased by 10.67 percent.
The total revenues of the pension insurance companies for 2020 amount to BGN 217,338 thousand and increased by 9.02 per cent compared to the reported revenues for 2019. The net financial result of the companies as of 31.12.2020 amounts to BGN 55,955 thousand
Detailed information on the final results of the supplementary pension insurance activity for 2020 and on the insured persons and the accumulated funds as of 31.12.2020 by sex and age are available in the section: Social Insurance Activity/ Statistics / Statistics and analysis / 2020.
Social Insurance Supervision Division of FSC announced the final results of the activity in supplementary pension insurance for 2010. The information was obtained on the basis of the audited financial statements and statistics, submitted by the pension insurance companies at the Financial Supervision Commission.
As of 31 December 2010, the number of the insured persons in the four types of pension funds – universal, occupational, voluntary and voluntary under professional schemes, reached 3 882 883 persons, which represented an increase with 117 925 persons or by 3,13 percent compared to the insured in the end of 2009.
At 30 December 2010, the accumulated net assets in the system of supplementary pension insurance equaled to BGN 3 987 419 thousand and registered a growth of BGN 831 249 thousand, or 26,34 per cent in comparison with the net assets as of 31.12.2009.
The pension insurance companies closed the reporting 2010 year with total income to the amount of BGN 86 667 thousand, which represented an increase by 9,55 percent, compared to the recorded income in 2009. In 2010, the pension insurance sector realized a positive total net financial result to the amount of BGN 19 722 thousand, which represented a surge of this indicator by 18,83 in comparison with 2009.
