The electronic hotline – hotline@fsc.bg – is a service, which the FSC shall provide to the general public in order to maximally facilitate consumers when searching the information they need. At the following address: hotline@fsc.bg, citizens may forward queries with regard to the Commission’s activities, on the capital, insurance and assurance markets. A team of experts shall be entrusted with the task to provide the information requested within short time periods.
The FSC’s wish is to facilitate to a maximum degree the access to the information regarding non-banking financial sector, where consumers may pick the method that is most suitable and convenient for them – via electronic means – by forwarding a query to address: hotline@fsc.bg, via telephone (0900 32 300), or by visiting the information centre on the FSC’s premises.

Meanwhile, as of today, the citizens may acquaint themselves with the updated version of Questions and Answers Section on the FSC’s website: www.fsc.bg. The new Section contains interesting and useful information on the work principles and mechanisms of the capital, insurance and assurance markets, on the supervisory institution’s role, on the main products and services. Under the Practice Issues Sections, answers have been provided to the most frequently asked and most interesting questions of citizens.

1. The Commission adopted an Ordinance on compulsory insurance under Art. 249, paras. 1 and 2 of the Insurance Code and on the methodology of claims settlement of damage indemnities caused by motor vehicles. The Ordinance’s publication in the State Gazette is forthcoming.

The Ordinance regulates the terms of and the conditions for performing compulsory insurance under the Third Party Liability of the Motorists Insurance and Accident of the Passengers Insurance by conforming these to the new requirements set under the Insurance Code. The insurers may also apply terms and conditions different to those specified under the Ordinance only in the case where these are more favourable to the customers.

The Ordinance specifies the minimum requirements towards the contents of the policies on these insurances, such as data on the insurer, data on the insured person and car, premium due, etc. The documentation that is to be submitted by the injured persons in order to consider their claim and specify the insurance indemnity is also listed. The requirement stating that the insurer is to compulsorily provide a sticker to the insured is preserved. The said sticker is to be placed on the automobile’s windscreen. The requirement stating that the driver is always to also carry with him/her the counterfoil (control sheet) along with the sticker, which is to be submitted along with the insurance policy in the case of inspection by the controlling authorities is newly introduced.

The minimum amount of the indemnity against damages caused to automobiles shall be specified by utilizing the methodology which is an addendum to the Ordinance. The said methodology establishes a procedure for specifying the actual value of the different automobiles and the factors that are to be considered when calculating the indemnity’s amount. The methodology shall be applied by insurers and by the Guarantee Fund; where the insurers may also utilize a different methodology at their own discretion should such methodology be more favourable to the customers and provide for forming higher indemnities in terms of amount.

2. The FSC issued a new licence to Elana Trading JSC, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, including underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 1,500,000. 

3. The FSC issued a new licence to Balkan Advisory Company Ltd., Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000. 

4. The FSC issued a new licence to Aval In AD, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000. 

5. The FSC issued a new licence to Sentinel Asset Management JSC to perform activities as a management company.

6. The Commission confirmed a prospectus for secondary public offering of an issue of ordinary dematerialized voting shares issued by Bulgarian-American Credit Bank PLC, Sofia City. The issue amounts to BGN 12,624,725, distributed in 12,624,725 pieces of ordinary shares having nominal value of BGN 1 each, having ISIN Code: BG1100098059. The issue represents the company’s authorised capital stock. Bulgarian-American Credit Bank PLC shall be entered as a public company into the FSC’s Registry, and the issue of shares shall be traded on the stock exchange.
Bulgarian-American Credit Bank PLC is part of the economic group of its main shareholder – The Bulgarian-American Enterprise Fund (BAEF), which directly holds 99.08% of the bank’s stock.

7. The Commission confirmed a prospectus for secondary public offering of an issue of secured corporate bonds issued by BM Leasing JSC, having ISIN Code: BG2100023055. The issue amounts to EUR 3,500,000, distributed in 3,500 pieces of ordinary, registered, dematerialized, interest-bearing, secured bonds having a nominal and issue value of EUR 1,000 each one, 36-month maturity, a fixed interest percentage rate amounting to 6.40% simple interest on an annual basis, a three-month interest payment period, date of issuance: September 20, 2005, and maturity: September 20, 2008. BM Leasing JSC shall be entered as an issuer into the FSC’s Public Registry.
The BM Leasing JSC’s subject of activity is mainly connected with leasing assets: machines, production equipment, cars and lorries, specialized transport equipment, real estates. The issuer’s majority owner, holding 67.55% of its capital stock, is The Bulgarian-American Enterprise Fund (BAEF).

8. The Commission confirmed a prospectus for secondary public offering of an issue of non-secured corporate bonds issued by SV. SV. KONSTANTIN I ELENA HOLDING PLC, Varna, having ISIN Code: BG2100041057. The issue amounts to EUR 5,000,000, distributed in 5,000 pieces of ordinary, registered, dematerialized, interest-bearing, secured bonds having a nominal and issue value of EUR 1,000 each one, 72-month maturity, with floating interest percentage rate to the amount of 6-month EUROBOR plus a margin of 5 points simple interest rate on an annual basis, a six-month interest payment period, date of issuance: December 20, 2005, and maturity: December 20, 2011.
The funds raised through the issue shall be used for construction development and sales of houses, tourism development and shares acquisition, related to the company’s direct activity.
The company’s main shareholders are Andezit Ltd., Ital Commerce 75 Single Person LLC, Rent-a-Park Single Person LLC, each one holding 28.17% of the issuer’s stock capital.

9. The Commission registered Pravin Benker as a professional investor.

1. The FSC issued a new licence to Varna Investment Intermediary /VIP-7/ AD, Varna, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000. 

2. The FSC issued a new licence to Eurodealing PLC, Burgas, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000. 

3. The Commission entered a subsequent shares issue, the purpose of which being trading these on a regulated securities market, issued by Active Properties REIT as a result of increase in the company’s capital stock from BGN 650,000 to BGN 5,200,000 through issuance of new 4,550,000 shares having a nominal value of BGN 1 each and issue value of BGN 1.10 each.

4. The Commission acknowledged the qualifications acquired by Stanislav Ivanov Voynovski to exercise activities as an investment advisor.

5. The Commission adopted an Amendment Ordinance to Ordinance No. 21 of March 16, 2005 on the own funds and solvency margin of insurers and health insurance companies.
Under the said Ordinance, the European directives with regard to the requirements for the solvency margin of the insurers are fully transposed in our legislation. New elements are introduced where calculating the insurer’s own funds. In compliance with the new provisions, the insurer’s shareholding and equity participations in the capital of other financial institutions are to be deducted from the insurer’s own funds. An opportunity is also provided for to report the data on the health insurance companies’ financial standing where calculating the adjusted solvency of the insurers.
The aforesaid Ordinance’s publication in the State Gazette is forthcoming.

6. The Commission adopted at first reading a Draft Amendment Ordinance to Ordinance No. 9 of November 19, 2003 on the terms and procedures for valuation of assets and liabilities of supplementary pension funds and pension insurance companies, the value of the fund’s net assets, on calculation and announcement of the value of a unit, as well as on the requirements for maintaining individual accounts.

The amendments introduced in the Ordinance result mainly from the Amendment Act to the Social Insurance Code’s entry into force, promulgated, State Gazette, Issue No. 17 of February 24, 2006, in connection with the regulation of new types of instruments, in which the funds of pension funds may be invested. Several stylistic adjustments in order to specify separate texts for the purpose of avoiding their contradictory interpretation and practical implementation are also proposed.
The Draft Ordinance shall be forwarded to the interested parties in order to be co-ordinated with the latter and shall be published on the FSC’s website.

1. The Commission issued a new licence to Karoll Capital Management EAD to perform activity as a management company.

2. The Commission issued a licence to Alpha Asset Management EAD to perform activity as a management company.

3. The FSC issued a licence to Bulgarian Investment Group REIT to operate as a Real Estate Investment Trust (REIT), and namely: investment of funds raised through issuance of securities into real estates. The Commission confirmed a prospectus for public offering of 150,000 pieces of ordinary shares having a nominal value of BGN 1 each. The shares issue has been issued by the company as a result of initial increase in its capital, in compliance with a resolution of the General Meeting of the Shareholders dated March 10, 2005.

4. The FSC issued a new licence to Intercapital Markets JSC, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000. 

5. The FSC issued a new licence to Capman JSC, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, including underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 1,500,000. 

6. The FSC issued a new licence to Status Invest JSC, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, including underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 1,500,000. 

7. The FSC issued a new licence to TBI Invest EAD, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, including underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 1,500,000. 

8. The Commission entered a subsequent shares issue of Alkomet AD, town of Shumen, into the Register kept by the FSC as a result of increase in the company’s capital stock and amounts to 13,464,477 ordinary shares, having a nominal value of BGN 1 each.

9. The Commission entered Quantum Developments Real Estate Investment Trust Plc-Sofia as a public company. The Commission entered an issue amounting to 650,000 pieces of ordinary shares, having a nominal value of BGN 1 each into the Public Register for the purpose of trading these on the stock exchange.

10. The Commission entered a subsequent shares issue, the purpose of which being trading these on a regulated securities market, issued by Park REIT as a result of increase in the company’s capital stock from BGN 650,000 to BGN 5,200,000 through issuance of new 4,550,000 shares having a nominal value of BGN 1 each and issue value of BGN 1.02 each.

11. The Commission entered Intercapital Property Development REIT as a public company into the Register maintained by the FSC. The Commission entered an issue amounting to 750,000 pieces of ordinary shares, having a nominal value of BGN 1 each. The issue results from a successful completion of shares’ initial public offering.

12. The Commission issued a licence to Raiffeisen Asset Management (Bulgaria) EAD Management Company to organise and manage, whilst also approving the prospectuses of, the following contractual funds:
– Raiffeisen (Bulgaria) Fund Money Market
– Raiffeisen (Bulgaria) Fund Bonds
– Raiffeisen (Bulgaria)  Fund Shares
– Raiffeisen (Bulgaria)  Fund Balanced Fund

13. The Commission entered the following persons as professional investors into the FSC’s Register: Ivan Georgiev, Miroslav Avdjiev, Irina Belcheva, and Vladimir Zhelev.

14. The Commission adopted at first reading a Draft Regulation on the Organization and the Activities of the Guarantee Fund. The Regulation’s co-ordination with all interested parties is forthcoming. The Draft shall be published on the FSC’s website.

1. The Commission issued an irrevocable repudiation to confirm a prospectus for secondary public offering of corporate bonds issued by COMMERCIAL LEAGUE NATIONAL PHARMA CENTRE, INC., Sofia City. Among other motives for the repudiation, non-conformity of the prospectus submitted with the FSC’s recommendations, as well as the company’s high indebtedness were cited.

2. The Commission withdrew the licence to perform activity as an investment intermediary of Accept Invest AD, Sofia City (current name: Accept Finance AD).
The licence withdrawal was at the request of the investment intermediary.

3. The Commission issued a new licence to First Financial Brokerage House Ltd., Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under the POSA, including underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 1,500,000.

4. The Commission issued a new licence to Bulbrokers AD, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under the POSA, including underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 1,500,000.

5. The Commission issued a new licence to Dealing Financial Company Plc, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000.

6. The Commission adopted Ordinance on the terms and conditions of and the procedure for customer assets’ valuation. The Ordinance’s promulgation in the State Gazette is forthcoming.
The customer assets’ valuation at the investment intermediaries is performed in order to calculate the amount of the annual installment which the investment intermediaries are to deposit with the Investors in Securities Compensation Fund. On the basis of the above valuation, the compensation amount shall be also determined, which compensation is to be paid by the Investors in Securities Compensation Fund to the customers of an investment intermediary in the cases where bankruptcy proceedings have been instituted for the investment intermediary or the competent supervisory authority has established that the investment intermediary is unable to perform its obligations toward its customers.

The Ordinance shall come into force within a one-month time period as of its promulgation in the State Gazette. Within the aforesaid time period, the investment intermediaries are to recalculate the amount of customers’ assets in compliance with the rules provided for under the Ordinance. On the day of the Ordinance’s entry into force, the investment intermediaries shall submit to the FSC and the Investors in Securities Compensation Fund reference information on the customers’ assets as of the last day of each month for the period from the month of October 2005 to the Ordinance’s entry into force.

7. The Commission adopted Amendment Ordinance of Ordinance No. 6 on the capital adequacy and liquidity of the Investment Intermediaries.
The Ordinance’s promulgation in the State Gazette is forthcoming.

8. The Commission established a procedure for holding the examination required for the acquisition of the right to perform activity as broker or investment advisor in 2006.

The examination dates are as follows:
Examination required for the acquisition of the right to perform activity as broker: May 27, 2006.
Examination required for the acquisition of the right to perform activity as investment advisor: May 28, 2006.

Applications for admission to the examinations shall be submitted from March 1, 2006 to March 31, 2006 at the FSC’s Records Section. Within a one-month time period, the FSC shall render its opinion with regard to the applications and shall notify in writhe applicants on the decision taken. The list of candidates admitted to the examinations shall be publicly announced. The candidates admitted to an examination are to declare their participation at the FSC’s Records Section at least one week prior to the examination, and shall submit a document proving fee deposit into a Commission’s account.

The procedure for holding the examination required for the acquisition of the right to perform activity as broker or investment advisor in 2006 shall be published on the FSC’s website under the Documents Section, Instructions and Requirements.

9. The Commission withdrew a decision on refusal to issue a licence to Transinvestment REIT to perform activities as a special purpose vehicle. The company’s application for licence issuance is to be heard de novo.

10. The Commission entered Petar Iliev Goranov as a professional investor into the FCS’s Register.

11. The Commission refused to acknowledge the qualifications acquired by Martin Hristozov to exercise activities as an investment advisor.

1. The FSC issued a licence to FairPlay Properties REIT to perform activities as a special purpose vehicle, and namely: investment of funds raised through issuance of securities into real estates. The Commission confirmed a prospectus for public offering of 150,000 pieces of ordinary shares having a nominal value of BGN 1 each. The shares issue was issued by the company as a result of initial increase in its capital stock in compliance with a resolution of the General Meeting of the Shareholders dated July 15, 2005.
The company’s founders are FairPlay International JSC, holding 51% of the capital stock, ИД Capman Capital JSC, holding 30%, Mario Zahariev, holding 12%, and Anna Zaharieva, holding 7%.

2. The Commission confirmed a prospectus for secondary public offering of mortgage bonds issued by Bulgarian Post Bank AD, Sofia City. The bonds issue, having ISIN Code BG210003052, amounts to BGN 30,000,000, distributed in 30,000 pieces of mortgage, interest-bearing, secured, non-convertible mortgages, having a nominal value of BGN 1,000 each, a maturity of 36 months, fixed interest percentage rate amounting to 5% simple interest on annual basis, a 6-month period of interest payment, issuance date: November 16, 2005, and maturity date: November 16, 2008.

3. The Commission issued a new licence to Euro Finance AD, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under the POSA, including underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 1,500,000.

4. The Commission issued a new licence to Beta Corp AD, Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under the POSA, including underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 1,500,000.

5. The Commission issued a new licence to Capital Finance LTD., Sofia City, to perform activity as an investment intermediary. The investment intermediary may effect the investment and additional activities and services provided for under POSA, without underwriting issues and transacting in securities for one’s own account. In order to perform activities and provide services under the new licence, it shall be required that the company has at its disposal at any time capital amounting to not less than BGN 250,000.

6. The Commission approved amendments in the following samples of Applications for Issuance of Licences/Permits to perform activities and services under Art. 164, para. 1, Art. 164а, para. 1, Art. 202, paras. 1 and 2 of the POSA, and Art. 4, para. 1 of the Special Purpose Vehicles Act, as well as of permission for transformation and winding-up of special purpose vehicles under the procedure established by Art. 27, paras. 2 and 3, and Art. 28 of the Special Purpose Vehicles Act:
• Application for issuance of a licence to perform activities as an investment company
• Application for issuance of a licence to a management company to set up and manage a contractual fund
• Application for issuance of a licence to perform activities as a management company
• Application for issuance of a licence to perform activities as a management company within the territory of the Republic of Bulgaria through a branch of a foreign legal entity
• Application for issuance of a licence to perform activities as a special purpose vehicle
• Application for issuance of a transformation permit to a special purpose vehicle under Art.27, paras.2 and 3 of the Special Purpose Vehicles Act
• Application for issuance of a winding-up permit to a special purpose vehicle under Art.28 of the Special Purpose Vehicles Act

The application samples shall be published on the FSC’s website, Documents Section, Forms and Samples of Documents.

The Financial Supervision Commission is pleased to inform all interested parties that in order to assist and facilitate foreign investors in performing their obligation under Art. 145 of POSA, the NOTIFICATION ON DISCLOSURE OF SHARE PARTICIPATION IN A PUBLIC OR INVESTMENT COMPANY FORM endorsed by the FSC has been translated into the English language and published on the FSC’s website.

The obligation of the said persons is to submit the Notification simultaneously in Bulgarian and in English.

The NOTIFICATION ON DISCLOSURE OF SHARE PARTICIPATION IN A PUBLIC OR INVESTMENT COMPANY FORM drafted into the English language may be found under the Documents Section, Documents’ Forms and Samples heading – English version.

On January 19, 2006 the Financial Supervision Commission hosted a one-day visit by students from the 11th and 12th classes of Atanas Burov Professional High School of Light Industry and Economics, the town of Gorna Oryahovitsa. The students were acquainted in detail with the activity of the supervisory institution and its structure; thereafter, they visited the Bulgarian Stock Exchange and Elana Investment Company.

The visit was a continuation of the Development of the Non-banking Financial Sector in Bulgaria Educational Programme, which has been organized by the Commission for 3 years now for high school students from the schools of economics in the country. The aim of the said Programme is to provide professional education, information while promoting the financial culture among students, as well as furthering their knowledge with regard to the financial markets and the role of the regulatory institution. The idea of the above initiative is to enrich the knowledge of the growing up and to awaken their interest in the financial sphere.

1. The Commission approved the issuance of a licence to Balkan Capital Management AD to perform activities as a management company. The company is to certify within a 14-day time period that it has deposited the capital required in compliance with Art. 203, Para. 1 of the POSA.
The company’s founders are Logos – TM Financial House AD, holding 51% of the voting shares in the General Meeting of the Shareholders, and Sofia International Securities Investment Intermediary AD, holding 49% of the said shares.

2. The FSC issued a licence to Capital Management SPV to perform activities as a special purpose vehicle, and namely: investment of funds raised through issuance of securities into receivables. The Commission confirmed a prospectus for public offering of 150,000 pieces of ordinary shares having a nominal value of BGN 1 each. The shares issue was issued by the company as a result of initial increase in its capital stock in compliance with a resolution of the General Meeting of the Shareholders dated October 24, 2005.
The company’s founders are CCB Group Assets Management EAD, holding 70% of the capital stock, and Armeec Insurance Company JSC, holding 30% of the said capital.

3. The FSC issued a licence to CCB Real Estate Fund REIT to perform activities as a special purpose vehicle, and namely: investment of funds raised through issuance of securities into real estates. The Commission confirmed a prospectus for public offering of 150,000 pieces of ordinary shares having a nominal value of BGN 1 each. The shares issue was issued by the company as a result of initial increase in its capital stock in compliance with a resolution of the General Meeting of the Shareholders dated May 25, 2005.
The company’s founders are CCB Group Assets Management EAD, holding 70% of the capital stock, and Armeec Insurance Company JSC, holding 30% of the said capital.

4. The Commission confirmed a prospectus for secondary public offering of bonds issued by St. St. Konstantin and Elena Holding AD. The issue amounts to EUR 5,000,000, distributed into 5,000 pieces of ordinary, naked, interest-bearing debentures having a nominal and issuance value of EUR 1,000 each, a maturity of 60 months, fixed interest rate to the amount of 7.50% simple interest on annual basis, a six-month interest payment period, issuance date: November 18, 2005, and maturity date: November 18, 2010.

5. The Commission entered into the Public Registry a subsequent shares issue issued by Advance Terrafund REIT as a result of increase in the company’s capital stock from BGN 6,500,000 to BGN 11,050,000 through issuance of 10,400,000 pieces of ordinary shares having a nominal and issuance value of BGN 1 each.

6. The Commission imposed temporary prohibition on tender offer submitted by Energoremont Holding AD, Sofia City, for the purchase of shares of Energoremont – Varna AD, the village of Ezerovo, from the company’s other shareholders through First Financial Brokerage House Ltd. Investment Intermediary.

7. The Commission refused to issue a licence to perform activities as a special purpose vehicle to Dextra Realties REIT.

1. The Commission adopted at first reading a Draft Ordinance on the documents, on the procedure for their drawing up, and on advising in the case of occurrence of insurance events involving motor vehicles.

The necessity for adoption of the Ordinance is subject to a Resolution of the Council of Ministers dated December 1, 2005 on amending the methodology used to report the percentage of motor vehicles without Third Party Liability Insurance. In compliance with the shared competencies of the Ministry of Interior and the FSC provided for under the law, the Draft Ordinance shall be forwarded to the Minister of the Interior in order to be approved, and upon obtaining his approval; it shall be published on the FSC’s website for all interested parties’ information.

The Draft Ordinance provides for the exchange of information between the National Police Service Directorate – Ministry of Interior and the Financial Supervision Commission on the occasion of assessment of the coverage of the compulsory Third Party Liability Insurance. It is provided that the National Police Service Directorate – Ministry of Interior shall submit to the FSC monthly by the 20th of each month information on the total number of road accidents registered within the country’s territory and by regions and the number of road accidents registered involving guilty participation of a driver of a motor vehicle non-insured under the Third Party Liability Insurance. On its own part, the FSC shall submit to the National Police Service Directorate – Ministry of Interior monthly by the 20th of each month information on the vehicles having concluded the Third Party Liability Insurance and the number of damages paid by the Guarantee Fund through the fault of owners of motor vehicles without the Third Party Liability Insurance. The insurance coverage shall be calculated as a proportion of the total number of registered road accidents to the number of road accidents involving motor vehicles without the Third Party Liability Insurance.

According to the Draft, it is provided that upon attending a road accident the police authorities shall inspect the insurance policies under the Third Party Liability of the motor vehicles’ drivers participated into the event, and shall establish the insurers issued the policy. Within a ten-day period, the head of the Ministry of Interior’s unit that has investigated the accident shall forward a copy of the record drawn up to the insurer of the driver who has caused the accident.

2. The Commission adopted at first reading a Draft Ordinance on amending Ordinance No. 21 on the own funds and solvency margin of insurers and health insurance companies.
Under the Draft Ordinance, the European directives related to the requirements to the solvency margin of insurers are fully transposed into our legislation.

The Draft Ordinance shall be published on the FSC’s website and shall be forwarded to the Association of Bulgarian Insurers and to the Association of Licensed Voluntary Health Insurance Companies in order to be co-ordinated.

3. The Commission adopted at first reading a Draft Ordinance on the procedure and the methodology of forming the insurers’ technical reserves and of the health insurance reserves.
Under the Draft Ordinance proposed, the Ordinance on the procedure and the methodology of forming the insurance and health insurance reserves (adopted by the Council of Ministers by Decree No. 13 dated January 24, 2003 and promulgated, SG, Issue No. 10 of February 4, 2003) shall be invalidated, where at the same time the Draft Ordinance aligns the requirements set to the technical reserves in compliance with the spirit and concept provided for under the Insurance Code, and namely:
 – part of the various approvals of parameters upon setting up the technical reserves are abolished;
 – specific limitations related to the setting up of and disposal with the reserve fund are amended,
 – the obligation to distribute at least 90 per cent of the income realized from investments into the accounts of the life-insured persons is abolished. The income’s distribution shall be based on the individual policies of the insurers and health insurance companies on a market principle.

The Draft Ordinance shall be published on the FSC’s website and shall be forwarded to the Association of Bulgarian Insurers and to the Association of Licensed Voluntary Health Insurance Companies and to the Bulgarian Actuarial Society in order to be co-ordinated.

4. The Commission adopted an Amendment Ordinance to Ordinance No. 3 dated September 24, 2003 on the terms and procedures for switching participation and transferring the amounts accrued in an insured person’s individual account from one supplementary pension fund to another fund of the same type, managed by another pension insurance company.
The amendments introduced into the Ordinance result from the Tax Insurance Procedure Code’s entry into force and the transfer of the functions on collecting and distributing the installments on additional compulsory pension insurance from the National Social Insurance Institute (NSSI) to the National Revenue Agency.
Under the Ordinance, the texts related to obligations of the NSSI on accepting the statements of switching participation from one obligatory pension fund to another respective fund and subsequent depositing of the insurance installments in connection with the participation amended, which are to be undertaken by the National Revenue Agency are amended.
The Ordinance is to be published in the State Gazette.