1. The Commission supplemented the licence issued to Capital Markets AD with the right to effect transactions in securities for a third party account as an investment intermediary abroad, and intermediation for entering into such transactions, to render individual portfolio management services and to perform custodian activity.

2. The FSC issued a licence to ERG Capital-2 REIT to perform activity as a special purpose vehicle: investment in funds raised through issuance of securities, in real estates. The Commission approved a prospectus for public offering of 1,150,000 pieces of ordinary shares having a par value of BGN 1 each. The issue of shares has been issued by the company as a result of initial increase of its capital, in compliance with a resolution of the General Meeting of the Shareholders dated May 25, 2005.
Promoters of the company are the Bulgarian-American Investment Fund, holding 70% of the capital, and 29 individuals.

3. The Commission issued a permit to Standard Asset Management AD Management Company to organise and manage the following contractual fund: Standard Investment High-Yield Fund. The FSC approved the prospectus for public offering of the Fund’s units and entered the issue of units into the FSC’s Public Registry.
The main purpose of the Fund’s investment policy is increasing the investments’ value through making a profit while undertaking from moderate to high risk. The Fund’s investment strategy shall be directed toward making capital profits from securities, proceeds from dividends/income from unit securities, and current income from debt securities.
The main groups of securities subject to investment, and the maximum limits of an investment shall be as follows:
– Shares issued by Bulgarian issuers and traded on a regulated market – up to 90%; shares issued by foreign issuers and traded on an internationally recognized regulated markets – up to 70%; shares of investment companies and units of other contractual funds – up to 30%; demand bank deposits and deposits having a maturity of up to 12 months – up to 50%; debt securities issued or guaranteed by the Bulgarian government or by the Bulgarian National Bank; qualified foreign debt securities – up to 90%; mortgage bonds and other debt securities issued by Bulgarian banks, as well as qualified debt securities issued by foreign banks – up to 50%; liquid assets – up to 10%.

4. The Commission issued a permit to Standard Asset Management AD Management Company to organise and manage the following contractual fund: Standard Investment Balanced Fund. The FSC approved the prospectus for public offering of the Fund’s units and entered the issue of units into the FSC’s Public Registry.
The main purpose of the Fund’s investment policy is increasing the investments’ value through making a profit while undertaking moderate risk. The Fund’s investment strategy shall be directed toward making capital profits from securities, proceeds from dividends/income from unit securities, and current income from debt securities.
The main groups of securities subject to investment, and the maximum limits of an investment shall be as follows:
– Shares issued by Bulgarian issuers and traded on a regulated market – up to 90%; shares issued by foreign issuers and traded on an internationally recognized regulated markets – up to 70%; shares of investment companies and units of other contractual funds – up to 30%; demand bank deposits and deposits having a maturity of up to 12 months – up to 50%; debt securities issued or guaranteed by the Bulgarian government or by the Bulgarian National Bank; qualified foreign debt securities – up to 90%; mortgage bonds and other debt securities issued by Bulgarian banks, as well as qualified debt securities issued by foreign banks – up to 50%; liquid assets – up to 10%.

5. The Commission approved the issuance of a licence to perform activity as a management company to Yug Market Fund Management AD, Plovdiv. The company is to prove within a 14-day time period that the capital exigible in compliance with Art.203, Para.1 of the POSA has been deposited.
Promoters of the company are the Television and Radio Services AD, Sofia, holding 91% of the votes in the General Meeting of the Shareholders, and Yug Market AD, Plovdiv, holding 9% of the votes in the General Meeting of the Shareholders.
 
6. The FSC entered into the FSC’s Public Registry a subsequent issue of securities issued by Elana Agricultural Land Fund REIT resulting from increase in the company’s capital from BGN 2,496,068 to BGN 19,931,843 through issuance of new 17,435,775 pieces of shares having a par value of BGN 1, and an issue price of BGN 1.20 each.

7. The Commission adopted a practice on the implementation of Art. 178, Para. 8 of the Social Insurance Code.
The said practice was adopted for the purpose of prevention of violations of the investment restriction under the above-cited regulation, in the cases of gaining rights within the meaning of § 1, Item 3 of the Public Offering of Securities Act (POSA) by a supplementary pension insurance fund.

8. The Commission recognized the qualifications attained to perform activities as an investment advisor of Vera Georgieva Sotirova.
 
9. The Commission issued an actuarial licence of pension insurance companies and of the supplementary pension insurance fund managed by these to Yanitsa Yaneva.

1. The Commission imposed a temporary prohibition on a tender offer submitted by Terra Tour Service EOOD for the purchase of shares of Eztour JSC from the company’s other shareholders through the Investment Intermediary Karoll JSC Financial House.

2. The Commission entered Sturgeon AquaFarms Bulgaria, LLC. as a public company into the FSC’s Registry. The Commission also entered an issue of shares, which issue is a result of increase in the company’s capital from BGN 1,000,000 to BGN 1,716,330 through issuance of new 71,633 pieces of shares, each having a nominal value of BGN 10.

3. The Commission entered into the Public Registry an issue of shares with the purpose of trading these in a regulated securities market, issued by Elana Agricultural Land Opportunity Fund REIT. The issue, whose initial public offering was successfully completed, amounts to 1,996,068 pieces of shares, each having a nominal value of BGN 1.
 
4. The Commission adopted Practice on the Application of Art. 31, Para. 1, Item 4 of the Insurance Act in connection with Art. 252, Para. 1, Item5 of the Commerce Act.
The above Practice clarifies the procedure for divestment of a licence of an insurance joint-stock company in the presence of inadequacy in the net asset value in relation to the registered capital and inaction by the insurer’s General Meeting of Shareholders. The concept of ‘net asset value’ is clarified, and the possible measures are specified, which may be undertaken by the insurers in order to rectify the discrepancy between the net value and the registered capital.
The said Practice shall be published on the FSC’s website, Documents Section – Instructions and Requirements.
 
5. The Commission adopted Instructions with regard to the interpretation and application of Art. 5, Para. 3 and Art. 7 of Ordinance No. 19 of the FSC of December 8, 2004 on the terms of establishing pension reserves in the pension insurance companies managing a universal pension fund and/or supplementary voluntary pension insurance fund.
Under the above Instructions, the moment of establishing a pension reserve by the pension insurance company for the respective fund managed by it and paying life pensions is specified.
The said Instructions shall be published on the FSC’s website, Documents Section – Instructions and Requirements.

1. The Commission entered into the FSC’s Registry an issue of shares to the amount of 2,262,267 pieces of ordinary, dematerialized, registered, freely transferable voting shares, having a nominal and issue value of BGN 1 each, and issued by Bulgarian Rose Sevtopolis JSC, Kazanlak.

2. The Commission did not issue a temporary prohibition on the publication of a tender offer submitted by Tourist Trust Single Person LLC, Sofia City, for the purchase of shares of Intertravelservice JSC, Sofia City, from the company’s other shareholders through the Investment Intermediary Capman Inc., Sofia City. The price per share is BGN 22.31.

3. The Commission denied issuance of an approval for an amended prospectus for secondary public offering of an issue of shares issued by Hygia JSC Multi-Profile Hospital for Active Treatment /MPHAT/, Pazardjik, and entering the company as a public one.

 4. The Commission divested Aval IN JSC Investment Intermediary, Sofia City, of the right to effect transactions in securities for its own account and to underwrite issues of securities.

 5. The Commission issued a licence to DSK Asset Management AD to perform the following activities in its capacity of a management company:
– Managing the activities of collective investment schemes and of close-ended investment companies, including:
• investment management;
• administration of units or shares, including legal and accounting services in connection with the asset management, investors’ information requests, assets evaluation and calculation of the units or shares’ price, control on the observance of the legal requirements, keeping of the unit holders or shareholders’ book, allocation of dividends and other payments, issuance, sale and repurchase of units or shares, fulfillment of contracts, book-keeping;
• marketing services.

DSK Asset Management AD Management Company may also provide the following extra services:
• management, pursuant to a contract concluded with the customer, of an individual portfolio, including such of an institutional investor, including securities, at the company’s own discretion, without special orders submitted by the customer;
• provision of investment consultancy with regard to securities.

 6. The Commission adopted at first reading a Draft Ordinance on Amendments to Ordinance No. 18 of November 10, 2004 on the compulsory insurance. The said Draft shall be published on the FSC’s website.

7. The Commission issued a permit to TBI ASSET MANAGEMENT EAD Management Company to organise and manage TBI DYNAMIC Contractual Fund.
The Commission entered the Fund into the Registry kept by the FSC.
The Commission approved a prospectus for public offering of units of TBI DYNAMIC Contractual Fund and entered the issue of units into the Public Registry kept by the FSC.
The Commission entered the Fund as an issuer into the Registry kept by the FSC.

8. The Commission issued a permit to DSK ASSET MANAGEMENT Management Company to organise and manage DSK STANDARD Contractual Fund.
The Commission entered the Fund into the Registry kept by the FSC.
The Commission approved a prospectus for public offering of units of DSK STANDARD Contractual Fund and entered the issue of units into the Public Registry kept by the FSC.
The Commission entered the Fund as an issuer into the Registry kept by the FSC.

9. The Commission issued a permit to SENTINEL ASSET MANAGEMENT AD Management Company to organise and manage SENTINEL – PRINCIPAL Contractual Fund.
The Commission entered the Fund into the Registry kept by the FSC.
The Commission approved a prospectus for public offering of units of SENTINEL – PRINCIPAL Contractual Fund and entered the issue of units into the Public Registry kept by the FSC.
The Commission entered the Fund as an issuer into the Registry kept by the FSC.

1. The Commission approved an amended tender offer submitted by Yaitsa i Ptici AD (Eggs & Birds JSC), the village of Donchevo, for the purchase of shares of Yaitsa i Ptici – Zora AD, the village of Donchevo, from the company’s other shareholders through Bulbrokers AD Investment Intermediary. The price offered per one share is BGN 29.32.
2. The FSC adopted Regulations on the Structure and Activities of the Investors in Securities Compensation Fund.
The publication of the said Regulations in the State Gazette is forthcoming.
3. The FSC adopted at second reading a Final Draft of the Insurance Code.

1. The Commission imposed a final order of prohibition on a rectified tender offer submitted by I. S. Mihailov EOOD, Bourgas, for the purchase of shares of Monolit – Stil AD, Bourgas, from the company’s other shareholders through the Investment Intermediary BenchMark Finance AD, Sofia City.

2. The Commission issued a licence to Active Properties SPV to undertake the following activities as a special purpose vehicle: investment of pecuniary means accumulated through issuance of securities in real estate properties. The company’s prospectus for public offering of 150,000 ordinary shares, issued as a result of initial increase of company’s capital, has been confirmed.
The company has its seat in the town of Plovdiv, at 37 Nestor Abadjiev Street. Its principal founders are PT-Holding Plc, holding 65.5 % of the company’s capital, and Advance Invest Investment Company, holding 30 % of the capital.

3. The Financial Supervision Commission issued a permit to DSK Garancia AD Insurance Company /undergoing a process of incorporation/ to undertake insurance activities in the field of the general insurance. OTP – Garancia Insurance company LTD /a Hungarian insurance company, having its seat in Budapest/ is a majority shareholder, owning 74 % of the capital of DSK Garancia AD Insurance Company and DSK Bank AD, Sofia, holding 26 %. OTP Bank PLC, Budapest, is the principal shareholder of DSK Garancia AD Insurance Company and DSK Bank AD.
The following types of insurance may be taken out under the aforesaid permit:
1. Fire and natural disasters.
2. Other damages to property.
3. “Travel Assistance” Insurance.

4. The Financial Supervision Commission revoked the licence to undertake insurance-related activities of Bulgarian Mutual Insurance Cooperative Society (BVZK). 

This is a voluntary liquidation where the liquidation proceedings are undertaken of the free will of the BVZK’s member-cooperators. At a general meeting held on October 26, 2004 a resolution was adopted on the termination of the activities of BVZK and to carry out liquidation of the Cooperative Society. A person who is to be appointed a liquidator has also been proposed. A liquidation plan for BVZK has also been enclosed with the letter, containing the above resolution, submitted to the Commission.

5.  The Financial Supervision Commission adopted at first reading a Draft Ordinance on amendment to Ordinance No. 3 of 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 Draft Ordinance shall be coordinated with all persons concerned and published on the FSC’s website.

Through the amendments proposed, it is aimed: firstly, a mechanism to be introduced which shall guarantee that the person insured has voluntarily expressed their own will 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; secondly, the procedures under the Ordinance to be conformed to the requirements under the Personal Data Protection Act /PDPA/ with regard to the procedure for performing update and introducing amendments into the insured person’s data that the pension assurance company processes; and thirdly, to specify or supplement some of the existing texts, in order to attain greater clarity of expression and unambiguousness when implementing these.

1. The Commission entered into the FSC’s Public Companies Registry a stock issue issued by ERG Capital – 1 SPV. The size of the issue is 1,000,000 pieces of ordinary voting shares, having a nominal value of BGN 1 each. The initial public offering (IPO) of this issue shares has been successfully completed and trading of the issue on the stock exchange is forthcoming.

2. The Commission approved a tender offer submitted by S&B Holding GmbH, Oberhausen, Germany, for the purchase of shares of Bentonit AD, Kardjali, from the company’s other shareholders through the Investment Intermediary Economic and Investment Bank PLC. The price offered is BGN 23.98 per share.

3. The Commission approved a tender offer submitted by LUKOIL EUROPE HOLDINGS B.V., Holland, for the purchase of shares of LUKOIL NEFTOCHIM BURGAS AD, Burgas, from the company’s other shareholders through the Investment Intermediary Raiffeisenbank (Bulgaria) EAD. The price offered is BGN 27.83 per share.

4. The Financial Supervision Commission (FSC) approved the persons who are to be admitted to examinations in order to acquire the right to undertake activities as a broker or an investment advisor, which examinations are to be held on May 28 and 29, 2005 respectively. The list of the said persons is to be published on the FSC’s website.

5. The Financial Supervision Commission (FSC) adopted at first reading a Draft Ordinance on amendment to Ordinance No. 1 on the requirements related to the activities of investment companies.
Generally, the aim of the amendments proposed is to secure a higher degree of investor protection. Part of the proposals pertains to the information which investment companies submit to their clients, including the information in advertisements and public utterances. It has to be truthful, accurate and not misleading; it may not emphasize the potential benefits of investing in securities, without also stating the risk related to the said investing. Different part of the proposals pertains to enhancing the internal control within investment companies.

The Draft Ordinance on amendment to Ordinance No. 1 on the requirements related to the activities of investment companies shall be coordinated with all persons concerned and published on the FSC’s website.

The Commission imposed a final order of prohibition on a tender offer submitted by Terra Tour Service EOOD, for the purchase of shares of Eztour JSC, from the company’s other shareholders through the Investment Intermediary Karoll AD Financial House.

FSC approved Instructions for implementation of art. 5, par. 2, and art. 15, par. 2, items 2, related to art.3, par.3, and of art.3, par.4 of Ordinance N 3 from Sep 24, 2003.
The instructions provide guidance in the following cases :

-when in the applications for transfer from one pension fund to another fund there are  deficiencies, corrections, erasing, additions, as well as missing information;
– what documents are required in case of  changes of the name or the personal identification number of the person applying for transfer from one pension fund to another one.