Financial Supervision Commission put on the innovation map

In the „Annual Report of the Bulgarian Fintech Association“ (BFA) for the year 2022 dedicated to the most significant fintech achievements, challenges and opportunities, the Bulgarian Fintech Mapping’2022, the progress in the fintech education and the latest fintech regulations in Bulgaria and the EU as well, Mrs. Maria Filipova – Deputy Chair of the Financial Supervision Commission and Head of the „Investment Supervision“ Department took part through delivering a speech on the implementation of financial innovations in the non-banking financial sector.

One of the first steps in this direction was the Innovation Hub established by the FSC. It secures a single contact point for submission of proposals, but also for identification of obstacles relevant to the sector, which shortens the time for responding to inquiries received through facilitated communication and data exchange between the interested parties and the regulator.

„We are convinced that an active dialogue among all interested parties lies at the basis for achieving balance between the benefits of the introduction of financial innovations that are applied in the offering of products and services in the non-banking financial sector and ensuring stability and confidence in financial markets and protection of investors’ rights. For this purpose, a working team was created in the Financial Supervision Commission which has to monitor financial innovations in the non-banking financial sector. Its activity is aimed at intensive tracking the benefits and controlling the risks arising from the integration of financial innovations, as well as promoting the dialogue between the regulator and business. In this regard, of main importance are the regular studies and analyzes carried out by the FSC in order to establish the level of innovations used. It is essential to note that such type of studies involve a specially developed methodology for the effective extraction of information, and the results of these studies serve to plan the subsequent and targeted actions„, Mrs. Filipova stressed.

The Financial Supervision Commission declares its readiness to continue its successful cooperation with the business, in sync with the Financial Innovation Monitoring Strategy for the period 2021-2024, which outlines the long-term planned commitments. The regulator will continue to actively work towards the development of financial innovations, by monitoring the development of financial technologies, assessing possible risks for the market and for consumers, and initiating actions and measures to minimize them.

New technologies are changing the non-bank financial sector and the ways in which consumers and companies access services. Moreover, they create opportunities for solutions, which provide better access to finance and improve the financial inclusion of citizens within the digital society. Financial technologies support the operational efficiency and further increase the competitiveness of the economy of the countries in which they are used and contribute to the deepening and expansion of capital markets in the European Union.

Mrs. Filipova’s speech about financial innovations as a way to develop the non-banking financial sector is available here.

To present the report, the BFA organized a conference on „Bulgaria on the European Fintech Map – 2022“. On December 15, the hybrid event brought together leading experts from the world of fintech and presented findings on regulations, fintech education and innovation. Among the panelists, from the University of Sofia, VUZF, the European Commission, etc., was Mr. Vladislav Matev – chief expert in the „Public Companies, Securities Issuers and SPV“ department of the Financial Supervision Commission, who presented fintech regulations in the non-banking financial sector.

He emphasized that the activity of the Financial Supervision Commission is fully aligned with the development of financial technologies. As a result of their use, not only the growth of the activity of individual participants in the capital market is expected, but also the transformation of the capital market as a whole.

Mr. Matev outlined the key topics in the fintech sector, such as the adoption of new pan-European regulations including those with direct effect in all member states, which is aimed at accelerating the growth of the single European capital market.

He also drew attention to the strategic goals set for the new business model: facilitating access to the capital markets of emerging and small and medium-sized enterprises; increasing the financial literacy of society; protecting the interests of investors and users of financial services and maintaining the stability of the capital market.

Mr. Matev concluded his participation by saying: „I am convinced that through the ever wider application of financial innovations, the Bulgarian capital market will increase its attractiveness for both local and foreign investors.“

The entire report for 2022 of the Bulgarian FinTech Association is published here.

Chair ofthe Financial Supervision Commission– Boyko Atanasov opened the „FinTechandInsurtechSummit”

On March 29 the Chair of the Financial Supervision Commission (FSC) – Boyko Atanasov opened the Capital forum – „Fintech and Insurtech Summit“. At the special invitation of Mr. Alexey Lazarov – editor-in-chief of Capital magazine, he spoke about the main challenges, among which are: clarity about the functioning and implementation of innovations in the FinTech sector, the balance of the innovation risks versus consumer benefits ; equilibrium between promoting innovations and maintaining levels of customer and business protection against potential negative events; assessment and adjustment of the regulatory framework against changes or completely new business models and the resulting potential risks.

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Бойко Атанасов

The FSC Chair raised questions about why we need innovative FinTech products and how to create a regulatory framework that triggers development rather than restrictions, promotes progress rather than maintaining the status quo, provokes creative thinking rather than looking for legal obstacles to growth. „My belief is that laws and regulations change namely because of new products, services and technologies. I am convinced that the administration should support the business and be in a position of exceptional visibility and audibility, both for new products and for development trends“, Mr. Boyko Atanasov also shared.

The digital future of Europe and working in sync with pan-European regulations were within the scope of the topics covered by Mr. Atanasov. The creation of the European Blockchain Sandbox, the legislative proposal for a Regulation on Markets in Crypto-Assets (MiCA) and the Digital Operational Resilience Act (DORA), as part of the Digital Finance Package, aim to increase the quality of the services offered in the financial sector by stimulating the development of financial innovations, while establishing the appropriate levels of security and their protection. Relative to the Bulgarian capital market, this would mean an increase in its attractiveness, both for local and foreign investors.

            The FSC Chair – Boyko Atanasov, assured the participants of the event that the FSC is focused on its main functions – the protection of users of financial services, ensuring a stable non-banking financial sector and creating an environment in which the business can operate without obstacles. In this regard, he pointed out that the purpose of the FSC is to consider financial innovation through the prism of these main functions of the Commission for the capital, insurance and pension insurance market.

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Бойко Атанасов

Since 2020, the Financial Supervision Commission has been on the innovation map through the Innovation Hub, the mobile application presented a few months ago – FSC Mobile, as well as the building of a Unified Information System (UIS), the idea of which is to reduce the administrative burden, to obtain full digitization of administrative services and to have connectivity with European regulators at a modern digital level. The ultimate goal is to save business and people time.

            Users and supervisees are also currently facilitated with access to information via FSC Mobile – the Commission’s own mobile application, which provides additional convenience by providing non-banking financial sector participants with up-to-date news, a calendar of events and a reference facility.

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Бойко Атанасов

„In the last 3 years, the FSC has been the balancer of the non-banking financial sector, as well as a business partner. I believe that the FinTech industry and the regulator are one system, and together we will ensure that customers are protected when using some of the most innovative FinTech financial products, and together we will continue to build the digital future“, said the FCS Chair to the participants of the event.

# Invest safely – FSC campaign

Today, at a specially organized online event, the Financial Supervision Commission (FSC) presented its digital campaign – #invest safely. With it, the Commission builds on the measures already taken so far to warn of fraudulent investment schemes by unlicensed firms, taking a step forward and using the online space to provide basic guidance on how consumers can distinguish legitimate and fraudulent firms.

The participants in the event exclusively got acquainted with the individually developed website of the campaign – https://investsafely.fsc.bg/, presented by the FSC team represented by Ms. Denitsa Kirova – Secretary General of the Financial Supervision Commission, Ms. Neda Muzho – Head of the Department for Supervision of Public Companies, Issuers of Securities and Special Purpose Vehicles and Ms. Anka Kostova – Director of Public Relations and Protocol.

#invest safely starts with a standalone site that combines video and text, news and alerts to users, there is direct access to the list of licensed firms, allows users to identify legitimate investment schemes, but also to identify the signs indicating irregularities.

#invest safely is also deployed on the digital channels YouTube and LinkedIn, and the attractive visual content created by the Commission team will reach a large number of online users and draw their attention to the questions they need to ask themselves or to the situations which might happen to them, taking the step of becoming investors.

The Secretary General of the FSC, Ms. Denitsa Kirova, said that the campaign is implemented not only to educate consumers, but also to meet the expectations of both capital market participants and end users. “We believe that digital finance will continue to evolve and become a standard consumer behaviour. Against the background of the constantly offered innovative opportunities, we should not ignore the risks they carry. That is why the Financial Supervision Commission, as a regulator, must find a balance between guaranteeing the rights of consumers of non-banking products and services and ensuring a good and stable environment for business development,” she added.

Ms. Neda Muzho – Head of the Department for Supervision of Public Companies, Issuers of Securities and Special Purpose Vehicles told about the ideas for creating the video content, each situation in them is the result of direct cases and discoveries of the Commission team.

The #invest safely campaign, Ms. Muzho said, <> “takes us to a new territory, one where fraudsters are actually present, which is why we are expanding our arsenal of measures and actions in the digital field, because we want to give consumers the opportunity to protect themselves, but also to maintain confidence in the investment market and offer a new sustainable future for the savings of our citizens.”

The last year, marked by the Covid-19 pandemic, has given a strong impetus to the digital transformation of the non-banking financial sector. In response, the FSC is using entirely new approaches through additional communication channels to meet the new challenges of its goal of financially literate consumers of financial services. The Secretary General of the Commission, Ms. Denitsa Kirova shared that “with the digital campaign #invest safely, the Financial Supervision Commission shows that it is actively and consistently working to constantly upgrade its communication policy, protect the interests and consumer confidence in non-banking financial services, and hence in the better positioning of Bulgaria on the “investment map of Europe”.

The #invest safely campaign is now live in:

https://investsafely.fsc.bg/

https://investsafely.fsc.bg/invest-safely/ (English version)

https://www.youtube.com/channel/UCtU52IKTtgEWJU-fRP8Aw5w

https://www.linkedin.com/company/комисия-за-финансов-надзор

„Петрол” АД е заличено от регистъра на застрахователните брокери

Заместник-председателят, ръководещ управление „Застрахователен надзор” уведомява всички заинтересовани лица:

На основание чл. 16, ал. 1, т. 15 от Закона за Комисията за финансов надзор (ЗКФН) във връзка с чл. 163, ал. 1, т. 4 от КЗ, спрямо застрахователен брокер „Петрол” АД е открито производство за издаване на индивидуален административен акт за налагане на принудителна административна мярка със следния диспозитив:

„Заличавам „Петрол” АД, ЕИК 831496285, от регистъра на застрахователните брокери, воден от КФН на основание чл. 30, ал. 1, т. 11 от ЗКФН.”

В предоставения десетдневен срок, от застрахователен брокер „Петрол” АД не са представени обяснения и възражения по откритото производство за издаване на индивидуален административен акт.

На 04.02.2015 г. е издадено Решение № 74 – ЗБ, с което „Петрол” АД, ЕИК 831496285, се заличава от регистъра на застрахователните брокери, воден от КФН на основание чл. 30, ал. 1, т. 11 от ЗКФН. Считано от 04.02.2015 г. „Петрол” АД няма право да извършва дейност като застрахователен брокер.

„Не трябва да инвестирате пари, които не можете да си позволите да загубите“, посочват ESMA, EBA и EIOPA в своето предупреждение към потребителите за рисковете, които носят виртуалните валути

Трите европейски надзорни органа – Европейският орган за ценни книжа и пазари (ESMA), Европейският банков орган (EBA) и Европейският орган за застраховане и професионално пенсионно осигуряване (EIOPA), публикуваха на своите интернет страници актуално предупреждение към потребителите относно рисковете, които носят виртуалните валути. Основна цел на документа е да информира, че виртуалните валути са високорискови, не са регулирани от законодателството на ЕС и следователно не се предлага правна защита за потребителите.
 
ESMA, EBA и EIOPA обръщат внимание, че потребителите, които купуват виртуални валути, трябва да са наясно, че съществува висок риск да загубят голяма част от инвестираните средства или дори цялата сума. Европейските надзорни органи подчертават изключителната нестабилност на цените на виртуалните валути и посочват, че се наблюдават ясни признаци за ценови балон.
 
В предупреждението са отбелязани и препоръки как потребителите могат да се предпазят и какви мерки биха могли да вземат при закупуване и/или притежаване на виртуални валути.
 
Превод на предупреждението на български език е публикуван в прикачения файл.
 
 

”Interlogic Imoti” AD’ prospectus for initial public offering approved

FSC approved a prospectus for initial public offering of shares issued by ”Interlogic Imoti” AD’. The share issue has the following characteristics:

Issuer: Investor Interlogic Imoti AD
Type of securities: ordinary, dematerialized, voting,  fully transferable shares
Size of the issue: 20 000 shares
Nominal value per share: BGN 10
Minimum issuing value per share: BGN 40

“Recognize the Licensed investment firm” Awareness Campaign in partnership with the Financial Supervision Commission

The Bulgarian Association of Licensed Investment Intermediaries (BALII) in partnership with the Financial Supervision Commission (FSC), the Bulgarian Stock Exchange (BSE), the Central Depository (CS) and the Investor Compensation Fund (FCI) reiterate that only licensed investment intermediaries may offer investment services.

Given the actions of the Specialized Prosecutor’s Office and the General Directorate Combating Organized Crime in recent days to detect financial fraud schemes by unlicensed brokers, investment institutions remind citizens that they should always check whether the company that offers them financial services is licensed.

The license can be verified on the website of the Financial Supervision Commission.

The initiative for conducting the awareness campaign “Recognize the licensed investment firm” is also under the auspices of Boyko Atanasov, Chairman of the FSC. “In the Commission’s Development Strategy for the period 2019-2021 we set the main goal of public awareness and fraud prevention as a step of the strategy to achieve these results is to increase the financial literacy of citizens,” said Boyko Atanasov on the occasion of the campaign. The information materials indicate 10 features by which everyone can find out whether a company offering investment services is licensed or not.

The 10 signs for recognizing the licensed investment firm are published on the websites of the FSC and BALII.

“Promota Bulgaria” AD obligated to undertake actions in order to register its subsequent share issue with the public register of the Commission

Dimana Rankova, Deputy Chairman of FSC, Head of Investment Supervision Division, obligated the management body of “Promota Bulgaria” AD to undertake actions in order to register its subsequent  share issue with the public register of the Commission. The size of the issue is 2 800 000 transferable, dematerialized shares, issued with compliance to the resolutions of the Board of directors of “Promota Bulgaria” AD as of 12.11.2003.