1. The Commission approved a tender offer submitted by Radino AD, Sofia City, for the purchase of shares of Krameks JSC, Sofia City, from the company’s other shareholders through Financial House Ever Inc. Investment Intermediary, Sofia City. The price offered per one share is BGN 11.42.

2. The Commission issued a licence to Elana Fund Management Inc. Management Company to organise and manage Elana Balanced Eurofund Contractual Fund. The Commission approved a prospectus for public offering of the Fund’s units. The Fund and the unit issue have been entered into the FSC’s Public Registry.

3. The Commission issued an actuarial licence of pension assurance companies and of the supplementary pension insurance funds managed by these to Albena Mladenova Petrova.

  1. The Commission approved a tender offer submitted by Energoremont Holding JSC, Sofia City, for the purchase of shares of Energoremont Russe AD, Russe, from the company’s other shareholders through First Financial Brokerage House Ltd. Investment Intermediary. The price offered per one share is BGN 15.68.

 2. The Commission approved a request submitted by Dealing Financial Company AD, under which request the Investment Intermediary surrenders the right to undertake transactions in securities for its own account and underwriting of issues.

The reports for the third quarter of year 2005 submitted by the insurance companies have been summarised by the Insurance Supervision Division at the Financial Supervision Commission. The premium income on general insurance amounted to BGN 647,940 thousand, which is a growth of 32.91 % in comparison to the third quarter of year 2004, and the indemnities paid amounted to BGN 224,183 thousand.
In the sphere of life insurance, the premium income was BGN 93,425 thousand – a growth of 51.44 % in comparison to the same period of the last year, and amounts and indemnities were paid amounting to BGN 24,740 thousand.
The Insurance Market’s statistics for the third quarter of year 2005  has been published on the FSC’s website – www.fsc.bg, Statistics Section.

 1. The Commission issued a licence to Intercapital Property Development SPV, Sofia City, to perform the following activities in its capacity of a special purpose vehicle: investment of monies raised through issuance of securities into real estate /real estate securitization/.
The Commission approved a prospectus for public offering of 750,000 pieces of ordinary, registered, dematerialized, freely-transferable voting shares, having a nominal value of BGN 1 each, issued by Intercapital Property Development SPV as a result of the company’s initial capital raise.
The Commission entered the abovementioned issue of shares /undergoing an issuance process/ into the Public Companies’ Registry.

 2. The Commission approved amendments to the Articles of Association of Park SPV, adopted by a resolution of the company’s general meeting of shareholders held on October 18, 2005.

3. The Commission adopted amendments to the Financial Supervision Commission’s Instructions with Regard to Submission of the Necessary Documentation on Issuance of Approvals, Permits, Confirmations and Periodic Disclosure of Information.

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 FSC confirmed a prospectus for secondary public offering of shares issued by Euro Ins Insurance Company JSC, Sofia City. The issue is to the amount of BGN 5,000,000, distributed into 5,000,000 pieces of ordinary shares, having a nominal value of BGN 1 each, and representing the company’s authorized capital registered with the court.

2. The FSC approved two specimens of Application for Issuance of a Licence to Perform Activities and Provide Services under Art. 54, Paras. 2 and 3 of the POSA, and namely: Application for Issuance of a Licence to Perform Activities and Provide Services under Art. 54, Paras. 2 and 3 of the POSA as an investment intermediary; and Application for Issuance of a Licence to Perform Activities and Provide Services under Art. 54, Paras. 2 and 3 of the POSA within the territory of Bulgaria through a branch of a foreign legal entity.
The above specimens shall be published on the FSC’s website under the Documents Section, Documents’ Forms and Specimens.

3. The FSC approved two specimens of Application for Approval of Actions under Art. 74а, Para. 1, Item 1 of the POSA, and namely: Application for Issuance of an Approval to Effect Transformation of the Company of an Investment Intermediary under Art. 74а, Para.1, Item 1 of the POSA; and Application for Issuance of an Approval to Effect Transformation of a Management Company under Art.210, Para.5 in connection with Art. 74а, Para. 1, Item 1 of the POSA.
The above specimens shall be published on the FSC’s website under the Documents Section, Documents’ Forms and Specimens.

4. The FSC registered as professional investors Rumen Pelovski, Lilia Tsvetkova, Plamen Valchev.

5. The FSC recognized the qualifications acquired by Georgi Ivanov Milev to perform activity as an investment consultant.

6. The FSC adopted a Programme for Normative Activity of the FSC for the period January 1 – June 30, 2006.

7. The FSC refused to issue a licence to perform activity as a special purpose vehicle to Transinvestment REIT.

The FSC determined the installments’ amount deposited with the Guarantee Fund under Art. 287, Para. 2, Item 1 of the Insurance Code, as well as the time frame for their effecting:

1. The FSC fixed the amount of the installment for insurers offering the compulsory Third Party Liability Insurance of the Motorists in the Republic of Bulgaria under Art. 249, Item 1 of the Insurance Code at BGN 2.30 for each separate motor vehicle for the liability in connection with which a compulsory insurance has been concluded.
2. The FSC fixed the amount of the installment for insurers offering the compulsory Accident Insurance of the Passengers in the Republic of Bulgaria under Art. 249, Item 2 of the Insurance Code at BGN 0.20 for each seat without the seat of the driver for which a compulsory insurance has been concluded.
3. 3. The Commission specified the following timeframes for depositing the installments into an account with the Guarantee Fund:
а)   by April 30, 2006 – for insurances concluded from January 1, 2006 to March 31, 2006 (inc.)
b)   by July 31, 2006 – for insurances concluded from April 1, 2006 to June 30, 2006 (inc.)
c)   by 31.10.2006 – for insurances concluded from July 1, 2006 to September 30, 2006 (inc.)
d)   by 31.01.2007 – for insurances concluded from October 1, 2006 to December 31, 2006 (inc.)

4. Insurers shall deposit the total amount of the installment under Item 1 or Item 2 within the timeframes set under Item 3, notwithstanding any deferred payment of the premium, where such is provided for as per the insurance contract.

The FSC’s Resolution shall be published in the State Gazette.

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.

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.