6. The FSC adopted a resolution to issue a new licence to STS Finance 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.  The licence shall be issued under the condition that within a 14-day period the Company proves that it has fully paid in the exigible capital and the initiation fee at the Security Investors Compensation Fund.

7. The FSC registered Sevdalin Rusanov, Emil Atanasov, Plamen Dermendjiev as professional investors.

8. The Commission adopted an Ordinance on the requirements towards the activities of the investment companies and the contractual funds. The promulgation of the aforesaid Ordinance in the State Gazette is forthcoming.

Under the Ordinance, the main underlying provisions and the structure of the Ordinance on the requirements towards the activities of the investment companies adopted by Council of Ministers Decree No. 268 of 2000 have been included, where the texts referring to the activities of the investment companies have been brought in conformity with the amendments introduced in the POSA, the CA and the AA. The requirements toward the activities of the contractual funds have also been listed under the Draft, introduced as a collective investment scheme, along with the investment companies under the last amendments to the POSA (SG, Issue No. 39 dated May 10, 2005).
Under the Ordinance, the requirements toward the contents of the contract have been provided in detail, which contract the management company concludes with the fund’s depository bank in connection with the safe-keeping of the contractual fund’s assets.
The terms and conditions and the procedure under which, in the cases where the licence to perform activities has been withdrawn, as well as in the cases of dissolution or declaration of bankruptcy of a management company that manages a contractual fund, the fund’s management is undertaken by a different management company, have been provided.
Terms and conditions are introduced, under which the Commission issues an authorization for transformation and dissolution of the contractual fund.
The rules under which evaluation of the assets of the investment company and the contractual fund is performed have been provided, and for each type of securities and financial instruments a specific procedure has been introduced in order to perform a subsequent evaluation, where it is provided in the cases where the said procedure is impossible to be implemented, these to be evaluated under conventional methods that have been explicitly alluded to under the Ordinance or under methods specified in the investment company and the contractual fund’s assets evaluation rules.

9. The Commission adopted an Ordinance on the requirements towards the activities of the management companies. The promulgation of the aforesaid Ordinance in the State Gazette is forthcoming.

Under the Ordinance, the structure and the principle provisions underlying the Ordinance on the requirements towards the activities of the management companies adopted by Council of Ministers Decree No. 269 of 2000 have been retained, and amendments and supplements have been provided in order to bring the legislative act in compliance with the amendments introduced in the POSA (SG, Issue No. 39 dated May 10, 2005), and more specifically:
Under the Ordinance, additional requirements toward the management companies are provided with a view to extending their activities with the additional services under Art. 202, para. 2 of the POSA.
The minimum contents of the rules for personal transactions in securities of the members of the management and supervisory bodies, of the investment consultant working under a contract for the management company, of the management company officers and of the persons related to these is regulated.
The contents of the general terms and conditions are expanded, under which terms and conditions a management contract is concluded with the management company in connection with the management of an individual securities portfolio using one’s own discretion without specific orders on the part of the customer.
Stricter requirements towards natural persons are introduced, who accept orders for purchase and sale of shares of an investment company and units of a contractual fund on behalf of the management company, where a possibility is given to the management company to perform this through a contract concluded with a bank or a non-banking financial institution as well.
A regime is established, under the terms and conditions of which the management company may invest the funds of the collective investment schemes in derivatives.
The requirements set towards the capital adequacy of the management company are specified and the regime of investing its own capital is liberalized.

10. The Commission adopted Instructions on the interpretation and application of Art. 176, para. 1, items 9 and 13 of the Social Insurance Code.
Under the Instructions on the interpretation and application of Social Insurance Code’s provisions adopted, the subject scope of the shares and/or the units issued by collective investment schemes that fall into the application field of Art. 176, para.1, item 9 and item13 of the Social Insurance Code is defined.
The Instructions are to be published on the FSC’s website under the Documents Section, Instructions and Requirements.

 1. The Commission issued a licence to Invest Property REIT, town of Vratsa, to pursue the following activities as a special purpose vehicle: investment of funds raised through issuance of securities in real estates /securitization of real estates/.
The Commission confirmed a Prospectus for public offering of 150,000 pieces of ordinary, registered, dematerialized, freely transferable voting shares, having a nominal value of BGN 1 each, issued by Invest Property REIT as a result of primary increase in the company’s capital.
The Commission entered the aforesaid issue of shares /undergoing a process of issuance/ in the Public Register.

 2. The Commission issued temporary prohibition on the publication of a tender offer submitted by ZMM – Bulgaria Holding Ltd., Sofia City, on purchase of shares of ZMM Nova Zagora AD, town of Nova Zagora, from the company’s other shareholders through Aval In AD Investment Intermediary.

 3. The Commission entered in the Public Register a shares issue, amounting to 2,357,847 pieces of ordinary, registered and dematerialized voting shares, having a nominal value of BGN 1 each, issued by Hydraulic Elements & Systems AD, town of Yambol, for the purpose of trading these on a regulated securities market.

 4. The Commission entered in the Public Register a shares issue issued by Bulgarian Rose Sevtopolis JSC, town of Kazanlak, as a result of increase in the company’s capital, and for the purpose of trading these on a regulated securities market. The issue is to the amount of 3,016,356 pieces of ordinary, dematerialized, registered voting shares, giving the right to one vote in the issuer’s General Meeting, and having a nominal value of BGN 1 and an issuance value of BGN 3 each.

 5. The Commission issued an approval for the amendments to the Articles of Association of Transinvestment REIT.

6. The Commission issued a licence to SUPER BOROVETS PROPERTY FUND REIT, town of Varna, to pursue the following activities as a special purpose vehicle: investment of funds raised through issuance of securities in real estates /securitization of real estates/. Super Borovets Property Investment AD, having 65.50%, and West-East Bank (having 30%) are shareholders in the company.
The Commission confirmed a Prospectus for public offering of 150,000 pieces of ordinary, registered, dematerialized, freely transferable voting shares, having a nominal value of BGN 1 each, issued by SUPER BOROVETS PROPERTY FUND REIT, town of Varna, as a result of primary increase in the company’s capital.
The Commission entered the aforesaid issue of shares /undergoing a process of issuance/ in the Public Register.

1. The Commission issued a new licence to Argo-Invest AD, Sofia City, to perform activities as an investment intermediary.

 2. The Commission issued a new licence to Frontier Finances AD, Sofia City, to perform activities as an investment intermediary.

 3. The Commission issued a new licence to Fico Invest OOD, town of Varna, to perform activities as an investment intermediary.

 4. The Commission issued a new licence to Euroforum Ltd., Sofia City, to perform activities as an investment intermediary.

 5. The Commission issued a new licence to KD Securities AD, Sofia City, to perform activities as an investment intermediary.

 6. The Commission issued a licence to Alfa Asset Management EAD to set up and manage the following contractual fund: Alfa Index Imoti. The Commission confirmed a Prospectus for public offering of contractual fund’s units. The Commission entered the issue of units in the FSC’s Public Register and entered the contractual fund as an issuer into the said Register.

 7. The Commission issued a licence to KD Investments EAD to set up and manage the following contractual fund: KD Bonds Bulgaria. The Commission entered the contractual fund into the Register. The Commission confirmed a Prospectus for public offering of contractual fund’s units. The Commission entered the issue of units in the FSC’s Public Register and entered the contractual fund as an issuer.

 8. The Commission issued a licence to KD Investments EAD to set up and manage the following contractual fund: KD Equities Bulgaria. The Commission entered the contractual fund into the Register. The Commission confirmed a Prospectus for public offering of contractual fund’s units. The Commission entered the issue of units in the FSC’s Public Register and entered the contractual fund as an issuer.

 9. The Commission issued a licence to Premier Fund REIT to pursue the following activities as a special purpose vehicle: investment of funds raised through issuance of securities in real estates /securitization of real estates/.
The Commission confirmed a Prospectus for public offering of 150,000 pieces of ordinary, registered, dematerialized, freely transferable voting shares, having a nominal value of BGN 1 each, issued by Premier Fund REIT as a result of primary increase in the company’s capital.
 The Commission entered the issue of shares in the FSC’s Public Register.

 10. The Commission issued a licence to HypoCapital REIT to pursue the following activities as a special purpose vehicle: investment of funds raised through issuance of securities in receivables /securitization of receivables/.
The Commission confirmed a Prospectus for public offering of 15,000 pieces of ordinary, registered, dematerialized, freely transferable voting shares, having a nominal value of BGN 10 each, issued by HypoCapital REIT as a result of primary increase in the company’s capital.
 The Commission entered the issue of shares in the FSC’s Public Companies Register.

 11. The Commission adopted amendments to Instructions on the application of Art. 12, paras. 3 and 4 of Ordinance No. 2 on the prospectuses in the case of public offering of securities and on the disclosure of information by the public companies and other issuers of securities.

 12. The Commission issued a licence to ING Insurance Joint Stock Company, Republic of Hungary, to undertake insurance activities to a foreign insurer through a branch in the Republic of Bulgaria on the following types of insurances:
 – Life and Rent Insurances;
 – Accident Additional Insurance.

 13. The Commission adopted at second reading Ordinance on the procedure for and methods of setting up the technical reserves of the insurers and of the health assurance reserves.
The said Ordinance transposes the European directives in the part related to the requirements set towards the technical reserves and is in conformity with the amendments introduced to the Insurance Code. The obligation to allocate at least 90 per cent of the yield upon investments realized into the accounts of the life insured persons is abolished. The yield allocation shall be based on the individual policies of the insurance companies on market principle. Certain restrictions connected with forming and disposing with the reserve fund are amended. Some approvals of parameters where forming the technical reserves are abolished, and at the same time greater responsibilities are entrusted to the companies with a view to the specifics of their portfolio.

 14. The Commission adopted a resolution on setting internationally acknowledged credit rating agencies and defined the criteria which the other credit rating agencies are to meet in order to acknowledge the credit ratings awarded by these to re-insurers where setting the percentage of allowable receivables for cover of the insurance reserves. /for the purposes of Art.75, para. 2 of the IC/
The internationally acknowledged credit rating agencies specified are as follows: Standard & Poor’s; Moody’s Investors Service; Fitch Ratings; AM Best Company.
The criteria which the other credit rating agencies are to meet in order to gain recognition by the Financial Supervision Commission are related to their experience and history; objectivity of the methodologies these apply; independence of the agencies and the availability of adequate resources required undertaking the activities on assessing the enterprises.
In order to gain recognition by the FSC to award a credit rating to the re-insurers, it is necessary for the other agencies to submit documents, proving that they meet the criteria established.

1. The Commission issued a licence to Alfa Property 1 REIT to pursue the following activities as a special purpose vehicle: investment of funds raised through issuance of securities in 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, issued by the company as a result of primary increase in the company’s capital.
Alfa Finance Holding AD (holding 35.2% of the capital), Bulbrokers Consulting EOOD (holding 4.8% of the capital), Albena Invest Holding AD (holding 30% of the capital), and Alfa Index Imoti REIT (also holding 30%), are founders of the company.
Alfa Property 1 REIT envisages that the funds raised throughout the following two years are to be invested as a priority in the following sectors: “administrative areas” and “commercial areas”, and it intends to develop its activities primarily on the territory of Sofia, Varna, Plovdiv, Burgas. The company will invest in properties securing income in the form of rents and other current payments, and in purchase, construction and/or renovation of real estates for the purpose of subsequent sale or running of these.

2. The Commission imposed temporary prohibition on a tender offer submitted by Intertrust EAD, Sofia City, to purchase shares of Lead and Zinc Complex Plc., town of Kardjali, from the company’s other shareholders through Standard Investment AD Investment Intermediary.

3.  The Commission withdrew the licence to pursue activities as a securities broker granted to  Aleksander Draganov and Hristo Tanchev. The motives for the aforesaid decision are non-pursuance of activities as a securities broker for more than two years.

In relation to one person, namely Stanimir Mihaylov, the procedure on divestiture of the right to pursue activities as a securities broker was discontinued in connection with submission of explanations and additional information.

4.  The Commission adopted at second reading a Draft Ordinance on the Individual Applications for Participation in a Supplementary Compulsory Pension Insurance Fund.
Under the Ordinance, the procedure on submitting an application for participation in a universal and professional pension fund and the requirements towards its form and contents were provided. It is envisaged that the application for participation is to be submitted personally to the pension insurance company into which the person would like to participate, or through an insurance intermediary, or as an electronic document. The persons are obligated to notify the pension insurance company, managing the fund into which the aforesaid persons effect an insurance of each amendment to the personal details as entered into the application submitted by them.
The promulgation of the Ordinance in the State Gazette is forthcoming.

5.  The Commission adopted at first reading amendments to Ordinance No. 8 on the Central Securities Depository.

The amendments are related to an Ordinance defining the procedure on payment of dividends by public companies and issuers of securities. These are necessitated due to the fact that under Art.38, para. 1 of the Ordinance, a word is not contained stating that the indicated procedure is imperative and hence the public companies and the issuers of securities arrange their own procedures for payments of dividends, interest rates and principals. Such procedures (different for each public company) may lead to slowdown in payments and increase in the investors’ costs.
For the purpose of non-admission of an alternative procedure for payment of dividends, interest rates and principals, a supplement of Art.38, para. 1 of the Ordinance was adopted, where before the expression “Central Depository”, the word “only” is added.

“Art.38 (1) The public company and the issuer of debt securities pay dividends, interest rates and principals only through a Central Depository on the basis of the calculations made under the procedure of Art.37а.”

A new Chapter Five of Ordinance No. 8 is also adopted, under which administrative and penal liability of the persons who have committed breaches of the Ordinance, as well as of the persons who have allowed the perpetration of such breaches is introduced.

“Art.50 (1) Persons who have perpetrated violations of the Ordinance, as well as persons who have allowed perpetration of such violations shall be penalised pursuant to Art. 221, para. 1 of the LPOS.
(2) The statements of ascertainment regarding violations of the Ordinance established shall be drawn up by officers authorised by the Deputy Chair, and the penal enactment shall be issued by the Deputy Chair.
(3) Establishment of the violations, the issuance, the appeal against and the enforcement of the penal enactments shall be performed under the procedure set under the Administrative Violations and Penalties Act.”

The Draft Ordinance shall be co-ordinated with all interested persons and organizations. 

1. The Commission entered a subsequent issue of shares issued by Dominant Finance AD, Sofia City, resulting from increase in the company’s capital from BGN 50,000 to BGN 1,200,000 through issuance of new 1,150,000 stocks having a nominal value of BGN 1 each.

2. The Commission entered a subsequent issue of shares issued by FairPlay Properties REIT JSC  resulting from increase in the company’s capital from BGN 25,350,000 to BGN 50,700,000 through issuance of new 25,350,000 stocks having a nominal and issuance value of BGN 1 each.

3. The Commission adopted a resolution to withdraw the licence to perform activities as a broker of securities issued to the following persons, where the reason is that these persons have not performed the said activities for two or more years:
– Aleksandar Dimitrov
– Anitsa Valkova
– Vladimir Djumaliev
– Krasimir Slaveykov
– Mario Markov
– Maryan Nikolov
– Nedyalko Nedyalkov
– Teodora Tomova
– Yulian Vishnevski.

4. The Commission issued a supplementary licence to Interamerican Bulgaria S. A. Insurance Company, Sofia City, which includes: “all damages liability arising where using land motor vehicles” /under Section ІІ, letter “А”, item 10.1 of Annexe No. 1 under the Insurance Code/.

 1. The Commission approved a tender offer submitted by K. V. K Invest AD, Haskovo, on purchase of shares of Balkancar Zarya PLC, town of Pavlikeni, from the company’s other shareholders through Karoll JSC Investment Intermediary, Sofia City.
The price per share offered is BGN 11.27.

 2. The Commission approved a tender offer submitted by Duropack AG, Vienna, on purchase of shares of Duropack – Trakia Papir AD, town of Pazardjik, from the company’s other shareholders through First Financial Brokerage House OOD Investment Intermediary, Sofia City.
The price per share offered is BGN 64.48.

 3. The Commission included Hristina Ivanova Stamova on the list of persons who may be assignees in bankruptcy of an insurer approved by the FSC.

 4. The Commission recognised full legal capacity of a responsible actuary acquired in a Member State to Albena Mladenova Petrova, Iskra Ognyanova Metodieva, Raya Petkova Grozeva, Aneta Ivanova Velikova and Yasen Dimov Mateev.

5. The Commission admitted three candidates who had additionally submitted their documents to the FSC to the examination for attainment of the right to perform the activities of a broker, which examination is to be held on February 17, 2007, and namely:

Stoyan Manchorov
Hristofor Minev
Antoaneta Yanakieva

6. The Commission admitted Antoaneta Yanakieva and denied admission to Krum Dimitrov to the examination for acquisition of the right to perform activities as an investment adviser, which examination is to be held on February 18, 2007.

7. The Commission admitted Boris Petrunov to an examination for acquisition of legal capacity of a responsible actuary, which is to be held on the following dates: February 18 and 25, 2007, and March 3 and 4, 2007.

Insurance Intermediaries from Member States That Has Notified the Financial Supervision Commission of Their Intention To Carry Out Insurance Mediation Business in the Republic of Bulgaria

Insurers from Member States That Has Notified the Financial Supervision Commission of Their Intention To Carry Out Insurance Business in the Republic of Bulgaria

Във връзка с провеждането на изпитите за придобиване на право за извършване на дейност като брокер и като инвестиционен консултант, Комисията за финансов надзор уведомява допуснатите до изпит кандидати за следното:
В срок до 28 ноември 2007 г. кандидатите следва да внесат такса за изпит в размер на 300 лв. (триста лв.), на касата на КФН или на IBAN BG95 BNBG 9661 3000 1415 01. Банковият идентификационен код (BIC) на БНБ-ЦУ е BNBGBGSD.
Изпитът за придобиване на право за извършване на дейност като брокер ще се проведе на  1 декември 2007 г. от 9,00 часа в зали № 3074 и № 3075 на Университет за национално и световно стопанство (новото крило), Студентски град „Христо Ботев”, гр. София.
Изпитът за придобиване на право за извършване на дейност като инвестиционен консултант ще се проведе на 2 декември 2007 г. от 9,00 часа в зала 2005 на Университет за национално и световно стопанство, Студентски град „Христо Ботев”, гр. София.
Регистрацията на кандидатите за участие в изпит ще започне от 8:00 часа.

При явяването си на изпита кандидатите следва да носят:
1.  документ за платена такса (оригинал или заверено от банка копие);
2.  документ за самоличност.

На изпита кандидатите може да ползват обикновен калкулатор или  калкулатор като: Texas Instruments BA II, Texas Instruments BA II Plus, Texas Instruments BA II Plus Professional, Texas Instruments BA II Plus Business Analyst или HP 10B, HP 12C.  Не се допуска използването на калкулатор с функции за програмиране.

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