The persons are obliged to stop offering investment services within 3 days from the publication of the list.

With its decision of 28.09..2021, the Financial Supervision Commission published websites through which investment services are provided by persons who do not have the right to do so in the territory of the Republic of Bulgaria. The decision is based on Art. 281, para. 1 and 2 of the Markets in Financial Instruments Act. Decision No. 716-ИП of 28.09.2021 published a list of websites through which investment services should not be provided.

The publication of the decision is considered a notification regarding the obligation of the persons to stop offering investment services through the published websites within 3 days from the date of publication of the decision with the list.

Today, 28 July 2021, the Financial Supervision Commission organized an online meeting with representatives of all investment firms on the occasion of new regulations on prudential supervision of investment firms becoming effective, and in order to facilitate the bringing of investment firms in line with the applicable requirements. The topic of the meeting drew great interest and was attended by over 100 business representatives.

During the meeting, the FSC experts presented the general legislative framework for the prudential supervision of investment firms and provided an opportunity for discussion on specific issues for its practical implementation.

It was clarified at the meeting that the new legislation is largely in line with the typical business model of investment firms and focused on changing the approach to implementing capital adequacy and liquidity requirements at the consolidated level compared to current legislation.

The following topics were discussed at the online meeting:

the categories of investment firms under the new prudential regime;

own capital;

capital requirements;

liquidity requirements;

disclosures by investment firms;

reporting to the competent authorities and the European Banking Authority, including new business and technical formats;

remuneration requirements.

The meeting was held in the understanding that the new legislative framework will have a serious practical effect on the activities of investment firms, respectively good knowledge of it will enable its proper implementation and will contribute to maintaining the financial stability of the sector, a higher level of protection for investors, as well as to increasing the efficiency of the securities market as a whole.

The FSC is conducting a study on the use of artificial intelligence (AI) by entities under the Commission’s supervision. According to the Chairman of the FSC, Mr. Boyko Atanasov, the survey is very suitable in order to clarify the priorities and identify actions that may be necessary for the safe adoption of artificial intelligence in financial services. The study is part of the strategy for achieving the objectives of the Financial Supervision Commission for the period 2019 – 2021.

This is another in a series of studies conducted by the Financial Supervision Commission for the second year, related to trends in the use of financial innovations by supervised entities.

“Innovation in the field of artificial intelligence is the future. The financial sector is the one that has a serious need for tools for audit, control and options for early detection of risks affecting consumers,” said during the information campaign Mr. Boyko Atanasov, Chairman of the FSC.

The online survey was sent to representatives of the three branches of the non-banking financial sector – insurance, investment and pension insurance market. The study also focuses on the effect of the Covid-19 pandemic, which has accelerated the pace of automation and the adoption of AI in financial services. Therefore, proper control and sustainability of AI systems in the short term are crucial. There may be a need for further work on the audit of artificial intelligence algorithms in the future, which was already a key area of interest before Covid-19. In the long run, companies will need to think about AI and data management in a more holistic way, and in the context of their broader technology infrastructures, and adjust risk management processes accordingly. After the questionnaire is filled in, the FSC will compile a discussion document that will provide information on statistical results in quantitative and qualitative terms, as well as presenting the attitudes of supervised entities towards their answers.

The survey will be conducted online until 29 April 2021.