The data on the achieved returns of the pension funds has been checked and summarized by the Social Insurance Division of the FSC. It has been verified that the presented returns data reflects the distributed returns in the individual accounts.
Detailed statistics on the pension funds returns are published on our web site, section Statistics and Publications.
Statement of the Financial Supervision Commission in connection with received media inquiries regarding the public company Gradus AD
The Financial Supervision Commission (FSC) performs regular ongoing inspections of the received financial and reporting information by all public companies whose securities are admitted to trading on a regulated market, including Gradus AD. For the period during which the company is public from 2018 to date, no violations of the legislation relating to the activities of public companies have been identified. Until the acquisition of public status, the activity performed by Gradus AD and its subsidiaries is not subject to supervision by the FSC.
From August 2018 to the end of April 2021 the total traded volume of shares in the company’s capital is 10,147,628.00 shares, lowest price of BGN 1.35 and highest price of BGN 1.85 The book value of one share of Gradus AD as of 31 March 2021 is BGN 1.30. The price of one share of the same company at the closing of the market on 05.05.2021 is BGN 1.56, and as of – 07.05.2021 – about BGN 1.45, i.e. there is a decrease of 6.4%. The above does not give grounds for suspicion of fraud or irregularities in the sale of shares of the company on the Bulgarian Stock Exchange AD.
During the period in which Gradus AD was a public company, the FSC did not receive any complaints or signals from persons who had invested in the company’s securities.
The shares of Gradus AD have been traded on the Bulgarian Stock Exchange AD since mid-2018, and in compliance with the regulatory requirements they have been admitted to trading on the regulated market on the basis of a prospectus approved by the Financial Supervision Commission. The Prospectus has been prepared for public offering of an issue of shares in the amount of up to 55,555,556 ordinary, registered, dematerialized, freely transferable shares with a nominal value of BGN 1 each. The offer covers up to 27,777,778 new shares offered for subscription with the capital increase of Gradus AD (new shares) and up to 27,777,778 existing shares (existing shares). In addition, the supply manager has the right to distribute an additional 6,638,888 shares (over allotted shares). It is envisaged that the final issue value of the shares will be determined at an auction in the price range of a minimum amount of BGN 1.80 and a maximum amount of BGN 2.35 per share.
In each procedure for confirmation of a prospectus for public offering of securities, the FSC is guided by the main objectives of financial supervision, namely:
ensuring protection of investors in securities, including by ensuring conditions for raising their awareness of the capital market
ensuring conditions for the development of a fair, open and efficient capital market and
maintaining stability and public confidence in it.
When confirming a prospectus for public offering of securities, the FSC should establish its compliance with the requirements of the Public Offering of Securities Act (POSA), its implementing regulations and directly applicable European legislation, as well as ensure the disclosure prospectus of the entire required information for making an informed investment decision. In the procedure for confirming a prospectus, the provision of complete and accurate information should be established, which is necessary according to the specific features of the issuer and the securities offered to the public for investors to accurately assess economic and financial condition, assets and liabilities, financial results, prospects for development of the issuer, as well as the rights related to the securities. The scope of the necessary information to be disclosed in the prospectus is defined in the directly applicable European legislation, and according to the national legislation in the process of approving the prospectus includes both checking the availability of the required information and assessing the accuracy and completeness of the statement. in the prospectus information.
In reviewing the content of the prospectus, the FSC is guided by the above objectives of its financial supervision, and not by the specific characteristics of an issuer or the specifics of its activities.
The application for confirmation of a prospectus for an initial public offering of shares issued by Gradus AD was submitted to the FSC in April 2018, and at its meeting the FSC reviewed the submitted prospectus and decided to require the applicant to remedy some deficiencies and inconsistencies in the content of the prospectus within one month.
The FSC requested the adjustment and supplementation of the prospectus in order to ensure maximum disclosure of data on the financial position of the issuer and its group and the risks associated with its activities in order to enable investors to have the necessary information before deciding whether to invest in the proposed securities. In order to enable potential investors to make an informed and motivated investment decision and as far as the minimum issue value of BGN 1.80 and the maximum price of new shares of BGN 2.35 are higher than the book value of one share before the capital increase, the FSC requested to provide a detailed justification of the price range for determining the issue value of the shares.
As a result of the FSC’s request, the prospectus states that the minimum and maximum emission values are determined on the basis of a comprehensive analysis, including financial indicators, expected development of the group, risk factors, global and regional macroeconomic development, etc., as well as the desire of the issuer Gradus AD to achieve a diversified investor base. It is specified that the performed financial analysis includes generally accepted methods, including the method of market multiples of analogue companies, the method of discounted cash flows, the method of discounted dividends. Information was presented that the market multiple method identified a group of 15 companies operating within Europe, emerging markets and globally, which are focused on the main business of the group, namely the production of chicken and meat products. For this group the P/E (price per share to earnings per share), EV/EBITDA (value of the company to earnings before interest, taxes and depreciation) and P/B (market capitalization to equity) indicators were calculated. The median values of these indicators are stated to be 10.36 for P/E, 8.20 for EV/EBITDA and 1.77 for P /B. It is stated that the determination of the minimum issue value is based on the weighted average share value of BGN 1.88, received on these three indicators, and this price is further consistent with the issuer’s desire to achieve a broad investor base. It is indicated that the above supply interval is consistent with the triple appraisal expertise for valuation of the non-monetary contribution of the subsidiaries in the capital of Gradus AD, according to which the maximum appraisal of in-kind contributions amounts to BGN 544 million or BGN 2.46 per share, as again the maximum issue value is in accordance with the wishes of the issuer Gradus AD and the market conditions.
The Financial Supervision Commission is not and could not be a party to the public offering, nor is it able to independently determine or confirm the issue value of the shares determined by the issuer. The directly applicable European legislation requires the prospectus to disclose the price at which the securities will be offered, or, if the price has not been determined in advance, the method for determining the offer price. The applicable legislation does not require the regulatory body to determine the issue value of securities, which is within the sole discretion of their issuer. A number of factors are important in determining the issue value of a share in a public offering, including, but not limited to, historical financial information and the current financial position of the company. That is why the turnover realized by the company does not have a direct impact on the issue price of one share of the company. In the specific case, the determined price range of the offer is a result of an assessment of the company by the market multiples approach of analogous companies, the method of discounted cash flows and the method of discounted dividends. The price range is in accordance with the performed triple appraisal expertise for appraisal of the non-monetary contribution of the subsidiaries in the capital of Gradus AD. This valuation was prepared by three independent appraisers appointed by the Registry Agency, it is final and the responsibility for its preparation lies with the appraisers who prepared it. In the exercise of its powers, the Financial Supervision Commission has requested detailed information on how the specified price range is formed and has provided disclosure of this information in the prospectus.
Gradus AD was established on 28.11.2017 and owns and manages the following subsidiaries, forming the Gradus economic group: Millennium 2000 EOOD; Lora-2004 EOOD; Gradus-1 EOOD; Zhuliv EOOD; Gradus-98 AD and Gradus-3 AD. Until the acquisition of public status, the activity performed by the Gradus economic group companies is not subject to supervision by the FSC.
The prospectus presents financial information for supervisory purposes, which is prepared in order to show what would be the financial result of Gradus AD if the company was established on 01.01.2017 and held the same number of shares / units of Gradus -1 EOOD, Gradus-3 AD, Millennium 2000 EOOD, Gradus-98 AD, Zhuliv EOOD and Lora-2004 EOOD, as it holds as of 31.12.2017. When compiling the unaudited financial information for supervisory purposes, the audited consolidated annual financial statements of Gradus AD and the audited annual financial statements as of 31.12. 2017 of Gradus -1 EOOD, Gradus-3 AD, Millennium 2000 EOOD, Gradus-98 AD, Juliv EOOD and Lora-2004 EOOD were used, as all listed annual financial statements have been prepared in accordance with International Financial Reporting Standards. The FSC also received the audited financial statements of the subsidiaries of Gradus AD for the three-year period of historical financial information.
The financial information for supervisory purposes has been prepared in accordance with the accounting policies adopted by the issuer Gradus AD in the audited annual consolidated financial statements for the period ended 31 December 2017.
The content of the prospectus for public offering of shares of Gradus AD includes a report dated 30.03.2018 on the assurance of the independent auditor on the compilation of financial information for supervisory purposes, included in the prospectus prepared by Krasimira Radeva, registered auditor and manager of Baker Tilly Klitou and Partners OOD, which contains a statement that:
(a) the unaudited financial information for supervisory purposes has been compiled, in all material respects, according to the applicable criteria described in the accompanying explanatory notes; and
(b) the basis for preparing the unaudited financial information for supervisory purposes is in accordance with the company’s accounting policies.
In the proceedings for confirmation of the prospectus for public offering of shares of Gradus AD, the FSC has established compliance of the prepared prospectus with the requirements of the POSA, the bylaws on its implementation and the current Regulation EC No. 809/2004, as well as disclosure in the prospectus of all the information required under the current Regulation No. EC № 809/2004, which is a prerequisite for making an informed investment decision.
By Decision No. 542-E of 28.05.2018, the FSC approved the prospectus for public offering of an issue of up to 55,555,556 (fifty-five million five hundred and fifty-five thousand five hundred and fifty-six) ordinary, dematerialized, registered, freely transferable shares with a nominal value of BGN 1 each, of which up to 27,777,778 (twenty-seven million seven hundred seventy-seven thousand seven hundred seventy-eight) new shares to be issued as a result of capital increase of Gradus AD, Stara Zagora and up to 27,777,778 (twenty-seven million seven hundred and seventy-seven thousand seven hundred and seventy-eight) existing shares, with an issue value determined in the price range of BGN 1.80. (minimum issue value) up to BGN 2.35 (maximum issue value) and with ISIN code BG1100002184, as well as for public offering of up to 6,638,888 over allotted shares of the capital of Gradus AD, according to decisions of 29.12.2017 and 26.03.2018 of the General Meeting of the shareholders of Gradus AD and a decision of 30.01.2018 of the Board of Directors of the company.
Gradus AD has conducted a marketing campaign, including an investment presentation, a TV commercial, as well as Internet advertising aimed at potential investors. As a result of the marketing campaign, the information about the public offering reaches a wide range of investors, each of whom makes an independent choice whether to invest or not. The initial public offering of up to 55,555,556 shares of Gradus AD ended successfully on 19.06.2018, with 22,608,710 new shares subscribed and paid. as well as 22,608,710 existing shares, with an issue value of BGN 1.80 each. The public offering took place on the Bulgarian Stock Exchange AD, Segment for initial public offering, through the mechanism Initial Public Offering Auction (“IPO Auction”). All investors who subscribed for shares in the auction for public offering of shares of Gradus AD have participated under equal conditions in the offering within the set deadlines and the pre-announced price range. The final issue value of the shares in the amount of BGN 1.80 per share determined as a result of the auction is the same for both individual investors and institutional investors.
On 25.06.2018, BGN 81,391,356 were received to the accumulation account of Gradus AD, representing: BGN 40,695,678 as funds from the initial public offering of shares from the increase of the company’s capital and BGN 40,695,678 funds from the initial public offering of existing shares of the company.
The registered capital of Gradus AD, Stara Zagora at the time of issuing the confirmation of the prospectus for initial public offering of shares from capital increase amounts to BGN 221,000,000, divided into 221,000,000 ordinary, registered, dematerialized, freely transferable voting shares and with a nominal value of BGN 1.00 each, as a result of the issuance of 22,608,710 new shares of the same class, with a nominal value of BGN 1.00 each, under the conditions of initial public offering, the company’s capital has been increased to BGN 243,608,710, divided into 243,608,710. ordinary, registered, dematerialized, freely transferable voting shares with a nominal value of BGN 1.00 / share. The capital increase was entered in the commercial register on 17.07.2018, in view of which, pursuant to Art. 110, para. 3, first sentence in connection with para. 1, item 1 of the POSA, Gradus AD, Stara Zagora became a public company.
As can be seen from the Share Registration Act issued by Central Depository AD, the proposed 45,217,420 shares (including newly issued and existing shares) have been subscribed by 1,135 persons (81 legal entities, including mutual funds and pension funds, as well as by 1,054 individuals).
During the initial public offering of shares of Gradus AD no violations were found, as all applicable to the date of its implementation requirements of applicable law were met. The information disclosed in the prospectus for initial public offering of shares issued by Gradus AD is in full compliance with the requirements of the applicable legislation, as the prospectus indicates the persons responsible for the completeness and accuracy of the data presented in the prospectus.
The Financial Supervision Commission acted on its own initiative and assigned an inspection of the activity of the public company Gradus AD regarding the observance of the applicable special legislation from the moment of acquiring the status of a public company. In case the FSC receives additional information, data and / or documents relevant to the inspection, they will be analysed and the results of the analysis will be included in the inspection.
Statement by Mr. Vasil Golemanski, Chair of the Financial Supervision Commission in the quarterly bulletin of the Association of Banks in Bulgaria
Integrated Capital Markets: Bulgaria’s Path to Sustainable and Innovative Finance
In times like these, the direction of development is not dictated by circumstances but by the choice to act purposefully with a clear vision. As Europe strives for better integration of its capital markets, Bulgaria must not only catch up but also be part of the change towards sustainable and innovative finance.
A strong banking system remains the backbone of the economy, but the new realities require more – more flexible forms of financing, digital connectivity and transparent access to investments. For long time now it’s not just about regulations, but about building an ecosystem in which markets develop sustainably, businesses grow and citizens participate in an informed way.
Change is underway. The Digital Operational Resilience Act entered into force across the EU in 2025 and sets specific requirements for the financial sector regarding cybersecurity and ICT risk management. At the same time, the MiCA Regulation, which represents the first EU framework for regulating crypto-assets, is already in force and national legislative measures, implementing the Regulation, are about to be adopted by the Bulgarian Parliament. These initiatives are clear signals that the financial system is moving towards higher standards of security, innovation and trust. In this context, the Financial Supervision Commission organised an important conference for the non-banking financial sector, promoting the joint work in the process of implementing the two regulations and the achievement of resilient environment.
It is often spoken of the Eurozone as a political goal, but for those who are busy in the capital markets’ area it has a broader significance, it is an affirmation that Bulgaria should be observed as a stable and predictable partner. The accession will eliminate currency risk, reduce transaction costs and facilitate cross-border investments. These opportunities should not be missed. The Financial Supervision Commission, as a responsible authority directly involved in the process of the Republic of Bulgaria’s accession to the euro area, monitors the progress of all supervised entities in introducing the euro in the non-banking financial sector.
The results of the survey conducted by the Financial Supervision Commission indicate that the preparation of the non-banking financial sector for introduction of the euro is at a very advanced stage. Many participants have already taken concrete steps for adaptation, amongst them updated internal plans, informing customers and partners, and information systems updates. Despite the progress, there are still sectors, like the technology and the regulatory one, which need to be improved.
The Financial Supervision Commission actively works to upgrade supervisory capacity through innovative digital tools, supports sustainable financing and ESG standards, and promotes a culture of openness and transparency among market participants. Apart from that, it acts as one of the initiators of the process of implementing the principles of corporate governance in Bulgaria, following internationally recognized standards for transparency, accountability, effective supervision and protection of shareholder rights. It is a key part of the requirements set by the OECD to strengthen confidence in the financial sector in Bulgaria. Ensuring good corporate governance not only improves the stability of markets, but also attracts new investments and supports the long-term growth of the economy.
The insurance sector and the pension funds have the actual potential in becoming a sustainable source of financing for the economy. The multi-fund model already allows consumers to choose between different investment strategies in accordance with their life cycle and risk tolerance. The next step is to fully use this tool to direct savings towards productive investments and to support the real economy.
For the market to be vibrant, it needs active and well informed participants. This means better financial literacy, digital solutions for access to products and clear communication. The development of capital markets in Bulgaria cannot be left to the natural course of events – it requires strategic vision, institutional capacity and broad public support. Only through partnership between the public and private sectors, through innovation and trust, can we build a modern and sustainable financial environment.
In 2025, the Financial Supervision Commission has set itself the goal of demonstrating that the power of regulation is not in restriction, but in creating an environment for trust, innovation and growth. Stable supervision, a predictable regulatory framework and an open dialogue with the participants in the sector – this is the model by which Bulgaria confirms its place in the heart of the European financial architecture.
You can see the entire newsletter here.
Statement by Mr. Boyko Atanasov, Chairman of the Financial Supervision Commission in the quarterly bulletin of the Association of Banks in Bulgaria
Financial Supervision Commission – committed to sustainable results in digitalisation, green investments and regulatory amendments
In the context of post-Covid pandemic, the global digitalisation, the European Green deal, the outbreak of military actions in Ukraine, and on the threshold of our accession to the Eurozone, the Financial Supervision Commission (FSC) continues to work for the continuous stability of the insurance market in Bulgaria, for establishing innovations in the regulation of capital markets, as well as, for complete austerity measures and absolute transparency of the actions and processes of the pension insurance market.
The development trend of the capital market is in the direction of digitalization and creation of conditions for more participants and reduced administrative burden. The positive interconnection between innovation and financial technology has already changed the appearance of the typical consumer behaviour and thinking, and this process has led to new opportunities for the implementation of optimized business models. At the same time, we, the financial sector participants, have the mission to analyse and forecast the potential risks. In this direction precisely, the FSC focuses its activity to balance between the promotion of innovation by the investment companies and the consumers’ protection from the negative aspects that the new online space implies.
In view of achieving results regarding the adopted development strategy, the Financial Supervision Commission went through specific steps such as evolving the financial literacy of the financial services’ consumers and investors, improving the communication process by holding regular meetings with FinTech companies to discuss minimum risks and maximum benefits from technology, promoting development of startup companies by activating the possibilities of the created Innovation Hub, as well as, adapting the new regulatory framework for collective financing. Together with the participants of the non-banking financial sector, we create a sustainable and favourable environment for innovative business with an emphasis on the need for partnership between the national regulator and the business.
Dynamics in technology development and digitalisation play a key role in changing consumer attitudes and growth expectations. The role of the FSC is to provoke the achievement of synchronicity between the regulatory requirements and their implementation in the digital environment, with the ultimate goal being to reduce the administrative burden. Part of the concrete results are the functioning Innovation Hub, the providing of a single point of contact with FinTech companies and the amended regulations for accessibility of small and medium enterprises to the capital markets. The mobile application of the FSC, the establishment of a unified information system for submitting and receiving information from supervised entities in electronic standardized format are in the process of creation.
One of the most important developments in the current situation is the proposal of the European Commission to introduce the European single access point (ESAP), the framework, which would integrate innovations in order to reduce administrative burdens. Its aim is to provide centralised public access to all the necessary information in terms of financial services. The ESAP aims at providing easy, fast and comparable access to data on European companies for the investors, thus facilitating the access to financing of European companies. ESAP is expected to contribute to the further integration of financial services and capital markets within the EU single market and to promote the development of smaller national capital markets and economies by providing greater visibility for them. FSC, in line with the European Commission, will ensure the application of the future legislation and will create conditions for the realization of the ESAP project.
The “Green deal” is another topic of great importance for both FSC and the EU. Environment, social responsibility and transparent governance are already an integral part of the strategic programs of the institutions and regulators in Europe. In accordance with the objectives of the EU, at national level FSC provides support through concrete actions in directing national and European financing sources for more sustainable economy, planning instruments for post-crisis business recoveries and balancing regional development.
I do believe, and I see the concrete results, that the Bulgarian regulator in the non-banking financial sector strategically arranges its actions in supporting the achievement of the "Green Deal" goals. In this line of thinking, all of us, as a society, have the responsibility of focusing on renewable energy, energy efficiency, green buildings, clean transport and products created by the circular economy. Following the adoption of the European Green Deal, FSC's focus will be on financial risks to institutions and the financial system, as well as on sustainability risk (ESG risks).
When it comes to achieving sustainable targets, examples are always important. Green bonds are an appropriate financial instrument for large-scale sustainability projects, by giving access to a stable instrument for financing EU-taxonomy compliant green projects. On the other hand, investors in such bonds will be able to more easily assess and compare the sustainability of their investments, which will reduce risks and strengthen their confidence in the market. The new EUGBS voluntary standard will be open to all EU and non-EU issuers, including corporations, financial institutions and issuers of covered bonds and asset-backed securities, as well as governments and other public authorities.
In this regard, the challenges for the FSC to exercise its supervisory powers over capital market participants in compliance with the requirements set out in the Sustainable Finance Legislation Package, namely the Sustainable Finance Disclosure Regulation (SFDR), the Climate Benchmarks Regulation and the Taxonomy Regulation, are essential.
FSC is also a major participant in the process of creating the National Plan for the Introduction of the Euro in Bulgaria. The vision of FSC for this key process for the Bulgarian economy includes systematization of the necessary measures and actions in connection with the currency conversion of financial instruments. We intend to carry out the necessary monitoring of the expected stages for the adaptation of the clearing and settlement systems to work with the euro.
In the context of the current complicated international situation caused by the war in Ukraine, as well as the sanctions and restrictions imposed by the EU, USA, Canada and UK, upon the Russian Federation, the Russian Central Bank, and on various credit institutions, companies and natural persons, the FSC took prompt measures, whereat it published recommendations and guidelines addressed to the investment, insurance and social insurance sectors, through which it demanded from them to exercise extreme caution and perform intensive risk management policy before start investing in financial instruments issued by issuers connected to the Russian Federation.
The challenges we rise to, provoke our caution and concentration when trying to attain the goals set in order to enhance the consumer protection as well as to encourage the investors in a stable, well-regulated and transparent non-banking financial sector.
Against the background of this worldwide transformation, the FSC commences a new strategic period from 2022 to 2024. The change for the regulatory body includes long-term planning, a strong expert team, as well as decisiveness for developing innovations in the sphere of digitalization and the regulations on capital market development. The whole process will go along with a constructive dialogue which is planned to be conducted with all interested parties in the processes regulated by the FSC.
An important aspect of the development of the Bulgarian capital, insurance and social insurance market relates to the active and effective business communication aimed at developing conceptions and sustainable strategies. The goal we pursue is to provide predictability of our actions and to act impartially when taking decisions concerning the development of Bulgaria.
The development trend of the capital market is in the direction of digitalization and creation of conditions for more participants and reduced administrative burden. The positive interconnection between innovation and financial technology has already changed the appearance of the typical consumer behaviour and thinking, and this process has led to new opportunities for the implementation of optimized business models. At the same time, we, the financial sector participants, have the mission to analyse and forecast the potential risks. In this direction precisely, the FSC focuses its activity to balance between the promotion of innovation by the investment companies and the consumers’ protection from the negative aspects that the new online space implies.
In view of achieving results regarding the adopted development strategy, the Financial Supervision Commission went through specific steps such as evolving the financial literacy of the financial services’ consumers and investors, improving the communication process by holding regular meetings with FinTech companies to discuss minimum risks and maximum benefits from technology, promoting development of startup companies by activating the possibilities of the created Innovation Hub, as well as, adapting the new regulatory framework for collective financing. Together with the participants of the non-banking financial sector, we create a sustainable and favourable environment for innovative business with an emphasis on the need for partnership between the national regulator and the business.
Dynamics in technology development and digitalisation play a key role in changing consumer attitudes and growth expectations. The role of the FSC is to provoke the achievement of synchronicity between the regulatory requirements and their implementation in the digital environment, with the ultimate goal being to reduce the administrative burden. Part of the concrete results are the functioning Innovation Hub, the providing of a single point of contact with FinTech companies and the amended regulations for accessibility of small and medium enterprises to the capital markets. The mobile application of the FSC, the establishment of a unified information system for submitting and receiving information from supervised entities in electronic standardized format are in the process of creation.
One of the most important developments in the current situation is the proposal of the European Commission to introduce the European single access point (ESAP), the framework, which would integrate innovations in order to reduce administrative burdens. Its aim is to provide centralised public access to all the necessary information in terms of financial services. The ESAP aims at providing easy, fast and comparable access to data on European companies for the investors, thus facilitating the access to financing of European companies. ESAP is expected to contribute to the further integration of financial services and capital markets within the EU single market and to promote the development of smaller national capital markets and economies by providing greater visibility for them. FSC, in line with the European Commission, will ensure the application of the future legislation and will create conditions for the realization of the ESAP project.
The “Green deal” is another topic of great importance for both FSC and the EU. Environment, social responsibility and transparent governance are already an integral part of the strategic programs of the institutions and regulators in Europe. In accordance with the objectives of the EU, at national level FSC provides support through concrete actions in directing national and European financing sources for more sustainable economy, planning instruments for post-crisis business recoveries and balancing regional development.
I do believe, and I see the concrete results, that the Bulgarian regulator in the non-banking financial sector strategically arranges its actions in supporting the achievement of the "Green Deal" goals. In this line of thinking, all of us, as a society, have the responsibility of focusing on renewable energy, energy efficiency, green buildings, clean transport and products created by the circular economy. Following the adoption of the European Green Deal, FSC's focus will be on financial risks to institutions and the financial system, as well as on sustainability risk (ESG risks).
When it comes to achieving sustainable targets, examples are always important. Green bonds are an appropriate financial instrument for large-scale sustainability projects, by giving access to a stable instrument for financing EU-taxonomy compliant green projects. On the other hand, investors in such bonds will be able to more easily assess and compare the sustainability of their investments, which will reduce risks and strengthen their confidence in the market. The new EUGBS voluntary standard will be open to all EU and non-EU issuers, including corporations, financial institutions and issuers of covered bonds and asset-backed securities, as well as governments and other public authorities.
In this regard, the challenges for the FSC to exercise its supervisory powers over capital market participants in compliance with the requirements set out in the Sustainable Finance Legislation Package, namely the Sustainable Finance Disclosure Regulation (SFDR), the Climate Benchmarks Regulation and the Taxonomy Regulation, are essential.
FSC is also a major participant in the process of creating the National Plan for the Introduction of the Euro in Bulgaria. The vision of FSC for this key process for the Bulgarian economy includes systematization of the necessary measures and actions in connection with the currency conversion of financial instruments. We intend to carry out the necessary monitoring of the expected stages for the adaptation of the clearing and settlement systems to work with the euro.
In the context of the current complicated international situation caused by the war in Ukraine, as well as the sanctions and restrictions imposed by the EU, USA, Canada and UK, upon the Russian Federation, the Russian Central Bank, and on various credit institutions, companies and natural persons, the FSC took prompt measures, whereat it published recommendations and guidelines addressed to the investment, insurance and social insurance sectors, through which it demanded from them to exercise extreme caution and perform intensive risk management policy before start investing in financial instruments issued by issuers connected to the Russian Federation.
The challenges we rise to, provoke our caution and concentration when trying to attain the goals set in order to enhance the consumer protection as well as to encourage the investors in a stable, well-regulated and transparent non-banking financial sector.
Against the background of this worldwide transformation, the FSC commences a new strategic period from 2022 to 2024. The change for the regulatory body includes long-term planning, a strong expert team, as well as decisiveness for developing innovations in the sphere of digitalization and the regulations on capital market development. The whole process will go along with a constructive dialogue which is planned to be conducted with all interested parties in the processes regulated by the FSC.
An important aspect of the development of the Bulgarian capital, insurance and social insurance market relates to the active and effective business communication aimed at developing conceptions and sustainable strategies. The goal we pursue is to provide predictability of our actions and to act impartially when taking decisions concerning the development of Bulgaria.
STATEMENT BY FSC
Invitation for independent external reviewers
for the Asset Quality Review of the Bulgarian pension funds sector and Balance sheet review of the Bulgarian insurance sector
The Financial Supervision Commission (FSC) is publishing new invitations for independent external reviewers on its website with a new deadline (March 31, 2016) for providing applications.
This new request for calls follows the assessment by the Steering Committee (SC) – composed by the members – the FSC and the European Insurance and Occupational Pensions Authority (EIOPA), and the observers – the European Commission (EC), the European Securities and Markets Authority (ESMA), the Bulgarian Ministry of Finance and the Bulgarian National Bank – of the current availability of resources within the firms which replied to the first call for independent external reviewers. It was noted that the capacity proposed does not match the needs for reviewing the insurance and pension fund sectors, as reviewers are currently busy with the statutory auditing and, for some of them, with the review in the banking sector.
Accordingly, the SC recommended to the FSC to postpone the start of the three-month data collection exercise by reviewers to July 15 instead of April 1, 2016. The date for publication of the results will be December 1 instead of August 15, 2016.
The cut-off date for the reviews in both sectors is changed to June 30, 2016.
An independent external reviewer, which already has submitted a proposal with regard to the previous invitation of the FSC for the same tasks and which wishes to participate in the selection pursuant to the present invitation, must within the above deadline for submission of proposal notify the FSC of its wish to participate in the selection and does not have to submit the documents which the FSC has at its disposal. The new invitations include minor changes and further clarifications compared with the previous invitations.
This new request for calls follows the assessment by the Steering Committee (SC) – composed by the members – the FSC and the European Insurance and Occupational Pensions Authority (EIOPA), and the observers – the European Commission (EC), the European Securities and Markets Authority (ESMA), the Bulgarian Ministry of Finance and the Bulgarian National Bank – of the current availability of resources within the firms which replied to the first call for independent external reviewers. It was noted that the capacity proposed does not match the needs for reviewing the insurance and pension fund sectors, as reviewers are currently busy with the statutory auditing and, for some of them, with the review in the banking sector.
Accordingly, the SC recommended to the FSC to postpone the start of the three-month data collection exercise by reviewers to July 15 instead of April 1, 2016. The date for publication of the results will be December 1 instead of August 15, 2016.
The cut-off date for the reviews in both sectors is changed to June 30, 2016.
An independent external reviewer, which already has submitted a proposal with regard to the previous invitation of the FSC for the same tasks and which wishes to participate in the selection pursuant to the present invitation, must within the above deadline for submission of proposal notify the FSC of its wish to participate in the selection and does not have to submit the documents which the FSC has at its disposal. The new invitations include minor changes and further clarifications compared with the previous invitations.
The full text of the two invitations is available at the following internet address: in Bulgarian and English
STATEMENT BY FSC
Invitation for independent external reviewers
for the Asset Quality Review of the Bulgarian pension funds sector and Balance sheet review of the Bulgarian insurance sector
The Financial Supervision Commission (FSC) is publishing new invitations for independent external reviewers on its website with a new deadline (March 31, 2016) for providing applications.
This new request for calls follows the assessment by the Steering Committee (SC) – composed by the members – the FSC and the European Insurance and Occupational Pensions Authority (EIOPA), and the observers – the European Commission (EC), the European Securities and Markets Authority (ESMA), the Bulgarian Ministry of Finance and the Bulgarian National Bank – of the current availability of resources within the firms which replied to the first call for independent external reviewers. It was noted that the capacity proposed does not match the needs for reviewing the insurance and pension fund sectors, as reviewers are currently busy with the statutory auditing and, for some of them, with the review in the banking sector.
Accordingly, the SC recommended to the FSC to postpone the start of the three-month data collection exercise by reviewers to July 15 instead of April 1, 2016. The date for publication of the results will be December 1 instead of August 15, 2016.
The cut-off date for the reviews in both sectors is changed to June 30, 2016.
An independent external reviewer, which already has submitted a proposal with regard to the previous invitation of the FSC for the same tasks and which wishes to participate in the selection pursuant to the present invitation, must within the above deadline for submission of proposal notify the FSC of its wish to participate in the selection and does not have to submit the documents which the FSC has at its disposal. The new invitations include minor changes and further clarifications compared with the previous invitations.
This new request for calls follows the assessment by the Steering Committee (SC) – composed by the members – the FSC and the European Insurance and Occupational Pensions Authority (EIOPA), and the observers – the European Commission (EC), the European Securities and Markets Authority (ESMA), the Bulgarian Ministry of Finance and the Bulgarian National Bank – of the current availability of resources within the firms which replied to the first call for independent external reviewers. It was noted that the capacity proposed does not match the needs for reviewing the insurance and pension fund sectors, as reviewers are currently busy with the statutory auditing and, for some of them, with the review in the banking sector.
Accordingly, the SC recommended to the FSC to postpone the start of the three-month data collection exercise by reviewers to July 15 instead of April 1, 2016. The date for publication of the results will be December 1 instead of August 15, 2016.
The cut-off date for the reviews in both sectors is changed to June 30, 2016.
An independent external reviewer, which already has submitted a proposal with regard to the previous invitation of the FSC for the same tasks and which wishes to participate in the selection pursuant to the present invitation, must within the above deadline for submission of proposal notify the FSC of its wish to participate in the selection and does not have to submit the documents which the FSC has at its disposal. The new invitations include minor changes and further clarifications compared with the previous invitations.
The full text of the two invitations is available at the following internet address: in Bulgarian and English
SOLVENCY II IS GOING LIVE
All stakeholders including consumers will benefit from the new risk-based regime
Solvency II is a modern, robust and proportionate supervisory framework
Solvency II is a modern, robust and proportionate supervisory framework
As of 1 January 2016 the new risk-based European supervisory framework for insurance – Solvency II – has become applicable.
Solvency II will result in a paradigm shift in companies’ risk cultures. Well capitalised insurers will enable the sector to withstand unforeseen shocks. By fostering good governance and risk management, Solvency II will enhance protection of consumers of insurance products. Harmonised reporting and disclosure will provide supervisors with key information and enable their timely action. The new regime will however not be a burden for smaller companies, thanks to its proportionality principles.
Gabriel Bernardino, Chairman of EIOPA, said: “Without a risk-based approach the European insurance supervision would be lagging behind international trends . Now with Solvency II a modern, robust and proportionate supervisory regime will be implemented. This is a huge step forward for enhanced policyholder protection and the single European insurance market.
Solvency II is the result of productive political and legislative negotiations over many years by the European Parliament, Commission and Council. But it also reflects the work of EIOPA’s Board of Supervisors, which always kept the momentum to ensure preparations for Solvency II could be undertaken in timely fashion. With the efforts of the National Competent Authorities (NCAs), Solvency II can now become reality in each Member State.
Also on the side of the insurance and reinsurance companies hard work was done and the good level of preparedness for Solvency II is a sign of their success.
However, this is not a time for complacency. The regulatory phase of the journey is ending. Now EIOPA starts a new journey – towards consistent and convergent implementation of Solvency II across Europe.”
A new section “Solvency II – going live!” https://eiopa.europa.eu/Pages/Supervision/Insurance/Solvency-II-Going-Live.aspx has been launched on EIOPA’s website to explain the benefits of the new framework for European citizens and the EU economy.
Sofiaplast AD is not public company anymore
Company Sofiaplast AD has been deleted from the public register of the Commission in compliance with the decision of the Head of Investment Activity Supervision Division – Dimana Rankova.
Social Insurance Supervision Division has announced the results of the activity of the supplementary social insurance for the first 9 months of year 2004
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The total sum of the net assets till 30th September, 2004 accumulated by all three types of pension funds – voluntary, occupational, and universal– amounts to BGN 682 417 000, which is 25 % more compared to the results at the end of year 2003. The number of the social insured persons for the same period has reached 2 636 090 persons.
Social Insurance Supervision Division has announced the final results of the activity of the supplementary social insurance for the year 2003
The total sum of the net assets, accumulated by the all three types of pension funds – occupational, universal and voluntary – amounts to BGN 510 544 000, which is 53.55% more compared to the results of the previous year 2002. As of the end of the year 2003 the number of the social insured persons has increased with 27.18% compared to the year 2002 and reached 2 294 966 persons.