Law Amending And Supplementing The Law On Markets In Financial Instruments

Original Language Title: Закон за изменение и допълнение на Закона за пазарите на финансови инструменти

Read the untranslated law here: http://parliament.bg/bg/laws/ID/15177/

Name of law Law amending and supplementing the law on markets in financial instruments Named Bill a bill amending and supplementing the law on markets in financial instruments directive date of acceptance 29/04/2015 number/year Official Gazette 34/2015 Decree No 78

On the grounds of art. 98, paragraph 4 of the Constitution of the Republic of Bulgaria

I DECLARE:

To be published in the Official Gazette the law amending and supplementing the law on markets in financial instruments, adopted by the National Assembly of HLIÌI 29 April 2015.

Issued in Sofia on May 5, 2015.

The President of the Republic: Rosen Plevneliev

Stamped with the State seal.

Minister of Justice: Hristo Ivanov

LAW

amending and supplementing the law on markets in financial instruments (official SG. 52 of 2007; amend., SG. 109 (2007), no. 69 since 2008, issue 24, 93 and 95 of 2009, 43/2010/2011 77, no. 21, 38 and 103 from 2012, issue 70 and 109 from 2013. , PC. 22 and 53 by 2014 and PCs. 14 by 2015.)

§ 1. In art. 3, item 2 are made the following amendments and additions:

1. The letter "e" after the word "Commission" is added "of 10 August 2006 implementing Directive 2004/39/EC of the European Parliament and of the Council as regards record-keeping obligations for investment firms, transaction reporting, market transparency, admission of financial instruments to trading, and defined terms for the purposes of that directive, hereinafter referred to as" Commission Regulation (EC) no 1287/2006 ".

2. letter "and" the words "the Commission" shall be deleted.

§ 2. In art. 4, al. 1 make the following amendments and additions:

1. In paragraph 9, the words "Directive 2006/48/EC of the European Parliament and of the Council relating to the taking up and pursuit of the business of credit institutions (recast)" shall be replaced by ' Directive 13/36/EC of the European Parliament and of the Council of 26 June 2013 on access to the pursuit of the business of credit institutions and on the prudential supervision of credit institutions and investment firms amending Directive 2002/87/EC and repealing directives 2006/48/EC and 2006/49/EC (OJ L 176/338 of 27 June 2013), hereinafter referred to as ' Directive 13/36/EC ".

2. In paragraph 11, the words "Directive 2006/48/EC of the European Parliament and of the Council relating to the taking up and pursuit of the business of credit institutions (recast)" shall be replaced by ' Directive 13/36/EC ".

3. In paragraph 12 the end a comma and add "except in the cases under art. 8, al. 6. "

§ 3. Article 8 is amended as follows:

"Art. 8. (1) investment firms, with the exception of those referred to in para. 2, 3, 5 and 6 shall have initial capital of not less than 1 500 000 BGN. Investment firms, whose license is included the carrying out of the activities under art. 5, al. 2, item 8 shall have initial capital of not less than 1 500 000 BGN.

(2) an investment firm that does not perform any of the investment services and activities under art. 5, al. 2, item 3 and 6, but that holds money or financial instruments to customers and offering one or more of the services referred to in art. 5, al. 2, item 1, 2 or 4 must have a starting capital of not less than 250 000.

(3) an investment firm whose license is not included the holding of money or financial instruments and does not perform investment services and activities under art. 5, al. 2, 3 and 6 shall have initial capital of not less than 100 000.

(4) for the purposes of paragraphs 1 and 2. 2 and 3 maintaining positions in financial instruments outside the trading book for the purpose of investing in own funds is not considered to carry out the activities under art. 5, al. 2, item 3.

(5) an investment firm is not licensed to provide additional services under art. 5, al. 3, item 1 and that provides one or more investment services under art. 5, al. 2, item 1, 2, 4 and/or 5, and who is not entitled to hold cash or financial instruments, and which for that reason may not arise obligations to clients, you must meet one of the following requirements:

1. to have an initial capital in an amount not less than 100 000 BGN.;

2. to have professional liability insurance, valid throughout the European Union and the European economic area, or some other comparable guarantee, which covers any damage that may occur as a result of the fault of the obligations connected with its activity as an investment firm; the minimum sum insured of insurance is the equivalent in LEVs of 1 000 000 EUR – for each insurance claim, and the equivalent in LEVs of 1 500 000 euro – for all insurance claims in a year;

3. There is a combination of the requirements referred to in paragraphs 1 and 2, which provides a level of coverage, similarly under item 1 or 2.

(6) local companies within the meaning of art. 4, paragraph 1, item 4 of Regulation (EC) no 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 (OJ, L 176/1 of 27 June 2013), hereinafter referred to as "Commission Regulation (EC) no 575/2013", for their activity they wish to be licensed under this Act and shall benefit from the rights under art. 15, para. 4 must have a starting capital in an amount not less than $100 000.

(7) the initial funds of investment firms, with the exception of those referred to in para. 5 and 6, consists of one or more of the elements referred to in art. 26 (1) (a) – (e) of Regulation (EC) no 575/2013.


(8) not less than 25 per cent of the capital of Pará. 1-6 must be submitted when filing the application for the issuing of a licence, and the rest – within 14 days of receipt of the written notice under art. 14, para. 4.

(9) investment firms issued only cashless shares with one vote. If the investment firm is a limited liability company, each partner has a number of votes in the General Assembly, as its share in the capital. "

§ 4. Art is created. 8A:

"Art. 8A. (1) an investment firm shall have own funds which is adequate of poets of it risks related to its activities, and a subject of this law, the instruments for its implementation and Regulation (EC) no 575/2013.

(2) an investment firm licensed to provide investment services under art. 5, al. 2, item 3 and 6, be required to satisfy the liquidity requirements under this Act, Regulation (EC) no 575/2013, and acts in their application.

(3) other requirements for investment firms on capital, capital adequacy and liquidity, the types of capital buffers to maintain the terms and conditions of their formation and updating, as well as for an exemption from the obligation to maintain capital buffers, the conditions and procedures for exemption from the requirements for liquidity for the keeping of records and disclosure by investment firms, as well as supervision of compliance with these requirements shall be determined by Decree and with Regulation (EC) no 575/2013. By the Ordinance can be identified and the financial instruments that investment firms may hold for own account in cases when carrying out investment services under art. 5, al. 2, item 2.

(4) an investment firm is obliged to remove the Vice President and other inconsistencies with the applicable regulatory requirements, including with international financial reporting standards, admitted in the accounts for capital adequacy and liquidity, as well as in the financial statements, the accounting records and other documents in the set by the VP a reasonable period of time. "

§ 5. In art. 10 para. 3 is repealed.

§ 6. Art is created. 10A:

"Art. 10A. the Vice-President shall review the rules, strategies, processes and mechanisms implemented by the investment firm in accordance with this Act, Regulation (EC) no 575/2013, and in their implementation instruments, taking into account the technical criteria for supervisory review and assessment, and assess the risks to which it is exposed or induces the activity of the firm. The line, the way and the technical criteria for carrying out the review and evaluation shall be determined by Decree. "

§ 7. In art. 11 the following amendments and supplements shall be made:

1. In paragraph 8. 2, point 8 and 9, after the words "collective investment" a comma and add "Regulation (EC) no 575/2013".

2. in the Al. 7:

a new sentence be inserted) third: "for the purposes of paragraphs 1 and 2. 2 the Vice-President shall perform and report in the database for administrative sanctions, maintained by the European banking authority (EBA). ";

(b) the third sentence) becomes the fourth sentence.

3. in the Al. 8 item 3 is created:

3. six months at banks and/or undertakings referred to in paragraph 1 and one year and six months in government institutions and/or bodies governed by public law referred to in paragraph 2. "

§ 8. New art. 11A:

"Art. 11A. (1) in the composition of the management and supervisory organ shall include persons with the necessary knowledge, skills and professional experience relevant to the specifics of the activities of the investment firm's activities and the main risks to which it is or may be exposed.

(2) the members of the management and supervisory authority of the investment firm devote enough time to ensure the proper performance of the functions assigned to them.

(3) members of the management and supervisory authority of the investment firm may also be persons who participate in the management of other legal persons, if this does not hinder the effective implementation of their duties in the management of the investment firm. Restrictions on participation in the management of the investment firm and other entities, as well as the terms and conditions of release of these restrictions shall be determined by Decree. "

§ 9. Former art. 11 and becomes art. 11 (b).

§ 10. In art. 15, para. 1 and 2, the words "and its implementing acts ' shall be replaced by ' of Regulation (EC) no 575/2013 and the acts implementing them."

§ 11. In art. 16, al. 1 make the following amendments and additions:

1. In paragraph 1, after the words "art. 8 "and 8" is added.

2. In paragraph 14, the words "and its implementing acts ' are replaced by ' of Regulation (EC) no 575/2013, and acts on the application".

§ 12. In art. 18, al. 1 the words "the services and activities in connection with financial instruments" is replaced by "activity as an investment firm.

§ 13. In art. the following 20 amendments:

1. In paragraph 8. 1, paragraph 4, after the words "making of" violation "is added under art. 32, para. 1 and 2 of the Act on the financial supervision Commission, "and after the words" collective investment "" is added to Regulation (EC) no 575/2013 ".

2. in the Al. 2:

a) point 2 is replaced by the following: "2. the investment firm ceases to satisfy the requirements for capital adequacy or liquidity of the law, of Regulation (EC) no 575/2013 and the acts on their application;"

b) in paragraph 4, after the words "collective investment" a comma and add "Regulation (EC) no 575/2013".

3. in the Al. 5, the words "the relevant District Court" shall be replaced by ' the registry Agency, "and after the words" or "added" to the competent court ".

§ 14. In art. 21, para. 6 the words "District Court" shall be replaced by ' the registry Agency.


§ 15. Article 24 is amended as follows:

"Art. 24. (1) an investment firm shall set up and maintain the internal organization in accordance with the nature, scope and complexity of his activity, and provides:

1. organizational structure with clearly defined, transparent and consistent levels of responsibility;

2. appropriate internal control systems, including reliable administrative procedures;

3. qualified personnel, material, technical and software;

4. conditions for the performance of investment services and activities, continuously and regularly, and in accordance with the requirements of this law and its implementing acts;

5. conditions for the prevention and detection of conflicts of interest, and when such conflicts arise, for the fair treatment of customers, disclosure and prevent damage to the interests of the clients;

6. the conditions for compliance with the existing rules for personal transactions in the investment firm;

7. conditions of storage of all information about services and activities under art. 5, al. 2 and 3;

8. conditions in cases where holds financial instruments and cash to customers, to comply with the requirements of art. 34;

9. conditions for immediate and accurate execution of client orders, as well as to implement identical orders in order of their receipt;

10. conditions for maintaining client interest in the case of aggregation of orders;

11. effective strategies and policies for the establishment, management, monitoring, evaluation and reporting of the risks to which it is exposed or likely to be exposed and for the keeping of accounting records;

12. effective rules for limiting risk in the implementation of important operational functions or services under art. 5, al. 2 and 3 of the third person;

13. effective procedures for control and security of information systems;

14. the remuneration policies and practices of persons working for an investment firm, as the requirements to the remuneration policy and its disclosure is determined by Ordinance;

15. appropriate and effective procedures for the submission of internal signals of the employees of the firm for violations at the firm, which should ensure:

a) protection against unfair treatment of employees of the firm who report violations;

b) protection of personal data in accordance with the data protection act for the person alert for violation, as well as the personal data of the persons signalled that they have committed the offence;

the guarantee of confidentiality) in all cases, persons who report offences, unless the violation of confidentiality required in the cases provided for by law at a subsequent pre-trial or judicial proceedings.

(2) an investment firm shall apply internal control systems, administrative and accounting procedures, which allow at any time check on the conformity of the activities of the investment firm with the rules adopted in accordance with this Act, Regulation (EC) no 575/2013 and acts on their application.

(3) the strategies and policies referred to in paragraph 1. 1, item 11 for the establishment, management, monitoring and reporting of the risks to which it is exposed, or may be, exposed to an investment firm, and include the risks posed by macroeconomic environment in which the investment firm is acting at the appropriate phase of the economic cycle.

(4) the internal organisation of Pará. 1 shall be determined by rules adopted by the management authority of the investment firm, the minimum content shall be determined by Decree. The rules must ensure implementation of identical client orders in order of entry. The investment firm carry out periodic review of the rules at least once a year and, if necessary, and for a shorter period of time.

(5) an investment firm shall determine the appropriate proportions between fixed and variable remuneration of persons working for an investment firm, as the variable components of remuneration does not exceed 100 per cent of the permanent elements. "

§ 16. Create art. 24 a – 24 (e):

"Art. 24. (1) the management, respectively the inspection authority of the investment firm, depending on the internal distribution of functions:

1. be responsible for the efficient and reliable management of the investment firm in accordance with regulatory requirements, including for the proper allocation of duties and responsibilities in determining the organizational structure for the adoption of the rules of art. 24 and for the monitoring of their implementation, as well as for the prevention and identification of conformity of interests konflik;

2. approve and monitor the implementation of the strategic objectives of the firm and of the strategy on risk and internal management;

3. ensure integrity and continuous functioning of the systems for accounting and financial reporting, including financial and operational controls and conformity of the activity with regulatory requirements and applicable standards;

4. to manage and monitor the implementation of the requirements under this Act relating to the disclosure and provision of information;

5. is responsible for the exercise of effective control over the senior management personnel;

6. monitor and periodically evaluate the effectiveness of management in the investment firm shall, where necessary, shall take the necessary measures to rectify the discrepancies.


(2) investment firms, which operate on the territory of the Republic of Bulgaria, provide the Commission with the information referred to in art. 435, paragraph 2 (c) of Regulation (EC) no 575/2013, within three days from the date of its disclosure.

(3) the criteria on which the investment firm must comply in order to be considered meaningful in view of the size, internal organisation, the nature, scope and complexity of the activity carried on by him, shall be determined by Decree.

(4) investment firms which are significant in view of the size, internal organisation and the nature, scope and complexity of their activity:

1. establish a remuneration Committee;

2. create a Committee on risk;

3. perform other requirements laid down by the Ordinance referred to in para. 3.

Art. 24B. the investment firm shall have in place internal control Department, which operates independently and performs constant monitoring of compliance by the persons entrusted with the management of the investment firm, and all others who work under contract for the firm, of this law, Regulation (EC) no 575/2013 and the acts on their application. The structure, organization, powers and interrelation of internal control Department with other bodies and persons working for an investment firm, are determined by rules adopted by the management authority of the investment firm.

Art. 24. (1) in the case of an order made by a customer with a limited subject shares admitted to trading on a regulated market, which is not implemented immediately under current market conditions, the investment firm shall, unless the customer expressly given other orders to facilitate the earliest possible execution of the order, as it made public in a way accessible to other market participants.

(2) the obligation under paragraph 1. 1 shall be deemed to be fulfilled by the investment firm with submission of the limited mandate of the regulated market and/or the multilateral trading system.

(3) the Ordinance may be provided that the investment firm may not comply with the obligation under paragraph 1. 1, if the volume of the order does not correspond to the normal market volume.

Art. 24. (1) an investment firm Stored information about the transactions with financial instruments for the account of the client shall at least contain data on the identity of the customer and of the action taken in implementation of the law on measures against money laundering and the law on measures against financing of terrorism.

(2) an investment firm shall store the information about services and activities under art. 5, al. 2 and 3 for at least 5 years.

Art. 24 (1) with the permission of the Vice-President:

1. an investment firm that does not perform any of the investment services and activities under art. 5, al. 2, item 3 and 6 and who executes orders for financial instruments, could hold such instruments for its own account;

2. may be limited to the requirements for the maintenance of the investment firm internal recovery plan in poor financial condition;

3. an investment firm that is meaningful, may be exempted from the requirement for the establishment of a Committee on risk;

4. an investment firm may specify different levels of ratio between fixed and variable components of remuneration than that under art. 24, para. 5;

5. an investment firm may be exempted from restrictions on participation in the management of the investment firm and to other persons.

(2) by decision of the Commission on the proposal of the Vice-President can be exempt investment firms of one or more of their duties in connection with the maintenance of capital buffers.

(3) the conditions and procedures for the issue of authorisations under para. 1 and of the decision on para. 2, as well as the procedure for the issue of authorisations and approvals under Regulation (EC) no 575/2013 shall be determined by Decree. "

§ 17. Create art. 25A and 25B:

"Art. 25. The investment firm shall draw up and submit to the Commission an internal recovery plan containing the measures which he can take in significant deterioration of its financial position. The President may issue a reasoned recommendation to change the plan for recovery. The recovery plan requirements shall be determined by Decree.

Art. 25. (1) where an investment firm, licensed in the Republic of Bulgaria, fall into financial difficulties, which may lead to increased systemic risk and/or threaten the stability of the market in financial instruments directive, the Commission shall adopt a plan for controlled restructuring.

(2) the conditions and procedure for the adoption and implementation of the plan referred to in paragraph 1. 1 shall be laid down by Decree. "

§ 18. In art. 26 in, al. 3, paragraph 2, the words "Directive 2006/48/EC ' is replaced by ' Directive 13/36/EC".

§ 19. In art. 26 e, para. 2, paragraph 4, the words "and its implementing acts ' are replaced by ' Regulation (EC) no 575/2013, and acts on the application".

§ 20. In art. 29, para. 2 the words "para. 2 "are replaced by" para. 4. "

§ 21. In art. 33 the following modifications are made:

1. In paragraph 8. 3 the Union "and" is replaced by "and/or".

2. paragraph 6 is replaced by the following:


"(6) an investment firm shall maintain records of all transactions, services, and activities carried out by it, and documented the systems and processes used to implement the requirements of this Act, Regulation (EC) no 575/2013 and their application acts in a way that allows the Commission and the Vice-President in the exercise of their supervisory functions to ascertain that the investment firm complies with its obligations, including in respect of clients and potential clients."

§ 22. In art. 38, para. 5 in the text before paragraph 1 the word "by" shall be replaced by "in one of the following ways.

§ 23. Create art. 38A and 38B:

"Art. 38. (1) all investment firms, with the exception of investment firms under art. 8, al. 5, made annually, separately for the Republic of Bulgaria, the Member States and third countries, which have subsidiaries or have established branches, the following information on a consolidated basis:

1. name (s), a description of the activities and geographical location;

2. amount of turnover;

3. number of employees full-time (equivalent basis);

4. financial result of operations before tax;

5. accrued taxes on the financial result of operations;

6. received State subsidies, if any;

7. profitability of the assets obtained as the ratio of net profit to total balance sheet total.

(2) the information referred to in para. 1 subject to independent financial audit and published as an annex to the annual financial statement of an individual or, where applicable, on a consolidated basis.

Art. 38 (b) (1) an investment firm shall notify the National Revenue Agency for transactions on acquisition of shares of public companies by companies registered in jurisdictions with the preferential tax regime and their actual owners within the meaning of the law on economic and financial relations with companies registered in jurisdictions with the preferential tax regime, their affiliates and their actual owners.

(2) the obligation under paragraph 1. 1 the investment firm run by electronic means within 7 days from the conclusion of the transaction. "

§ 24. In art. 48, para. 2 the words "art. 24, para. 4-6 "shall be replaced by" art. 24 in.

§ 25. In art. 50, para. 2, the words "Article 24, para. 6 "shall be replaced by ' in article 24, para. 3 "and the words" the Commission "shall be deleted.

§ 26. In art. 51, para. 4, the words "article. 24, para. 4-6 "shall be replaced by" art. 24 in.

§ 27. In art. 53, para. 2 and 3 the words "the Commission" shall be deleted.

§ 28. In chapter three, section V to create art. 63A-63 in:

"Art. 63. (1) on request by the competent authority of the host Member State for the establishment of a branch of an investment firm, licensed in the Republic of Bulgaria, as significant Commission, jointly with the competent authority of the host Member State or with the supervisor, if there is one, shall decide on the designation of a branch as significant within two months of receipt of the request.

(2) the determination of a branch of an investment firm, licensed in the Republic of Bulgaria, for the significant shall not affect the powers and functions of the Commission and the Vice-President under this law.

(3) the Commission shall submit to the competent authority of the host Member State the information under art. 72 k, al. 2, item 3 and 4 and fulfil the obligations under art. 72, para. 1, item 3, in cooperation with the competent authority of the Member State of origin.

(4) in the event of an emergency in accordance with art. 72 e, para. 1 the Commission shall inform the central banks – members of the European system of central banks, the European systemic risk Board (ESRB) and bodies under art. 25, para. 10 of the Act on the financial supervision Commission.

Art. 63B. (1) the Commission shall submit to the competent authorities of the host Member State in which it has been opened a significant branch of investment firm licensed in the Republic of Bulgaria:

1. information on the results of the risk assessments for those investment firms – and, where applicable, under art. 72 b, para. 1, item 1;

2. the decisions referred to in art. 118, para. 1, item 10 – 22 and al. 3, in so far as they are relevant to the branch.

(2) the Commission shall consult the competent authorities of host Member States in which they found significant branches of investment firms authorised in the Republic of Bulgaria, on operational plans to restore liquidity, if that is relevant to the assessment of liquidity risk arising from exposures denominated in local currency in the host Member State.

Art. 63 in (1) where an investment firm, licensed in the Republic of Bulgaria, has created a significant branch in another Member State and article. 72 g-72 and are not being applied, the Commission shall establish and chair a College of supervisory authorities of these Member States in order to facilitate the cooperation under art. 63A, al. 3 and 4 and in article 5. 116. The Supervisory Board establishes and operates on the basis of written rules laid down by the Commission after consultation with the competent authorities.

(2) the Commission shall designate the competent authorities that will participate in each meeting or activity of the Supervisory Board, taking into account the importance of these bodies for the supervisory activity to be planned or coordinated, including the possible impact on financial stability in the Member States concerned in accordance with art. 12, al. 2 of the Act on the financial supervision Commission and art. 63A, al. 3 and 4.


(3) the Commission shall provide in advance to all members of the Supervisory Board information on the organisation of the meeting, the main issues to be discussed, and the actions that will be taken into consideration. The Commission shall provide in a timely manner to all members of the Supervisory Board and all the information on the decisions taken at these meetings, decisions and the measures taken. "

§ 29. In art. 68, para. 1 the words "art. 24, para. 1, item 4 and al. 4, 6 – 8 "are replaced by" article. 24, para. 1, item 7, art. 24 in, al. 1 and 3, art. 24. "

§ 30. In chapter three, section VII to create art. 68A and 68B:

"Art. 68. (1) the Commission may ask the supervisor, if any, or by the competent authority of the Member State of origin a specific branch of an investment firm, other than an investment firm referred to in art. 95 of Regulation (EC) no 575/2013, licensed in a Member State which carries out activities in the Republic of Bulgaria, to be considered meaningful. The request shall state the reasons for the establishment of the branch for meaningful, as explicitly noted the following information:

1. If the market share of the branch of an investment firm from the point of view of the client assets exceed two per cent in the Republic of Bulgaria;

2. the possible impact from the suspension or termination of the activities of the investment firm on the market liquidity, payment systems and clearing and settlement systems in the Republic of Bulgaria and

3. the amount and importance of the branch, taking into account the number of his clients to the financial system of the Republic of Bulgaria.

(2) the Commission shall, jointly with the competent authority of the Member State of origin and the supervisor, if there is one, shall decide on the designation of a branch as significant within two months of receipt of the request.

(3) If within the time limit referred to in paragraph 1. 2 a joint decision is not reached, the Commission shall take a decision independently within two months of expiry of the period referred to in paragraph 1. 2. the Commission shall provide the decision of the supervisor and the competent authority of the Member State of origin.          

(4) the decisions referred to in paragraph 1. 2 and 3 motivate, they shall indicate the opinions of supervisor and/or the competent authority of the Member State of origin.

(5) the determination of a branch of an investment firm of a Member State for significant shall not affect the powers and functions of the Commission and the Vice-President under this law.

(6) the Commission, respectively the Vice-President shall cooperate with the competent authority of the Member State of origin in carrying out its duties pursuant to art. 112 (1) (c) of Directive 2013/36/EC.

Art. 68 (b). (1) where, in the Republic of Bulgaria has created a significant branch of investment firm with headquarters in another Member State, the Commission shall consult the competent authorities of the Member State of origin on operational plans to restore liquidity, if that is relevant to the assessment of liquidity risk arising from exposures denominated in the local currency.

(2) where the competent authorities of the Member State of origin are not consulted the Commission, or where, as a result of the consultation, the Commission considers that the operational plans for the recovery of liquidity are not adequate, it may turn to the EBA and to request assistance in accordance with art. 19 of Regulation (EC) no 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European supervisory authority (European banking authority), amending Decision No 716/2009/EC and repealing Decision 2009/78/EC (OJ L 331/12 by 15 December 2010), hereinafter referred to as Commission Regulation (EU) no 1093/2010. "

§ 31. In art. 69 following amendments and supplements shall be made:

1. In paragraph 8. 1 the words "and mixed-activity holding under the conditions and in accordance with this law" shall be replaced by ' mixed-activity financial holding companies or holdings with mixed activities, which have as a subsidiary investment firm licensed in the Republic of Bulgaria, unless the law provides otherwise ".

2. Al are created. 4, 5 and 6:

(4) investment firms, financial holding companies, financial holding companies with mixed activity or a mixed-activity holding, which are subject to supervision on a consolidated basis by the Commission, shall establish internal rules, procedures and mechanisms for compliance with the requirements of art. 11 a, art. 24, para. 1, item 1, 2, 11 – 14, para. 2, 4 and 5, art. 24A, 25A and 25 (b) and (c) subsidiaries, including those who are not covered by this law. Rules, procedures and mechanisms should be consistent and well-integrated and allow subsidiaries to produce any data and information relevant for the purposes of supervision.

(5) financial holding companies and mixed-activity financial holding companies provide all necessary information to the Commission to establish compliance with the requirements of this law and its implementing acts and Regulation (EC) no 575/2013, as well as for the investigation of violations of these requirements.

(6) where an investment firm, which is the institution of the European Union, or an investment firm controlled by a financial holding company by the European Union or of a financial holding company parent of a mixed European Union, demonstrate to the Commission that the implementation of the requirements for the introduction of rules, procedures and mechanisms under para. 5 is illegal under the legislation of the third country in which the subsidiary is established, they do not apply to that subsidiary. "

§ 32. Article 70 is amended as follows:


"Art. 70. (1) the Commission shall carry out supervision on a consolidated basis in cases where:

1. an investment firm, licensed in the Republic of Bulgaria, is an institution in a Member State or an institution of the European Union;

2. the parent undertaking of an investment firm, licensed in the Republic of Bulgaria, is a financial holding company in a Member State, the parent financial holding company, a financial holding company parent of a mixed European Union financial holding company or a mixed mother in a Member State;

3. the parent undertaking of an investment firm and the credit institution licensed in the Republic of Bulgaria, is a financial holding company in a Member State, the parent financial holding company, a financial holding company parent of a mixed European Union financial holding company or a mixed mother in the Member State where the investment firm is a balance sheet total of the credit institution.

(2) where a financial holding company in a Member State of the parent financial holding company, the European Union or of a financial holding company with mother mixed activity in a Member State is established in the Republic of Bulgaria and is a parent undertaking of an investment firm, licensed in the Republic of Bulgaria, as well as one or more institutions authorised in other Member States, supervision on a consolidated basis shall be exercised by the Commission.

(3) paragraph 2 shall not apply where the parent companies of investment firm licensed in the Republic of Bulgaria, and of the institution or institutions licensed in another or other Member States, covering more than one financial holding company or a mixed financial holding company with head offices in different Member States and which have in each of these Member States for subsidiaries of credit institutions. In this case, supervision on a consolidated basis shall be exercised by the competent authority, licensed credit institution with the largest balance sheet total.

(4) where a financial holding company or a mixed financial holding company is the parent of more than one institutions authorised in the European Union, and none of these institutions is not licensed in the State in which the financial holding company or a mixed-activity financial holding company was set up, supervision on a consolidated basis shall be exercised by the Commission, if the institution with the greatest balance sheet total is an investment firm licensed in the Republic of Bulgaria. This is considered an investment firm controlled by a parent financial holding company from the European Union or of a financial holding company with mixed mother activity of the European Union.

(5) by agreement with the competent authorities of the Member States, the Commission may not apply the terms and conditions under para. 2-4, if their application would be inappropriate in view of the participating institutions and the relative importance of their activities in individual countries. In the agreement, the competent authority shall be established, which will carry out supervision on a consolidated basis. Before the conclusion of the agreement, the Commission gives the investment firm, which is the parent undertaking, respectively the parent financial holding company from the European Union or of a financial holding company with mother mixed activity in a Member State, established in the Republic of Bulgaria, of the firm, or who appears to be the institution with the greatest balance sheet total, within such period as it may specify, to express their opinion.

(6) at the request of a competent authority, the Commission may take part in the consultation and to sign agreements concerning the determination of the competent authority, which will carry out supervision on a consolidated basis in accordance with para. 5. In this case, the Commission can begin to carry out supervision on a consolidated basis, without the conditions under paragraph 1. 2-4.

(7) the Commission shall inform the European Commission and the EBA for agreements concluded at para. 6, under which it will carry out supervision on a consolidated basis. "

§ 33. Article 71 shall be amended as follows:

"Art. 71. the persons elected as members of the management or control body of a financial holding company or a mixed financial holding company, must be of good repute and possess the professional expertise required to manage the activities of the holding. Article 11a shall apply accordingly. "

§ 34. Article 72 shall be amended as follows:

"Art. 72. (1) in cases where it is consolidating supervisory authority in accordance with this section, in addition to the obligations under Regulation (EC) no 575/2013, the Commission:

1. coordinate the collection and distribution of relevant or essential information in going concern conditions and in emergency situations;

2. plan and coordinate surveillance activities in cooperation with the relevant competent authorities;

3. plan and coordinate surveillance activities in cooperation with the relevant competent authorities, and, if necessary, and with central banks, in the preparation of the action in the event of an emergency situation, including adverse developments on the State of the financial markets, as if possible use established channels for relationship in crisis management.

(2) Planning in al. 1.3 includes measures under art. 72 k, al. 2, item 4 and art. 72 l, al. 1, the drawing up of joint assessments, the implementation of contingency plans and information for the public.

(3) in cases where the competent authorities do not cooperate with the Commission, to the extent necessary for the performance of its obligations under paragraph 1. 1, it may refer the matter for consideration by the EBA.

§ 35. In chapter three, section VII to create art. 72 – 72 t:


"Art. 72. Apart from the cases under art. 69 and 70, when in the supervision on a consolidated basis falls investment firm licensed in the Republic of Bulgaria, and the competent authority, who shall exercise supervision on a consolidated basis, does not fulfil the provisions of national law transposing the requirements of art. 112 (1) of Directive 2013/36/EC, the Commission may refer the matter for consideration by the EBA.

Art. 72B. (1) where in accordance with art. 69 and 70 the Commission is consolidating supervisory authority or when it is not, but in the supervision on a consolidated basis falls investment firm licensed in the Republic of Bulgaria, which is a subsidiary of the institution of the European Union, the parent financial holding company of the European Union or of a financial holding company with mixed mother activity of the European Union, the Commission shall take the necessary action within its power to reach a joint decision with the other competent authorities of :

1. the application of the regulatory requirements for the determination of the adequacy of own funds of the institutions in the Group's consolidated level in terms of financial situation and risk profile of this group, as well as the required level of own funds for the implementation of art. 118, para. 1.11 to each person in the Group and institutions on a consolidated basis; in this case, the decision shall be taken within four months after the Commission when consolidating supervisor, submit to the other competent authorities concerned a report containing the risk assessment group institutions, respectively, within 4 months after the relevant competent authority exercising supervision on a consolidated basis, present similar information;

2. the measures for the treatment of all important issues and major findings relating to the supervision of liquidity, as well as the adequacy of the organisation and treatment of risks in connection with the need for specific requirements for the particular institution liquidity; in this case, the decision shall be taken within one month after the Commission, where the authority exercising supervision on a consolidated basis, submit a report containing the evaluation of the liquidity risk profile of the Group institutions accordingly within one month after the consolidating supervisor present similar information.

(2) in making a decision under paragraph 1. 1 taking into account the risk assessment of subsidiaries performed by relevant authorities.

(3) the decision on para. 1 shall be made in writing, be motivated and detail shall be forwarded by the Commission when it is consolidating supervisory authority, the competent authority exercising supervision to the parent institution of the European Union. In the event of a disagreement, at the request of any of the other competent authorities concerned, the Commission shall consult the EBA. The Commission may consult the EBA and on its own initiative.

Art. 72. (1) in the event that the competent authorities do not reach a joint decision within the time limit under art. 72 (b), (c) the decision shall be taken on a consolidated basis by the Commission when it is consolidating supervisor after reporting on risk assessment of subsidiaries performed by relevant competent authorities. If within the time limit under art. 72 b, para. 1 any of the competent authorities have taken the matter to the EBA, the Commission shall take its decision in accordance with the decision of the EBA under art. 19 (3) of Regulation (EC) no 1093/2010.

(2) in cases where the Commission exercises control on an individual or sub-consolidated basis against subsidiaries of the institution of the European Union or of a financial holding company by the European Union, or of a financial holding company parent of a mixed European Union decision-making in al. 1 it takes into account the opinions and recommendations given by the supervisor, and the decision of the EBA under art. 19 (3) of Regulation (EC) no 1093/2010.

(3) the decisions referred to in paragraph 1. 1 and 2 shall be drawn up in writing, motivate detail, considering the risk evaluation, opinions and reservations of the other competent authorities. The Commission shall forward the decision referred to in paragraph 1 the competent authorities concerned and of the mother institution of the European Union.

Art. 72. (1) the Commission shall apply joint decisions under art. 72 (b), as well as the decisions of other competent authorities, analogous to the decisions referred to in art. 72 in.

(2) the decisions referred to in art. 72B and 72 shall be reviewed annually or in exceptional circumstances, if the competent authority responsible for the supervision of subsidiaries of an EU parent financial holding company or by the European Union, or of a financial holding company with mixed mother activity of the European Union, made a written and reasoned request to the Commission for the updating of the decision referred to in paragraph 1. 1. In this case, the review shall be carried out in conjunction with the competent authority, made the request.

Art. 72 (1) in the event of an emergency, including in the cases under art. 18 of Regulation (EC) no 1093/2010, or unfavourable development of the market, which could endanger the liquidity of the market and the stability of the financial system in the Republic of Bulgaria or in another Member State in which they are licensed by the Group companies have established branches or significant, the Commission, when consolidating supervisor, shall inform without delay the EBA and the authorities under art. 25, para. 1, item 3 and 4 and al. 10 of the Act on the financial supervision Commission, providing them with all the information relevant for the performance of their functions.


(2) for the purposes of supervision on a consolidated basis shall be exercised by the information which has already been given to another competent authority in order to prevent repeated her providing the competent authorities concerned, the Commission shall request the relevant competent authority, when it is possible.

Art. 72. (1) for the purposes of supervision on a consolidated basis, the Commission shall conclude written agreements for cooperation and coordination with the competent supervisory authorities in the Member States. The Commission could take responsibility for the implementation of additional supervisory tasks, where this is provided for in the agreement.

(2) where an investment firm, licensed in the Republic of Bulgaria, is a subsidiary of the institution of the Member State, the Commission may, on the basis of an agreement under art. 28 of Regulation (EC) no 1093/2010 with the competent authority of the mother institution of the European Union to delegate the responsibility for the supervision of the firm – subsidiary.

(3) where an investment firm, licensed in the Republic of Bulgaria, is the mother company of the institution in the Member State, the Commission may, on the basis of an agreement under art. 28 of Regulation (EC) no 1093/2010 with the relevant competent authority to take responsibility for the supervision of the institution – a subsidiary.

(4) the Commission shall notify the EBA for the conclusion and the contents of the agreements referred to in paragraph 1. 2 and 3.

Art. 72. (1) the Commission, when consolidating supervisory authority, creates the supervisory colleges of competent authorities to facilitate the performance of the functions of art. 72-72 and ensures an adequate level of coordination and cooperation, and, if necessary, and the participation of the relevant competent authorities of third countries, where appropriate, subject to the requirements of confidentiality and the right of the European Union. In the supervisory colleges can participate and the competent authorities responsible for the supervision of subsidiaries of an institution of the European Union, the parent financial holding company of the European Union or of a financial holding company with mixed mother activity of the European Union, the competent authorities of the host Member State in which they are established significant branches, if necessary – and the central banks of the European system of central banks (ESCB).

(2) the Commission may participate in supervisory colleges, established by other competent authorities, when they are's supervisory authorities in accordance with Directive 2013/36/EC and Regulation (EC) no 575/2013.

(3) for the establishment and operation of the Supervisory Commission Chambers, after consultation with the other competent authorities shall conclude written agreements with them under art. 72.

(4) the supervisory colleges under para. 1 create the necessary arrangements for:

1. Exchange of information between the competent authorities and the EBA in accordance with art. 21 of Regulation (EC) no 1093/2010;

2. agreement on assigning tasks and delegate powers on a voluntary basis;

3. determine the plan for carrying out audits based on risk assessment of the Group;

4. increasing the effectiveness of supervision by removing unnecessary duplication of supervisory requirements, including in relation to requests for information under art. 72 (e) and article. 72 k, al. 5;

5. the consistent application of the measures provided for in this Act, Regulation (EC) no 575/2013, and acts on the implementation requirements for macro-prudential supervision in respect of all companies in the group, without prejudice to the possibilities and the discretion conferred by the law of the European Union;

6. application of art. 72, para. 1, paragraph 3, taking into account the activities of other supervisory colleges or groups that can be created in this area.

(5) the Commission collaborates with EBA and with other competent authorities, when participating in supervisory colleges. Privacy requirements may not prevent the exchange of confidential information.

(6) the establishment and the activities of the Supervisory Board shall not affect the powers of the Commission, according to the Vice-President, under this Act, the Act on the financial supervision Commission and Regulation (EC) no 575/2013.

Art. 72. (1) in cases where it is consolidating supervisory authority, the Commission chairs the meetings of the Supervisory Board and shall designate the competent authorities that will participate in each meeting or activity of the College, taking into account the importance of these bodies of the supervisory activity to be planned or coordinated, including the possible impact on financial stability in the Member States and the obligations relating to the supervision of the relevant branches.

(2) such as consolidating supervisor shall provide to the Commission in advance all the members of the Supervisory Board information on the organisation of the meeting, key issues and actions that will be discussed. The Commission shall provide in a timely manner to all members of the Supervisory Board and all the information on the decisions taken at these meetings, decisions and measures taken.

(3) the Commission in its capacity as consolidating supervisor and subject to the confidentiality requirements for the operation of EBA informed the supervisory colleges, which oversees, including in emergency situations, and shall provide it with all information essential for convergence of supervisory practices.

Art. 72. In case of disagreement between competent authorities participating in the surveillance Association as a participant in the Commission, it may refer the matter to the EBA and ask for his assistance in accordance with art. 19 of Regulation (EC) no 1093/2010.


Art. 72 HP. (1) the Commission, on its own initiative, provide the competent authorities the information which is essential or relevant and for the exercise of their supervisory functions for the implementation of Directive 2013/36/EC and Regulation (EC) no 575/2013.

(2) for the purposes of paragraphs 1 and 2. 1 material: any information which might influence the evaluation of the financial soundness of an institution or a financial institution of the Member State concerned and shall include the following:

1. Description of the legal, management and organizational structure of the group, including all supervised persons and unregulated subsidiaries, significant branches and the parent companies in the group, and the designation of competent authorities exercising supervision over podnadzornite persons in the Group;

2. procedures for the collection and verification of information from the institutions in the Group;

3. difficulties in the operation of institutions or in the activities of the other companies of the group, which can seriously affect the activities of the institutions;

4. supervisory measures and administrative penalties imposed by the Commission under this Act, including the imposition of additional capital requirements or restrictions on the use of the advanced measurement approach for calculation of the own funds pursuant to art. 312 (2) of Regulation (EC) no 575/2013.

(3) at the request of a competent authority of a Member State exercising supervision of subsidiaries of an EU parent or of the institutions controlled by a parent financial holding companies from the European Union or from financial holdings mothers mixed-activity of the European Union, to which the Commission is consolidating supervisor, it provides information that is relevant for the exercise of their supervisory functions.

(4) the Commission shall cooperate with the EBA and provides all the information necessary for the performance of his duties under the conditions and in accordance with Regulation (EC) no 1093/2010.

(5) in cases where the Commission exercises control over an investment firm controlled by the institution of the European Union, where appropriate, of information regarding the implementation of approaches and methodologies in accordance with Directive 2013/36/EC and Regulation (EC) no 575/2013, the Commission contacted the supervisor in the Member State concerned, where possible this body to have the necessary information.

Art. 72 l. (1) before taking a decision which is of importance for the activity of another competent authority, the Commission shall consult with him, and with a supervisor if the decision relates to significant supervisory measures and administrative penalties imposed by the Commission, respectively by the Vice-President, including the imposition of additional capital requirements or restrictions on the use of internal models for operational risk in the calculation of own funds for supervisory purposes pursuant to art. 312 (2) of Regulation (EC) no 575/2013.

(2) the requirement under subsection. 1 shall not apply where it is necessary for the Commission to take a decision immediately, and where consultations may hinder or to thwart the effectiveness of the decision accordingly. In this case the Commission shall inform the competent authorities at the earliest opportunity.

Art. 72 m the Commission may refer the matter for consideration by the EBA by the procedure of art. 19 of Regulation (EC) no 1093/2010 in cases where:

1. the competent authority is not provided the relevant information within the meaning of art. 72 k, al. (2);

2. the request for the exchange of relevant information is refused or is not met within a reasonable period of time.

Art. 72. (1) at the request of the competent authority, the Commission shall carry out the verification of certain information about an investment firm, a financial holding company, a mixed financial holding company, financial institution, society for ancillary services, mixed-activity holding company, the subsidiaries, which operate on the territory of the Republic of Bulgaria, to which the Commission supervises.

(2) the Commission may entrust the competent authority requested the information or an external auditor or expert to carry out the verification.

(3) where an investment firm, a financial holding company, a mixed financial holding company, financial institution, society for ancillary services, mixed-activity holding company or a subsidiary, on which the Commission exercises control, activity in another Member State, the Commission may request the competent authority to verify certain information for that person. In that event, the Commission may wish to undertake and self examination or participate in the Commission.

Art. 72 Oh. (1) when the competent authority is not included in the supervision on a consolidated basis, the investment firm, licensed in the Republic of Bulgaria, the Commission may request from the parent information likely to facilitate the supervision over the investment firm.

(2) when the Commission shall exercise supervision on a consolidated basis in accordance with this Act, it may require from the subsidiaries of investment firms licensed in the Republic of Bulgaria, of the financial holding company or a mixed financial holding company, when these subsidiaries are not included in the scope of supervision on a consolidated basis, the information under art. 72 p. in this case, the procedure for the provision and verification of the information referred to in art. 72 p.


Art. 72 p. (1) where a mixed-activity holding company is a parent undertaking of one or more investment firms licensed in the Republic of Bulgaria, the Commission may require the holding company and of its subsidiaries information that is appropriate for the purposes of supervision on a consolidated basis over the subsidiaries – investment firms.

(2) the Commission may perform alone or with the help of persons appointed for that purpose on-the-spot inspection in the company for the purpose of verifying the information received under paragraph 1. 1.

(3) If holding a mixed or one of its subsidiaries is an insurer, the Commission may verify the information received under paragraph 1. 1 and by the procedure of art. 72 t.

(4) If holding a mixed or one of its subsidiaries are set up in the Republic of Bulgaria, the information received under paragraph 1. 1 and may be checked by the procedure of art. 72.

Art. 72 b. (1) where a mixed-activity holding company is a parent undertaking of one or more investment firms licensed in the Republic of Bulgaria, the Commission shall exercise general supervision over transactions between both those investment firms and holding and on transactions between investment firms and the other subsidiaries of the holding, without prejudice to the provisions of part four of the Regulation (EC) no 575/2013.

(2) investment firms referred to in paragraph 1. 1 bring adequate risk management processes and internal control mechanisms, including sound reporting and accounting to identify, measure, monitor and control transactions with appropriately mixed-activity holding company and its subsidiaries. Investment firms under para. 1 shall notify the Commission of any significant transaction with mixed-activity holding company and its subsidiaries, other than the transactions under art. 394 of Regulation (EC) no 575/2013. Procedures and transactions referred to in this paragraph, are subject to supervision by the Commission. Requirements that transactions must meet to be considered significant shall be determined by Decree.

Art. 72 (1) where a parent undertaking and any of its subsidiaries – institutions, one of which is an investment firm, licensed in the Republic of Bulgaria, are established in different Member States, the Commission shall cooperate and exchange information with the competent authorities, to enable or facilitate the exercise of supervision on a consolidated basis.

(2) when the parent is incorporated in the Republic of Bulgaria, but the Commission does not exercise supervision on a consolidated basis in accordance with art. 70, at the request of the authority for supervision on a consolidated basis, the Commission shall have the right to require the parent information which would be necessary for supervision on a consolidated basis, as it provides that competent authority.

(3) the powers of the Commission to collect information under para. 2 do not lead to an obligation for the Commission to exercise control of an autonomous basis on the parent undertaking is a financial holding company, when a mixed financial holding company, financial institution or ancillary services undertaking.

(4) the powers of the Commission to collect information under art. 72 p do not entail obligations for supervision of private based on the mixed-activity holding company and its subsidiaries which are not investment firms and are not included in the scope of supervision on a consolidated basis.

Art. 72 (1) When exercising supervision on a consolidated basis on an investment firm, a financial holding company, a mixed financial holding company or a mixed-activity holding company controls one or more subsidiaries which are insurance companies or other undertakings providing investment services which are subject to licensing by the Commission, the Commission cooperates and exchanges information with the relevant competent authorities in order to facilitate the exercise of supervision over the activities and the overall financial situation of podnadzornite persons.

(2) the Commission shall keep a list of financial holding companies and mixed-activity financial holding companies, on which it shall exercise supervision on a consolidated basis. The Commission shall submit this list to the other competent authorities, the European Commission and the EBA and notify them of any changes.

(3) where an investment firm, licensed in the Republic of Bulgaria, is a subsidiary of the institution, financial holding company or a mixed financial holding company from a third country and to the investment firm does not exercise supervision on a consolidated basis by the Commission or by any other competent authority, the Commission shall examine whether the firm is covered by the supervision on a consolidated basis, conforming to the requirements of this Act and Regulation (EC) no 575/2013. The Commission shall, on its own initiative or at the request of the parent undertaking or a subsidiary subject to authorisation and supervision in the Member State concerned and shall consult with the relevant competent authority.

(4) in carrying out the verification referred to in paragraph 1. 3 the Commission shall take into account the opinion of the European Banking Committee if the rules for supervision on a consolidated basis of the third country would have achieved the objectives of supervision on a consolidated basis in accordance with art. 111-127 of Directive 2013/36/EC. After the completion of the inspection and before taking a decision, the Commission shall consult with the EBA.


(5) if it finds that it does not exercise supervision on a consolidated basis or exercised supervision does not comply with the requirements of this Act and Regulation (EC) no 575/2013, the Commission may apply to the firm – a subsidiary of Pará. 3, appropriate supervisory measures to achieve the objectives of supervision on a consolidated basis. The Commission will apply these supervisory measures in consultation with the relevant authorities, including the third country.

(6) in the cases referred to in para. 5 the Commission may request the establishment of a financial holding company or a mixed financial holding company, having its registered office in the territory of a Member State, and to apply the requirements of supervision on a consolidated basis, established in this law. "

§ 36. In art. 78, second sentence, the words "and 11" shall be replaced by "11b".

§ 37. In art. 87, para. 4, the words "the Commission" shall be deleted.

§ 38. In art. 94, para. 1 the words "art. 24, para. 4, 7 and 8 "are replaced by" article. 24 in, al. 1, art. 24. "

§ 39. In art. 98, para. 5 in the text before point 1, the words "the Commission" shall be deleted.

§ 40. In art. 99, para. 5 in the text before point 1, the words "the Commission" shall be deleted.

§ 41. Name of part three shall be replaced by the following: "Interaction with other competent authorities, the European Commission, the European Securities and markets authority and the European banking authority".

§ 42. The title of Chapter vi shall be replaced by the following: "cooperation and exchange of information with other competent authorities, the European Securities and markets authority and the European banking authority".

§ 43. In art. 104, para. 3 the words "the Commission" shall be deleted.

§ 44. In art. 107, para. 3 the words "the Commission" shall be deleted.

§ 45. In art. 114, para. 1, the words "of art. 24, para. 1, item 4 and al. 4, 7 and 8 shall be replaced by ' of art. 24, para. 1, item 7, art. 24 in, al. 1, art. 24. "

§ 46. In chapter six section Iia is created with art. 116 a – 116 (e):

Section Iia

Exchange of information with other competent authorities and the European banking authority in the exercise of supervision of compliance with the requirements for capital adequacy and liquidity

Art. 116. (1) the Commission, in the exercise of supervisory powers to comply with the requirements for capital adequacy and liquidity, cooperate with the competent authorities concerned, where an investment firm, licensed in the Republic of Bulgaria, carries on business through a branch in another Member State, or where an investment firm from another Member State carries on business through a branch in the Republic of Bulgaria.

(2) in the implementation of the cooperation referred to in paragraph 1. 1 the Commission with the relevant competent authorities shall exchange information and documents:

1. on the management and ownership of the investment firms, necessary for supervision or verification of the conditions of their licence;

2. necessary to carry out the supervision of investment firms on an individual basis and on a consolidated basis, including their liquidity, solvency, large exposures restrictions, other factors that may affect the systemic risk posed by the activities of the investment firm, administrative and accounting procedures and internal control mechanisms.

(3) at the request of a competent authority of a host Member State, the Commission provides clarification of the manner in which the information is taken into account and the findings submitted under paragraph 1. 2.

(4) in cases where an investment firm authorised in another Member State carries on business through a branch in the Republic of Bulgaria, the Commission may submit to the competent authorities of the Member State of origin request for explanation on what are considered the information and findings.

(5) if it thinks the information under para. 2 has not led to take appropriate measures, the Commission shall, after notifying the competent authorities of the Member State of origin and the EBA, take appropriate measures for the prevention of subsequent offences in order to protect the interests of users of the services or the stability of the financial system.

(6) where the Commission does not agree with the measures which the competent authority of the host Member State intends to introduce on the basis of information provided by the Commission with the information and explanations, it may refer the matter for consideration by the EBA in accordance with art. 19 of Regulation (EC) no 1093/2010.

Art. 116 (b). (1) where an investment firm, licensed in the Republic of Bulgaria, carry on business through a branch in one or more Member States, the Commission shall immediately forward to the competent authorities of the host Member State, the findings and information obtained in connection with the supervision of liquidity under part vi of Regulation (EC) no 575/2013, and with the supervision on a consolidated basis, in so far as they are relevant to the protection of the investors in that host Member State.

(2) where, in respect of an investment firm, licensed in the Republic of Bulgaria, carrying out the activity in one or more Member States through branch, occur or has reason to suspect that you may encounter liquidity difficulties, the Commission shall immediately inform the competent authorities of all States, including host States and for the preparation and implementation of the recovery plan and the supervisory measures.

Art. 116. in the cases where a competent authority of a Member State has not provided the Commission with relevant information or the request of the Commission for the exchange of appropriate information is refused or is not met within a reasonable time, the Commission may refer the matter for consideration by the EBA by the procedure of art. 19 of Regulation (EC) no 1093/2010.


Art. 116. (1) in cases where an investment firm authorised in another Member State carries on business in the Republic of Bulgaria through a branch, the competent authorities of the home Member State shall, after informing the Commission, can independently or with the assistance of authorized persons to carry out on-the-spot verification of the information in the branch of art. 116 a, para. 2. the competent authorities of the home Member State may, for the purposes of on-the-spot inspection to invoke one or more of the checks referred to in art. 72.

(2) the Commission, after informing the competent authorities of the host Member State, may carry out on-the-spot checks in the branch of an investment firm, licensed in the Republic of Bulgaria and operating on the territory of the host Member State through a branch. In such cases the law of the Member State concerned.

(3) the Commission may, for the purpose of verification of the location of a branch of an investment firm, licensed in the Republic of Bulgaria, to apply one or more of the checks referred to in art. 72.

Art. 116 (1) Deputy Chairman may carry out on-the-spot check at a branch of an investment firm, engaged in an activity in the territory of the Republic of Bulgaria, and to request information on the activities of the branch, as well as for supervisory purposes when the information is relevant to preserving the stability of the financial system in the Republic of Bulgaria.

(2) before carrying out the examination, the Commission shall consult the competent authorities of the Member State of origin. After performing the verification, the Commission shall submit to the competent authorities of the country of origin information and the findings that are relevant to the assessment of the risk of the investment firm or to the stability of the financial system of the Republic of Bulgaria.

(3) in preparing a plan of audits, the Commission shall take into account the information and findings obtained from the competent authority of the host Member State as a result of on-the-spot checks in the branch of an investment firm, licensed in the Republic of Bulgaria, including in relation to the stability of the financial system in the host Member State. "

§ 47. In the sixth chapter IV section is created with art. 117A and 117b:

' Section IV

Disclosure of information by the Commission in connection with the requirements for capital adequacy and liquidity

Art. 117. (1) the Commission shall make the following information:

1. the provisions of the laws, regulations, administrative rules and general guidance adopted in the Republic of Bulgaria in the field of prudential regulation of investment firms;

2. mode of application of the right of choice and the discretion conferred by the law of the European Union applicable to investment firms;

3. the general criteria and methodologies used by the Commission in the review and assessment in connection with the requirements for capital adequacy and liquidity;

4. aggregate statistics on key aspects of the implementation of the prudential framework for investment firms in the Republic of Bulgaria, as well as the number and type of supervisory measures taken in connection with the application of the requirements for capital adequacy and liquidity, as well as the imposition of administrative penalties.

(2) the information referred to in para. 1 shall be made in such a way as to allow for comparison of the approaches adopted by the Commission and the other competent authorities of the Member States. The information is updated regularly and is disclosed in a manner and in a form consistent with the EBA.

Art. 117 (b). (1) for the purposes of part 5 of Regulation (EC) no 575/2013, the Commission shall publish the following information:

1. common criteria and methodologies adopted to review compliance with art. 405-409 of Regulation (EC) no 575/2013;

2. a summary of the results of the supervisory review and description of the measures imposed in the event of a breach of art. 405-409 of Regulation (EC) no 575/2013, established on a yearly basis.

(2) in the event that the Commission exempt from the application of art. 6, al. 1 of Regulation (EC) no 575/2013 an investment firm pursuant to art. 7 (3) of Regulation (EC) no 575/2013, the Commission shall publish the following information:

1. the criteria applied by the Commission to determine that there is no or no material practical or legal impediment to the prompt transfer of own funds or repayment of liabilities;

2. the number of investment firms which benefit from the exemption under art. 7 (3) of Regulation (EC) no 575/2013, and the number of those which have subsidiaries in a third country;

3. summary information on:

(a)) the amount of own funds on a consolidated basis of the investment firm, which benefit from the exemption under art. 7 (3) of Regulation (EC) no 575/2013, which are held in subsidiaries in a third country;

(b)) the percentage of total own funds on a consolidated basis of the investment firms which benefit from the exemption under art. 7 (3) of Regulation (EC) no 575/2013, which is the own funds held in subsidiaries in a third country;

c) percent of total own funds required under art. 92 of Regulation (EC) no 575/2013 on a consolidated basis of the parent investment firms who benefit from the exemption under art. 6, al. 1 of Regulation (EC) no 575/2013 in accordance with art. 7, para. 3 of Regulation (EC) no 575/2013, which is the own funds held in subsidiaries in a third country.

(3) in the event that the Commission exempt from the application of art. 6, al. 1 of Regulation (EC) no 575/2013 an investment firm pursuant to art. 9 (1) of Regulation (EC) no 575/2013, she has published:


1. the criteria applied by the Commission to determine that there is no or no material practical or legal impediment to the prompt transfer of own funds or repayment of liabilities;

2. the number of investment firms, which are exempt from the application of art. 6 (1) of Regulation (EC) no 575/2013 in accordance with art. 9 (1) of Regulation (EC) no 575/2013 and the number of such investment firms that have subsidiaries in a third country;

3. summary information on:

a) the amount of own funds of investment firms, which are exempt from the application of art. 6 (1) of Regulation (EC) no 575/2013 in accordance with art. 9 (1) of Regulation (EC) no 575/2013, which are held in subsidiaries in a third country;

b) percent of the total amount of own funds of investment firms, which are exempt from the application of art. 6 (1) of Regulation (EC) no 575/2013 in accordance with art. 9 (1) of Regulation (EC) no 575/2013, which is the own funds held in subsidiaries in a third country;

in percentage) minimum capital requirements under art. 92 of Regulation (EC) no 575/2013 for investment firms which are exempted from the application of art. 6 (1) of Regulation (EC) no 575/2013 in accordance with art. 9 (1) of Regulation (EC) no 575/2013, which is the own funds held in subsidiaries in a third country. "

§ 48. Article 118 shall be amended as follows:

"Art. 118. (1) where it finds that an investment firm or regulated market, its employees, a member of the management or of the supervisory authority of the investment firm, persons who perform contract management functions, persons who enter into transactions for the account of the investment firm, as well as holders of qualifying holdings, have committed or act in violation of this law, of Regulation (EC) no 575/2013, of the acts on their application the staff regulations, or other approved by the Vice-President internal acts of the regulated markets of financial instruments, the decisions of the Commission or the Deputy Chairman, as well as prevent the exercise of control by the Commission or the Deputy Chairman or the investors ' interests are threatened, Commission Vice-President, respectively:

1. oblige them to take concrete measures needed for the prevention and elimination of distortions, the harmful consequences or of danger to the interests of the investors, within such period as it may specify;

2. convene at a fixed agenda General meeting and/or to schedule a meeting of management or of the supervisory authorities of the controlled persons to make decisions on the measures to be taken;

3. inform the public about the activity that threatens the interests of investors;

4. stop the marketing of certain financial instruments;

5. the order in writing to the person podnadzorno to release one or more persons empowered to manage and represent the person concerned, and to take management and representative rights to his release;

6. appoint liquidators in the cases provided for in this Act;

7. appoint a registered auditor to carry out financial or other verification of podnadzorno person in accordance with the requirements laid down by the Vice-President;

8. ask for the attachment of property;

9. remove from trading on a regulated market or by another system for trading financial instruments;

10. have a temporary ban on the performance of the functions of a member of the managerial or supervisory authority or other person empowered to manage and represent the investment firm;

11. require the investment firm to hold own funds in excess of requirements laid down by the Ordinance under art. 8 (a), para. 3 and in Council Regulation (EC) no 575/2013 in relation to the risks or elements of them, which do not fall within the scope of art. 1 of the same regulation;

12. the firm undertook to change its internal rules and procedures;

13. compel the firm to submit a plan for adapting the activity in accordance with the regulations containing the deadline for its implementation that is executed by the firm after its approval by the Vice-President;

14. require the investment firm to apply special policy for provisioning or treatment of assets through capital requirements;

15. limit the activities of an investment firm, as his ban to carry out certain transactions, services, activities, and/or operations;

16. prohibit the conduct of the business of an investment firm through a branch or under the freedom to provide services and to compel the firm to submit a plan to the Commission for the settlement of relations with their clients, as well as evidence for the settlement of these relations;

17. order of the investment firm to take action on reducing risk, which is inherent in its activities, products and systems of the investment firm;

18. order limiting the operational costs of the investment firm, including variable remuneration as a percentage of total net revenues when it is inconsistent with maintenance of a sufficient own funds and/or prohibit their payment;

19. order of the investment firm to use its net profit to increase equity or to prohibit:

a) payment of dividends or the allocation of capital in another form, or


b) payment of interest on shareholders or holders of instruments of the additional capital, as compliance with this ban does not constitute a failure on the part of the investment firm under the tools;

20. the request by the investment firm an additional or more frequent information, including on the capital adequacy and liquidity;

21. apply the firm's special requirements for liquidity, including restrictions on the maturity mismatches between assets and liabilities;

22. Requests that public disclosure of additional information by the investment firm.

(2) where it is established that the investment firm performed transactions or operations in violation of the law on measures against money laundering and the instruments for its implementation, the Commission, respectively the Vice-President may apply the measure referred to in paragraph 1. 1. the Commission, respectively Vice-President shall notify the State Agency for national security for the opening of the proceedings on the application of the compulsory administrative measure.

(3) the Vice-Chairman shall apply the additional capital requirement under para. 1, item 11, if:

1. an investment firm does not meet the requirements under art. 8 (a), para. 1, art. 24, para. 1, item 11 and para. 4 and art. 25 (a) of this law or of art. 393 of Regulation (EC) no 575/2013;

2. the risks or elements of them are not covered by the requirements for own funds pursuant to this Act, the acts for its implementation or Regulation (EC) no 575/2013;

3. as a result of informal application of other measures is not expected within the time limit set for the implementation of these measures within the firm to improve the rules, procedures, mechanisms and strategies;

4. the supervisory review reveals that non-compliance with the requirements for the implementation of the approach is likely to result in non-compliance with the applicable requirements for own funds pursuant to this Act, Regulation (EC) no 575/2013 and acts on their implementation;

5. on the basis of the evidence collected may reasonably assume that the firm underestimated the risks, although it complies with the applicable requirements of this law, Regulation (EC) no 575/2013 and acts on their implementation;

6. the investment firm informed the Commission that the results of the stress test under art. 377 (5) of Regulation (EC) no 575/2013 substantially exceed the requirement for his wallet for korelacionno trading.

(4) the designation of the additional capital requirement under para. 1, item 11 shall be carried out on the basis of the supervisory review and assessment, taking into account:

1. the quantitative and qualitative aspects of the assessment process applied by the investment firm;

2. the rules, processes and measures under art. 24, applied by the investment firm;

3. the results of the review and evaluation carried out in connection with the requirements for capital adequacy and liquidity;

4. the assessment of systemic risk.

(5) in the cases referred to in para. 1, item 16, when imposed permanent ban for the carrying out of the activities of a branch of an investment firm, the competent authority of the investment firm shall decide to terminate the operations of the branch, for the settlement of customer relations and for its deletion from the commercial register.

(6) the Commission, respectively the Vice-President may apply the measures referred to in paragraph 1. 1 and where, on the basis of evidence might reasonably assume that the investment firm in the next 12 months will violate the provisions of this law, of Regulation (EC) no 575/2013 or of acts in their application.

(7) where it finds that the investment firms with a similar risk profile are or may be exposed to similar risks, or establish similar risks to the financial system, the Commission, respectively the Vice-Chairman may perform supervisory review against them and the surveillance assessment and implement appropriate supervisory measures with similar or identical way. In such cases the Commission shall inform the EBA.

(8) in the cases referred to in para. 1 and 2 Deputy Chairman may order the publication of the information about the individual by reason of whose act or omission was committed, for the firm, committed the infringement, as well as on the type of infringement.

(9) at the request of the Commission, respectively by the Vice-President with the registry agency fits the circumstances accordingly declared the acts under paragraph 1. 1-8 in the commercial register.

(10) for the prevention and termination of infringement of Regulation (EC) no 1031/2010 of persons authorised under art. 7, para. 3, as well as obstruction of the control activities of the Commission or the Commission Vice-President, respectively the Vice-President shall take the action under paragraph 1. 1 and 9.

(11) the Commission or the Vice-President may take action on al. 1, 6, 7, 8, 9 and 10 and in violating the provisions of the instruments for the implementation of Regulation (EC) no 575/2013 and of Directive 2013/36/EC.

(12) the provisions of this article shall also apply to financial holding companies and mixed-activity financial holding companies, in respect of which, pursuant to applicable legislation the Commission shall exercise supervision. "

§ 49. Art is created. 118 (a):


"Art. 118. (1) where it finds that the Bank operates in violation of this law and its implementing acts, the Vice-President may apply the measures referred to in art. 118, para. 1, item 1 and to offer to the Bulgarian National Bank application of measures under art. 103, para. 2 of the law on credit institutions. The Bulgarian National Bank is obliged to inform the President of his decision within one month of receipt of the proposal of the Vice-President.

(2) the President may propose to the Bulgarian National Bank to Bank license only if the person concerned is systematically violates the provisions of this law and its implementing acts. "

§ 50. In art. 119 the following modifications are made:

1. In paragraph 8. 1 the words "under art. 118, para. 1, item 5 and 6 ' shall be replaced by "referred to in art. 118, para. 1, item 5, 6, 10, 15 and 16.

2. Paragraph 4 is replaced by the following:

(4) Compulsory administrative measures under art. 118, para. 1, item 1-4, 7-9, 11-14, 17-22 and art. 118 (a), para. 1 apply with a reasoned decision in writing to the Vice-President, enforcement measures under art. 118, para. 1, item 5, 6, 10, 15 and 16, with a written reasoned decision of the Commission, which shall be communicated to the person concerned within 7 days of its issuance. "

§ 51. In art. 122, para. 1, item 2 is amended as follows:

1. In subparagraph (a), the words "article. 118, para. 1 1 or 5 "are replaced by" article. 118, para. 1, item 1, 5, 10, 13, 15 or 16. "

2. Point (b) shall be replaced by the following:

"(b)) in the withdrawal of the licence to perform the activity – the appointment at the request of the Commission of liquidator by the registry Agency, trustee, respectively by the Court."

§ 52. In art. 127 following amendments and supplements shall be made:

1. In paragraph 8. 1:

a) in paragraph 1, the words "article 24, para. 8 "are replaced by" article 24, para. 2 ";

b) in paragraph 2 the words "art. 24, para. 4 "shall be replaced by" art. 24 in, al. 1, after the words "art. 25, para. 6 "insert" art. 25 (a), after the words "art. 38, para. 1, 4, 5 and 6 ' shall be added "art. 38A "and after the words" art. 57, al. 2 "insert" art. 69, para. 4 and 5 ';

c) in paragraph 3, after the words "art. 11, para. 7 "insert" art. 11A "and the words" art. 24, para. 1, 2 and 3 ' shall be replaced by "art. 24, para. 1, 2 and 5, art. 24A and art. 24B ";

d) in item 4 the words "art. 33, para. 2 "are replaced by" article. 33, para. 2 and 6 ";

e) point 8 shall be set up:

8. Article 28, art. 99 (1), art. 101, 394, 395, 405, 412, 415, 430, 431 and 451 of Regulation (EC) no 575/2013 and its implementing acts is punishable by a fine of up to $5 000 000 1000. "

2. in the Al. 2 item 8 is created:

"8. for violations under para. 1. from 2000 to 8 – 10 000 000 LEVs. "

3. in the Al. 5:

a) in paragraph 1, after the words "art. 118, para. 1 "insert" 1-9 ";

(b)) a new item 2: "2. Article 118, para. 1, item 10 – 22 – the perpetrators and dopustitelite are punishable by a fine of 2000 to EUR 10 000 000. ";

in the past) item 2 becomes item 3.

4. in the Al. 7:

a) a new point 8:

"8. for violations under para. 1, item 8 – from 5000 EUR up to 5 percent of the value of the total annual net operating income, in calculating the gross revenues from interest and other similar payments, income from shares and other variable or fixed payments on securities, as well as commissions and fees under art. 316 of Regulation (EC) no 575/2013 for the previous financial year, but not less than EUR 5000; in the event of a breach — from 10 000 EUR up to 10 percent of the value of the total annual net operating income in accordance with the first sentence, but not less than 10 000 BGN.; where the person is a subsidiary, the gross revenue is the gross revenue of the consolidated statement of the ultimate parent undertaking of the previous year; "

(b)) the current item 8 becomes item 9;

in the past) became item 9 item 10 and the words "paragraph 2" shall be replaced by "paragraph 3";

d) 11 is created:

"11. the violations referred to in paragraph 1. 5, item 2 – from 5000 EUR up to 5 percent of the value of the total annual net operating income, in calculating the gross revenues from interest and other similar payments, income from shares and other variable or fixed payments on securities, as well as commissions and fees under art. 316 of Regulation (EC) no 575/2013 for the previous financial year, but not less than EUR 5000; in the event of a breach — from 10 000 EUR up to 10 percent of the value of the total annual net operating income in accordance with the first sentence, but not less than 10 000 BGN.; where the person is a subsidiary, the gross revenue is the gross revenue of the consolidated statement of the ultimate parent undertaking of the previous year. "

5. a para. 9:

(9) where the value of the proceeds or value of predotvratenite losses as a result of the infringement referred to in paragraph 1. 1, item 8 can be determined, the individual is a fine up to twice the this value, but not less than 1000 BGN, and for repeated infringement – not less than 2000 EUR, respectively, of the legal person shall receive financial penalties representing up to twice this value, but not less than EUR 5000, and in repeated infringement – not less than 10 000 LV. "

§ 53. Article 129 is amended as follows:

"Art. 129. (1) the Commission shall make the website any enforceable criminal Decree, which imposed a penalty for infringement of the provisions of this law, of Regulation (EC) no 575/2013, and in their application of the acts, including the type and nature of the infringement, the identity of the natural person or legal entity data, of which the penalty is imposed.

(2) the Commission shall publish the information referred to in para. 1, without revealing the identity/data for individualizing offending, where:

1. the penalty is imposed on a natural person and the publication of personal data on the face can cause damage which the infringement committed;

2. the publication of the information would endanger seriously the stability of the financial markets or is prosecuted;


3. the publication of the information could cause of the investment firm or of the individual damage disproportionate to the infringement committed.

(3) where circumstances under para. 2 may fall within a short time after the imposition of the penalty, the publication may be delayed for that period.

(4) the Commission shall establish conditions information under para. 1-3 to remain published on its website for a period of not less than 5 years in accordance with the Law on the protection of personal data.

(5) where the Commission disclose the applied measure or punishment, imposed at the same time notify and ESMA.

(6) the Commission shall submit annually a summary of ESMA on the implemented measures or penalties imposed for infringement of the provisions of this law and its implementing acts.

(7) the Commission informed the EBA for all administrative penalties imposed under art. 127, Pará. 1.8, para. 2, item 8, para. 5, item 2 and al. 7, item 8 and 11, including for any appeal and the results of it. "

§ 54. In the additional provisions the following amendments and additions:

1. In paragraph 1:

a) point 17 shall be replaced by the following:

"17." credit institution "is a concept within the meaning of the law on credit institutions. ';

b) sections 22, 23 and 24 are amended:

"22." parent undertaking "is a concept within the meaning of art. 4, paragraph 1, item 15 of Regulation (EC) no 575/2013.

23. "subsidiary" is a concept within the meaning of art. 4, paragraph 1, item 16 of Regulation (EC) no 575/2013.

24. "control" is a concept within the meaning of art. 4, paragraph 1, item 37 of Regulation (EC) no 575/13. ';

in point 34) shall be amended as follows:

"34." financial holding company "is a concept within the meaning of art. 4, paragraph 1, item 20 of Regulation (EC) no 575/13. ';

d) points 35-39 be amended thus:

"35." parent financial holding company in a Member State "is a concept within the meaning of art. 4, paragraph 1, item 30 of Regulation (EC) no 575/2013.

36. "EU parent financial holding company" is a concept within the meaning of art. 4, paragraph 1, item 31 of Regulation (EC) no 575/2013.

37. "mixed-activity financial holding company" is a concept within the meaning of art. 4, paragraph 1, item 21 of Regulation (EC) no 575/2013.

38. "institution in a Member State" is a concept within the meaning of art. 4, paragraph 1, item 28 of Regulation (EC) no 575/2013.

39. "institution" is a concept within the meaning of art. 4, paragraph 1, item (3) of Regulation (EC) no 575/13. ';

(e)) created new item 40-43:

"40." institution of the European Union "is a concept within the meaning of art. 4, paragraph 1, item 29 of Regulation (EC) no 575/2013.

41. "Consolidating supervisor" is a concept within the meaning of art. 4, paragraph 1, item 41 of Regulation (EC) no 575/2013.

42. "parent financial holding company with mixed activity in a Member State" is a concept within the meaning of art. 4, paragraph 1, item 32 of Regulation (EC) no 575/2013.

43. "parent financial holding company with mixed activity of the European Union" is a financial holding company parent of a mixed European Union as defined in art. 4, paragraph 1, item 33 of Regulation (EC) no 575/13. ';

is the current item) 40, 41, 42 and 43 shall become item 44, 45, 46 and 47;

(g)) be established that 48-56:

"48." systemic risk "is a risk of disruption in the financial system, which is able to cause serious negative consequences for the financial system and the real economy.

49. "Senior management personnel" are individuals with executive functions, representing the firm and who are responsible and accountable to the management or control body of the investment firm for the day-to-day management of the firm.

50. On a consolidated basis "is a concept within the meaning of art. 4, paragraph 1, item 48 of Regulation (EC) no 575/2013.

51. "central banks of the ESCB" is a concept within the meaning of art. 4, paragraph 1, item 45 of Regulation (EC) no 575/2013.

52. "mixed-activity holding company" is a concept within the meaning of art. 4, paragraph 1, item 22 of Regulation (EC) no 575/2013.

53. "equity" is a concept within the meaning of art. 4, paragraph 1, item 118 of Regulation (EC) no 575/2013.

54. "ancillary services undertaking" is a concept within the meaning of art. 4, paragraph 1, item 18 of Regulation (EC) no 575/2013.

55. "trading book" is a concept within the meaning of art. 4, paragraph 1, item 86 of Regulation (EC) no 575/2013.

56. "financial institution" is a concept within the meaning of art. 4, paragraph 1, item 26 of Regulation (EC) no 575/2013. "

2. In paragraph 2:

and the current text) became al. 1 and in it:

AA) paragraph 3 shall be repealed;

BB) that shall be 6:

"6. the Directive 2013/36/EC of the European Parliament and of the Council of 26 June 2013 on access to the pursuit of the business of credit institutions and on the prudential supervision of credit institutions and investment firms amending Directive 2002/87/EC and repealing directives 2006/48/EC and 2006/49/EC. ';

(b)) are al. 2, 3 and 4:

"(2) the Commission shall take a decision on the application in practice of the monitoring guidelines adopted by EBA in accordance with art. 16 of Regulation (EC) no 1093/2010 and under the given warnings and recommendations of the ESSR pursuant to art. 16 of Regulation (EC) no 1092/2010 of the European Parliament and of the Council of 24 November 2010 for prudential oversight of the financial system of the European Union and establishing a European systemic risk Board (OJ L 331/1 by 15 December 2010).

(3) the supervisory review and evaluation in accordance with this law and the instruments for its implementation, as well as administrative measures and penalties shall be applied by the Commission, respectively by the Vice-President in accordance with the level of implementation of the provisions of part one, title second of Regulation (EC) no 575/2013. In cases where the Commission, respectively the Vice-President issue approval for exemption from the requirement for the maintenance of own funds on a consolidated basis under art. 15 of Regulation (EC) no 575/2013, art. 10 (a) shall apply to investment firms on an individual basis.


(4) the measures provided for in art. 142 and 363 of Regulation (EU) no 575/2013 approvals and permits are issued by the Commission on a proposal from the President. "

3. § 3, para. 1 the words "art. 24 ' shall be replaced by "art. 24, para. 1.1-13 and 15, para. 2 and 5, art. 24A, para. 1 and 2, art. 24B, 24 c, 24 d.

4. a § 3a:

"§ 3A. Investment firms operate in compliance with Regulation (EC) no 575/2013, Directive 13/36/EC and the implementing acts. "

§ 55. In § 5 of the transitional and final provisions, the words "article. 8, al. 3, paragraph 2 "shall be replaced by" art. 8, al. 5, item 2. "

Final provisions

§ 56. Articles 63A-63 c and art. 116 a – 116 in shall take effect from the date on which the requirement of a fixed amount for coverage become applicable in accordance with the delegated Act, which the Commission shall adopt, in accordance with art. 460 of Regulation (EC) no 575/2013.

§ 57. Investment firms which are authorised before the entry into force of this Act, submit to the Commission their plans for reimbursement under art. 25 (a) within 6 months of the entry into force of this law.

§ 58. In the Act on the financial supervision Commission (official SG. 8 of 2003; amend., no. 31, 67 and 112 since 2003, 85/2004, no. 39, 103 and 105 by 2005, issue 30, 56, 59 and 84 of 2006, 52/97 and 109 from the 2007 No. 67 of 2008, issue 24 and 42 by 2009. , PC. 43 and 97 from 2010, PC. 77 by 2011, issue. 21, 38, 60, 102, and 103 from 2012 and St. 15 and 109 by 2013) make the following changes and additions:

1. In art. 12:

and the current text) became al. 1 and in it:

AA) a new item 8:

8. "is the competent authority in the Republic of Bulgaria for the exercise of supervision over investment firms within the meaning of art. 4, paragraph 1, item 40 of Regulation (EC) no 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 (OJ, L 176/1 of 27 June 2013), hereinafter referred to as "Commission Regulation (EC) no 575/2013";

BB) the current item 8 becomes item 9;

(b)) is hereby set up al. 2:

"(2) in exercising the functions and powers of the Commission and its bodies take account of the possible effect of their decisions on the stability of the financial system in the Republic of Bulgaria, as well as in other affected Member States, including in emergency situations. The assessment is based on information available at the time of making the decision. "

2. In art. 13:

(a)) in the Al. 1:

AA) in point 19 second sentence shall be deleted;

BB) in paragraph 20, after the words "the European Securities and markets authority" a comma and add "European banking authority";

BB) a new item 21:

"21. Decides on the application in practice of the supervisory recommendations and guidelines of the European Securities and markets authority, the European insurance and pensions authority and the European banking authority, which shall be published on the Internet site of the Commission of the Bulgarian language;"

yy) previous p. 21, 22, 23 and 24 shall become item 22, 23, 24 and 25;

(b)) in the Al. 4 the word "complaints" is replaced by "signals";

in) in the Al. 5 the word "complaint" shall be replaced by "the signal";

(d)) in the Al. 6 the word "complaint" shall be replaced by the "signal".

3. In art. 15, para. 1:

a) in item 5, the words "article. 118, para. 2 "are replaced by" article. 118 (a) ";

(b) in point 6), the words "as well as Regulation (EC) no 236/2012" shall be replaced by ' of Regulation (EC) no 236/2012, Regulation (EC) no 575/2013 and of the instruments for implementing them;

in point 7), the words "as well as Regulation (EC) no 236/2012" shall be replaced by ' of Regulation (EC) no 236/2012, Regulation (EC) no 575/2013 and their application acts ";

d) in item 15, after the words "Regulation" 648/2012 "is added to Regulation (EC) no 575/2013".

4. In art. 17A:

(a)) in the Al. 2, paragraph 1, after the word "complaints" are added "and signals";

(b)) a new para. 3:

"(3) the rules of the Commission determined the mechanism for dealing with complaints and signals, filed against the Commission supervised persons concerning possible wrongdoing or the applicable regulations in relation to their activities, which shall include at least:

1. the procedures for receiving and dealing with complaints and signals;

2. adequate protection from unfair treatment of employees of the podnadzorno person, when you have submitted notices of violations committed in podnadzornoto;

3. protection of personal data of the person who filed the complaint or the signal of a violation, as well as the personal data of the persons against whom the signal shall be submitted in accordance with the law on the protection of personal data;

4. rules concerning the safeguarding of confidentiality for persons who file complaints or reports of violations committed in podnadzorno person, unless the violation of confidentiality required in the cases provided for by law. ";

in the past) Al. 3 it al. 4 the word "complaints" is replaced by "signals";

d) past al. 4 it al. 5.

5. In art. 18:

(a)) in the Al. 1:

AA) in paragraph 1 the words ' Regulation (EC) no 236/2012 "shall be replaced by ' Regulation (EC) no 236/2012, Regulation (EC) no 575/2013 and their application acts";

BB) in paragraph 6, the words "and the Commission Regulation (EU) no 236/2012" shall be replaced by ' Regulation (EC) no 236/2012, Regulation (EC) no 575/2013 and their application acts ";

(b)) in the Al. 3, in the first sentence the word "or" shall be deleted and the words "and the Commission Regulation (EU) no 236/2012" shall be replaced by ' of Regulation (EC) no 236/2012 or regulation (EC) no 575/2013 and the acts implementing them. "

6. In art. 19, para. 2, item 1, the words "and the regulations for their implementation" shall be deleted and the words "as well as of Council Regulation (EC) no 236/2012" shall be replaced by ' of Regulation (EC) no 236/2012 or regulation (EC) no 575/2013 and the acts implementing them. "

7. In art. 25: a) in the Al. 1:

AA) create new item 3 and 4:


"3. the European Central Bank and the central banks of the Member States in their capacity as monetary authorities, where such information is necessary for the performance of their statutory functions, including for the conduct of monetary policy and related liquidity provision, the oversight of payment systems, clearing and settlement systems and for maintaining financial stability, including in the event of an emergency;

4. to the European systemic risk Board (ESRB), when that information is necessary for the performance of his functions under Regulation (EC) no 1092/2010 of the European Parliament and of the Council of 24 November 2010 for prudential oversight of the financial system of the European Union and establishing a European systemic risk Board (OJ L 331/1 by 15 December 2010) including in the event of an emergency; "

BB) the current item 3 becomes item 5;

BB) the current item 4 becomes item 6 and after the words "guarantee fund" is added "of institutional protection schemes referred to in article 113, paragraph 7 of Regulation (EC) no 575/2013, as well as the authorities responsible for surveillance and control of them";

yy) current item 5, 6 and 7 shall become item 7, 8 and 9;

(b)) in the Al. 7, the words "and 4" shall be replaced by "and 6" and after the words "Member State" shall be inserted "or of a third country";

in Al are created.) 8-10:

(8) the Commission may publish the results of stress tests carried out in accordance with the law on markets in financial instruments and the instruments for its implementation, as well as in accordance with art. 32 of Regulation (EC) no 1093/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European supervisory authority (European banking authority), amending Decision No 716/2009/EC and repealing Decision 2009/78/EC (OB, L 331/12 by 15 December 2010) or to provide the results of stress tests on the European banking authority for the purposes of publication of the results at the level of the European Union. In cases where the Commission believes that the publication of the results of the stress tests could endanger the stability of the financial markets, it can slow down their publication, to publish them in an anonymous way or decide not to publish them.

(9) When the authorities or persons referred to in para. 1.1 carry out their functions of detection or investigation with the aid, in view of their specific competence, of persons appointed for that purpose and not employed in the public sector, the Commission may extend the possibility of exchanges of information under para. 1 to include such persons under the conditions laid down in paragraph 1. 3 and 7. The authorities referred to in para. 1, item 1 shall communicate to the Commission the names and precise responsibilities of the persons to whom this information will be sent.

(10) in the event of an emergency in accordance with art. 72 (e) of the law on markets in financial instruments, the Commission can provide information, representing the professional secrecy, to the authorities of the Republic of Bulgaria and the other Member States, responsible for legislation on the supervision of credit and financial institutions, investment firms and insurers, where necessary for the performance of their functions. "

8. In art. 27, al. 1 item 10 is created:

"10. issued by her and her authority permissions and approvals under Regulation (EC) no 575/2013."

§ 59. In the law on the activities of collective investment schemes and of other collective investment undertakings (official SG. 77 by 2011; amend., SG. 21 of 2012, from 2013, 109, no. 27 by 2014 and from 22/2015) make the following amendments and additions:

1. In art. 90:

(a)) in the Al. 1 creating the second sentence: "the initial capital of management companies shall consist of one or more of the elements referred to in art. 26 (1) (a) – (e) of Regulation (EC) no 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms, and amending Regulation (EC) No 648/2012 (OJ, L 176/1 of 27 June 2013), hereinafter referred to as "Commission Regulation (EC) no 575/13. ';

(b)) in the Al. 2 creates a second sentence: "own funds" means funds within the meaning of art. 4, paragraph 1, item 118 of Regulation (EC) no 575/2013. "

2. In art. 97:

(a)) in the Al. 1:

AA) a new item 12:

"12. the content of the program or activity by other documents of the applicant shows that the main part of the activity will be carried out on the territory of another Member State, and the request for obtaining a licence from the Commission in order to avoid the more stringent requirements for management companies in the Member State in whose territory the applicant intends to carry on business;"

BB) current 12 becomes p. 13;

(b)) in the Al. 2, the words "paragraphs 1, 2, 4, 6 and 12 ' shall be replaced by" paragraphs 1, 2, 4, 6 and 13.

3. In art. 107 words "and 11" shall be replaced by "11b".

4. In art. 199:

(a)) in the Al. 2 creates a second sentence: "the initial capital in the first sentence consists of one or more of the elements referred to in art. 26 (1) (a) – (e) of Regulation (EC) no 575/13. ';

(b)) in the Al. 6 creates the second sentence: "in the first sentence of the equity is capital within the meaning of art. 4, paragraph 1, item 118 of Regulation (EC) no 575/2013. "

§ 60. In the public offering of securities (official SG. 114 since 1999; amend., SG. 63 and 92 of 2000, issue 28, 61, 93 and 101 in 2002, no. 8, 31, 67 and 71 in 2003, 37/2004, no. 19, 31, 39, 103 and 105 by 2005, issue 30, 33, 34, 59 , 63, 80, 84, 86 and 105, 2006, issue. 25, 52, 53 and 109 from 2007, PCs. 67 and 69 by 2008, PCs. 23, 24, 42 and 93 from 2009, PCs. 43 and 101 of 2010, PC. 57 and 77 from 2011, issue. 21, 94 and 103 from 2012 and St. 109 by 2013) make the following changes and additions:


1. In art. 77 w, al. 1, paragraph 1, after the words "investment firms" comma, add "relevant" banks and the third sentence: "investment firms are entitled to treat as qualified investors clients, classified as professional pursuant to § 4 of the transitional and concluding provisions of the law on markets in financial instruments."

2. In art. 79, para. 1, item 2, the words "in the Republic of Bulgaria and ' and ' the other ' shall be deleted.

3. In art. 81, para. 4 creating a second sentence: "the summary contains a clear warning about the circumstances of the first sentence."

4. In art. 85, para. 5, the words "within 7 days" shall be replaced by "as soon as possible, but not later than 7 days.

5. In art. 100 u:

(a)) in the Al. 5, after the words "of the issuer or the person who" is added "without the consent of the issuer";

(b)) in the Al. 6, after the words "which are" added "Billy", and finally "be added until no debt be repaid".

6. In art. 112 (b), para. 1 the words "art. 8, al. 1 "shall be replaced by" art. 8, al. 2. "

7. In art. 121:

and the current text) became al. 1;

(b)) is hereby set up al. 2:

"(2) the limits of art. 3, al. 7, items 1 and 2 of the law on ownership and use of agricultural land do not apply to companies under art. 110 of this law and for companies under art. 263 of the Act on the activities of collective investment schemes and other undertakings for collective investment. "

8. In art. 149, para. 12 the words "art. 8, al. 1 "shall be replaced by" art. 8, al. 2. "

§ 61. In the special purpose companies (promulgated, SG. 46 of 2003; amend., SG. 109 of 2003 No. 107 of 2004, no. 34, 80 and 105 in 2006, 52 and 53 of 2007, no. 77 of 2011) in art. 13, para. 3 the words "art. 8, al. 1 "shall be replaced by" art. 8, al. 2. "

The law was passed by the National Assembly-43 on 29 April 2015 and is stamped with the official seal of the National Assembly.

President of the National Assembly Tsetska Tsacheva:

3065