Name of law a law amending the law on the supplementary supervision of financial conglomerates Named Bill Bill to amend and supplement the law on the supplementary supervision of financial conglomerates date of acceptance 26/07/2013 number/year Official Gazette 70/2013 Decree No 161

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 the law on the supplementary supervision of financial conglomerates directive, adopted by the National Assembly of HLIÌ July 26, 2013

Issued in Sofia on August 1, 2013.

The President of the Republic: Rosen Plevneliev

Stamped with the State seal.

Minister of Justice:

Zinaida Zlatanova

LAW

amending the law on the supplementary supervision of financial conglomerates (promulgated, SG. 59 06; amend., SG. 52 of 2007 and no. 77 and 105 in 2011.)

§ 1. In art. 3 make the following amendments and additions:

1. a new paragraph. 5:

(5) management companies, respectively managers alternative investment funds are included in the sector to which they belong within the group. If you do not belong exclusively to one sector within the group, they are added to the smallest financial sector. "

2. The current paragraph. 5 it al. 6 and shall be amended as follows:

"(6) if the Al group. 2 do not reach the threshold referred to in paragraph 1. 1, the Bulgarian National Bank (BNB) and the financial supervision Commission (FSC) may by common agreement with the other relevant competent authorities decide not to consider the group as a financial conglomerate, or not to apply the provisions of art. 10, 11 or 13, if you consider that the examination of the group as a financial conglomerate or the application of these provisions is not necessary or would be inappropriate or misleading with respect to the objectives of supplementary supervision. "

3. a new paragraph. 7:

"(7) if the group under para. 2 reaches the threshold referred to in paragraph 1. 1, but the smallest sector in the group does not exceed the equivalent in LEVs of 6 billion. euro, BNB and the FSC may by common agreement with the other relevant competent authorities decide not to consider the group as a financial conglomerate, or not to apply the provisions of art. 10, 11 or 13, if you consider that the examination of the group as a financial conglomerate or the application of these provisions is not necessary or would be inappropriate or misleading with respect to the objectives of supplementary supervision. "

4. The current paragraph. 6 it al. 8 and the word "for" is replaced by "publicly disclose" and the words "para. 5 ' shall be replaced by "para. 6 and 7 ".

5. The current paragraph. 7 it al. 9 and in it:

and in the text) before item 1 the words "para. 1-5 "shall be replaced by" para. 1 – 4, 6 and 7;

(b) in item 1) Finally a comma and add "unless the person moved his headquarters from a Member State in a third country and there is evidence that change is carried out in order to avoid the application of a particular legal regime";

in) item 4 shall be inserted:

4. exclude one or more interests in the financial sector, if such participation would be crucial for the identification of a financial conglomerate, but taken together represent a negligible interest with respect to the objectives of supplementary supervision. "

6. The current paragraph. 8 it al. 10 and in her words "para. 7 ' shall be replaced by "para. 9. "

7. The current paragraph. 9 it al. 11 and after the word "income" is a comma, the words "and/or" shall be deleted, and after the word "activities" is added "and/or the total size of the managed assets.

8. The current paragraph. 10 it al. 12.

9. The current paragraph. 11 becomes para. 13 and in her words "para. 10 "shall be replaced by" para. 12. "

10. The current paragraph. 12 it al. 14 and in her words "para. 1 – 5, 7 and 9 shall be replaced by "para. 1 – 6, 9 and 11.

11. a para. 15:

(15) the Bulgarian National Bank and the FSC be made once a year review of exemptions in the exercise of supplementary supervision and reviewed the quantitative indicators, referred to in this article and estimates, based on a risk analysis, which shall apply in respect of financial groups. "

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

1. In paragraph 8. 2 Add "and the Joint Committee of European supervisory authorities (SKENO).

2. in the Al. 3 the words "Joint Committee of European supervisory authorities (SKENO) ' shall be replaced by" SKENO ".

§ 3. In art. 5 make the following amendments and additions:

1. a new paragraph. 4:

"(4) in the scope of supplementary supervision in accordance with this law shall include the management companies and the managers alternative investment funds, in the manner and to the extent that financial institutions are included. For this purpose, apply the procedure set out in art. 3, al. 1-4. "

2. The current paragraph. 4 it al. 5.

§ 4. In art. 6 make the following amendments and additions:

1. In paragraph 8. 6, after the word "sector" is added "and a mixed-activity financial holding companies".

2. in the Al. 8 the first sentence shall be replaced by the following: "when applying the method of deduction and aggregation – method 2 referred to in the annex, the calculation shall be effected in accordance with the proportional share of the subscribed capital, held directly or indirectly by the parent or by the company, which holds a participation in another entity of the group."

§ 5. In art. 13 create al. 6, 7 and 8:

"(6) Podnadzornite persons at the level of the financial conglomerate shall provide, at least once a year the BNB, FSC respectively, detailed information on the legal, management and organizational structure of the financial conglomerate, including podnadzornite persons, unregulated subsidiaries and significant branches.


(7) Podnadzornite persons at the level of the financial conglomerate made public once a year through a full legal description, management and organizational structure of the financial conglomerate or by reference to the equivalent information already disclosed.

(8) in the exercise of supplementary supervision of the internal control mechanisms and risk management processes the BNB and the FSC shall take into account the requirements of art. 79, para. 2 of the law on credit institutions and chapter twenty-seven of the insurance code.

§ 6. In art. 15 is made the following changes and additions:

1. In paragraph 8. 1:

a) a new item 6:

6. periodically appropriate stress tests of the financial conglomerate level; "

(b)) the current item 6 becomes item 7.

2. a new paragraph. 3:

"(3) the agreements referred to in paragraph 1. 2 literary self in written agreements for coordination and cooperation under art. 94, para. 1 of the law on credit institutions, respectively in the eleventh paragraph of point 2.2 of the Protocol of cooperation between the supervisory authorities of the Member States of the European Union, with regard to the application of Directive 98/78/EC on the supplementary supervision of insurance undertakings in an insurance group of 11 May 2000 in connection with art. 9 (b), para. 3 of the insurance code (the Helsinki Protocol). "

3. a para. 4:

"(4) the Coordinator, who leads the Supervisory Board established under art. 92 (e) of the law on credit institutions, according to the Committee for coordination within the meaning of the third paragraph of item 2.2 of the Protocol from Helsinki, other competent authorities determine who will participate in a meeting or activity of this Association. "

4. The current paragraph. 3 it al. 5.

§ 7. In art. 16 is made the following changes and additions:

1. In paragraph 8. 3 item 1 shall be amended as follows:

"1. the legal, management and organizational structure of the group, including all supervised persons, non-regulated subsidiaries and significant branches, which are part of the financial conglomerate, as well as persons having a qualifying holding to level the final owner;".

2. Create a new para. 9 and 10:

"(9) if the co-ordinator of a Member State carried out stress tests at the level of the financial conglomerate, BNB and/or FSC, where relevant, the competent authorities shall cooperate with the Coordinator.

(10) When the BNB or FSC is the Coordinator shall provide the SKENO information received under paragraph 1. 3, paragraphs 1 and 2 and in art. 13, para. 4, 6 and 7. "

3. the Previous para. 9, 10 and 11 shall become paragraph 11, 12 and 13.

4. a para. 14:

"(14) cooperation and exchange of information on chapter three and the exercise of the functions of art. 15 and subject to the requirements of confidentiality with supervisory authorities from third countries shall be carried out by means of supervisory colleges, indicated in art. 92 (e) and (f) 92 of the law on credit institutions, by means of coordination committees, respectively, within the meaning of the third paragraph of item 2.2 of the Protocol of Helsinki. "

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

1. In paragraph 1:

a) point 5 is replaced by the following:

"5." Podnadzorno "is a credit institution, insurer, reinsurer, investment firm, asset management company or person who manages alternative investment fund. ';

(b)) are so 5A and 5b:

"5a." Person who manages alternative investment fund "is a person within the meaning of the law on the activities of collective investment schemes and other undertakings for collective investment.

5b. "Reinsurer" is a person under art. 8, al. 2 of the insurance code, the person who has obtained a license to carry out reinsurance activities by the relevant competent authority of the Member State or third country, or special purpose scheme for alternative transfer of risk insurance under § 1, item 44 of the additional provisions of the insurance code. ";

in item 6):

AA) point (b) shall be replaced by the following:

"(b)) a captive insurer, an insurance joint-stock company, kaptiven, reinsurer or insurance holding company or reinsurer under art. 27, al. 1 of the insurance code (insurance sector); "

BB) in (c), the words ' or ' management company ' shall be deleted;

BB) point (d) shall be repealed;

(d) in paragraph 13) creates a second sentence: "the band includes the subgroups within it.";

e) point 15 is replaced by the following:

"15." competent authorities "means the NATIONAL BANK in the financial conglomerate, where there is a credit institution, the FSC when in the financial conglomerate has the insurer and/or a reinsurer, and/or investment firm and/or management company and/or person who manages alternative investment fund, as well as the national authorities of the other Member States which are empowered under the Act to supervise credit institutions, and/or insurance and/or ' reinsurance and/or investment firms, and/or management companies and/or managers alternative investment funds, whether of private or on a group basis. ";

is the 16), letter "a" is a comma and add "including the final parent in the sector";

(g) in paragraph 18) the first sentence shall be replaced by the following: "Concentration risk" are the risk exposures with a loss potential, which is large enough to threaten the solvency or the financial position of podnadzornite persons in the financial conglomerate.


2. In paragraph 3, after the words "2000/12/EC of the European Parliament and the Council" the Union "and" shall be replaced by a comma, and then added "and directive 2011/89/EC of the European Parliament and of the Council of 16 November 2011 amending directives 98/78/EC, 2002/87/EC, 2006/48/EC and 2009/138/EC in respect of the supplementary supervision of financial firms in a financial conglomerate (OJ , L 326/113 of 8 December 2011).

§ 9. In the annex to article 2. 6 and 7, method 3 is repealed.

Transitional and final provisions

§ 10. Within two years after the adoption of the technical standard for performance under art. 21 (a), paragraph 2 (a) of Directive 2002/87/EC: FSC apply uniform reporting forms and determine the frequency and timing of reporting on calculations under this standard.

§ 11. In the law on credit institutions (official SG. 59 06; amend., 105/2006, no. 52, 59 and 109 from the 2007 No. 69 since 2008, no. 23, 24, 44, 93 and 95 of 2009, 94 and 101 of 2010 and 77/105 from 2011, and 38/44 by 2012. , PC. 52 by 2013) make the following changes and additions:

1. In art. 14, para. 3, item 8, after the words "financial holding company" a comma and add "a mixed financial holding company".

2. In art. 75, para. 3, after the words "financial holding company" a comma and add "a mixed financial holding company".

3. In art. 79, para. 6, after the words "financial holding company" a comma and add "a mixed financial holding company".

4. In art. 89:

(a)) in the Al. 1, after the word "groups" a comma and add ' mixed-activity financial holding companies ";

(b)) in the Al. 2, after the word "include" is added "managers alternative investment funds" and a comma.

5. an art. 89A:

"Art. 89. The Bulgarian National Bank, where consolidating supervisor, shall provide the information about the Bank EBA Group received in connection with the fulfilment of the conditions of art. 14, para. 3, 10 and 11, art. 15, para. 1, item 4 and 6 and the obligation under art. 74, para. 3, including on the legal, management and organizational structure of the group. "

6. In art. 90:

a) paragraphs 2 and 3 shall be amended like that:

"(2) where the parent undertaking of a bank licensed in the Republic of Bulgaria, is a financial holding company parent of a Member State, a financial holding company parent of a mixed-activity financial holding company, the Member State of the European Union or a financial holding company with mixed mother activity of the European Union, established in a Member State, supervision on a consolidated basis shall be exercised by the BNB.

(3) where the parent undertaking of credit institutions authorised in two or more Member States, the same parent financial holding company in the Republic of Bulgaria, the parent financial holding company with mixed activities in the Republic of Bulgaria, the parent financial holding company set up by the European Union in the Republic of Bulgaria, the parent financial holding company or a mixed-activity of the European Union, established in the Republic of Bulgaria, the supervisor on a consolidated basis shall be exercised by the BNB If one of the credit institutions – subsidiaries, is licensed in the Republic of Bulgaria. "

(b)) in the Al. 4, after the words "financial holding companies" shall be inserted "or a mixed-activity financial holding companies";

in paragraph 5) shall be replaced by the following:

"(5) where credit institutions authorised in other Member States have as their parent the same financial holding company or a mixed financial holding company and none of these credit institutions is not licensed in the State in which it is registered, the financial holding company or a mixed-activity holding company financial, supervision on a consolidated basis is carried out by the BANK if the credit institution with the largest balance sheet total is licensed by it.";

(d)) in the Al. 6, third sentence, after the words "parent credit institution of the European Union," the Union "or" is replaced by a comma, after the words "of the financial holding company of the European Union" shall be inserted "or of the financial holding company parent of a mixed European Union".

7. In art. Al 91. 2 shall be amended as follows:

"(2) where the BANK is excluded from the supervision on a consolidated basis the subsidiaries of credit institutions or financial holding companies, financial holding companies with mixed activity, it may request the relevant information from subsidiaries for the purposes of supervision."

8. In art. 92, para. 1 in the text before paragraph 1, after the words "financial holding companies from the European Union" shall be inserted "or financial holdings, parent of a mixed European Union".

9. in art. 92 a, para. 1, after the words "subsidiaries" the Union "or" is replaced by a comma, after the words "parent financial holding company in the European Union" shall be inserted "or of a financial holding company parent of a mixed European Union".

10. In art. 92 b, para. 1, after the words "parent financial holding company in the European Union" shall be inserted "or of a financial holding company parent of a mixed European Union".

11. in art. 92 in the Al. 1 shall be amended as follows:

"(1) where it is consolidating supervisor, subject to the application of art. 73 a, art. 79, para. 2 and 3 and in the application of the measure in respect of an infringement under art. 103, para. 1, item 11 together with BNB other competent authorities responsible for the supervision of subsidiaries of the parent credit institution of the European Union, the parent financial holding company of the European Union or of a financial holding company parent of a mixed European Union take a joint decision to determine the adequacy of the consolidated own funds of the parent company in respect of its financial position and risk profile, and for the establishment of an additional capital requirement under art. 103, para. 2, item 5 as for each company within the Bank Group, the financial holding company or a mixed-activity financial holding company, and on a consolidated basis. "

12. in art. 92 para. 1 shall be amended as follows:


"(1) where a bank licensed in the Republic of Bulgaria, is a subsidiary of the parent credit institution of the European Union, the parent financial holding company of the European Union or of a financial holding company parent of a mixed European Union, BNB participated in making a joint decision to determine the adequacy of the consolidated own funds of the parent company in respect of its financial position and risk profile, and for the establishment of an additional capital requirement as to any company within the banking group , financial holding company or a mixed-activity financial holding company, and on a consolidated basis. "

13. in art. 92 e, para. 5, after the words "parent credit institution of the European Union," the Union "or" is replaced by a comma, after the words "parent financial holding company in the European Union" shall be inserted "or of a financial holding company parent of a mixed European Union".

14. In art. 92, after the words "parent credit institution of the European Union," the Union "or" is replaced by a comma, after the words "parent financial holding company in the European Union" shall be inserted "or of a financial holding company parent of a mixed European Union".

15. in art. 95:

(a)) in the Al. 3 item 1 shall be amended as follows:

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, as well as information obtained in connection with the fulfilment of the conditions of art. 14, para. 3, 10 and 11, art. 15, para. 1, item 4 and 6 and the obligation under art. 74, para. 3, and the designation of competent authorities exercising supervision over podnadzornite persons in the group; "

(b)) in the Al. 4, after the words "financial holding companies from the European Union" shall be inserted "or financial holdings, parent of a mixed European Union".

16. In art. 96 after the word "holding" is added "or a mixed financial holding company".

17. In art. 98, para. 3, after the word "holding" is added "a mixed financial holding company" and a comma.

18. in art. 99:

(a)) in the Al. 1, after the words "financial holding companies" a comma and add ' mixed-activity financial holding companies ";

(b)) in the Al. 2, the first sentence after the word "groups" insert "and the mixed-activity financial holding companies".

19. in art. 100:

a) paragraph 1 shall be amended as follows:

' (1) at the request of a competent authority of a Member State NATIONAL BANK carries out verification of certain information for a credit institution, a financial holding company, a mixed financial holding company, financial institution, ancillary services undertaking, a mixed-activity holding company or their subsidiaries, which operate on the territory of the Republic of Bulgaria. "

(b)) in the Al. 3, after the words "financial holding company" shall be inserted "a mixed financial holding company" and a comma.

20. in article 101:

(a)) in the Al. 1, after the word "institution" the Union "or" is replaced by a comma, and then the word "holding" is added "or a mixed financial holding company";

(b)) in the Al. 7, after the word "holding" is added "or a mixed financial holding company".

21. In art. 103 al. 10 shall be amended as follows:

"(10) in violation of this law or its implementing acts, committed by a financial holding company, a mixed financial holding company or a mixed-activity holding company or authorized by a person operating a financial holding company, a mixed financial holding company or a mixed-activity holding company, the BANK may apply the measures referred to in paragraph 1. 2 in relation to the financial holding company, financial mixed-activity holding company or a mixed-activity holding company and its administrators. "

22. in the additional provisions:

a) in § 1, para. 1:

AA) item is created:

"12A." a mixed financial holding company "is a mixed financial holding company within the meaning of § 1, item 16 of the additional provisions of the law on the supplementary supervision of financial conglomerates.";

BB) in paragraph 26, after the words "that Member State" the Union "or" shall be deleted, and after holding "dumata added" or a mixed financial holding company ";

BB) in paragraph 27, the Union "or" shall be deleted, and after holding "dumata added" or a mixed financial holding company ";

yy) in 28 the Union "or" shall be deleted, and after the words "financial holding company" shall be inserted "or of a mixed financial holding company";

DD) creates is so 28A:

"28A." parent financial holding company with mixed activity in a Member State "is a mixed financial holding company which is not a subsidiary of a credit institution authorised in the same Member State, of a financial holding company or a mixed financial holding company, established in the same Member State. ';

EE) in point 29, the words "or of another financial holding company" shall be replaced by "of a financial holding company or a mixed financial holding company";

Gg) that is created:

"29." parent financial holding company with mixed activity of the European Union "is a financial holding company with mother mixed activity in a Member State which is not a subsidiary of a credit institution authorised in a Member State, of a financial holding company or a mixed financial holding company established in a Member State.";

HH) in 31 Add "or of a financial holding company parent of a mixed European Union";

(b)) in § 4, after the words "(OJ, L 302/97 of 17 November 2009)" the Union "and" shall be replaced by a comma, and then added "and directive 2011/89/EC of the European Parliament and of the Council of 16 November 2011 amending directives 98/78/EC, 2002/87/EC, 2006/48/EC and 2009/138/EC in respect of the supplementary supervision of financial firms in a financial conglomerate (OJ , L 326/113 of 8 December 2011).


§ 12. In the insurance code (promulgated, SG. 103 from 2005; amend., SG. 105 by 2005, issue 30, 33, 34, 54, 59, 80, 82 and 105 of 2006, issue 48, 53, 97, 100 and 109 from the 2007 No. 67 and 69 by 2008, 24 and 41/2009 issue 19, 41, 43, 86 and 100 by 2010. , PC. 51, 60 and 77 from 2011, issue. 21, 60 and 77 by 2012 and St. 20 of 2013) make the following changes and additions:

1. In art. 10 create al. 5 and 6:

"(5) an insurance Kaptiven insurance joint-stock company, which is owned by a financial undertaking which is not an insurer or reinsurer or insurance or reinsurance group, or is the property of non-financial enterprise which aims to provide insurance coverage exclusively for the risks of the person or persons who are its owners, or the person or persons in the Group's kaptivniât insurer. The fact that an insurance joint stock company is a captive, fits into its statutes.

(6) The insurer kaptiven the provisions of insurance public limited-liability company, unless otherwise provided for in this code. "

2. In art. 23, para. 3 the first sentence shall be replaced by the following: "Kaptiven reinsurer is a reinsurer that is owned by a financial undertaking which is not an insurer or reinsurer or insurance or reinsurance group, or is the property of non-financial enterprise which aims to provide reinsurance cover exclusively for the risks of the person or persons who are its owners, or the person or persons in the Group the kaptivniât reinsurer. "

3. In art. 85:

(a) in the title) after the word "holding" is added "a mixed financial holding company" and a comma;

(b)) in the Al. 2, after the word "holding" is added "mixed-activity financial holding company" and a comma.

4. In art. 299:

(a)) in the Al. 1, item 2, after the word "holding" is added "a mixed financial holding company" and a comma;

(b)) in the Al. 6, after the words "the reinsurer by a third State, the insurance holding company" a comma and add "financial mixed-activity holding company";

in) in the Al. 7, after the words "the reinsurer by a third State" shall be inserted "a mixed financial holding company" and a comma;

(d)) shall be al. 9-11:

"(9) when a mixed financial holding company shall be subject to the provisions of this code and of the law on the supplementary supervision of financial conglomerates, and in particular with regard to risk-based supervision, the Commission or the Vice-President may, after consultation with the Bulgarian National Bank or by any other competent authority of another Member State to implement the provisions of the Act only for the supplementary supervision of financial conglomerates.

(10) when a mixed financial holding company shall be subject to the provisions of this code and of the law on credit institutions, in particular with regard to risk-based supervision, the Commission or the Vice-President may, after consultation with the Bulgarian National Bank or by another competent authority, providing consolidated supervision on the banking or investment sector of another Member State to apply only the provisions relating to the most important sector within the meaning of art. 3, al. 1 and 3 of the law on the supplementary supervision of financial conglomerates.

(11) the Commission informed of its decisions under para. 9 and 10 the European insurance and occupational pensions authority. "

5. an art. 299:

"The inclusion of the management companies and managers of alternative investment funds, in the scope of supplementary supervision under art. 299

Art. 299. (1) for the purposes of the supervision referred to in art. 299, para. 1 include management companies, as well as the managers alternative investment funds.

(2) where persons under para. 1 are part of an insurance group, for them shall apply accordingly for the supplementary supervision of insurance companies.

(3) in respect of the persons referred to in para. 1, the Commission and the Vice-President respectively apply the powers available to them in connection with the exercise of supplementary supervision under art. 299, para. 1. "

§ 13. In the law on markets in financial instruments (promulgated, SG. 52 of 2007; amend., SG. 109 (2007), no. 69 since 2008, issue 24, 93 and 95 of 2009, 43/2010, no. 77 of 2011 and issue 21, 38 and 103 from 2012) make the following additions:

1. In art. 69, para. 3, after the words "shall include" insert "and the managers alternative investment funds" and a comma.

2. § 1 of the additional provisions establishes that 18A:

' 18a. "Person who manages alternative investment fund" is a person within the meaning of the law on the activities of collective investment schemes and other undertakings for collective investment. "

§ 14. In the law on financial collateral agreements (official SG. 68 of 2006; amend., issue 24 of 2009, issue 101 of the 2010 and 2011 77) is hereby amended as follows:

1. In art. 5, al. 1, the words "or otherwise indicating that it was settled in favour of the collateral person or of a person acting on his behalf" shall be replaced by the words "or otherwise in the possession or under the control of the collateral taker or of a person acting on his behalf".

2. In art. 6, al. 3 the first sentence shall be replaced by the following: "Relevant account register or account in which the entries are made by which financial collateral in the form of book entry securities collateral is provided to the person."

The law was adopted by the 42nd National Assembly on 26 July 2013 and is stamped with the official seal of the National Assembly.

President of the National Assembly: Mihail Mikov

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