КФН

Financial Supervision Commission

Creation
The Financial Supervision Commission is a specialized state body that unifies the regulation and supervision of various segments of the financial system - the capital, insurance and supplementary pension insurance markets.
The Financial Supervision Commission (FSC) was established on March 1, 2003. with the Law on the Financial Supervision Commission. It is an institution independent of the executive power and reports to the National Assembly of the Republic of Bulgaria for its activities.

Mission and goals
The main mission of the institution is to assist with legal, administrative and informational means to maintain the stability and transparency of the non-banking financial system in Bulgaria, as well as to protect the interests of investors, insured and insured persons.

Functions
The tools at the Commission's disposal to achieve its goals are the possibility of legislative initiative, the preliminary control when admitting market participants through a licensing regime, the right to control the activities of already admitted market participants and, finally, the right to impose sanctions when violations are detected.

Regulation
The regulatory activity of the Commission covers the preparation and adoption of regulations and instructions provided for in the laws, issuing instructions and instructions regarding the application and interpretation of the codes and laws, as well as the by-laws on their implementation in connection with the implementation of financial supervision. The regulation of the activities of market participants is in accordance with European norms and practices. Bulgarian legislation in the field of the capital market, insurance and supplementary pension insurance is harmonized with the main European directives and regulations.

Usually, changes in the legislative framework are imposed as a result of changes to the financial system itself, the introduction of new products and technologies, or when deficiencies in the current regulatory framework are identified.

License Modes
In its licensing activity, the Commission is guided by the principle of impartiality and the application of a uniform approach and criteria to all applicants. The commission checks the documents attached to the received applications for the issuance of a permit or for the amendment of an already issued decision, with a view to their compliance with the regulatory requirements. Determines whether all the required documents and information are submitted and checks whether the legal restrictions to a given licensing procedure are complied with, such as:

– amount and structure of the capital;

- origin of the funds with which the share contributions were made;

– presence (absence) of connectivity between individuals and/or legal entities in accordance with the regulatory provisions;

– requirements for members of management and control bodies and other special requirements.

Supervision
Through the general and financial supervision of the activities of the supervised persons, compliance with the legal requirements, the financial condition of the companies and the reliability of the information provided by them are monitored.

The Commission carries out supervisory activity by means of remote control and on-site inspections of the activity of the licensed market participants.

The purpose of the control activity carried out by the FSC is to prevent and stop violations of the law with a view to ensuring the protection of the interests of investors, insured and insured persons.

Sanctions
In the event of violations by the supervised persons, the commission applies coercive administrative measures. These include issuing recommendations on taking specific actions, fines or pecuniary sanctions.