DRAFT

Law on the Non-Bank Financial Institutions Providing Loans to Consumers

Chapter One GENERAL PROVISIONS

Subject

Article 1. (1) This Law regulates the terms and procedures for licensing, supervision and termination of non-bank financial institutions providing loans to consumers.

(2) Non-bank financial institutions providing loans to consumers are joint-stock companies with subject of activity provision of loans to consumers which have obtained a license by the Financial Supervision Commission.

(3) Entities which have not obtained a license pursuant to this Act shall not be allowed to provide loans to consumers.

Exclusions from the scope

Article 2. The provisions of this Act shall not apply for: 1. credit institutions; 2. investment intermediaries; 3. entities providing financial leasing; 4. payment institutions and electronic money companies providing loans pursuant to

Article 19 of the Law on Payment Services and Payment Systems; 5. entities with subject of activity provision of cash loans against pledge of property

(pawnbrokers) following the terms and procedures laid down by the Council of Ministers; 6. mutual benefit credit cooperatives of private agricultural owners under § 12 of the

Transitional and Final Provisions of the Law on Credit Institutions; 7. entities providing loans only under Article 4, paragraph 1, items 4 – 14 of the Law

on Consumer Credit; 8. entities providing loans to legal persons only.

Purpose

Article 3. The purpose of this Act is to ensure the transparency and stability of non-bank financial institutions providing loans to consumers, confidence in their activity and protection of the rights and interests of the consumers.

Licensing and supervision

Article 4. The licensing and supervision of non-bank financial institutions under Article 1 to ensure compliance with the requirements of this Act and the regulations on its implementation shall be carried out by the Financial Supervision Commission, hereinafter referred to as the "Commission" and by the Deputy Chairperson of the Commission, head of division Capital and Money Markets Supervision, hereinafter referred to as the "Deputy Chairperson".

Consumer protection

Article 5. (1) Non-bank financial institutions under Article 1 shall perform their activity in compliance with the requirements of the Law on Consumer Credit, unless otherwise provided for in this Law.

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(2) The powers related to the protection of the consumers of credits provided by non-bank financial institutions under Article 1 regarding the compliance with the Law on Consumer Credit shall be carried out by the Commission for Consumer Protection.

Operating restrictions Article 6. (1) Non-bank financial institutions under Article 1 shall not carry out

activities related to the public raising of deposits and other recoverable funds within the meaning of the Law on Credit Institutions.

(2) The subject of activity of a non-bank financial institution under Article 1 may include operations related to the acquisition of receivables under consumer loans.

(3) Non-bank financial institutions under Article 1 may transfer their receivables under loans provided by them to consumers only to banks or non-bank financial institutions which have obtained a license following the terms and procedures set out herein.

(4) Non-bank financial institutions under Article 1 cannot include in their subject of activity and carry out any commercial activities, other than the activity indicated in Article 1, paragraph 2 and paragraph 2 of this Article.

Chapter Two

CONDITIONS FOR THE ACTIVITY

Section I General rules

Legal form

Article 7. (1) A non-bank financial institution under Article 1 shall be a joint-stock

company which has obtained a license from the Commission and which is entered into the registry under Article 30, paragraph 1, item 15 of the Financial Supervision Commission Act.

(2) A non-bank financial institution under Article 1 shall be incorporated, shall carry out, reorganise and terminate its business following the terms and procedures laid down in the Commerce Act, unless otherwise provided for herein.

(3) A non-bank financial institution under Article 1 may open more than one branch under the provisions of the Commerce Act per town, including the town where its seat is located.

Capital and shares

Article 8. (1) The amount of the registered capital of a non-bank financial institution under Article 1 shall not be less than BGN 1,000,000.

(2) The capital under Article 1 shall be fully subscribed and paid in as of the date of filing of a license application. In case of a subsequent capital increase, it shall be fully paid in as of the date of filing of an application for entry into the Trade Register.

(3) The contributions in the capital of a non-bank financial institution under Article 1 shall only be in cash contributions, made with equity with proven origin, shall not be borrowed funds and shall not have been obtained as a result of unlawful activities.

(4) When a non-bank financial institution under Article 1 issues only registered dematerialised shares with the right of one vote each.

(5) The non-bank financial institution shall be obliged to maintain at all times equity in an amount no less than the indicated in Article 1. The size of the equity shall be determined pursuant to the statements under Article 25.

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Requirements to the management and supervisory bodies and to the persons managing or

representing non-bank financial institutions

Article 9. (1) Each member of a management or supervisory body of a non-bank financial institution under Article 1, as well as any person authorised to manage or represent it, shall:

1. have higher education; 2. have at least five years profession experience in the fields of economics, law or

finance; 3. not have been convicted of a premeditated crime; 4. not have been, for the last three years prior to the starting insolvency date determined

by the court, a member of a management or supervisory body or an unlimited partner or shareholder with over 50% interest in a company for which insolvency proceedings have been initiated or in a company terminated due to insolvency if any unsatisfied creditors remain;

5. not have been declared insolvent and is not undergoing insolvency proceedings; 6. not been deprived of the right to hold a position of financial responsibility; 7. not have been, for the last year prior to the act of the respective competent body, a

member of the management or supervisory body of a company, unlimited partner or shareholder with over 50% interest in a company with a revoked license to carry out activities subject to a licensing regime, other than the cases when the license has been revoked at the request of the company, and when the act for revocation of the issued license has been cancelled following a due procedure;

8. have been released from a position in a management or supervisory body of a commercial company pursuant to an imposed coercive administrative measure, other than the cases when the act of the competent body has been cancelled following a due procedure;

9. not be included in the list under Article 5, paragraph 1 of the Law on Measures Against Terrorist Financing;

10. not have outstanding tax and social security liabilities to the State. (2) A member of the management or supervisory body of a non-bank financial

institution under Article 1 and a person authorised to manage or represent it must be a person of goods standing who does not endanger the management of the company, the interests of the consumers and does not obstruct financial supervision.

(3) The requirements under Articles 1 and 2 shall also apply for natural persons representing legal entities - members of the management and supervisory bodies of the non-bank financial institutions under Article 1.

Approval of a member of the management and supervisory bodies and of a person

managing or representing a non-bank financial institution Article 10. (1) The persons under Article 9, paragraphs 1 and 3 shall be subject to

prior approval by the Deputy Chairperson, and the documents under Article 18, paragraph 3 have to be enclosed with the application for approval. In the cases of issuance of licenses, compliance with the requirements under Article 9 shall be determined in the course of the license issuance procedure.

(2) Any change in the entities under Article 9, paragraphs 1 and 3 shall be entered into the Trade Register after presentation of an approval by the Deputy Chairperson of the Commission.

(3) The Deputy Chairperson shall pass a ruling within one month from the filing of the application, and in cases of irregularities and/or incomplete data in the documents filed by the applicant, an term for their elimination shall be set, which cannot be less than 14 days, and until the expiry of such a term, the term for passing of a ruling shall be suspended.

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(4) The Deputy Chairperson shall refuse to issue an approval when the person does not meet a requirement under Article 9, paragraph 1 or paragraph 2.

Qualifying holding

Article 11. (1) A person having a qualifying holding in a non-bank financial institution under Article 1 shall be unequivocally identified to the level of the beneficial owner and shall meet the requirements of:

1. Article 9, paragraph 1, items 3 - 10 and paragraph 2 – if a natural person; 2. Article 9,pParagraph 1, items 4 and 5, 7-9 - if a legal person. (2) The requirements of Article 1, item 1 shall also apply for natural persons -

members of the management or supervisory body of a legal person under Article 1, as well as for the natural persons who represent it.

(3) The funds used for acquisition of the holding under 1 shall have a proven origin.

Approval of persons intending to acquire a qualifying holding Article 12. (1) Any person intending to acquire, directly or indirectly, a qualifying

holding in a non-bank financial institution under Article 1 shall file an application with the Commission, enclosing the documents under Article 18, paragraph 3.

(2) The Deputy Chairperson shall issue an approval, subject to Article 10, paragraphs 2 and 3.

(3) The Deputy Chairperson shall refuse to issue an approval when the person does not meet a requirement under Article 11, paragraph 1.

(4) Persons who have acquired a qualifying holding in a non-bank financial institution under Article 1 without obtaining an approval by the Deputy Chairperson or despite an issued refusal shall not be entitled to exercise their voting rights in the General Meetings of the non-bank financial institution under Article 1.

Activity Programme and Internal Rules for management of the activity Article 13. (1) The non-bank financial institution under Article 1 shall adopt an

activity programme and internal rules for the management of its activity. (2) The management or supervisory body of the non-bank financial institution under

Article 1 shall adopt a rolling programme for the activity of the non-bank financial institution under Article 1 for a period of three years which shall be updated annually.

(3) The internal rules shall include: 1. clear organisational structure and allocation of the responsibilities; 2. effective organisational and management procedures; 3. rules for measures against money laundering and terrorism financing; 4. procedures for review of consumer complaints; 5. rules regarding the use of credit intermediaries; 6. appropriate internal control mechanisms, including reliable and effective

administrative and accounting procedures; 7. other requirements as determined in the Regulation under Article 15. (4) In case of subsequent amendments in the activity programme and the internal

rules for management, the non-bank financial institution under Article 1 shall submit them to the Commission within 3 days after their adoption.

General terms and conditions

Article 14. (1) The general terms and conditions of the contracts for provision of loans to consumers shall have the minimum contents under Article 11, paragraph 1, items 2, 4, 9 - 12 и 14 – 26 of the Law on Consumer Credit and shall be endorsed by the management body of the non-bank financial institution under Article 1, and the date of their adoption and of

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subsequent amendments must be indicated therein. (2) The amendment of the general terms and conditions within the term of validity of a credit agreement shall be binding for the consumer only if the amendments or the new general terms and conditions have been provided to the consumer and the consumer has accepted them in writing. (3) In case of a subsequent amendment in the general terms and conditions, the non-bank financial institution under Article 1 shall submit them to the Commission within 3 days of their adoption.

(4) The general terms and conditions shall be disclosed at the website of the non-bank financial institution under Article 1 and shall be provided to the consumer in hard copy and free of charge.

Regulation Article 15. The requirements to the capital, record-keeping, disclosure of

information as well as other requirements for non-bank financial institutions under Article 1 and for their activity, as well as their supervision, shall be determined with a Regulation of the Commission.

Mandatory guidelines Article 16. At the proposal of the Deputy Chairperson, the Commission shall adopt

with a resolution mandatory guidelines on the preparation and contents of the general terms and conditions of the non-bank financial institutions under Article 1, including with regard to their technical formatting, in order to ensure consumer equality and clarity and intelligibility of the general terms and conditions.

Interactions with the Central Credit Registry

Article 17. Non-bank financial institutions under Article 1 shall be obliged to provide and shall be entitled to receive information to/from the information system maintained by the Bulgarian National Bank on the monetary obligations of the clients of the banks and the non-bank financial institutions, in compliance with the procedure set out in Article 56 of the Law on Credit Institutions.

Section II ISSUANCE AND REVOCATION OF LICENSES

Documents for the issuance of licenses

Article 18. (1) An application to the Commission in a form approved by the Deputy Chairperson of the Commission shall be filed in order to obtain a license for the performance of activities related to the provision of loans to consumers.

(2) The following documents shall be enclosed with the application: 1. certified transcripts of the Statutes and other incorporation documents of the

applicant; 2. a list of the shareholders and the number of the shares held by them in the capital

of the applicant; 3. a list of the management and supervisory bodies of the applicant; 4. a document issued by a bank which carries out banking activities in the territory

of the Republic of Bulgaria certifying the cash contributions made against the subscribed shares;

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5. declarations in a form approved by the Deputy Chairperson of the Commission on the beneficial owners of the entities holding or acquiring a qualifying holding in the capital of the applicant;

6. certificate of lack of tax or social security liabilities to the applicant's country; 7. list of the addresses where it intends to carry out the business of a financial

institution; 8. activity programme and internal rules for management of the activity, the general

terms and conditions and other documents and data determined with the Regulation under Article 15;

9. a document of paid state fee for processing of the documents in the amount determined in the Tariff under Article 27, paragraph 2 of the Financial Supervision Commission Act.

(3) The following data and documents about the persons under Article 9, paragraphs 1 and 3 shall be enclosed with the application under Article 1:

1. names and personal data according to identity documents, nationality, current and permanent address;

2. certified copies of the diploma for completed higher education and of the documents certifying the acquired professional experience;

3. certificate of no convictions or another similar document in case that the natural person is not a Bulgarian national;

4. declarations on the lack of the circumstances under Article 9, paragraph 1, items 4 – 9;

5. a certificate of lack of outstanding tax and social security liabilities in a form approved by the Deputy Chairperson.

(4) The requirements to the persons under Article 9, paragraph 3 shall be certified with the respective documents under paragraph 3 and shall be enclosed with the application under paragraph 1.

(5) For each legal person having a direct or indirect qualifying holding in the capital of the applicant, the following documents and data shall be enclosed with the application:

1. data on the name, seat and registered office and UIC of the legal person, if registered in the territory of the Republic of Bulgaria;

2. certified transcripts of the Statutes and other incorporation documents of the company;

3. financial statements - balance sheets, income reports, auditor's reports (when applicable) for the last two years of activity of the legal person;

4. a certificate of lack of tax and social security liabilities; 5. a declaration of the origin of the funds with which the shares in the capital were

acquired; 6. the data, documents and declarations under paragraph 3, items 1, 3, 4 and 5 - for

the legal representatives of the legal person. (6) For each natural person having a direct or indirect qualifying holding in the

capital of the applicant, the following documents and data shall be enclosed with the application:

1. the data, documents and declarations under paragraph 3, items 1, 3, 4 and 5; 2. a declaration of the origin of the funds with which the shares in the capital were

acquired. (7) The Financial Supervision Commission may require the provision of additional

documents necessary for certifying compliance with the requirement of this Law and the regulations on its implementation.

(8) If the provided documents are irregular or additional information is required, the Commission shall inform the applicant and set a term for elimination of the irregularities and/or

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for provision of additional information, which cannot be less than 30 days and more than 60 days.

Issuance of a license

Article 19. (1) The Commission shall pass a ruling on the application within three months after its receipt, at the proposal of the Deputy Chairperson of the Commission, and when additional information and documents have been requested, this term shall be suspended until the expiry of the term under Article 18, paragraph 8.

(2) In case of a change in any of the circumstances under Articles 8, 9, 11 and 18, persons having obtaining licenses shall inform the Commission within 3 days of the occurrence of such changes.

Grounds for refusal of the issuance of a license

Article 20. (1) The Financial Supervision Commission shall refuse to issue a license if:

1. the capital of the applicant does not meet the requirements of Article 8; 2. a person under 9, paragraphs 1 and 3 does not meet a requirement of this Law; 3. the internal rules for management of the activities or the general terms and

conditions do not meet the requirements of this Law, the secondary legislation on its implementation and the guidelines under Article 16;

4. the applicant has provided untruthful data or documents with untruthful contents; 5. the origin of the funds with which the persons having qualifying holdings have

made contributions in the capital is not clear and lawful; 6. if any of the persons under Article 9, paragraphs 1 and 3 does not meet the

requirements of Article 9, paragraph 2, which may endanger the management of the applicant and the interests of the consumers;

7. the applicant does not meet another requirement laid down in this Law and the regulations on its implementation.

(2) In the cases under paragraph 1, items 1 - 5 and item 7, the Commission shall refuse to issue a license only if the applicant has failed to eliminate the discrepancies and to provide the requisite documents within the term set by it.

(3) The Commission shall motivate its refusal to issue a license in writing. (4) In the cases of a refusal, the applicant may file a new license application under

Article 18, paragraph 1 no earlier than 6 months as of the enforcement of the resolution for refusal.

Entry into the Trade Register Article 21. (1) A non-bank financial institution under Article 1 shall be entered into

the Trade Registered only upon provision of the license issued by the Commission. (2) A non-bank financial institution under Article 1 shall provide the certificate of

entry to the Commission within 7 days of the entry into the Trade Register.

Revocation of a license Article 22. (1) The Commission shall revoke the license issued to a non-bank

financial institution under Article 1 at the proposal of the Deputy Chairperson of the Commission if:

1. it has ceased to meet the conditions under which its license was issued; 2. the license was issued on the basis of untruthful information or untruthful

documents; 3. the non-bank financial institution under Article 1, its management or supervisory

bodies, the persons who perform contractual managerial functions and the persons having

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qualifying holdings have not complied with a coercive administrative measure imposed following the procedure set out in this Law;

4. at the request of the institution; 5. the non-bank financial institution under Article 1 has not begun to carry out the

activity under Article 1, paragraph 2 within 6 months of the issuance of the license; 6. does not meet the requirements of Article 8, paragraph 5 and the violation has not

been eliminated within the term set by the Commission; 7. has not paid the fee for general financial supervision within the set term. (2) The Commission may revoke the license issued to a non-bank financial

institution under Article 1 if: 1. the non-bank financial institution under Article 1, its management or supervisory

bodies, the persons who perform contractual managerial functions and the persons having qualifying holdings have allowed or have committed gross or systematic violations of this Law or of the regulations on its implementation;

2. the non-bank financial institution under Article 1, its management or supervisory bodies, the persons who perform contractual managerial functions and the persons having qualifying holdings have allowed or have committed systematic violations of the Law on Consumer Credit, the Law on Consumer Protection, the Law on Measures Against Money Laundering, or of the regulations on their implementation;

3. upon or resulting from the performance of the activity, the conclusion of contracts for provision of loans to consumers or the collection of receivables thereunder there are convictions or enforced settlements regarding a crime committed under the Penal Code with respect to the persons under 9 or employee/s of the non-bank financial institution under Article 1.

(3) The resolution for revocation of the license shall be motivated in writing. (4) After the enforcement of the resolution for revocation of its license, the non-

bank financial institution shall delete from its objects the subject of activity under Article 1, paragraph 1 and cannot conclude new loan agreements or amend the conditions of already concluded loan agreements.

Chapter Three

CROSS-BORDER OPERATIONS

Operations in the territory of another member state Article 23. (1) In case of the receipt of an application by a non-bank institution

under Article 1 which meets the requirements of Article 25 of the Law on Credit Institutions for performance of the activities under Article 1, paragraph 2 in the territory of a member state, the Commission shall inform the Bulgarian National Bank within 7 days by providing to it the application and its supporting documents and the information available to the Commission certifying the compliance with the requirements under Article 25 of the Law on Credit Institutions.

(2) When it is established that the requirements under Article 25, paragraph 1 of the Law on Credit Institutions are met, the Bulgarian National Bank shall issue a certificate which it shall send to the competent bodies of the receiving member state and to the Commission.

Operations in the territory of the Republic of Bulgaria Article 24. Upon receipt of a notice by the competent authorities of a sending

member state for the performance of activities under Article 1, paragraph 2 by a non-bank financial institution which meets the requirements of Article 24 of the Law on Credit

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Institutions, the Bulgarian National Bank shall send a copy of the notice and the supporting documents to the Commission.

Chapter Four REPORTING

Reports

Article 25. (1) Non-bank financial institutions under Article 1 shall prepare their financial statements pursuant to the Accountancy Act and in compliance with the requirements of the Financial Supervision Commission.

(2) Non-bank financial institutions under Article 1 shall provide to the Financial Supervision Commission financial statements which demonstrate their financial situation, both separate and consolidated.

(3) Non-bank financial institutions under Article 1 shall prepare and submit to the Commission:

1. annual financial statements – by 31 March of the year following the year covered by the statements;

2. annual information, reports and appendices – by 31 March of the year following the year covered by them;

3. quarterly information, reports and appendices – by the end of the month following the quarter covered by them;

4. monthly information – by the end of the month following the month covered by such information.

(4) The information and reports under paragraph 3 shall be provided to the Commission and the Deputy Chairperson in the form of electronic documents signed with a qualified electronic signature.

Article 26. (1) The annual financial statements under paragraph 2, item 1 and the information under paragraph 2, item 2 shall be certified by specialised audit companies pursuant to the Law for the Independent Financial Audit.

(2) Each non-bank financial institution under Article 1 shall coordinate its choice of auditor with the Commission in advance.

(3) No person may be an auditor if such a person or the registered auditors therein have failed to comply with the requirements of this Law and the secondary legislation on its implementation within the last three years prior to their proposal as auditors.

(4) If within 14 days of the date of the request for coordination, the Financial Supervision Commission has not made an objection, it is assumed that the proposal for the choice of auditor has been approved.

(5) The auditors under paragraph 1 shall immediately inform the Financial Supervision Commission in writing about all circumstances which they have learned in the course of the audit and which:

1. constitute a violation of this Law or of the regulations on its implementation; 2. affect or could affect the normal functioning of the non-bank financial institution

under Article 1; 3. constitute grounds for refusal of the expression of an auditor's opinion to certify

the statements, grounds for expressing reservations or grounds for expressing a negative opinion;

4. are related to activities of the persons under Article 9 or of executives of the non-bank financial institution under Article 1 which cause or could cause material damages to the non-bank financial institution under Article 1 or to the consumers of the services offered by it;

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5. are related to untruthful or incomplete data in the reports, information and records provided by the non-bank financial institution under Article 1 to the Financial Supervision Commission.

(5) In the cases under paragraph 5, the restrictions on the disclosure of information stipulated in any law, secondary legislation or contract shall not apply. The auditor shall not be held liable for the disclosure of information in good faith under paragraph 6 before the Commission and the Deputy Chairperson.

Article 27. (1) Non-bank financial institutions under Article 1 which prepare consolidated financial statements under the provisions of the Accountancy Act shall provide to the Financial Supervision Commission consolidated financial statements and a consolidated activity report by 30 June of the year following the year covered by them.

(2) Other requirements regarding the reporting of non-bank financial institutions under Article 1 and the format and contents of the reports, information, records and applications under Article 25, paragraph 3 shall be determined in the Regulation under Article 15.

Record keeping Article 28. Non-bank financial institutions under Article 1 shall keep for a

minimum of 5 years all information and documents pertaining to the activities performed by them, including those pertaining to the concluded agreements. The term for keeping of the documents pertaining to such agreements shall start from the date of termination of the relationship under such agreements.

Chapter Five

REORGANISATION AND TERMINATION

Reorganisation Article 29. (1) The reorganisation of non-bank financial institutions under Article 1

shall be performed with the permission of the Commission at the proposal of the Deputy Chairperson, provided that:

1. the rights of the consumers are guaranteed; 2. after the reorganisation, the non-bank financial institution under Article 1 has the

equity set out in Article 8, paragraph 5. (2) A reorganisation by means of a merger or acquisition is allowed only between

non-bank financial institutions under Article 1, and in case of a demerger or spin-off, the newly incorporated companies must also be non-bank financial institutions under Article 1. The Commission issues the permission for reorganisation simultaneously with the issuance of a license to perform the activity of a non-bank financial institution under Article 1 to the newly incorporated companies.

(3) A reorganisation by means of a change of the legal form and by means of a change of the subject of activity shall not be allowed.

(4) The terms and procedures for issuance of a permission or refusal to issue a permission shall be determined with the Regulation under Article 15.

(5) To the extent that this Law and the secondary legislation on its implementation do not provide for otherwise, the provisions of the Commerce Act shall apply.

Termination

Article 30. (1) A non-bank financial institution under Article 1 shall be terminated: 1. voluntarily – at the request of the non-bank financial institution under Article 1;

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2. forcibly - in case of revocation of its license at the initiative of the Financial Supervision Commission;

3. upon its declaration of insolvency. (2) In the cases under paragraph 1, item 1, the termination shall be accomplished

with a resolution of the General Meeting of the shareholders and with the permission of the Financial Supervision Commission, having the Commission revoke the license and undertake the necessary measures to notify the public simultaneously with the issuance of a permission for termination.

(3) In the cases under paragraph 1, item 2, the liquidation proceedings shall be initiated with a resolution of the Financial Supervision Commission.

(4) The termination of a non-bank institution under Article 1 following the procedure set out in paragraph 1, items 1 and 2 shall be carried out with the permission of the Commission at the proposal of the Deputy Chairperson, provided that the rights of the persons receiving loans are guaranteed under the terms and procedures determined with the Regulation under Article 15.

(5) The Commission shall be notified by the person making the application for the initiation of insolvency proceedings for a non-bank financial institution under Article 1 prior to the filing of the application with the court. The proof of the provided notification under the previous sentence shall be a prerequisite for the processing of the application by the court and for the initiation of the insolvency proceedings.

(6) To the extent that this Law and the secondary legislation on its implementation do not provide for otherwise, the provisions of the Commerce Act shall apply.

Chapter Six SUPERVISION AND COOPERATION

Disclosure of supervisory actions

Article 31. The Commission and the Deputy Chairperson shall publish the imposed coercive administrative measures and the imposed administrative penalties under this Law and the regulations on its implementation following the terms and procedures determined in Article 30, paragraph 2 of the Financial Supervision Commission Act.

Cooperation and information exchange

Article 32. (1) At the request of the Chairperson of the Commission, joint inspection may be carried out of non-bank financial institutions under Article 1, together with the Consumer Protection Commission, State Agency National Security, the National Revenue Agency, the Ministry of Interior and other public bodies and institutions.

(2) The Commission for Consumer Protection shall provide to the Financial Supervision Commission upon request current and standardised information on the non-bank financial institutions under Article 1 with reference to the compliance with the requirements of the Law on Consumer Credit and the Law on Consumer Protection, including information on enforced penal rulings and coercive administrative measures with regard to the implementation of the L:aw on Consumer Credit and the Law on Consumer Protection within 3 days of their issuance and their effective date.

Article 33. In order to exercise its powers, the Financial Supervision Commission

shall cooperate and exchange information with the respective public bodies and institutions following the procedures, methods and volumes determined in agreements between them.

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Chapter Seven COERCIVE ADMINISTRATIVE MEASURES

Types of measures

Article 34. (1) The Commission or the Deputy Chairperson may impose the coercive administrative measures under paragraphs 2 and 3 when they find that a non-bank financial institution under Article 1, members of its management or supervisory bodies, its employees, persons performing contractual managerial functions, as well as persons having qualifying holdings, have allowed, have performed or are currently performing:

1. activities in violation of this Law, regulations on its implementation, resolutions of the Commission or of the Deputy Chairperson;

2. actions or inactions failing to comply with the mandatory guidelines under Article 16;

3. transactions or activities affecting the financial or organisational stability of the non-bank financial institution under Article 1;

4. actions preventing the Commission or the Deputy Chairperson from exercising their supervisory powers;

5. actions endangering the interests of the consumers. (2) The Deputy Chairperson may impose the following coercive administrative

measures: 1. charging persons under paragraph 1 to undertake specific measures necessary to

prevent or eliminate the violations, the negative consequences from them or the danger to the consumers, within a set term;

2. prohibiting the exercise of the right to vote at the General Meeting of the non-bank financial institution under Article 1;

3. following a prepared agenda, convening a General Meeting and/or setting a session of the management or supervisory bodies of the non-bank financial institution under Article 1 regarding passing resolutions on the measures to be undertaken;

4. appointing a registered auditor to carry out financial or other audits of the non-bank financial institution under Article 1 in compliance with requirements set by the Deputy Chairperson;

5. assigning officials of the Financial Supervision Commission to attend sessions of the management or supervisory bodies of the non-bank financial institution under Article 1;

6. issuing mandatory instructions on increase of the equity; 7. prohibiting the conclusion of new loan agreements; 8. issuing mandatory instructions on making changes to the internal rules for

management or of the general terms and conditions, as well as prohibitions of the application of the general terms and conditions until the respective changes are made;

9. issuing mandatory instructions on making changes to the general terms and conditions of loan agreements already concluded with consumers, in which case the requirement of Article 14, paragraph 2 shall not apply.

(3) In the cases under paragraph 1, the Commission, at the proposal of the Deputy Chairperson, may:

1. instruct the non-bank financial institution under Article 1 in writing to undertake the necessary actions to release one or more persons authorised to manage or represent it or any of the persons under Article 9, paragraphs 1 and 3;

2. order a shareholder in writing to transfer the shares held by him/her within a defined term;

3. appoint a financial controller for a period of up to one year. (4) The measures under paragraph 2, items 2, 3 and 6 and paragraph 3, items 1 and

2 shall apply in case of violation of any of the requirements of Articles 8 – 12.

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(4) At the request of the Commission, respectively of the Deputy Chairperson, the Registry Agency shall enter the circumstances, respectively announce the acts, under paragraphs 2 and 3, in the Trade Register.

(5) The coercive administrative measures also include the revocation of the license under Article 22, other than the cases where the person has explicitly waived the issued license.

(6) The Commission or the Deputy Chairperson may inform the public about the imposed coercive administrative measures.

(7) Upon the imposition of coercive administrative measures under paragraph 2, paragraph 3 and paragraph 5, the provisions of the Administrative Procedure Code on the clarification and objections of interested parties shall not apply.

Proceedings for imposition of coercive administrative measures Article 35. (1) Proceedings for imposition of the coercive administrative measures

under Article 34, paragraph 2 shall be initiated by the Deputy Chairperson, and in the cases under Article 34, paragraph 3 and paragraph 5, with a resolution of the Commission at the proposal of the Deputy Chairperson.

(2) The coercive administrative measures under Article 34, paragraph 2 shall be applied by means of written motivated resolutions of the Deputy Chairpersons, and the coercive administrative measures under Article 34, paragraph 3 and paragraph 5 - with a written motivated resolution of the Commission, which shall be notified to the interested party within 7 days of its passing. The Resolution on the imposition of a coercive administrative measure is subject to immediate compliance, regardless of whether it is contested.

(3) The notifications and announcements in the proceedings under paragraph 1 may be carried out by means of a registered letter with a return receipt, by phone or by fax. The notifications and announcements by means of a registered letter with a return receipt shall be certified with the notification of their receipt, those made by phone – in writing by the official who made the notification, and those by fax - with a written confirmation of the transmitted message.

(4) If the notifications and announcements in the proceedings under paragraph 1 are not accepted at the address, telephone or fax indicated by the persons or entered into the respective registry under Article 30, paragraph 1, item 15 of the Financial Supervision Commission Act, they shall be deemed as served by means of their placement in a designated place in the premises of the Commission. This circumstance shall be certified by means of a record prepared by officials assigned with an order of the Deputy Chairperson.

Applicability of the Administrative Procedure Code Article 36. To the extent that this Chapter does not provide for special rules, the

provisions of the Administrative Procedure Code shall apply.

Chapter Eight ADMINISTRATIVE PENALTY PROVISIONS

Liability for performance of activities without a license

Article 37. (1) Persons performing activities under Article 1, paragraph 2 without being issued a license by the Commission following the procedure set out in this Law shall be punishable, if the act does not constitute a crime, by a fine in the amount from BGN 5,000 to 20,000 for natural persons or a pecuniary sanction in the amount from BGN 50,000 to 100,000 for legal persons.

(2) For a repeated violation under paragraph 1, a fine in the amount from BGN 10,000 to 40,000 for natural persons or a pecuniary sanction in the amount from BGN 100,000

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to 200,000 for legal persons shall be imposed.

Liability for activities in violation of the requirements of this Law Article 38. (1) Persons committing or allowing the committing of a violation of

Article 6 shall be sanctioned with a fine in the amount from BGN 5,000 to 15,000 for natural persons or a pecuniary sanction in the amount from BGN 20,000 to 40,000 for legal persons.

(2) For a repeated violation under paragraph 1, the sanction shall be from BGN 10,000 to 30,000 for natural persons, respectively from BGN 40,000 to 80,000 for legal persons.

Article 39. (1) Persons committing or allowing the committing of a violation of

Article 10, paragraph 1 or paragraphs 4 or Article 12, paragraph 1 or 4 shall be sanctioned with a fine in the amount from BGN 5,000 to 15,000 for natural persons or a pecuniary sanction in the amount from BGN 15,000 to 30,000 for legal persons.

(2) For a repeated violation under paragraph 1, the sanction shall be from BGN 10,000 to 30,000 for natural persons, respectively from BGN 30,000 to 60,000 for legal persons.

Article 40. (1) Persons committing or allowing the committing of a violation of

Article 13 or Article 14 shall be sanctioned with a fine in the amount from BGN 3,000 to 10,000 for natural persons or a pecuniary sanction in the amount from BGN 15,000 to 30,000 for legal persons.

(2) For a repeated violation under paragraph 1, the sanction shall be from BGN 6,000 to 20,000 for natural persons, respectively from BGN 30,000 to 60,000 for legal persons.

Liability for failure to meet mandatory guidelines of the Commission Article 41. (1) A person carrying out or allowing the adoption and/or

implementation in the activity of a non-bank financial institution under Article 1 of internal management rules and general terms and conditions in violation of the mandatory guidelines of the Commission under Article 16 shall be sanctioned with a fine in the amount from BGN 3,000 to 10,000 for natural persons or a pecuniary sanction in the amount from BGN 15,000 to 30 000 for legal persons.

(2) For a repeated violation under paragraph 1, the sanction shall be from BGN 6,000 to 20,000 for natural persons, respectively from BGN 30,000 to 60,000 for legal persons.

Liability for failure to provide information

Article 42. (1) A member of a management or supervisory body of a non-bank financial institution under Article 1 or another person managing or representing it, who fails to provide or provides or allows the provision of untruthful information in connection with the exercise of financial supervision, shall be sanctioned with a fine in the amount from BGN 5,000 to 30,000 if the act does not constitute a crime.

(2) For the violation under paragraph 1, a pecuniary sanction in the amount from BGN 10,000 to 60,000 shall be imposed on the non-bank financial institution under Article 1.

Liability for failure to comply with a coercive administrative measure Article 43. (1) A person who fails to comply with a coercive administrative

measure imposed by the Commission or by the Deputy Chairperson shall be sanctioned with a fine in the amount from BGN 10,000 to 30,000 – for natural persons, respectively with a pecuniary sanction in the amount from BGN 40,000 to 60,000 for legal persons.

(2) For a repeated violation under paragraph 1, the sanction shall be from BGN 20,000 to 60,000 for natural persons, respectively from BGN 80,000 to 120,000 for legal

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persons.

Liability for a legislative violation Article 44. (1) A person performing activities in violation of the requirements of

this Law or of regulation on its implementation, if the act does not constitute a crime, shall be sanctions with a fine in the amount from BGN 3,000 to 10,000 or a pecuniary sanction in the amount from BGN 5,000 to 30,000.

(2) For a repeated violation under paragraph 1, a fine in the amount from BGN 6,000 to 20,000 or a pecuniary sanction in the amount from BGN 10,000 to 60,000 shall be imposed.

Proceedings for imposition of administrative sanctions Article 45. (1) Notices establishing administrative offences shall be prepared by

officials authorised by the Deputy Chairperson of the Commission. (2) Penal Rulings shall be issued by the Deputy Chairperson of the Commission.

(3) The preparation of the notices, the issuance, appeal and imposition of the administrative rulings shall be carried out in compliance with the procedure set out in the Law on Administrative Offences and Sanctions.

ADDITIONAL PROVISION

§ 1. Within the meaning of this Law:

1. "Consumer" shall mean any natural person who upon the conclusion of a loan agreement acts outside the framework of his/her professional or commercial activity

2. "Repeated"shall mean a violation committed within one year of the effective date of the penal ruling imposed on the violator for the same type of violation.

3. "Total cost of the credit for the consumer" shall mean the total cost of the credit for the consumer within the meaning of § 1, item 1 of the Law on Consumer Credit.

4. "Total amount payable by the consumer" shall mean the total amount payable

by the consumer within the meaning of § 1, item 2 of the Law on Consumer Credit. 5. "Systematic violations" shall mean three or more administrative offences

established by means of effective penal rulings under this Law, the Law on Consumer Credit or the Law on Consumer Protection or the regulations on their implementation committed within one year, or three and more identical administrative offences committed during three consecutive years.

6. "Qualifying holding" exists when a person holds directly or indirectly 10 percent or more than 10 percent of the capital or of the voting rights in the General Meeting of the company, or when the holding of shares in the capital or of the voting rights in the General Meeting of the company allows the exercise of material influence on the management of the company.

7. "Employees" of a non-bank financial institution under Article 1 shall mean all persons to whom functions have been assigned in connection with the performance of the institution's activities under employment contracts or which have been assigned by written or spoken instructions under another type of legal relationship.

8. "Member state" shall mean a state which is a member of the European Union or another state which belongs to the European Economic Area.

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TRANSITIONAL AND FINAL PROVISIONS § 2. (1) Within 3 months, grandfathered as of the effective date of this Law financial

institutions which carry out activities under Article 3, paragraph 1, item 3 of the Law on Credit Institutions shall bring its activities in compliance with the requirements of this Law and shall file a license application with the Financial Supervision Commission.

(2) For the purposes of aligning the capital of the grandfathered as of the effective date of this Law financial institutions which carry out activities under Article 3, paragraph 1, item 3 of the Law on Credit Institutions in compliance with the requirements of Article 8, the profit and reserves of such companies shall be recognised as equity.

(3) Within three months of the filing of an application under paragraph 1, the Financial Supervision Commission shall issue or refuse to issue a license, at the proposal of the Deputy Chairperson. If the provided documents are irregular or additional information is required, the Commission shall inform the applicant and set a term for elimination of the irregularities and/or for provision of the additional information, which cannot be less than 30 days and more than 60 days. When additional information and documents have been requested from the applicant, the term under sentence one shall be suspended until their provision.

(4) After the expiry of the term under paragraph 1, the Financial Supervision Commission shall inform the Bulgarian National Bank of the financial institutions under Article 1 which have applied for licenses. The Bulgarian National Bank shall delete from the registry under Article 3, paragraph 2 of the Law on Credit Institutions the activity provision of loans to consumers for these financial institutions under paragraph 1 which have not filed license applications.

(5) Within the term set out in paragraph 3, the Financial Supervision Commission shall inform the Bulgarian National Bank of all financial institutions under paragraph 1 to which a license has been issued or refused. The Bulgarian National Bank shall delete from the registry under Article 3, paragraph 2 of the Law on Credit Institutions the activity provision of loans to consumers for the financial institutions under paragraph 1 about which it has been informed by the Financial Supervision Commission that they have been refused licenses and shall fully delete from the registry under Article 3, paragraph 2 of the Law on Credit Institutions the financial institutions under Article 1 about which it has been informed that they have obtained licenses.

(6) The financial institutions under paragraph 1 which have not filed applications for the issuance of licenses for the provision of loans to consumers within the term under paragraph 1 or which have been refused licenses by the Financial Supervision Commission shall not have the right to carry out such activities and shall be obliged to immediately undertake actions to change their subject of activity, which cannot include the provision of loans to consumers. They shall retain the right to collect their receivables under agreements for loans to consumers concluded until the expiry of the term under paragraph 1, respectively to the issuance of a license refusal by the Financial Supervision Commission, and they may transfer their rights thereunder only to banks and to non-bank financial institutions licensed under this Law.

§ 3. Within two months of the effective date of this Act, the Financial Supervision Commission shall adopt the Regulation under Article 15.

§ 4. Article 4, paragraph 1, item 6 of of the Law on Consumer Credit

(promulgated in the State Gazette, issue 18 of 2010; amended, issue 58 of 2010, issue 91 of 2012, issue 30 of 2013, issue 35 of 2014) shall be deleted.

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§ 5. In the Law on Credit Institutions (promulgated in the State Gazette, issue 59 of 2006; amended, issue 105 of 2006, issue 52, 59 and 109 of 2007, issue 69 of 2008, issue 23, 24, 44, 93 and 95 of 2009, issue 94 and 101 of 2010, issue 77 and 105 of 2011, issue 38 and 44 of 2012, issue 52, and issue 70 of 2013, supplemented State Gazette, issue 109 of 2013, supplemented State Gazette issue 22 of 2014, amended and supplemented State Gazette issue 27 and issue 35 of 2014)

1. Article 3, paragraph 1, item 3 shall be amended as follows: "3. provision of loans: a) to consumers; b) to legal persons. 2. In Article 3a, paragraph1, letter "b" shall be inserted after the words "Article 3,

paragraph 1, items 2 and 3": § 6. In the Law on Financial Supervision Commission Act (promulgated in the

State Gazette, issue 8 of 2003; amended, issue 31, 67 and 112 of 2003, issue 85 of 2004, issue 39, 103 and 105 of 2005, issue 30, 56, 59 and 84 of 2006, issue 52, 97 and 109 of 2007, issue 67 of 2008, issue 24 and 42 of 2009, issue 43 and 97 of 2010, issue 77 of 2011, issue 21, 38, 60, 102 and 103 of 2012, issue 15, and issue 109 of 2013), the following amendments shall be made:

1. In Article 1, paragraph 2 a new item 4 shall be inserted: "4. the activity of non-bank financial institutions providing loans to consumers,

pursuant top the Law on the Non-Bank Financial Institutions Providing Loans to Consumers. 2. In Article 2, paragraph 3, the words "funded by the budget” shall be deleted. 3. Article 3 shall be amended as follows: a) In item 2, the words "investment activity" shall be replaced with "capital and

money markets". b) At the end of item 5, a comma and the words "as well as to the consumers of

loans provided by non-bank financial institutions" shall be inserted. 4. In Article 5, a new paragraph 5 shall be inserted: "(5) The relations between the Commission and its members shall be regulated by

management agreements which shall be concluded following a procedure set out by the Commission."

5. Article 7 shall be cancelled. 6. Article 10 shall be amended as follows: a) In paragraph 1, the words "investment activity" shall be replaced with "capital

and money markets"; b) paragraph 7 shall be amended as follows: "(7) The Law on Administration shall not apply for the Commission's

administration." 7. Article 11, item 1 shall be amended as follows: "1. protection of the interests of the investors, the insured persons, the persons with

social security and the consumers of loans provided by non-bank financial institutions;" 8. In Article 12, item 2, the words „and the Markets in Financial Instruments Act"

shall be replaced with "the Markets in Financial Instruments Act and the Law on the Non-Bank Financial Institutions Providing Loans to Consumers".

9. Article 13 shall be amended as follows: a) In paragraph 1: aa) In item 4, the words „and the Heath Insurance Act" shall be replaced with "the

Heath Insurance Act and the Law on the Non-Bank Financial Institutions Providing Loans to Consumers".

ab) In item 5, a comma and the words "the Law on the Non-Bank Financial

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Institutions Providing Loans to Consumers" shall be inserted after the words "collective investment";

ac) In item 6, a comma and the words "the Law on the Non-Bank Financial Institutions Providing Loans to Consumers" shall be inserted after the words "collective investment".

ad) In item 10, a comma and the words "the Law on the Non-Bank Financial Institutions Providing Loans to Consumers" shall be inserted after the words "collective investment".

ae) In item 11, a comma and the words "the Law on the Non-Bank Financial Institutions Providing Loans to Consumers" shall be inserted after the words "collective investment".

аf) A new item 13 shall be inserted: "13. imposes coercive administrative measures in the cases laid down in the

legislation;". b) In paragraph 2, a comma and the words "the Law on the Non-Bank Financial

Institutions Providing Loans to Consumers" shall be inserted after the words "collective investment".

c) In paragraph 4, the words "and complaints" shall be deleted. d) In paragraph 5, the words "or the complaint" shall be deleted. e) In paragraph 6, the words "or a complaint" shall be deleted. f) In paragraph 7, the words "acts under paragraph 1, item 3" shall be replaced with

"acts under paragraph 1, items 1 and 3”. 10. In Article 14, new paragraphs 4 and 5 shall be inserted: "(4) The individual administrative acts of the Chairperson may be appealed

judicially before the Supreme Administrative Court. (5) The appeal under paragraph 5 shall not suspend the execution of the individual

administrative act." 11. In the title of Article 15, the words "investment activity" shall be replaced with

"capital and money markets"; 12. Article 15 shall be amended as follows: a) In paragraph 1: aa) In the body of the text, the words "investment activity" shall be replaced with

"capital and money markets"; ab) In item 2, the words "the Law on the Activities of Collective Investment

Schemes and Other Collective Investment Undertakings" shall be replaced with "the Law on the Activities of Collective Investment Schemes and Other Collective Investment Undertakings and the Law on the Non-Bank Financial Institutions Providing Loans to Consumers”;

ac) In item 3, the words "the Law on the Activities of Collective Investment Schemes and Other Collective Investment Undertakings" shall be replaced with "the Law on the Activities of Collective Investment Schemes and Other Collective Investment Undertakings and the Law on the Non-Bank Financial Institutions Providing Loans to Consumers”;

ad) In item 4, the words "and under Chapter Six of the Law Against Market Abuse of Financial Instruments" shall be replaced with "under Chapter Six of the Law on Measures Against Market Abuse with Financial Instruments and under Chapter Six of the Law on the Non-Bank Financial Institutions Providing Loans to Consumers";

ae) In item 6, a comma and the words "the Law on the Non-Bank Financial Institutions Providing Loans to Consumers" shall be inserted after the words "collective investment";

af) In item 6, a comma and the words "the Law on the Non-Bank Financial Institutions Providing Loans to Consumers" shall be inserted after the words "collective investment";

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ag) In item 9, the words "and the managing companies” shall be replaced with "and the management companies and financial institutions providing loans to consumers";

ah) In item 11 after the word "securities", the words "or with loans provided to consumers" shall be inserted;

ai) In item 13 after the word "securities", the words "or to the provision of loans to consumers" shall be inserted;

ak) In item 14, the words "investment activity" shall be replaced with "capital and money";

al) In item 15, a comma and the words "in the Law on the Non-Bank Financial Institutions Providing Loans to Consumers" shall be inserted after the words "the control of the financial instruments market".

b) In paragraph 3, the words "investment activity" shall be replaced with "capital and money markets".

c) In paragraph 4, the words "investment activity" shall be replaced with "capital and money markets".

13. The title of Article 17a shall be amended as follows: "Powers of the member of the Commission supporting its policy with regard to the

analysis and assessment of the risks of the financial markets, improvement of the market practices and protection of the interests of the investors, the insured persons, the persons with social security and the consumers of loans provided by non-bank financial institutions”

14. Article 18 shall be amended as follows: a) In paragraph 1, item 1 and item 6, a comma and the words "the Law on the Non-

Bank Financial Institutions Providing Loans to Consumers" shall be inserted after the words "health insurance".

b) In paragraph 3, a comma and the words "the Law on the Non-Bank Financial Institutions Providing Loans to Consumers" shall be inserted after the words "investment purpose".

c) paragraph 6 shall be amended as follows: "(6) For and with regard to the execution of the functions assigned to it, the

Commission shall have the right to request information and documents from all public bodies, institutions and local governance bodies, including the right to full access to the databases maintained by them. The terms and procedures for provision of information and provision of access to the databases shall be determined with agreements between the Financial Supervision Commission and the respective institutions. The provision of information and documents cannot be refused or restricted due to grounds of professional, tax and/or social security secret or obligations for protection of tax and/or social security information. The access of the Commission to the information registries established and maintained with budgetary funds shall be free of charge.”

15. In Article 19, paragraph 2, item 1, a comma and the words "the Law on the Non-Bank Financial Institutions Providing Loans to Consumers" shall be inserted after the words "the market abuse of financial instruments".

16. Article 20 shall be amended as follows: "Article 20. (1) The activities of the Commission shall be supported by

administration with composition, structure, rights and obligations to be determined with the Rules of Organisation and Operation of the Commission.

(2) The legal relations with the administrative employees shall be based on and regulated by the Labour Code.

(3) The following persons cannot be employees of the Commission: 1. persons convicted of an intentional crime of general nature;

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2. persons who exercise control on the supervised entity or hold directly or through related persons over 5 percent of the voting rights in the General Meeting or the capital of the supervised entity;

3. persons who are members of the management or supervisory bodies of the supervised entity or are authorised to manage or represent the supervised entity without being members of its management or supervisory bodies;

4. persons who are spouses or direct or collateral relatives to the third degree, including with persons under item 3, with members of the Commission or with other of its employees with whom they have hierarchical dependency;

5. persons who are employed under labour or civil contracts by the supervised entity.

(4) The employees in the Commission's administration shall file a declaration on their property status upon assuming office and as of 31 December each calendar year. The property subject of the declaration, the terms and procedure for their declaration, the storage of and the access to the information contained in the declarations shall be determined in the Rules of Organisation and Operation of the Commission."

17. In Article 21, a new paragraph 1 shall be inserted: "(1) The labour remuneration of the employees of the Commission shall be

determined in accordance with rules adopted by the Commission; however, the remuneration cannot be lower than the average remuneration for employees with corresponding functions in the supervised entities.

18. In Article 24, paragraph 5, item 1, a comma and the words "the Law on the Non-Bank Financial Institutions Providing Loans to Consumers" shall be inserted after the words "the Markets in Financial Instruments Act".

19. Article 26 shall be amended as follows: a) New paragraphs 3 – 4 shall be inserted: "(3) The Financial Supervision Commission cannot acquire real estate and property

rights, other than those necessary for it to meet its official needs. (4) The Financial Supervision Commission may demand the issuance of an

immediate enforcement order following the procedure set out in Article 418 of the Civil Procedure Code on the basis of a transcript from its accounting books evidencing receivables due to it and outstanding, including the due interest.”

20. Article 27 shall be amended as follows: a) Paragraph 1 shall be amended as follows: "(1) For issuance of licenses, permits, approvals and documents, as well as for the

provision of administrative services arising from the exercise of financial supervision, as well as for the provision of general financial supervision, the Commission shall receive fees following the procedures and amounts determined by the Commission. The Commission shall collect the fees defined in the Appendix."

b) Paragraph 2 shall be amended as follows: "(2) The amount of the fees under paragraph 1 shall be determined by the

Commission with a Tariff. Prior to the adoption of the Tariff, the Commission shall publish on its website the draft Tariff and shall coordinate the draft with organisations representing the persons affected by the Tariff. The adopted Tariff shall be promulgated in the State Gazette.

c) Paragraph 3 shall be amended as follows: "(3) The fees under paragraph 1 for the provision of general financial supervision

shall be paid annually by 31 January of the current year." d) In paragraph 4, the words "item 9" shall be replaced with "for the provision of

general financial supervision". e) Paragraph 5 shall be amended as follows:

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"(5) In case of a failure to pay within the statutory term the fee under paragraph 1 for the provision of general financial supervision, for the term of delay a default interest equal to the statutory interest shall be charged and be payable on the due amount. In cases of non-payment in the cases of the first sentence, the Commission and its bodies may refuse to provide administrative services to the supervised entity until it fulfils its obligation to pay the fees for provision of general financial supervision, together with the accrued default interest and the costs for initiation of enforcement proceedings following the procedure set out in paragraph 7."

f) Paragraph 7 shall be amended as follows: "(7) Outstanding fees under paragraph 1 shall be subject to enforced collection

following the procedure set out in the Tax and Social Security Procedure Code, which may be assigned to a private enforcement agent. In case of assignment of enforcement to a private enforcement agent, the Public Procurement Act shall not apply. The act establishing the receivables shall be issued by the Chairperson of the Commission."

21. In Article 27a, paragraph 1 the following amendments shall be made: a) Paragraph 1 shall be amended as follows: "(1) Fines and pecuniary sanctions shall be subject to enforced collection following

the procedure set out in the Tax and Social Security Procedure Code, which may be assigned to a private enforcement agent. In case of assignment of enforcement to a private enforcement agent, the Public Procurement Act shall not apply."

b) In paragraph 2, the words "under Article 27, paragraph 1, items 1-7" shall be deleted.

22. The title of Article 28 shall be amended as follows: "Capital and reporting". 23. Article 28 shall be amended as follows: "Article 28. (1) The Financial Supervision Commission shall keep accounts in

accordance with the Accountancy Act and in compliance with the established international standards.

(2) The financial year of the Commission shall begin on 1 January and shall end on 31 December.

(3) The Commission shall approve the annual budget proposed by the Chairperson and shall submit it to the National Assembly within 30 days of its approval.

(4) The following revenues shall be collected in the budget of the Commission: 1. the fees under Article 27, paragraph 1, including default fees collected following

the procedure set out in Article 27, paragraph 7; 2. fees and pecuniary sanctions, including those collected following the procedure

set out in Article 27a, paragraph 1; 3. international projects and programmes; 4. revenues from the sale of periodicals issued by the Commission and from the sale

of forms; 5. other sources and activities, allowed by law. (5) The expenditures of the Financial Supervision Commission shall be incurred in

accordance with the annual budget adopted by the Commission and promulgated in the State Gazette.

(6) Management expenditures shall be made with the permission of the Chairperson or a Deputy Chairperson authorised by the Chairperson.

(7) The statements of the budgetary expenditures of the Commission shall be audited by the National Audit Office which shall prepare a special report on the results of the audit. The statement of the budgetary expenditures of the Commission shall be submitted to the National Assembly together with its annual statements.

(8) The Commission shall establish a Reserve Fund formed with deductions in the amount of 25 percent of the annual surplus of the revenues over the expenses of the Commission.

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(9) The remainder of the annual surplus of the revenues over the expenses of the Commission shall be deposited each year as income in the state budget within 4 months after the end of the financial year.

24. Article 29 shall be amended as follows: a) Paragraph 2 shall be amended as follows: "(2) The budget implementation report of the Commission and its annual financial

statements shall be audited by the National Audit Office. The annual financial statements of the Commission shall be certified by an international auditor and shall be published together with the auditor's report in compliance with the requirements of the international accounting standards. The report of the National Audit Office shall be submitted to the National Assembly."

b) A new paragraph 5 shall be inserted: "(5) The control on the compliance with the legislation regulating the budgetary,

financial and economic and reporting activities and the compliance with the Public Procurement Act shall be exercised by the National Audit Office. The bodies of the Public Financial Inspection Agency shall not inspect the Financial Supervision Commission.

25. Article 30, paragraph 1, item 15 shall be amended as follows: "15. the non-bank institutions providing loans to consumers." 26. An Appendix to Article 27, paragraph 1 shall be inserted:

"Appendix to Article 27, paragraph 1 Fees Charged by the Financial Supervision Commission 1. For issuance of licenses and permissions to perform business activities and other permits and approvals under the Law on Public Offering of Securities (LPOS), as well as the entry and deletion of entities into/from the registry under Article 30, paragraph 1, item 3 of the Financial Supervision Commission Act (FSCA), as follows: No of line

Name of the fee

1. for an approval of the reorganisation of public companies under Article 124, paragraph 1 of LPOS

2. for an approval of agreements for joint ventures under Article 126d, paragraph 2 of LPOS

3. for entry of a public company and issuer of securities in the registry under Article 30, paragraph 1 of FSCA, with the exclusion of cases when the entry is performed simultaneously with the approval of a prospectus (Article 79, Article 110, paragraph 3 of LPOS)

4. for deletion of a public company from the registry under Article 30, paragraph 1, item 3 of FSCA in the cases under Article 119, paragraph 1 of LPOS

5. for deletion of an issuer from the registry under Article 30, paragraph1 of FSCA, with the exclusion of cases when it has been deleted from the Trade Register due to the conclusion of a liquidation or insolvency proceedings

6. for an approval of the Rules of Central Depository AD and of any subsequent amendment to them

7. for a permission to extend the term for payment of a compensation to the clients of an investment intermediary in the cases under Article 77t, paragraph 4 of LPOS

8. for the processing of documents

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2. For issuance of licenses and permissions to perform business activities and other permits and approvals under the Markets in Financial Instruments Act (MFIA), under Regulation (EU) No 575/2013 and for the entry and deletion of entities into/from the registry under Article 30, paragraph 1, items 1, 2, 8 of FSCA, as follows: No of line

Name of the fee

1. for a license to perform activities as a regulated market 2. for a license for investment intermediary under Article 8, paragraph 1 of MFIA,

including through a branch of a legal person from a third country, with the exclusion of the activity under Article 5, paragraph 2, item 8

3. for a license for investment intermediary under Article 8, paragraphs 2 and 3 of MFIA, including through a branch of a legal person from a third country, with the exclusion of the activity under Article 5, paragraph 2, item 8

4. for a license for investment intermediary under Article 8, paragraph 4 of MFIA, including through a branch of a legal person from a third country, with the exclusion of the activity under Article 5, paragraph 2, item 8

5. for a license to an investment intermediary or a market operator for the organisation of a multilateral trading facility, including the cases of expansion of a license for this activity

6. for an expansion of the license of an investment intermediary with other services and activities, with the exclusion of the activity under Article 5, paragraph 2, item 8, as well as for the performance of activities in a third country

7. for a partial revocation of the license of an investment intermediary at its request, in case of withdrawal from performance of some of the services and activities for which it is licensed, with the exclusion of the activity under Article5, paragraph 2, item 8

8. for a subsequent approval of a person under Article 11, paragraphs 2 and 5 of MFIA

9. for a broker of securities and investment consultant - examination fee - fee for issuance of a certificate - for recognition of an obtained qualification as an investment consultant

10. for entry of a bank into the register of the investment intermediaries 11. for a revocation of a licence to perform activities as a regulated market at the

request of the market operator 12. for a revocation of a license of an investment intermediary or market operator for

organisation of a multilateral trading facility at their request 13. for an approval of the reorganisation of an investment intermediary 14. for processing of a notification for acquisition or increase of a qualifying holding

in an investment intermediary 15. for processing of a notification for acquisition or increase of a qualifying holding

in a market operator 16. for an approval of an amendment to the rules for the operation of the regulated

market 17. for a revocation of the license of an investment intermediary in case of a waiver of

an issued license 18. for a permission under Article 53, paragraph 2 of MFIA 19. for an approval of the rules under Article 53, paragraph 4 of MFIA 20. for an approval under Article 57, paragraph 1 of MFIA

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21. for an approval under Article 100, paragraph 2 of MFIA 22. for an approval of the conclusion of an agreement by the regulated market under

Article 100, paragraph 2 of MFIA 23. for an approval or permission under Regulation (EU) No 575/2013 24. for the processing of documents 3. For issuance of licenses and permissions to perform business activities and other permits and approvals under the Special Purpose Vehicles Act (SPVA), as well as the entry and deletion of entities into/from the registry under Article 30, paragraph 1, item 3 of FSCA, as follows: No of line

Name of the fee

1. for a license to a special purpose vehicle 2. for a permission for the reorganisation of a special purpose vehicle 3. for a permission for the termination of a special purpose vehicle 4. for an approval of the replacement of a depository bank 5. for an approval of an amendment to the Statutes and the other incorporation

documents of a special purpose vehicle 6. for an approval of a replacement of a servicing company, including for the

inclusion of a new servicing company of a special purpose vehicle 7. for the processing of documents 4. For issuance of licenses and permissions to perform business activities and other permits and approvals under the Law on the Activities of Collective Investment Schemes and Other Collective Investment Undertakings (LACISOCIU) and for the entry and deletion of entities into/from the registry under Article 30, paragraph 1, items 4, 5, 6, 7 of FSCA, as follows: No of line

Name of the fee

1. for a license for a managing company, including through a branch of a legal person from a third country

2. for an expansion of the license of a managing company with additional services 3. for a license of an open-end investment company 4. for a permission to a managing company to establish and manage a contractual

fund or sub-fund 5. for an approval of an amendment to the rules, respectively the Statutes of a

collective investment scheme 6. for an approval of a replacement of the depository in the cases set out in

LACISOCIU 7. for an approval of the replacement of a managing company in the cases under

Article 18 of LACISOCIU 8. for an approval of the risk management rules of a collective investment scheme 9. for an approval of the rules for portfolio assessment and measuring the net value of

the assets of a collective investment scheme 10. for an approval of the delegation of functions to a third party by the managing

company 11. for a subsequent approval of a person under Article 93, paragraphs 1, 3 and 5 of

LACISOCIU 12. for an approval of the utilisation of a loan by a collective investment scheme 13. for an approval of an amendment to the rules in the contract for depository services

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for a collective investment scheme 14. for a permission under Article 67 of LACISOCIU for a feeder collective

investment scheme 15. for a permission for reorganisation of a managing company 16. for a permission for voluntary termination of a managing company 17. for an approval of organisation (merger, acquisition) of a collective investment

scheme 18. for processing of a notification for acquisition or increase of a qualifying holding

in a managing company 19. for an approval of the voluntary termination of a collective investment scheme 20. for a permission for inclusion of a bank or investment intermediary into the list of

depositories 21. for a license of an national open-end or closed-end investment company 22. for a permission for establishment and management of a national open-end or

closed-end contractual fund 23. for a permission for reorganisation of a closed-end national investment company

into an open-end national investment company and vice versa 24. for a permission for reorganisation of a national contractual fund through merger,

acquisition, demerger or spin-off 25. for a subsequent approval of a member of the board of directors of a closed-end

national investment company 26. for an approval of the utilisation of a loan by a national investment fund 27. for an approval of an amendment to the rules, respectively the Statutes of a

national investment fund 28. for an approval of a replacement of a managing company, respectively of the

person managing alternative investment funds which manage a national investment fund

29. for issuance of an approval to a national investment fund for replacement of an investment consultant with a managing company or with a person managing alternative investment funds and vice versa

30. for an approval of amendments to risk management rules 31. for an approval of the rules for portfolio assessment and measuring the net value of

the assets of a national investment fund 32. for an approval of an amendment to the rules in the contract for depository services

for a national investment fund 33. for a license for management of alternative investment funds, including for an

entity with a seat in a third country 34. for an expansion of the license of a person managing an alternative investment

fund 35. for a permission of the reorganisation of a person managing an alternative

investment fund 36. for a revocation of a license for the management of alternative investment funds in

case of an explicit waiver by the person 37. for entry into the registry of a person managing alternative investment funds with

assets not exceeding the thresholds set out in Article 197, paragraph 1 38. for processing of a notification for acquisition or increase of a qualifying holding

in a person holding a license to manage alternative investment funds 41. for an approval of a change of a document under Article 201, paragraph 2, item 1,

letters "d" and "f" 42. for an approval of an amendment to the contract of a person managing an

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alternative investment fund with the depository 43. for an approval of the delegation of the functions of a person managing an

alternative investment fund to a third person 44. for an approval of the delegation by a person managing an alternative investment

fund of its function to appraise assets of alternative investment funds to an external appraiser

45. for an approval of the rules for asset assessment and measuring the net value of the assets of an alternative investment fund

46. for a subsequent approval of a person under Article 200 of LACISOCIU 47. for the processing of documents 5. For issuance of licenses and permissions to perform business activities and other permits and approvals under the Insurance Code (IC), as well as the entry and deletion of entities into/from the registry under Article 30, paragraph 1, items 9 and 11 of FSCA, as follows: No of line

Name of the fee

1. for a license of an insurer, including for a branch of an insurer from a third country, for provision of insurance services for the risks under Section I of Appendix No 1

2. for a license of an insurer, including for a branch of an insurer from a third country, for provision of insurance services for the risks under Section II of Appendix No 1

3. for a license of an insurer with a seat in the Republic of Bulgaria to carry out insurance activities in a third country via a branch

4. for a license to a re-insurer, including for a branch of an re-insurer from a third country, to provide re-insurance services on life insurance

5. for a license to a re-insurer, including for a branch of an re-insurer from a third country, to provide re-insurance services on general insurance

6. for license to provide insurance services to a mutual insurance cooperative 7. for an expansion of the license of an insurer with an additional license for a new

insurance type, including of a branch of an insurer from a third country for: - the risks under Section I of Appendix No 1 - the risks under Section II of Appendix No 1 8. for an expansion of the scope of the license with an additional license for life re-

insurance or genera re-insurance 9. for an expansion of the scope of the license of a mutual insurance cooperative with

an additional license for a new type of insurance 10. for an insurance broker:

- examination fee - for issuance of a certificate

11. for entry into the registry under Article 30, paragraph 1, item 10 of FSCA of an insurance broker

12. for recognition of the legal capacity of a responsible actuary: - examination fee - for issuance of a certificate

13. for a permission for a merger, demerger and spin-off of an insurer providing insurance for risks under Section I of Appendix No 1 with or without an additional license for accident insurance or illness insurance

14. for a permission for a merger, demerger and spin-off of an insurer providing insurance for risks under Section II of Appendix No 1

15. or a permission for a merger, demerger and spin-off of an re-insurer

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16. for a permission for the acquisition of an insurer providing insurance for risks under Section I of Appendix No 1 with or without an additional license for accident insurance or illness insurance

17. for a permission for the acquisition of an insurer providing insurance for risks under Section II of Appendix No 1

18. for a permission for the acquisition of a re-insurer 19. for a permission for voluntary termination of an insurer 20. for a permission for voluntary termination of a re-insurer 21. for an approval of a member of a management or supervisory body of an insurer, as

well as of other entities under Article 13, paragraphs 1 and 2 of IC 22. for an approval of a member of a management or supervisory body of a mutual

insurance cooperative, as well as of other entities under Article 22 of IC 23. for an approval of a member of a management or supervisory body of a re-insurer,

as well as of other entities under Article 26 of IC 24. for an approval of a member of a management or supervisory body of an insurance

holding with a seat in the country, as well as of other entities under Article 27 of IC 25. for a permission for investment of assets to cover technical provisions under

Article 77, paragraph 1 of IC 26. for a permission under Article 108, paragraph 1, Article 112, paragraph 1 or under

Article 113, paragraph 1 of IC 27. for deletion from the registry under Article 30, paragraph 1, item 10 of FSCA of an

insurance broker at its request 28. for entry into the registry of an insurance agent under Article 30, paragraph 1, item

10 of FSCA through the insurer for which the agent performs agency services: for an agent - legal person for an agent - natural person and sole trader 29. for deletion from the registry of an insurance agent under Article 30, paragraph 1,

item 10 of FSCA at the agent's request or due to termination of the insurance agency contract through the insurer for which the agent performs agency services

for an agent - legal person for an agent - natural person and sole trader 30. for processing of a notification for acquisition or increase of a qualifying holding

in an insurer 31. for processing of a notification for acquisition or increase of a qualifying holding

in a re-insurer 32. for approval of the internal control head of an insurer, respectively a re-insurer 33. for the processing of documents 6. For issuance of licenses and permissions to perform business activities and other permits and approvals under the Social Security Code, as well as the entry and deletion of entities into/from the registry under Article 30, paragraph 1, item 12 of FSCA, as follows: No of line

Name of the fee

1. for a pension license 2. for a license of a company for supplementary voluntary social security for

unemployment and/or professional qualification 3. for a permission for the management of a fund for supplementary pension

insurance 4. for a permission for management of a fund for supplementary voluntary social

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security for unemployment and/or professional qualification 5. for a permission of acquisition or increase, directly and/or through related parties,

of a shareholding in a company for supplementary social security 6. for recognition of the legal capacity of a responsible actuary:

- examination fee - for issuance of a certificate

7. for an approval of a recovery programme for a company for supplementary social security

8. for an approval of biometric tables 9. for an approval of a technical interest rate 10. for an approval of the amendment of the rules for the organisation and operations

of a fund for supplementary social security 11. for a permission for reorganisation of a pension insurance company 12. for a permission for reorganisation of a company for supplementary voluntary

social security for unemployment and/or professional qualification 13. for a permission for reorganisation of a fund for supplementary social security 14. for a permission for voluntary termination of a company for supplementary social

security 15. for entry of an insurance intermediary – natural person, legal person or a person

authorised by an insurance intermediary – legal person into the registry under Article 30, paragraph 1, item 12 of FSCA through the pension insurance company with which the insurance intermediary has a contract to carry out the respective activity

16. for deletion of an insurance intermediary – natural person, legal person or a person authorised by an insurance intermediary – legal person from the registry under Article 30, paragraph 1, item 12 of FSCA through the pension insurance company with which the insurance intermediary has terminated a contract to carry out the respective activity

17. for the processing of documents 7. For issuance of licenses for the performance of activities and approvals under the Law on the Non-Bank Financial Institutions Providing Loans to Consumers (LNBFIPLC), as follows: No of line

Name of the fee

1. for a license for the performance of activities as a non-bank financial institution providing loans to consumers

2. for an approval under Article 10, paragraph 12 of LNBFIPLC 3. for a revocation of a license for the performance of activities as a non-bank

financial institution providing loans to consumers at the request of the financial institution

4. for the processing of documents 8. For issuance of confirmations of prospectuses for public offering of securities, for processing by the Financial Supervision Commission of a tender offer and of a buyout proposal, as follows: No of line

Name of the fee

1. for a confirmation of a prospectus for public offering of securities

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2. for issuance of a confirmation of a securities document and an executive summary under Article 82a of LPOS

3. for issuance of a confirmation of a base prospectus for public offering of securities under Article 86 of LPOS

4. for issuance of a confirmation of a supplement to a prospectus for public offering of securities under Article 85 of LPOS

5. for processing of a tender offer 6. for processing of a buyout proposal under Article 157a, paragraph 1 7. for the processing of documents

9. For provision of general financial supervision - processing of the mandatory on-going and periodic information and for performance of inspections, as follows: No of line

Fee for general financial supervision

1. by a public company and by other issuers 2. by a public company for each bond issue and by other issuers for each subsequent

bond issue 3. by a special purpose vehicle 4. by an investment intermediary under Article 8, paragraph 1 of MFIA with the

exclusion of the activity under Article 5, paragraph 2, item 8 of MFIA 5. by an investment intermediary under Article 8, paragraphs 2 and 3 of MFIA with

the exclusion of the activity under Article 5, paragraph 2, item 8 of MFIA 6. by an investment intermediary under Article 8, paragraph 4 of MFIA with the

exclusion of the activity under Article 5, paragraph 2, item 8 of MFIA 7. by a market operator, an investment intermediary, including an investment

intermediary bank for each multilateral trading facility 8. by an investment intermediary - bank, fees in the amounts set out in sub-items 4-7

depending on the services and activities under Article 5 of MFIA included in the scope of the obtained license to perform activities under the Credit Institutions Act

9. by a managing company under Article 86, paragraph 1 of LACISOCIU 10. by a managing company under Article 86, paragraphs 1 and 2 of LACISOCIU 11. by a collective investment scheme 12. by each sub-fund of a collective investment scheme 13. by a regulated market 14. by the Central Depository 15. by the Investor Compensation Fund 16. by the Guarantee Fund 17. by the National Bureau of Bulgarian Motor Insurers 18. by an insurer providing insurance for risks under Section I of Appendix No 1 with

or without an additional license for accident insurance or illness insurance 19. by an insurer providing insurance for risks under Section II of Appendix No 1 with

or without an additional license for insurance under Section I 20. by a re-insurer 21. by a mutual insurance cooperative 22. by an insurance broker 23. by a pension insurance company 24. by a supplementary social security fund on the basis of the number of insured 25. by a company for supplementary voluntary social security for unemployment

and/or professional qualification

30

26. by an insurance agent: - legal person - natural person and sole trader 27. by a closed-end national investment company under Article 172, paragraph 3 of

LACISOCIU 28. by a closed-end national investment fund managed by companies managing the

activities of such funds 29. by a open-end national investment fund managed by companies managing the

activities of such funds 30. by a person, other than a managing company, managing alternative investment

funds 31. by depository banks and other depositories 32. by any person subject to Regulation (EU) 648/2012 33. by a non-bank financial institution providing loans to consumers

§ 7. In the Law for Restricting Administrative Regulation and Administrative Control over Economic Activity (promulgated in the State Gazette, issue 55 of 2003; corrected, issue 59 of 2003; amended, issue 107 of 2003, issue 39 and 52 of 2004, issue 31 and 87 of 2005, issue 24, 38 and 59 of 2006, issue 11 and 41 of 2007, issue 16 of 2008, issue 23, 36, 44 and 87 of 2009, issue 25, 59, 73 and 77 of 2010, issue 39 and 92 of 2011, issue 26, 53 and 82 of 2012, and issue 109 of 2013) in the Appendix to Article 9, paragraph 1, item 2 and item 3, a new item 11 shall be inserted:

"11. Activity as a non-bank financial institution providing loans to consumers".

§ 8. In Article 2 of the Markets in Financial Instruments Act (promulgated in the State Gazette, issue 52 of 2007; amended, issue 109 of 2007, issue 69 of 2008, issue 24, 93 and 95 of 2009, issue 43 of 2010, issue 77 of 2011, issue 21, 38 and 103 of 2012, issue 70, and issue 109 of 2013, issue 22 of 2014), the words "Investment Supervision Division" shall be replaced with "Capital and Money Markets Supervision Division".

§ 9. In Article 3 of the Law on the Activities of Collective Investment Schemes and Other Collective Investment Undertakings (promulgated in the State Gazette, issue 77 of 2011; amended, issue 21, and issue 109 of 2012, issue 22 of 2014), the words "Investment Supervision Division" shall be replaced with "Capital and Money Markets Supervision Division".

§ 10. In Article 8, paragraph 1 of the Law on Public Offering of Securities (promulgated in the State Gazette, issue 114 of 1999; amended, issue 63 and 92 of 2000, issue 28, 61, 93 and 101 of 2002, issue 8, 31, 67 and 71 of 2003, issue 37 of 2004, issue 19, 31, 39, 103 and 105 of 2005, issue 30, 33, 34, 59, 63, 80, 84, 86 and 105 of 2006, issue 25, 52, 53 and 109 of 2007, issue 67 and 69 of 2008, issue 23, 24, 42 and 93 of 2009, issue 43 and 101 of 2010, issue 57 and 77 of 2011, issue 21, 94 and 103 of 2012, and issue 109 of 2013), the words "Investment Supervision Division" shall be replaced with "Capital and Money Markets Supervision Division".

§ 11. In Article 15, paragraph 4 of the Law on Measures Against Market Abuse

with Financial Instruments (promulgated in the State Gazette, issue 84 of 2006, amended, issue 52 of 2007, issue 21 of 13 March 2012), the words "Investment Supervision Division" shall be replaced with "Capital and Money Markets Supervision Division".

31

§ 12. In the Supplementary Supervision of Financial Conglomerates Act (amended,

issue 52 of 2007, amended, issue 77 and issue 105 of 4 October 2011, issue 70 of 9 August 2013, issue 27 of 2014), the following amendments shall be made:

1. In Article 23, paragraph 4 and paragraph 5, the words "Investment Supervision Division" shall be replaced with "Capital and Money Markets Supervision Division".

2. In § 2 of the Additional Provisions, the words "Investment Supervision Division" shall be replaced with "Capital and Money Markets Supervision Division".

§ 13. In Article 1 of the Law on State Fees (promulgated, amended, issue 104 of 1951;

amended, issue 89 of 1959, issue 21 of 1960; State Gazette, issue 53 of 1973, issue 87 of 1974, issue 21 of 1975, issue 21 of 1990, issue 55 of 1991, issue 100 of 1992, issue 69 and 87 of 1995, issue 37, 100 and 104 of 1996, issue 82 and 86 of 1997, issue 133 of 1998, issue 81 of 1999, issue 97 of 2000, issue 62, 63 and 90 of 2002, issue 84 and 86 of 2003, issue 24, 36 and 37 of 2004, issue 43 of 2005, issue 18 and 33 of 2006, issue 43 of 2008, issue 74 and 82 of 2009, issue 55 and 99 of 2011, and issue 68 of 2013), in paragraph 1 the words "or by another body, determined by law" shall be inserted after the word "council".

§ 14. In Article 203 of the Social Security Code (promulgated in the State Gazette,

issue 110 of 1999; Resolution No 5 of the Constitutional Court of 2000 – issue 55 of 2000; amended, issue 64 of 2000, issue 1, 35 and 41 of 2001, issue 1, 10, 45, 74, 112, 119 and 120 of 2002, issue 8, 42, 67, 95, 112 and 114 of 2003, issue 12, 21, 38, 52, 53, 69, 70, 112 and 115 of 2004, issue 38, 39, 76, 102, 103, 104 and 105 of 2005, issue 17, 30, 34, 56, 57, 59 and 68 of 2006; corrected, issue 76 of 2006; amended, issue 80, 82, 95, 102 and 105 of 2006, issue 41, 52, 53, 64, 77, 97, 100, 109 and 113 of 2007, issue 33, 43, 67, 69, 89, 102 and 109 of 2008, issue 23, 25, 35, 41, 42, 93, 95, 99 and 103 of 2009, issue 16, 19, 43, 49, 58, 59, 88, 97, 98 and 100 of 2010; Resolution No 7 of the Constitutional Court of 2011 – issue 45 of 2011; amended, issue 60, 77 and 100 of 2011, issue 7, 21, 38, 40, 44, 58, 81, 89, 94 and 99 of 2012, issue 15, 20, 70, 98, 104, 106, 109 and 111 of 2013, issue 1 and 18 of 2014), the following amendments are made:

1. The existing text shall become paragraph 1. 2. A new paragraph 2 shall be inserted: "(2) All costs for the management of funds for supplementary mandatory pension

insurance shall be at the expense of the pension insurance company managing such funds, with the exclusion of the costs for acquisition and sale of assets and the annual fee for provision of general financial supervision to the fund."

§ 15. (1) The employment relationship of the civil servants in the administration of the

Financial Supervision Commission shall be transformed into permanent employment relationships. If the elapsed until the time of transformation of the employment relationship probationary period under Article 12 of the Law on Civil Servants is less than 6 months, it shall be included in the probationary period under Article 70 of the Labour Code, while if the elapsed period exceeds 6 months, it shall be assumed that the probationary period under Article 70 of the Labour Code has elapsed.

(2) The unused paid leave under the employment relationship shall be retained and shall not be compensated with monetary compensations.

§ 16. Any judicial proceedings related to appeal of individual administrative acts of the

Chairperson of the Financial Supervision Commission initiated before the enforcement of this Law shall be completed following the previously existing procedure.

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§ 17. The Financial Supervision Commission shall approves the budget submitted by the Chairperson of the Financial Supervision Commission by 30 November 2014 and shall submit it to the National Assembly in compliance with the provisions of § 6, item 23.

§ 18. Within four months of the enforcement of this Law, the Financial Supervision

Commission shall adopt and promulgate in the State Gazette the Rules under Article 10, paragraph 6 of the Financial Supervision Commission Act and the Tariff on the fees under Article 27, paragraph 2 of the Financial Supervision Commission Act. The Rules under Article 10, paragraph 6 of the Financial Supervision Commission Act and the Tariff on the fees under Article 27, paragraph 2 of the Financial Supervision Commission Act shall become effective as of 1 January 2015.

§ 19. The Law shall become effective as of ............................., with the exception of §

6, item 2, 4, 5, item 6 b. "b", 16, 17, 19, item 20 – 25, item 27 and § 15 which shall become effective as of ..............