FSC Financial Supervision Commission

The Financial Supervision Commission (FSC) was established on 1 March 2003, via the Financial Supervision Commission Act, as a distinct body independent of the executive branch, and reports directly to the National Assembly of the Republic of Bulgaria.

The responsibility of the FSC is to regulate and supervise the non-banking financial system, which includes the capital market, insurance, health insurance, and pension insurance markets.

Mission

The mission of the Commission is to promote stability and transparency in these markets and to ensure that the rights and interests of users of financial services and products are protected.

The Commission's mission is to promote stability and transparency in these markets and to protect the rights and interests of consumers of financial services and products. The Commission does this through legal, administrative, and information tools designed to ensure that market participants act appropriately.

Regulatory activity

The Commission has the primary responsibility to develop and adopt regulations and secondary legislation necessary to effect diversified financial supervision. It also provides guidance and instruction that clarifies the application of existing codes and laws.

The Commission, in regulating, is guided by European legislation, norms, and practices; the Commission is also required to make amendments to legislation when the financial system changes, when new products and technologies are developed, or when gaps exist in the existing legislative framework of the systems.

Licensing regime

The Commission, as part of its supervisory responsibility, is to have a licensing regime that treats all applicants equitably and under the same standard. In processing applications under its licensing regime, the Commission must examine the applications and supporting documents to determine whether they meet the legal requirements.

This includes reviewing the capital adequacy and capital structure documents, which outline the contributory resources, prohibitions on connections between persons or institutions, and the requisite standards for management and supervisory bodies.

Supervision

The supervisory function occurs both off-site and on-site, serving to determine compliance, financial soundness, and the accuracy of the information marketed. The objective is to prevent breaches of the law and remedy existing violations to achieve protection for investors, insurers, and insured individuals.

Sanctions

Where breaches of the law are identified, the Commission has the authority to impose administrative sanctions. Administrative sanctions can include remedial recommendations, financial sanctions (fines), and property sanctions, which are designed to ensure accountability and compliance within the financial sector.