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1. Banking Union
а) Application
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- Preparation of a letter of application, proposals for legislative amendments and accompanying documents for the Council of Ministers
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Completed
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MoF, BNB
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- Council of Ministers’ Decision
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- Sending the letter together with the enclosed legislative proposals
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b) Preparation
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- Amendments to the following laws passed by the National Assembly:
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Completed
Completed
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MoF, BNB
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Periodic adoption of EBA guidelines by the BNB in correspondence to the good practices in the SSM member countries
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March 2019
(under implementation)
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- Assessment of supervision/secondary legislation
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May 2019
(under implementation)
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Completed
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BNB
MoF, ECB (SSM)
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2. Macro-prudential Supervision
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- Adoption of legislative amendments by the National Assembly in order to introduce borrower-based macro-prudential tools in the Law on Credit Institutions
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Completed
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MoF, BNB
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3. Non-banking Supervision
а) Implementation and reporting of the action plan on the supervision of the non-banking sector (pension funds and insurers) adopted by the Financial Supervision Commission in September 2017
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- Provision of the action plan on the supervision of the non-banking sector (pension funds and insurers) to the Ministry of Finance by the Financial Supervision Commission
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- Action plan on the supervision of the non-banking sector (pension funds and insurers) provided to the Ministry of Finance by the Financial Supervision Commission
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Completed
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Financial Supervision Commission
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b) Preparation of guidelines/methodical instructions for valuation of assets (non-liquid assets) and liabilities in the non-banking sector
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- Elaboration and implementation by the Financial Supervision Commission of the secondary pension fund-related legislation – creating an obligation for documentation of the process of determining the risk premium of debt securities evaluated under the discounted cash flow method; introduction of professional experience requirements to the independent evaluator of the real estate owned by pension funds, as well as requirements to the methods used for valuation thereof;
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- Ordinance amending and supplementing Ordinance No 9 of 19 November 2003 on the manner and procedure for valuation of assets and liabilities of additional pension insurance funds and of the pension insurance company, of the value of the fund’s net assets, for calculation and announcement of the value of one share and for the requirements to keeping individual batches prepared and adopted by the Financial Supervision Commission.
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Completed
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Financial Supervision Commission
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- Elaboration and implementation by the Financial Supervision Commission of secondary legislation related to insurers: with regard to the insurers’ accountability under IAS about the manner and procedure for valuation of the assets and liabilities of insurers and re-insurers by further developing the requirements to the valuation of some asset values that are difficult to be determined and introduction of requirements for the professional experience of the independent evaluator of the real estate owned by insurers and re-insurers, as well as for the methods used for the valuation thereof;
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Completed
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Financial Supervision Commission
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- Cooperation with the Bulgarian Institute of Chartered Accountants implementing the EIOPA Guidelines on facilitating an effective dialogue between competent authorities supervising insurance undertakings and statutory auditor(s) and the audit firm(s) carrying out the statutory audit of those undertakings (EIOPA-16/858) in order to adopt joint instructions with FSC to auditors that should become obligatory for audit undertakings and applicable when performing IAS and ISRS 4400 audits.
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- Joint instructions of the FSC and the Bulgarian Institute of Chartered Accountants to auditors which are applicable when performing IAS and ISRS 4400 audits elaborated and adopted.
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Completed
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Financial Supervision Commission
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c) Elaboration and implementation of a risk-based system of supervision in accordance with Solvency II
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- Improvement in the supervisory work of the Financial Supervision Commission by introducing requirements for risk-based supervision:
- Elaboration and endorsement by the Financial Supervision Commission of a draft manual for risk-based supervision of the activity of pension insurance companies and of the pension funds they manage, as well as of pension fund custodian banks, which sets out indicators and processes relevant to the additional pension insurance model.
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- Risk-Based Supervision Manual elaborated and endorsed
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Completed
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Financial Supervision Commission
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- System of criteria for categorisation of insurance companies according to their risk degree and systemic importance adopted and updated. Comprehensive review of the Financial Supervision Commission’s internal procedure for risk-based supervision of insurance companies.
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- Order No 343 of 12 October 2017 of the Financial Supervision Commission endorsing a system of criteria for categorisation of insurance companies according to their risk degree and systemic importance.
- Practical testing of the system of criteria in 2018 and update of internal documents on the basis of the results.
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Completed
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4. Insolvency Framework
1) Reform of the existing insolvency framework
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Completed
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Ministry of Justice, Supreme Judicial Council, Ministry of Economy, Ministry of Finance
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- Project launch – establishing a working group
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Completed
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- Revision of the existing insolvency and stabilisation framework and finding any shortcomings and obstacles to the system’s effectiveness; giving recommendations for addressing the weaknesses identified on the basis of a comparative analysis with other Member States
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- Review of legislation and recommendations given
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Completed
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- Review of the existing system for data collection and publication and defining a data collection and publication strategy; making recommendations for improved data collection and publication; selection of a data collection and publication model on the basis of the Member States’ best practices; legislative amendments in view of integrating the model
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- Model of an effective data collection and publication e-system for the insolvency and stabilisation procedures elaborated
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Completed
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- Drawing up a road map on the implementation of the recommendations relating to the insolvency framework and on the introduction of the data collection and publication model
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- Road map with a time frame, participants and activities for implementation of the recommendations and the proposed model for data collection and publication and the related legislative amendments;
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Completed
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- Training of trainers, trustees and fiduciaries
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- Training programmes and hand-outs elaborated and capacity strengthening activities conducted
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Completed
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| 2) Training of judges |
- Development of self-learning resource (practical handbook) on the stabilization and insolvency procedures.
- Trainings of judges by appellate regions
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Completed
Completed
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National Institute of Justice |
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5. Anti Money Laundering Framework
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- Addressing any potential problems identified by the Commission in the evaluation of the transposition of Directive (EU) 2015/849 of European Parliament and of the Council of 20 May 2015 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, amending Regulation (EU) No 648/2012 of the European Parliament and of the Council, and repealing Directive 2005/60/EC of the European Parliament and of the Council and Commission Directive 2006/70/EC (AMLD 4)
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- Legislation adopted by the National Assembly
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Completed
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State Agency for National Security and Ministry of Interior – head institutions, Ministry of Finance, Registry Agency, Ministry of Justice, Bulgarian National Bank, Financial Supervision Commission, etc. – supporting institutions
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- Council of Ministers’ approval of a draft law transposing Directive (EU) 2018/843 of the European Parliament and of the Council of 30 May 2018 amending Directive (EU) 2015/849 on the prevention of the use of the financial system for the purposes of money laundering or terrorist financing, and amending Directives 2009/138/EC and 2013/36/EU (AMLD 5).
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- Legislation adopted by the National Assembly
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Completed
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6. Modernisation of the framework for management of state-owned enterprises in line with the good international practices
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Completed
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Ministry of Finance, OECD, European Commission, all ministries, NSI, municipalities
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- Design proposal for project implementation drafted by OECD
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Completed
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- Gathering information about the status of the sector on the basis of questionnaires
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Completed
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- Fact finding OECD mission to Bulgaria aiming to draft a preliminary report on the framework of state-owned enterprises
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- Fact finding OECD mission to Bulgaria aiming to draft a preliminary report on the framework of state-owned enterprises
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Completed
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- Discussing practices and reform priorities within the OECD working group
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- Meeting of the OECD working group held and a detailed first report on the status of state-owned enterprises drafted
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Completed
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- Launching the work on drafting proposals for legislative amendments and conducting a second mission examining the facts in the review of the state-owned enterprises and engaging with the institutions involved in the project
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- A second OECD mission conducted to discuss the report on the status of state-owned enterprises
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Completed
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- Conducting a meeting of the working group with Bulgarian representatives to arrive at a conclusion on Bulgaria’s position regarding the guidelines for state-owned enterprises
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- Meeting of the OECD working group held
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Completed
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- Conducting a third mission to present the outcome of the working group discussions and finalising the proposals for legislative amendments
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- Third mission conducted and finalising the proposals for legislative amendments in the area
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Completed
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- Preparing a draft law and the accompanying documents for submission to the Council of Ministers for consideration
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- Draft law and accompanying documents prepared; reconciliation procedure held under the Rules of Procedure of the Council of Ministers and Its Administration
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Completed
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- Submission for consideration by the Council of Ministers
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- Draft law approved by the Council of Ministers
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Completed
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- Submission of the draft law for consideration by the National Assembly
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- Law passed by the National Assembly
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Completed
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7. Law Ratifying the Agreement on the Transfer and Mutualisation of Contributions to the Single Resolution Fund
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- Inter-institutional co-ordination
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Completed
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MoF
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- Adoption of a ratifying law
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Ratifying law passed by the National Assembly
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Completed
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