Country _ Name
Bulgaria
SectionTitle
Asset and portfolio management
Body
FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.

Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.

Introduction

Attitude of the country towards modern asset and portfolio management services

FinTechs belonging to this category offer asset and portfolio management services via an internet platform or software programs and usually manage and dispose of the assets of their customers long or short term according to their specifications without actually holding the property or the possession of those assets. FinTechs, which provide information about and access to overnight or time deposit accounts at national and foreign banks and which execute the transactions to these accounts, also belong to this category. Some FinTechs however only act on request of the customer.

Aside from that some FinTechs offer software or internet solutions enabling users to manage and plan their personal finances on their own by providing graphics, overviews and compilations of their financial data and sometimes indicating financial risks or opportunities, but without actually managing the assets.



Legal affairs

Obligations and requirements to provide asset and portfolio management, or ancillary services described above

Asset and portfolio management is executed by Management companies. The latter shall comply with the requirements of the Collective Investment Schemes and Other Undertakings for Collective Investments Act (CISOUCIA), additional licensing requirements stipulated in Ordinance 11/03.12.2003, Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on the prudential requirements of investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014. A large number of national and EU regulations regarding the activity of the company shall also be complied with. No specific FinTech regulation is in place.

The initial capital requirement for setting up a management company is EUR 125,000.00. The capital shall be compliant with the requirements of art. 9 of Regulation (EU) 2019/2033 and consisting of one or more of the elements of art. 26 of Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012. Management companies, including their management and UBOs, shall also comply with reputational and good-standing requirements.

The national supervising authority is the Financial Supervision Commission (FSC) which also issues licenses to the Management companies. The licensing fee is BGN 6,450.00 (approx. EUR 3,300.00) with an annual supervising fee between BGN 3,200.00 and 4,100.00 (approx. EUR 1,600 and 2000), depending on the scope of the activity of the company.



Additional comments regarding the legal situation for asset and portfolio management services or what FinTech’s must be aware of in this business area

N/A



Economic conditions

Market size for asset and portfolio management services and biggest companies in this business area

Investment demand for asset and portfolio management services is not particularly large in Bulgaria. In recent years, however, this demand has been slowly but steadily increasing.

As of today, a total of 31 Management companies are operating in Bulgaria, which together with some EU-based platforms for self-managed investments, appear to satisfy the investment needs in the country. There are a little less than 60 investment intermediaries operating in the country.

The development of full-scale FinTech solutions in the sector could probably increase demand and increase the market scope.  



Additional comments regarding the economic situation for asset and portfolio management services or what FinTech’s must be aware of in this business area

N/A



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