Ordinance No. 7 of 27.05.2021 on the Procedure for Acquiring, Recognizing, and Revoking the Qualification of Financial Instrument Brokers and Investment Consultants

ORDINANCE No. 7 of 27.05.2021 on the Procedure for Acquiring, Recognizing, and Revoking the Qualification of Financial Instrument Brokers and Investment Consultants

Pub. - State Gazette, No. 48 of 08.06.2021; amended, No. 29 of 31.03.2023; amended, No. 51 of 24.06.2025, effective from 01.07.2025; amended, No. 65 of 08.08.2025, effective from 08.08.2025.

Adopted by Decision No. 215-N of 27.05.2021 of the Financial Supervision Commission

Chapter One GENERAL PROVISIONS

Art. 1. This Ordinance regulates the procedure for acquiring, recognizing, and revoking the qualification of financial instrument brokers and investment consultants, as well as additional requirements for the activities carried out by them.

Art. 2. A financial instrument broker is a natural person who, under a contract with an investment intermediary, directly receives and transmits orders in connection with one or more financial instruments, executes orders on behalf of clients of the investment intermediary, and concludes transactions with financial instruments for the own account of the investment intermediary on a regulated market or off-market, concludes contracts under Art. 82, para. 1 of the Law on Markets in Financial Instruments (LMFI), and provides information under Art. 77, para. 9 of the same law.

Art. 3. An investment consultant is a natural person who, under a contract with an investment intermediary, management company, investment company, pension insurance company, national investment fund, affiliated agent, person managing alternative investment funds, or with another person who is required by law to conclude a contract with an investment consultant, provides investment advice regarding financial instruments, provides portfolio management services, and concludes contracts under Art. 82, para. 1 of the LMFI, receives client orders, and provides information under Art. 77, para. 9 of the LMFI.

Art. 4. A financial instrument broker and an investment consultant do not have the right, simultaneously with exercising the activity under Art. 2, respectively Art. 3, to conclude other commercial transactions as a profession in their own capacity or on behalf of and for the account of another merchant, if a conflict of interest may arise or if the rules on personal transactions of the employees of the company for whose account they exercise the activity under Art. 2, respectively Art. 3, may be violated. The exercise of such activity shall be terminated no later than on the date on which a contract under Art. 20, para. 1 or 2 is concluded, or upon the occurrence of a circumstance under the first sentence, and may be exercised after the termination of the contract.

Art. 5. A person acquires the right to exercise the activity as a financial instrument broker, respectively as an investment consultant, who meets the corresponding requirements under Art. 77, para. 5, items 1 and 2 of the LMFI and:

1. has successfully passed an exam for acquiring the right to exercise the activity as a financial instrument broker, respectively as an investment consultant, organized by the Financial Supervision Commission (the Commission) in accordance with Chapter Two, and is entered in the register under Art. 30, para. 1, item 8 of the Law on the Financial Supervision Commission (LFSC); or
2. has acquired a qualification that meets the requirements included in the thematic scope of the corresponding exam, certified by a document issued by a competent foreign certifying body or organization for an acquired degree, diploma, or other certificate, recognized by the Commission in accordance with Chapter Three, and is entered in the register under Art. 30, para. 1, item 8 of the LFSC.

Chapter Two PROCEDURE FOR ACQUIRING THE RIGHT TO EXERCISE ACTIVITY AS A FINANCIAL INSTRUMENT BROKER OR AS AN INVESTMENT CONSULTANT

Art. 6. (1) The Financial Supervision Commission, upon proposal of the Deputy Chairman of the Commission, heading the "Supervision of Investment Activity" Directorate (the Deputy Chairman), by decision:

1. schedules a date in accordance with Art. 7, para. 1 for holding an exam for acquiring the right to exercise the activity as a financial instrument broker or as an investment consultant;
2. approves the thematic scope of the exam, the procedure for its holding, and the rules for assessment;
3. determines the deadline for submitting applications for admission to the exam, which shall not be shorter than one month.

(2) The decision under para. 1 shall be published on the Commission's website no later than 3 months before the date of holding the exam. The decision under para. 1 may also be published in another suitable manner.

Art. 7. (Amended - State Gazette, No. 29 of 2023) (1) (Amended - State Gazette, No. 29 of 2023) The Financial Supervision Commission organizes the holding of exams once a year in the month of May. The Commission may, by decision, organize the holding of exams more than once a year.

(2) The exam is written and anonymous. The method of conducting the exam is by solving a test.

Art. 8. (1) The exam is conducted by an exam commission consisting of no fewer than three members. The procedure for the work and the composition of the exam commission are determined by a decision of the Commission.

(2) The composition of the exam commission includes persons with professional qualification and experience in the field of capital markets.

Art. 9. (1) The results of the exam are recorded in a protocol with an assessment in accordance with the assessment rules. The protocol is signed by all members of the exam commission. The assessments are final and not subject to review.

(2) The results of the exam are published on the Commission's website within 10 working days from the date of holding the exam, in compliance with personal data protection rules, and the names of those who passed are also published. The results of the exam may also be published in another suitable manner.

(3) Within 10 working days from the announcement of the results under para. 1, a person who did not pass the exam may submit a request to the Commission to review the results of the check of their written work.

(4) The person reviews the results of the check of their written work in person in the presence of a member of the exam commission and an official from the Commission's administration, designated by order of the Chairman of the Commission.

Art. 10. (Added - State Gazette, No. 65 of 2025, effective from 08.08.2025) (1) A person who wishes to acquire the right to exercise the activity as a financial instrument broker or as an investment consultant, within the deadline under Art. 6, para. 1, item 3, submits an application for admission to the exam to the Commission in the form according to Annex No. 1 for a financial instrument broker or Annex No. 2 for an investment consultant.

(2) The application contains:

1. the name and unified civil number (personal number, foreigner's personal number, or date and place of birth) of the person;
2. data on the series and number of the diploma for acquired education; for a secondary education diploma not issued by a school in the Republic of Bulgaria, the number of the certificate for recognition of the acquired education issued by the expert commission to the respective regional education administration is also indicated; for a higher education diploma not issued by a higher education institution in the Republic of Bulgaria, the number of the certificate for recognition of the acquired higher education, entered in the register for academic recognition kept by the National Center for Information and Documentation (NCID), is also indicated, where applicable;
3. information on commercial activity carried out by the person;
4. an electronic address and an address for correspondence with the person.

(3) The following are attached to the application:

1. a certificate of no criminal record or another similar document - for persons who are not Bulgarian citizens, while for Bulgarian citizens, the absence of conviction is established ex officio;
2. a notarized copy of a diploma for completed secondary education in the country before 1.01.2007, respectively for completed higher education in the country before 1.01.2012; for a secondary education diploma not issued by a school in the country, notarized copies of the diploma and the certificate for recognition of the education issued by the expert commission to the respective regional education administration are attached; a diploma not issued by a higher education institution in the country and the certificate for recognition of the education not entered in the register for academic recognition kept by NCID - a notarized copy of the certificate for recognition is attached, unless the conditions under para. 4 are met;
3. a declaration on the circumstances under Art. 13, para. 4, items 2-4, 6 and 7 in conjunction with Art. 77, para. 5, item 2 of the LMFI in the form according to Annex No. 3;
4. a detailed biographical statement.
5. (New - State Gazette, No. 65 of 2025, effective from 08.08.2025) a document certifying the payment of the due fee, according to Ordinance No. 76 of 12.06.2025 on the fees collected by the Financial Supervision Commission (State Gazette, No. 51 of 2025), unless paid electronically.

(4) When, at the date of submission of the application, the higher education diploma of a person applying for admission to the exam has not been issued or the higher education completed by the person has not been recognized in the corresponding manner, documents certifying that a diploma for completed education is to be issued to the person or that such education is to be recognized in the corresponding manner are attached to the application.

Art. 11. (1) When the submitted data and documents are incomplete or additional information or evidence for the accuracy of the data is required, the Deputy Chairman sends a message to the person at the electronic address indicated in the application and sets a deadline for eliminating the established incompleteness and discrepancies or for submitting additional information and documents, which shall not be shorter than 10 working days and not longer than one month.

(2) The Financial Supervision Commission, upon proposal of the Deputy Chairman, rules on the application within one month from its submission, and when additional information and documents have been requested - within one month from their receipt, respectively from the expiration of the deadline under para. 1.

(3) The Financial Supervision Commission publishes the decisions under para. 2 on its website in compliance with personal data protection rules, and the names of persons admitted to the exam are also published.

(4) The person who submitted the application for admission to the exam is notified of the decision taken within 3 days at the electronic address indicated in the application.

Art. 12. The Financial Supervision Commission, upon proposal of the Deputy Chairman, refuses admission to the exam when:

1. the person does not meet the corresponding requirements under Art. 77, para. 5, items 1 and 2 of the LMFI;
2. less than 3 years have passed from the entry into force of the decision under Art. 23, para. 1, item 1;
3. in the cases under Art. 10, para. 4, it cannot be established that the person will meet the corresponding requirement under Art. 77, para. 5, item 1 of the LMFI;
4. it is established that the person has submitted false data or documents with false content.

Art. 13. (Amended - State Gazette, No. 51 of 2025, effective from 01.07.2025) (1) (Repealed - State Gazette, No. 51 of 2025, effective from 01.07.2025).

(2) (Amended - State Gazette, No. 51 of 2025, effective from 01.07.2025) The right to appear for the exam is granted to persons who have been admitted to the exam.

(3) A person who has successfully passed the exam receives a certificate for the right to exercise the activity as a financial instrument broker or as an investment consultant.

Chapter Three PROCEDURE FOR RECOGNITION OF ACQUIRED QUALIFICATION

Art. 14. (Amended - State Gazette, No. 51 of 2025, effective from 01.07.2025) (1) A person who wishes to acquire the right to exercise the activity as a financial instrument broker or as an investment consultant and has acquired a qualification that meets the requirements included in the thematic scope of the corresponding exam, certified by a document issued by a competent foreign certifying body or organization for an acquired degree, diploma, or other certificate, submits an application to the Commission for recognition of the qualification by the Commission in the form according to Annex No. 4 for a financial instrument broker or Annex No. 5 for an investment consultant.

(2) The application contains the information under Art. 10, para. 2.

(3) To the application under para. 1, in addition to the documents under Art. 10, para. 3, the following are attached:

1. a copy of a document for acquired degree, diploma, or other certificate certifying the acquired qualification;
2. information on the competent foreign certifying body or organization that issued the document certifying the acquired qualification, and information on the thematic scope of the exams taken;
3. information on other data, conditions, or restrictions related to the acquired qualification, not included in the document under item 1;
4. a declaration on the truthfulness of the data indicated by the person and on their knowledge of the criminal liability for submitting false data, which is borne under the Penal Code, in the form according to Annex No. 6;
5. (Amended - State Gazette, No. 51 of 2025, effective from 01.07.2025) a document for payment of a fee for recognition of acquired qualification according to Ordinance No. 76 of 12.06.2025 on the fees collected by the Financial Supervision Commission (State Gazette, No. 51 of 2025), if not paid electronically.

(4) Art. 11 applies mutatis mutandis.

(5) The Commission's decision on recognition of qualification is published on its website, indicating the name of the person to whom the qualification is recognized.

Art. 15. The Financial Supervision Commission, upon proposal of the Deputy Chairman, refuses recognition of acquired qualification when:

1. the person does not meet the corresponding requirements under Art. 77, para. 5, items 1 and 2 of the LMFI;
2. a substantial difference is established between the qualification for which recognition is sought and the requirements regarding the thematic scope of the exam for acquiring the right to exercise the activity as a financial instrument broker or as an investment consultant;
3. it is established that the body or organization that issued the document for the acquired qualification does not have the necessary competence to provide this qualification;
4. there is a regulatory or other restriction due to which the acquired qualification cannot be recognized;
5. the conditions under Art. 16 are met;
6. it is established that the person has submitted false data or documents with false content.

Art. 16. In cases of revocation of the right to exercise the activity, the person to whom the qualification was recognized under the procedure of this Chapter cannot apply again for recognition of the same qualification and on the same grounds.

Art. 17. A person to whom a qualification is recognized under the procedure of this Chapter receives a certificate for exercising the activity as a financial instrument broker or as an investment consultant.

Chapter Four CERTIFICATE. REGISTER AND NOTIFICATION

Art. 18. (Amended - State Gazette, No. 51 of 2025, effective from 01.07.2025) (1) The certificate for exercising the activity as a financial instrument broker, respectively as an investment consultant, contains:

1. the name and unified civil number (personal number, foreigner's personal number, or date and place of birth) of the person;
2. indication of the activity that the person has the right to exercise;
3. the legal basis for issuing the certificate;
4. signature of the Chairman of the Commission and seal;
5. date of issue and number of the certificate.

(2) The certificate is issued on paper in a form approved by the Commission.

(3) (Amended - State Gazette, No. 51 of 2025, effective from 01.07.2025) The certificate, respectively the duplicate of the certificate, is received against presentation of a document certifying the deposit of the corresponding fee for issuing the certificate or duplicate of the certificate in the amount determined in Ordinance No. 76 of 12.06.2025 on the fees collected by the Financial Supervision Commission (State Gazette, No. 51 of 2025).

(4) The certificate of a person under Art. 10, para. 4, who has passed the exam, is issued after submission to the Commission of the information under Art. 10, para. 2, item 2 regarding the acquired higher education.

(5) A duplicate of the certificate is issued by the Commission upon request of the person if the certificate has been stolen, lost, damaged, or destroyed. Upon receiving the duplicate, the person returns the original of the certificate, if it is at their disposal.

Art. 19. (1) In the register under Art. 30, para. 1, item 8 of the LFSC, persons who have acquired the right to exercise the activity as a financial instrument broker, respectively as an investment consultant, are entered ex officio within 7 days from the acquisition, respectively from the recognition of the right to exercise the activity.

(2) In the cases under Art. 10, para. 4, the entry is made after submission of the information under Art. 10, para. 2, item 2 regarding the acquired higher education.

Art. 20. (1) Financial instrument brokers notify the Commission of the date of conclusion of a contract with an investment intermediary for holding the position under Art. 77, para. 3, item 2 of the LMFI within 7 days from the conclusion.

(2) Investment consultants notify the Commission of the date of conclusion of a contract with a person under Art. 3 for holding a position for which the law requires possession of the corresponding qualification, within 7 days from the date of conclusion.

(3) To the notification under para. 1, respectively para. 2, a certified copy of the contract between the financial instrument broker and the investment intermediary, respectively between the investment consultant and the person under Art. 3, is attached, and in case the same does not contain information on the held position, another document certifying this circumstance.

(4) Financial instrument brokers and investment consultants notify the Commission of the date of termination of the contract under para. 1, respectively para. 2, within 7 days from the termination, indicating also the grounds for termination.

Art. 21. (1) Annually, by 30 June of the current year, financial instrument brokers, respectively investment consultants, who do not have an active and entered in the register under Art. 30, para. 1, item 8 of the LFSC contract with an investment intermediary, respectively with a person under Art. 3, submit to the Commission a notification regarding the activity carried out by them during the previous year, which requires knowledge in the field of financial markets, corresponding to those required for exercising the activity as a financial instrument broker, respectively as an investment consultant.

(2) To the notification under para. 1, certification documents for the activity carried out by the person are attached. When there is no change in the activity from a previously submitted notification, certification documents may not be attached.

(3) In the cases under para. 1, a person who holds certificates for exercising the activity as a financial instrument broker and as an investment consultant submits only one notification.

(4) A person who holds certificates for exercising the activity as a financial instrument broker and as an investment consultant does not submit a notification under para. 1 when they have notified the Commission under the procedure of Art. 20, para. 1 or 2.

(5) The Deputy Chairman may require the submission of additional data and documents certifying the activity carried out by the person under para. 1, within a deadline determined by them.

Art. 22. (1) Financial instrument brokers, respectively investment consultants, notify the Commission of:

1. a change in their electronic address and address for correspondence;
2. a change in the circumstances that served as the basis for issuing a certificate for exercising the activity as a financial instrument broker, respectively as an investment consultant;
3. the occurrence of other circumstances subject to entry in the register under Art. 30, para. 1, item 8 of the LFSC, respectively changes in these circumstances.

(2) The obligation under para. 1 is fulfilled within 7 days from the occurrence, respectively from the knowledge of the corresponding circumstance, and when the circumstance is subject to entry in the commercial register - from the entry.

(3) The notification under para. 1 indicates the corresponding data and attaches documents, where applicable.

Chapter Five REVOCATION OF THE RIGHT TO EXERCISE ACTIVITY AS A FINANCIAL INSTRUMENT BROKER OR AS AN INVESTMENT CONSULTANT

Art. 23. (1) The Financial Supervision Commission, upon proposal of the Deputy Chairman, by decision may revoke the right to exercise the activity of a financial instrument broker or an investment consultant who:

1. has submitted false data or documents with false content, which served as the basis for admission to the exam or for recognition of acquired qualification;
2. ceases to meet the requirements for acquiring or recognizing the right to exercise the activity as a financial instrument broker or as an investment consultant;
3. has not exercised the activity for more than three consecutive years from the acquisition or recognition of the right to exercise the activity as a financial instrument broker or as an investment consultant, or from the termination of the contract with an investment intermediary, respectively with a person under Art. 3, and has not successfully passed an exam in accordance with para. 2, unless during this period the person carried out activity that requires knowledge in the field of financial markets, corresponding to those required for exercising the activity as a financial instrument broker, respectively as an investment consultant, and for this activity has submitted a notification under Art. 21, para. 1;
4. has submitted a written request for this to the Commission.

(2) Before the right to exercise the activity under para. 1, item 3 is revoked, the person has the right to appear for an exam for acquiring the right to exercise the activity as a financial instrument broker, respectively as an investment consultant, on the first scheduled date after the expiration of three consecutive years during which they did not exercise the corresponding activity. Art. 10 applies mutatis mutandis.

(3) Upon revocation of the right to exercise the activity under para. 1, the person may apply for its acquisition again in accordance with and under the conditions of Art. 10 - 13.

(4) Upon revocation of the right to exercise the activity under para. 1, item 1, the person may apply for its acquisition again no earlier than 3 years from the entry into force of the decision on revocation.

Art. 24. (1) The decision under Art. 23, para. 1 is entered ex officio in the register under Art. 30, para. 1, item 8 of the LFSC. The notification on revocation of the right to exercise the activity, containing the name of the person and the date of issue and number of the certificate for exercising the activity, is published on the Commission's website on the day of taking the decision. The notification may also be published in another suitable manner.

(2) The financial instrument broker or investment consultant, as well as the investment intermediaries, respectively the persons under Art. 3, with whom a contract for holding a position is concluded, for which the law requires possession of the corresponding qualification, are notified immediately at their electronic addresses of the decision taken on revocation of the right to exercise the activity as a financial instrument broker or as an investment consultant.

(3) A person with a revoked right to exercise the activity as a financial instrument broker, respectively as an investment consultant, has no right to carry out activity as a financial instrument broker, respectively as an investment consultant, from the date of the Commission's decision on revocation of the right to exercise the activity.

(4) The financial instrument broker or investment consultant is obliged to return the certificate to the Commission within 14 days from the date of the decision under para. 3.

Chapter Six ADMINISTRATIVE PENALTY PROVISION

Art. 25. Persons who have committed violations of this Ordinance, as well as persons who have allowed the commission of such violations, are punished in accordance with Art. 290 of the LMFI.

ADDITIONAL PROVISION

§ 1. (1) Applications for admission to the exam under Art. 10, para. 1 and for recognition of acquired...