Regulatory Alerts2003-12-10
Ordinance No. 12 of 10.12.2003 on the Method and Procedure for Determining Minimum Yield in Managing Assets of Additional Voluntary Pension Funds, Covering the Difference to Minimum Yield, and Forming and Using Reserves for Guaranteeing Minimum Yield
The Commission for Financial Supervision issued Ordinance No. 12 to establish the legal framework for determining minimum yields and managing reserves for additional voluntary pension funds in Bulgaria. The regulation mandates that pension insurance companies form and maintain specific reserves to guarantee minimum yields, detailing the calculation methods for weighted average yields and the procedures for covering shortfalls. It further outlines the administrative and financial mechanisms for releasing or supplementing these reserves based on asset thresholds and imposes administrative penalties for non-compliance.
Share