Law on Markets in Financial Instruments

LAW ON MARKETS IN FINANCIAL INSTRUMENTS
Pub. - State Gazette, No. 15 of 16.02.2018, in force from 16.02.2018; corr., No. 16 of 20.02.2018; amend. and supp., No. 24 of 16.03.2018, in force from 16.02.2018; amend., No. 98 of 27.11.2018, in force from 07.01.2019; amend., No. 17 of 26.02.2019; amend. and supp., No. 83 of 22.10.2019, in force from 22.10.2019; amend., No. 94 of 29.11.2019; amend. and supp., No. 102 of 31.12.2019; supp., No. 26 of 22.03.2020; affected by the Law on Measures and Actions during the State of Emergency, No. 28 of 24.03.2020, in force from 13.03.2020; supp., No. 34 of 09.04.2020, in force from 09.04.2020 ; affected by the Supplementary Amendment to the Health Act, No. 44 of 13.05.2020, in force from 14.05.2020; amend. and supp., No. 64 of 18.07.2020, in force from 21.08.2020; amend. and supp., No. 12 of 12.02.2021, in force from 12.02.2021; amend., No. 21 of 12.03.2021; amend. and supp., No. 16 of 25.02.2022; amend. and supp., No. 25 of 29.03.2022, as the amendments with the Supplementary Amendment to the LMFI enter into force from 29.03.2022, and the amendments with the LPO enter into force from 08.07.2022; amend. and supp., No. 51 of 01.07.2022; amend. and supp., No. 8 of 25.01.2023; amend. and supp., No. 65 of 28.07.2023; amend. and supp., No. 66 of 01.08.2023 , in force from 05.08.2023; amend. and supp., No. 84 of 06.10.2023, as the amendments with the LPK enter into force from 06.10.2023; amend. and supp., No. 85 of 10.10.2023, in force from 10.10.2023; amend., No. 70 of 20.08.2024, in force from the date determined in a Decision of the Council of the European Union for the adoption of the euro by the Republic of Bulgaria, adopted in accordance with Art. 140, paragraph 2 of the TFEU, and a Regulation of the Council of the European Union, adopted in accordance with Art. 140, paragraph 3 of the TFEU; amend., No. 79 of 17.09.2024; amend. and supp., No. 49 of 17.06.2025; amend. and supp., No. 54 of 04.07.2025; amend. and supp., No. 99 of 21.11.2025; amend., No. 16 of 10.02.2026; amend. and supp., No. 25 of 10.03.2026; amend., No. 51 of 05.06.2026, in force from 05.06.2026; amend., No. 62 of 07.07.2026, in force from 07.07.2026; amend. and supp., No. 67 of 24.07.2026
PART ONE
GENERAL PROVISIONS
Chapter One
GENERAL PROVISIONS
Subject Matter
Art. 1. (Amend. and supp. - SG, No. 83 of 2019, in force from 22.10.2019; amend., No. 25 of 2022, in force from 29.03.2022; amend. and supp., No. 8 of 2023; amend., No. 99 of 2025.) This law regulates:

1. the licensing and activities of investment intermediaries and regulated markets for
   financial instruments;
2. the provision of investment services or activities by third-country companies
   through the establishment of a branch;
3. (amend. - SG, No. 25 of 2022, in force from 29.03.2022) the licensing and activities of
   approved reporting mechanisms and approved publication mechanisms, which benefit from a derogation in accordance with Art. 2, paragraph 3 of Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012 (OJ, L 173/84 of 12 June 2014), hereinafter referred to as "Regulation (EU) No 600/2014".
4. (amend. - SG, No. 99 of 2025) the requirements for persons who manage and control
   persons under items 1, 3 and 5, as well as for persons who hold a qualifying holding in persons under items 1 and 5;
5. (new - SG, No. 83 of 2019, in force from 22.10.2019) the activities of central securities depositories;
6. (new - SG, No. 83 of 2019, in force from 22.10.2019) requirements for central counterparties;
7. (new - SG, No. 8 of 2023) requirements for benchmark administrators within the meaning of Art. 3, paragraph 1, item 6 of Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks for the purposes of financial instruments and financial contracts or for measuring the performance of investment funds, and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU) No
   596/2014 (OJ, L 171/1 of 29 June 2016), hereinafter referred to as "Regulation (EU) 2016/1011", licensed or registered under this law;
8. (previous item 5 - SG, No. 83 of 2019, in force from 22.10.2019; previous item 7, No. 8 of

2023. state supervision to ensure compliance with this law.
      Purpose
      Art. 2. The purpose of this law is:

1. to ensure protection of investors in financial instruments, including by
   creating conditions for increasing their awareness of the financial instruments market;
2. to create conditions for the development of a fair, open and efficient market for
   financial instruments;
3. to maintain stability and public trust in the financial instruments market.
   Regulation and Supervision
   Art. 3. (Supp. - SG, No. 24 of 2018, in force from 16.02.2018; supp., No. 83 of 2019, in force from 22.10.2019; amend. and supp., No. 25 of 2022, in force from 29.03.2022; supp., No. 54 of 2025; amend. and supp., No. 99 of 2025; amend. and supp., No. 25 of 2026.) (1) The regulation and supervision of activities and persons under Art. 1 are carried out by the Financial Supervision Commission ("the Commission") and by the Vice-Chairman of the Commission, heading the "Investment Activity Supervision" Directorate ("the Vice-Chairman"). (2) (New - SG, No. 25 of 2022, in force from 29.03.2022) The Financial Supervision Commission exercises the powers of the competent authority under Regulation (EU) 2019/2033 of the European Parliament and of the Council of 27 November 2019 on prudential requirements for investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014 (OJ, L 314/1 of 5 December 2019), hereinafter referred to as "Regulation (EU) 2019/2033", with regard to investment intermediaries under Art. 9a, para. 1 or entities subject to supervision under Chapter Twenty-Two, with the exception of the powers under Art. 50, letter 'b' of Regulation (EU) 2019/2033, which are exercised by the Vice-Chairman with regard to investment intermediaries under Art. 9a, para. 1. (3) (Previous para. 2, amend. - SG, No. 25 of 2022, in force from 29.03.2022) The Financial Supervision Commission exercises the powers of the competent authority under Art. 6, paragraph 4, Art. 7, paragraphs 1 - 3, Art. 8, paragraphs 1, 2 and 4, Art. 9, Art. 11, paragraphs 3 and 5, Art. 14, paragraph 3, Art. 15, Art. 18, paragraphs 2, 3, 5 and 6, Art. 19, paragraph 2, Art. 20, Art. 21, Art. 24, paragraph 2, Art. 26, paragraphs 2 and 3, Art. 27, paragraph 1, Art. 31, Art. 36, paragraph 1, letter 'j', Art. 41, paragraph 1, letter 'b', Art. 49, paragraphs 1 and 3, Art. 52, paragraph 1, letter 'k', Art. 56, letter 'b', Art. 66, letter 'b', Art. 73, Art. 76, Art. 77, Art. 79, Art. 80, Art. 83, paragraph 1, para. 2, Art. 84, paragraph 5, Art. 89, paragraph 3, Art. 93, paragraph 6, Art. 94, paragraph 3, Art. 95, paragraph 2, para. 3, Art. 97, paragraphs 2 and 3, Art. 99, paragraphs 6 and 7, Art. 100, first sentence, Art. 101, paragraphs 1 - 3, Art. 107, paragraph 4, Art. 113, paragraphs 6 and 7, Art. 124, paragraph 2, Art. 143 - 151, Art. 152, paragraph 2, Art. 154, paragraph 4, Art. 157, Art. 161, paragraphs 2 and 3, Art. 162, paragraph 2, letters 'i' and 'j', Art. 163, paragraph 3, Art. 164, paragraph 2 and Art. 166, paragraph 8, letter 'd', Art. 170, paragraph 4, letter 'c', Art. 175, paragraph 5, Art. 178, paragraph 2, letter 'g', Art. 179, Art. 180, paragraphs 1 and 2, Art. 181, paragraph 2, letter 'c', Art. 182, paragraph 3, Art. 183, paragraph 1, letter 'c', Art. 199, paragraph 6, Art. 201, paragraph 2, Art. 221, Art. 225, Art. 243, paragraph 6, Art. 244, paragraph 6, Art. 259, paragraph 1, letters 'b', 'c', 'd', paragraph 3, paragraph
   5, letter 'b', Art. 262, paragraphs 2 and 3, Art. 263, paragraph 2, Art. 264, paragraph 4, Art. 282, paragraph 6, Art. 283, paragraphs 1 - 3, 5 and Art. 284, paragraphs 9 and 11, Art. 285, paragraph 1, letter 'c' and paragraph 3, Art. 286, paragraph 3, Art. 289, paragraphs 2 and 5, Art. 292, paragraphs 3 and 5, Art. 293, paragraph 2, Art. 294, paragraphs 2 and 3, Art. 295, letter 'c', Art. 311 - 314, Art. 315, paragraph 3, Art. 317, paragraph 4, para. 2, Art. 323, paragraph 1, Art. 325, paragraph 2, Art. 327, Art. 331, paragraph 1, Art. 336, paragraph 4, letter 'a', third sub-letter, Art. 337, paragraph 2, para. 2 and 3, Art. 354, paragraph 6, Art. 363, Art. 365, paragraph 2, Art. 366, paragraphs 4 and 5, Art. 367, paragraph 1, letter 'b', Art. 373, para. 2, Art. 376, paragraph 5, Art. 377, paragraphs 1, 4 and 5, Art. 380, Art. 383, paragraph 4, letter 'b', Art. 383, paragraph 4, para. 1 and paragraph 5, letter 'c', Art. 385, Art. 395, paragraph 1, para. 3, Art. 396, paragraph 1, Art. 400, paragraphs 2 and 3, Art. 412, paragraph 5, Art. 414, Art. 415, paragraphs 5 and 6, Art. 420, paragraph 2, para. 3, Art. 422, paragraph 4, para. 2, paragraphs 8 and 9, Art. 425, paragraphs 4 and 5, Art. 430, paragraph 1, para. 3, Art. 458, paragraph 1 and paragraph 2, letter 'd', Art. 465, paragraph 2, Art. 471, paragraph 1, Art. 478, paragraph 3, Art. 486, paragraph 6, Art. 493, paragraph 3, letter 'i', Art. 495, paragraph 1, para. 1 and 5 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 amending Regulation (EU) No 648/2012 (OJ, L 176/1 of 27 June 2013), hereinafter referred to as "Regulation (EU) No 575/2013", with regard to investment intermediaries under Art. 9a, para. 2 or entities subject to supervision under Chapter Twenty-Two "a". (4) (Previous para. 3, supp. - SG, No. 25 of 2022, in force from 29.03.2022) The Vice-Chairman exercises the powers of the competent authority under Art. 99, paragraph 1, Art. 105, paragraph 5, Art. 129, paragraph 7, Art. 178, paragraph 1, letter 'b' and paragraph 2, letter 'g', Art. 194, paragraphs 1, 8 and 9, Art. 213, paragraph 2, Art. 215, paragraph 2, letter 'b', Art., 223, Art. 227, Art. 237, Art. 243, paragraphs 2 and 4, Art. 244, paragraphs 2 and 4, Art. 246, Art. 248, Art. 256, paragraph 7, Art. 296, paragraph 1, paragraph 2, para. 1, letter 'b' and para. 2, Art. 298, paragraph 4, Art. 322, paragraph 3, letter 'b' and paragraph 6, letters 'c' and 'd', Art. 329, paragraph 1, Art. 344, paragraph 3, Art. 345, paragraph 2, Art. 352, paragraph 1, para. 2 and paragraph 2, Art. 356, paragraph 2, Art. 358, paragraph 3, Art. 361, Art. 382, paragraph 2, Art. 386, paragraph 1, Art. 394, paragraphs 1 and 2, Art. 395, paragraph 5, para. 2, Art. 398, para. 2, Art. 399, paragraph 4, Art. 401, paragraph 2, para. 1 and 2, Art. 406, paragraph 1, Art. 407, Art. 415, paragraphs 1 - 4, Art. 416, paragraph 6, Art. 417, letter 'b', Art. 418,
   paragraph 4, Art. 420, paragraph 2, para. 2, Art. 423, paragraph 2, Art. 427, paragraph 1, Art. 428, paragraph 1, Art. 430, paragraph 1, para. 1 and 2, Art. 438, letter 'b', Art. 450, paragraph 1, letter 'i' of Regulation (EU) No 575/2013 with regard to investment intermediaries under Art. 9a, para. 2. (5) (Previous para. 4, amend. - SG, No. 25 of 2022, in force from 29.03.2022; amend., No. 99 of 2025 ; amend. and supp., No. 25 of 2026) The Financial Supervision Commission exercises the powers of the competent authority under Art. 4, 5, 7, 9, 11, 11a, Art. 14, paragraph 6, Art. 21, 21a, 22, 24, 27a, 32a, Art. 35, paragraphs 4 and 5, Art. 36, Art. 39, paragraph 3 and Art. 42 of Regulation (EU) No 600/2014, with the exception of Art. 39, paragraph 3 and Art. 42 of the same regulation with regard to structured deposits, which powers are exercised by the Bulgarian National Bank. In the cases under the first sentence the Commission takes the relevant decisions on the proposal of the Vice-Chairman. (6) (Previous para. 5 - SG, No. 25 of 2022, in force from 29.03.2022; supp., No. 99 of 2025) The Vice-Chairman exercises the powers of the competent authority under Art. 16, 22b, 23 and 25 of Regulation (EU) No 600/2014. (7) (Supp. - SG, No. 24 of 2018, in force from 16.02.2018; previous para. 6, supp., No. 25 of 2022 g., in force from 29.03.2022; amend., No. 99 of 2025) Notifications and reports under Regulation (EU) No 600/2014 and Regulation (EU) 2019/2033 are made to the Commission. (8) (New - SG, No. 83 of 2019, in force from 22.10.2019; previous para. 7, No. 25 of 2022, in force from 29.03.2022; repealed, No. 25 of 2026) . (9) (New - SG, No. 54 of 2025) The Vice-Chairman exercises the powers of the competent authority under Regulation (EU) 2022/2554 of the European Parliament and of the Council of 14 December 2022 on digital operational resilience for the financial sector and amending Regulations (EC) No 1060/2009, (EU) No 648/2012, (EU) No 600/2014, (EU) No 909/2014 and (EU) 2016/1011 (OJ, L 333/1 of 27 December 2022), hereinafter referred to as "Regulation (EU) 2022/2554", with regard to persons under Art. 46, letters 'c', 'd' - 'j' and 'o' of the same regulation. Data Collection Body Art. 3a. (New - SG, No. 25 of 2026) The Commission is a data collection body within the meaning of Art. 2, item 2 of Regulation (EU) 2023/2859 of the European Parliament and of the Council of 13 December 2023 on the creation of a European Single Access Point providing centralized access to publicly available information relevant to financial services, capital markets and sustainability (OJ, L 2023/2859 of 20 December 2023), hereinafter referred to as "Regulation (EU) 2023/2859", for the purposes of ensuring access through the European Single Access Point to the information:
4. specified in Art. 227c, para. 1 - 3;