Ordinance No. 29 of 12.07.2006 on Minimum Credit Ratings for Banks and Determining Countries, International Financial Organizations, Markets, and Indices for Social Security Code Art. 176, para. 3

ORDINANCE No. 29 of 12.07.2006 on the requirements for investments of supplementary pension insurance funds, sub-funds therein and funds for making payments under Art. 176, para. 4 of the Social Security Code (Title amended - SG, issue 94 of 2018, in force from 19.11.2018; amended, issue 64 of 2022, in force from 09.08.2022; amended, issue 61 of 2026, in force from 01.01.2027) Promulgated - SG, issue 62 of 01.08.2006; amended and supplemented, issue 3 of 11.01.2008; amended and supplemented, issue 98 of 11.12.2009; amended and supplemented, issue 91 of 18.11.2011; amended and supplemented, issue 94 of 13.11.2018, in force from 19.11.2018; amended and supplemented, issue 8 of 28.01.2020; amended and supplemented, issue 81 of 15.09.2020; amended and supplemented, issue 60 of 20.07.2021; amended, issue 64 of 09.08.2022, in force from 09.08.2022; amended, issue 29 of 31.03.2023; amended and supplemented, issue 61 of 03.07.2026, in force from 01.01.2027. Adopted by Decision No. 60-N of 12.VII.2006 of the Financial Supervision Commission Art. 1. (Amended in full - SG, issue 98 of 2009; amended, issue 94 of 2018, in force from 19.11.2018; amended, issue 64 of 2022, in force from 09.08.2022; amended and supplemented, issue 61 of 2026, in force from 01.01.2027) This ordinance defines:
1. (amended - SG, issue 61 of 2026, in force from 01.01.2027) the minimum level of credit ratings of banks under Art. 176, para. 1, item 6 of the Social Security Code (SSC);
2. (amended - SG, issue 64 of 2022, in force from 09.08.2022; amended, issue 61 of 2026, in force from 01.01.2027) the countries under Art. 176, para. 1, item 1, letter "c", item 2, letter "c", item 3, letter "b", item 4, letter "a", item 5, letter "b", item 7, letter "b", items 13, 14 and 18 of the SSC;
3. (amended - SG, issue 61 of 2026, in force from 01.01.2027) the markets under Art. 176, para. 1, item 1, letter "c", item 3, letter "b", item 4, letter "b", item 5, letter "b", item 7, letter "b", item 8, letter "b" and item 9, letter "b" of the SSC and the indices of the markets under Art. 176, para. 1, item 7, letter "b" of the SSC;
4. (amended - SG, issue 61 of 2026, in force from 01.01.2027) the markets under Art. 176, para. 1, item 5, letter "d", item 7, letter "d", item 8, letter "d" and item 9, letter "d" of the SSC;
5. (amended - SG, issue 61 of 2026, in force from 01.01.2027) the international financial organizations under Art. 176, para. 1, item 1, letter "d" and the financial institutions under Art. 176, para. 1, item 4, letter "a" of the SSC.
6. (new - SG, issue 61 of 2026, in force from 01.01.2027) the requirements for exchange-traded funds under Art. 176, para. 1, item 14 of the SSC;
7. (new - SG, issue 61 of 2026, in force from 01.01.2027) the requirements for the content of information under Art. 176, para. 1, item 16 of the SSC.
Art. 2. (Amended - SG, issue 3 of 2008; amended and supplemented, issue 98 of 2009; amended in full, issue 91 of 2011; amended and supplemented, issue 94 of 2018, in force from 19.11.2018; amended and supplemented, issue 8 of 2020; amended and supplemented, issue 60 of 2021; amended and supplemented, issue 61 of 2026, in force from 01.01.2027) (1) (Repealed - SG, issue 94 of 2018, in force from 19.11.2018) (2) (Amended - SG, issue 94 of 2018, in force from 19.11.2018; supplemented, issue 60 of 2021; amended and supplemented, issue 61 of 2026, in force from 01.01.2027) The minimum levels of credit ratings of banks under Art. 176, para. 1, item 6 of the SSC, in which funds of a supplementary pension insurance fund, its sub-funds, and a fund for making payments can be invested in deposits, are:
1. (amended - SG, issue 8 of 2020) long-term credit ratings corresponding to credit quality step "4" according to Annex III of Commission Implementing Regulation (EU) 2016/1799 of 7 October 2016 laying down implementing technical standards with regard to the mapping of credit assessments of external credit assessment institutions for credit risk in accordance with Article 136(1) and Article 136(3) of Regulation (EU) No 575/2013 of the European Parliament and of the Council (OJ, L 275/3 of 17 October 2016), hereinafter referred to as "Implementing Regulation (EU) 2016/1799", or;
2. (amended - SG, issue 94 of 2018, in force from 19.11.2018; amended and supplemented, issue 8 of 2020) long-term credit ratings corresponding to those specified in item 1 and assigned by credit rating agencies that are registered or certified in accordance with Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies (OJ, L 302/1 of 17 November 2009) and are not included in Annex III of Implementing Regulation (EU) 2016/1799.
(3) (Amended - SG, issue 94 of 2018, in force from 19.11.2018; amended, issue 8 of 2020; amended, issue 60 of 2021; supplemented, issue 61 of 2026, in force from 01.01.2027) When a pension insurance company invests funds of a fund, respectively its sub-funds, under para. 2 in a deposit in a bank with a credit rating assigned by an agency under para. 1, item 2, the company shall submit to the Financial Supervision Commission a justification, based on information about the assigned credit rating from the respective credit rating agency, for the compliance of this rating with a credit rating under para. 2, item 1. (4) The justification under para. 3 shall be submitted by the pension insurance company when:
1. (amended - SG, issue 94 of 2018, in force from 19.11.2018; amended, issue 8 of 2020) the first use of a credit rating assigned by a credit rating agency under para. 2, item 2 - within three working days from the date of concluding the bank deposit agreement;
2. a change in the compliance of the minimum levels of credit ratings under para. 2, item 2 with those under para. 2, item 1 - within three working days from the date of becoming aware.
(5) (Repealed - SG, issue 94 of 2018, in force from 19.11.2018).
(6) (Amended - SG, issue 94 of 2018, in force from 19.11.2018; amended, issue 60 of 2021; supplemented, issue 61 of 2026, in force from 01.01.2027) When a bank has long-term credit ratings assigned by more than one rating agency, funds of a fund, respectively its sub-funds, under para. 2 may be invested in deposits in such a bank only if each of these ratings meets the requirement of para. 2. (7) (Repealed - SG, issue 94 of 2018, in force from 19.11.2018). Art. 3. (Amended - SG, issue 91 of 2011; repealed, issue 94 of 2018, in force from 19.11.2018). Art. 4. (Amended - SG, issue 3 of 2008; amended in full, issue 98 of 2009; repealed, issue 94 of 2018, in force from 19.11.2018) Art. 5. (Amended - SG, issue 3 of 2008; amended in full, issue 98 of 2009; amended in full, issue 91 of 2011; amended and supplemented, issue 94 of 2018, in force from 19.11.2018; amended and supplemented, issue 8 of 2020; amended and supplemented, issue 81 of 2020; amended, issue 64 of 2022, in force from 09.08.2022; amended in full, issue 61 of 2026, in force from 01.01.2027) (1) The countries under Art. 176, para. 1, item 1, letter "c", item 2, letter "c", item 3, letter "b", item 4, letter "a", item 5, letter "b", item 7, letter "b", items 13, 14 and 18 of the SSC, the markets under Art. 176, para. 1, item 1, letter "c", item 3, letter "b", item 4, letter "b", item 5, letter "b", item 7, letter "b", item 8, letter "b" and item 9, letter "b" of the SSC and the indices of the markets under Art. 176, para. 1, item 7, letter "b" of the SSC are:

No.	Country under Art. 176, para. 1, item 1, letter "c", item 2, letter "c", item 3, letter "b", item 4, letter "a", item 5, letter "b", item 7, letter "b", items 13, 14 and 18 of the SSC	Market under Art. 176, para. 1, item 1, letter "c", item 3, letter "b", item 4, letter "b", item 5, letter "b", item 7, letter "b", item 8, letter "b" and item 9, letter "b" of the SSC	Market Index under Art. 176, para. 1, item 7, letter "b" of the SSC
1.	Australia	Australian Securities Exchange	All Ordinaries Index
		Cboe Australia Pty Ltd	S&P/ASX 200 (XJO)
2.	Brazil	B3	Ibovespa
3.	Israel	Tel Aviv Stock Exchange	TA-125 Index
4.	India	Bombay Stock Exchange	BSE SENSEX
		National Stock Exchange of India	NIFTY 50
5.	Indonesia	Indonesia Stock Exchange	LQ-45
6.	Canada	TMX Group	S&P/TSX Composite Index
		Toronto Stock Exchange
7.	China	Shanghai Stock Exchange	SSE 180 Index
		Hong Kong Stock Exchange	Hang Seng Index
		Shenzhen Stock Exchange	Shenzhen 100
8.	Colombia	Bolsa de Valores de Colombia (MILA)	COLCAP
9.	Costa Rica	Bolsa Nacional de Valores de Costa Rica	Indice Accionario Costa Rica (IACR)
10.	Malaysia	Bursa Malaysia	FTSE Bursa Malaysia KLCI
11.	Mexico	Bolsa Mexicana de Valores (MILA)	S&P BMV IPC
		Borsa Institucional de Valores
12.	New Zealand	New Zealand Exchange	S&P/NZX 50 Index
13.	United Kingdom	London Stock Exchange	FTSE 100
14.	North Macedonia	Macedonian Stock Exchange	MBI 10
15.	United States of America	New York Stock Exchange	S&P 500 Index, Dow Jones Industrial Average, NASDAQ 100, Russel 1000 Index
		NASDAQ
		BOX Exchange
		Cboe BYX Exchange
		Cboe BZX Exchange
		Cboe C2 Exchange
		Cboe EDGA Exchange
		Cboe EDGX Exchange
		Cboe Exchange
		The Investors Exchange
		Long-Term Stock Exchange
		Miami International Securities Exchange
		MIAX Emerald
		MIAX PEARL
		MEMX
		Nasdaq Texas
		Nasdaq GEMX
		Nasdaq ISE
		Nasdaq MRX
		Nasdaq PHLX
		NYSE Arca
		NYSE Chicago
		NYSE American
		NYSE National
		NYSE Texas
16.	Singapore	Singapore Exchange	Straits Times Index (STI)
17.	Taiwan	Taiwan Stock Exchange	TAIEX
18.	Thailand	Stock Exchange of Thailand	SET 50 Index
19.	Turkey	Borsa Istanbul	BIST 100
20.	Chile	Borsa de Comercio de Santiago (MILA)	Indice de Precios Selectivo de Acciones (S&P IPSA)
21.	Switzerland	SIX Swiss Exchange	SMIEXP – SMI Expanded
		BX Swiss	BX Swiss Top 30 Index
22.	South Africa	JSE Limited	FTSE/JSE Top 40 Index
23.	South Korea	Korea Exchange	KRX 100
24.	Japan	Japan Exchange Group	Nikkei 225, Nikkei 400
25.	Peru	Bolsa de Valores de Lima (MILA)	S&P/BVL Peru General Index
26.	Argentina	Bolsas y Mercados Argentinos	S&P MERVAL Index
27.	Iceland	Nasdaq Iceland	OMX Iceland 15

(2) The indices under Art. 176, para. 1, item 7, letter "b" of the SSC may also be MSCI Global Investable Market Indices and S&P Global 1200 only if they are constructed on shares traded on the markets under para. 1. (3) The markets under Art. 176, para. 1, item 5, letter "d", item 7, letter "d", item 8, letter "d" and item 9, letter "d" of the SSC are:

No.	Market under Art. 176, para. 1, item 5, letter "d", item 7, letter "d", item 8, letter "d" and item 9, letter "d" of the SSC	Country
1.	ASX Emerging Companies Market	Australia
2.	Bovespa Mais (Bovespa Mais Level 2)	Brazil
3.	TSX Venture Exchange	Canada
4.	ChiNext Board (Shenzhen Stock Exchange)	China
	STAR Market (Shanghai Stock Exchange, Beijing Stock Exchange)
5.	ACE Market (MESDAQ)	Malaysia
6.	Alternative Investment Market (AIM)	United Kingdom
7.	NASDAQ SmallCap Market (NASDAQ Capital Market)	United States of America
8.	ScaleX Santiago Venture Exchange	Chile
9.	AltX (Johannesburg Stock Exchange)	South Africa
10.	KOSDAQ market	South Korea
	KONEX market
11.	JASDAQ (Tokyo Stock Exchange)	Japan

Art. 5a. (New - SG, issue 94 of 2018, in force from 19.11.2018; amended, issue 8 of 2020; amended, issue 29 of 2023; supplemented, issue 61 of 2026, in force from 01.01.2027) The international financial organizations under Art. 176, para. 1, item 1, letter "d" of the SSC are:
1. Asian Infrastructure Investment Bank;
2. Asian Development Bank;
3. African Development Bank;
4. Bank for International Settlements;
5. Council of Europe Development Bank;
6. European Bank for Reconstruction and Development;
7. European Atomic Energy Community;
8. European Investment Fund;
9. European Stability Mechanism;
10. European Financial Stability Mechanism;
11. European Union;
12. Inter-American Development Bank;
13. Islamic Development Bank;
14. Caribbean Development Bank;
15. Multilateral Investment Guarantee Agency;
16. International Development Association;
17. International Bank for Reconstruction and Development;
18. (Repealed - SG, issue 29 of 2023);
19. (Repealed - SG, issue 29 of 2023);
20. International Finance Corporation;
21. International Monetary Fund;
22. International Finance Facility for Immunisation;
23. Nordic Investment Bank;
24. Black Sea Trade and Development Bank;
25. an international financial organization established by two or more member states, whose purpose is to mobilize financing and provide financial support to its members who are affected or threatened by severe financial problems.
Art. 6. (Repealed - SG, issue 61 of 2026, in force from 01.01.2027).
Art. 7. (New - SG, issue 61 of 2026, in force from 01.01.2027) The financial institutions under Art. 176, para. 1, item 4, letter "a" of the SSC are:
1. Austrian Development Bank (OeEB) - Austria;
2. Industrial Development Bank of Turkey (TSKB) - Turkey;
3. Development Bank of Wales - United Kingdom;
4. Development Bank of Japan (DBJ) - Japan;
5. British Business Bank (BBB) - United Kingdom;
6. Bulgarian Development Bank (BDB) - Bulgaria;
7. Hellenic Development Bank (HDB) - Greece;
8. Innovation Norway - Norway;
9. Official Credit Institute (ICO) - Spain;
10. Business Development Bank of Canada (BDC) - Canada;
11. National Development Bank (BGK) - Poland;
12. National Development Bank of the Czech Republic (NRB) - Czech Republic;
13. National Credit and Investment Company (SNCI) - Luxembourg;
14. Slovak Guarantee and Development Bank - Slovakia;
15. Strategic Banking Corporation of Ireland (SBCI) - Ireland;
16. Hungarian Development Bank (MFB) - Hungary;
17. Financial Institution for Territorial Development (FINDETER) - Colombia;
18. Deposits and Loans Fund (CDP) - Italy;
19. Scottish National Investment Bank - Scotland;
20. Caisse des Dépôts et Consignations (CDC) - France;
21. KfW - Germany.
Art. 8. (New - SG, issue 61 of 2026, in force from 01.01.2027) When investing in shares and/or units of an exchange-traded fund under Art. 176, para. 1, item 14 of the SSC:
1. investments are allowed only in a fund whose target exposure in absolute value does not exceed the size of its assets (from -1x to +1x inclusive) according to its prospectus or equivalent document;
2. investments are not allowed in a fund that:
a) invests directly in crypto-assets; b) invests in collective investment schemes and/or exchange-traded funds that invest directly in crypto-assets; c) uses derivative instruments whose underlying asset is crypto-assets. Art. 9. (New - SG, issue 61 of 2026, in force from 01.01.2027) (1) Before investing in instruments under Art. 176, para. 1, item 16 of the SSC, the pension insurance company must obtain the following information from the person managing the alternative investment funds:
1. information regarding the alternative investment fund, which includes:
a) a description of its investment strategy and objectives; b) the place of establishment of each main alternative investment fund and of the underlying funds, if the alternative investment fund is a fund of funds; c) the types of assets in which the fund may invest, the investment restrictions and the techniques it may apply, and the related risks; d) the conditions for using leverage, its maximum permissible amount, the permitted types and sources of leverage and the related risks, the restrictions on the use of leverage and the conditions for re-use of collateral or assets, as well as any guarantee provided under the agreed leverage conditions;
2. the terms and procedure for making changes to the investment strategy and/or policy of the fund;
3. the name and registered office and address of the person managing the alternative investment fund and of the depositary;
4. a description of the main legal consequences of the contractual relationships established in connection with the investment, including information on the competent jurisdiction, the applicable law and the existence or absence of legal instruments providing for the recognition and enforcement of court decisions in the territory where the alternative investment fund is established;
5. a description of how the person managing the alternative investment fund ensures compliance with the requirements to have additional own capital in an amount sufficient to cover risks arising from liability due to professional negligence and to have professional indemnity insurance for liability due to professional negligence, commensurate with the risks covered;
6. a description of all functions delegated by the person managing the alternative investment fund and its depositary, the name and registered office of the persons to whom such functions are delegated, and any conflicts of interest that such delegation may give rise to;
7. the rules for valuing the assets of the alternative investment fund;
8. a description of the liquidity management rules;
9. the terms and procedure for issuing and selling units or shares of the alternative investment fund;
10. the terms and procedure for redemption, including in extraordinary situations, and existing arrangements with investors for redemption;
11. information on the type and amount of all fees, commissions and expenses directly or indirectly borne by investors;
12. information on the rules for ensuring equal treatment of investors and the possibilities for providing preferential treatment to certain investors or categories of investors, as well as their relations with the alternative investment fund or with the person managing it;
13. annual financial report, where applicable;
14. the net asset value or the latest market price per unit or share of the alternative investment fund, where applicable;
15. information on each alternative investment fund managed and/or offered by the person, which includes:
a) the proportion of the alternative investment fund's assets that are subject to special treatment due to their low liquidity; b) the liquidity management approaches applied; c) the current risk profile of the alternative investment fund and the systems applied for managing market risk, liquidity risk, counterparty risk and other risks, including operational risk; d) for an alternative investment fund using leverage - information on the overall level of leverage, changes in the maximum amount of leverage used and the right to re-use collateral that may be provided in connection with leveraged investment positions. (2) The pension insurance company must obtain the information and documents under para. 1 within 14 days of the occurrence of changes and/or new circumstances related thereto. Additional provision § 1. (New - SG, issue 61 of 2026, in force from 01.01.2027) For the purposes of this ordinance, "leverage" is a term within the meaning of § 1, item 29 of the additional provisions of the Law on the Activity of Collective Investment Schemes and Other Collective Investment Undertakings. FINAL PROVISIONS § 2. The Financial Supervision Commission shall issue instructions for the application of the ordinance. § 3. (Amended - SG, issue 60 of 2021; former para. 1, amended, issue 61 of 2026, in force from 01.01.2027) The ordinance is issued pursuant to Art. 176, para. 4 of the Social Security Code and was adopted by Decision No. 60-N of 12.VII.2006 of the Financial Supervision Commission. Transitional and Final Provisions to the Ordinance for Amendment and Supplementation of Ordinance No. 29 of 2006 on the Minimum Level of Credit Ratings of Banks and for Determining the Countries, International Financial Organizations, Markets and Indices of These Markets Pursuant to Art. 176, para. 2 of the Social Security Code (SG, issue 8 of 28.01.2020) § 4. Pension insurance companies shall bring their activities into compliance with the provisions of this ordinance within six months of their entry into force. Transitional and Final Provisions to ORDINANCE No. 70 of 29.06.2021 on the Requirements for Funds for Making Payments (SG, issue 60 of 20.07.2021) § 5. In Ordinance No. 29 of 12.07.2006 on the minimum level of credit ratings of banks and for determining the countries, international financial organizations, markets and indices of these markets pursuant to Art. 176, para. 2 of the Social Security Code (promulgated, SG, issue 62 of 2006; amended, issue 3 of 2008; amended and supplemented, issues 98 of 2009, 91 of 2011, 94 of 2018 and 8 and 81 of 2020) the following amendments and supplements are made:
1. In Art. 2:
a) in para. 2 after the words "supplementary pension insurance fund" the words "and of a fund for making payments" are added; b) in para. 3 and 6 the words "supplementary pension insurance fund" are replaced with "fund under para. 2".
2. In paragraph 1 of the final provisions the words "Art. 176, para. 2" are replaced with "Art. 176, para. 3".
Transitional and Final Provisions to the Ordinance for Amendment of Ordinance No. 63 of 8 November 2018 on the Requirements for the Content, Periodicity of Preparation and Deadlines for Submission of Reports for Supervisory Purposes of Pension Insurance Companies and the Funds Managed by Them (SG, issue 64 of 09.08.2022, in force from 09.08.2022) § 19. In Ordinance No. 29 of 12.07.2006 on the minimum level of credit ratings of banks and for determining the countries, international financial organizations, markets and indices of these markets pursuant to Art. 176, para. 2 of the Social Security Code (promulgated, SG, issue 62 of 2006; amended, issue 3 of 2008; amended and supplemented, issues 98 of 2009, 91 of 2011, 94 of 2018, 8 and 81 of 2020 and 60 of 2021) the following amendments are made:
1. In the title of the ordinance the words "para. 2" are replaced with "para. 3".
2. In Art. 1, item 2 and in Art. 5, para. 1 everywhere the words "item 11" are replaced with "item 12".