Ordinance No 29 of 12.07.2006 on the minimum level of credit ratings of banks and the determination of countries, international financial organizations, markets and indices of these markets pursuant to Art. 176, para. 3 of the Social Insurance Code

ORDINANCE No 29 of 12.07.2006 on the minimum level of credit ratings of banks and the determination of countries, international financial organizations, markets and indices of these markets pursuant to Art. 176, para. 3 of the Social Insurance Code (Title amended - SG, issue No. 94 of 2018, in force since 19.11.2018, issue 64 of 2022, in force since 09.08.2022) Adopted by Decision No. 60-N of 12.07.2006 of the Financial Supervision Commission, promulgated,

• SG issue No. 62 of 1.08.2006, amended, issue No. 3 of 11.01.2008, amended and supplemented,
  issue no. 98 of 11.12.2009, issue No. 91 of 18.11.2011, issue No. 94 of 13.11.2018, in force since 19.11.2018, issue No. 8 of 28.01.2020, issue No. 81 of 15.09.2020, issue No. 60 of 20.07.2021, amended, issue No. 64 of 9.08.2022, in force since 9.08.2022, issue No. 29 of 31.03.2023. Art. 1. (amended - SG, issue No. 98/2009, issue No. 94/2018, in force since 19.11.2018) This Ordinance determines:
  1. The minimum level of credit ratings of banks referred to in Art. 176, para. 1, item 5 of the Social
  Insurance Code (SIC);
  2. (amended, - SG, issue No. 64/2002, in force since 9.08.2022) the countries referred to in Art. 176,
  para. 1, item 1, letter "c", item 2, letter "b", item 4, letter "b", item 6, letter "b" and item 12 of the SIC;
  3. The markets referred to in Art. 176, para. 1, item 1, letter "c", item 2, letter "b" and item 4, letter
  "b" of the SIC;
  4. The markets and indices of these markets referred to in Art. 176, para. 1, item 6, letter "b" of the
  SIC;
  5. The international financial organizations referred to in Art. 176, para.1, item 1, letter “d” of the SIC.
  Art. 2. (Am. - SG, issue No. 3 of 2008, amended and supplemented, issue No. 98 of 2009, completely amended, issue No 91 of 2011, amended and supplemented, issue 94 of 2018, in force since 19.11.2018, amended and supplemented, issue 8 of 2020, amended and supplemented, issue 60 of 2021) (1) (repealed - SG, issue No. 94 of 2018, in force since 19.11.2018). (2) (amended - SG, issue. No. 94 of 2018, in force since 19.11.2018, supplemented, issue No. 60 of 2021) The minimum levels of credit ratings of banks referred to in Art. 176, para. 1, item 5 of the SIC, in which the funds of a supplementary pension insurance fund and a fund for benefits payments may be invested, shall be:
  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 Articles 136(1) and 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 'Implementing Regulation (EU) 2016/1799', or
  2. (amended and supplemented - SG, Issue 94 of 2018, in force since 19.11.2018, Issue No. 8 of 2020)
  the long-term credit ratings corresponding to those referred to in item 1 and issued by credit rating agencies, which 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 no. 94 of 2018, in force since 19.11.2018, issue No. 8 of 2020, issue 60 of
  2021) Where a pension insurance company invests the assets of a fund referred to in paragraph 2 in a
  deposit with a bank whose credit rating is assigned by an agency referred to in paragraph 1, item 2, the company shall submit to the Financial Supervision Commission a justification based on information on the credit rating awarded by the relevant credit rating agency, of the consistency of that rating with the credit rating referred to in paragraph 2, item 1. (4) The justification referred to in para. 3 shall be provided by the pension insurance company upon:

1. (amended - SG, issue No. 94 of 2018, in force since 19.11.2018, amend. issue No. 8 of 2020) the

first use of a credit rating assigned by a credit rating agency under paragraph 2, item 2 - within three working days from the day of signing the bank deposit contract;
2. a change in the compliance of the minimum levels of the credit ratings referred to in paragraph 2,
item 2 with those referred to in paragraph 2, item 1 - within three working days from the day of becoming aware of it. (5) (repealed, - SG, issue No. 94 of 2018, in force since 19.11.2018). (6) (amended - SG, issue No. 94 of 2018, in force since 19.11.2018, issue No. 60 of 2021) Where a bank has been assigned long-term credit ratings by more than one rating agency, the resources of a fund referred to in paragraph 2 may be invested in deposits in such a bank solely in case each of these ratings meets the requirement set in paragraph 2. (7) (repealed, - SG, issue No. 94 of 2018, in force since 19.11.2018). Art. 3. (amended - SG, issue No. 91 of 2011, repealed, issue No. 94 of 2018, in force since 19.11.2018) Art. 4. (amended - SG, issue No. 3 of 2008, completely amended issue No. 98 of 2009, repealed, issue No. 94 of 2018, in force since 19.11.2018) Art. 5. (amended, -SG, issue No. 3 of 2008, issue No. 98 of 2009, completely amended, issue No. 91 of 2011, amended and supplemented, issue № 94 of 2018, in force since 19.11.2018, amended and supplemented, issue № 8 of 2020, amended and supplemented, issue № 81 of 2020, amended, issue № 64 of 2022, in force since 09.08.2022). (1) (amended, SG, issue No. 94 of 2018, in force since 19.11.2018, amended, issue No. 8 of 2020, amended and supplemented, issue No. 81 of 2020, amended, issue No. 64 of 2022, in force since 9.08.2022). The countries referred to in Art. 176, para. 1, item 1, letter "c", item 2, letter "b", item 4, letter "b" and item 12 of the SIC and the markets referred to in Art. 176, para. 1, item 1, letter "c", item 2, letter "b" and item 4, letter "b" of the SIC shall be:
No. State under Article 176, para. 1, item 1, letter "c", item 2, letter "b", item 4, letter "b" and item 11 of the SIC Market under Article 176, para. 1, item 1, letter "c", item 2, letter "b", item 4, letter "b" of the SIC

1. Australia Australian Securities Exchange
   Chi-X Australia Pty
2. Brazil В3
3. Israel Tel Aviv Stock Exchange
4. India Bombay Stock Exchange
   National Stock Exchange of India
5. Indonesia Indonesia Stock Exchange
6. Canada TMX Group
7. China Shanghai Stock Exchange
   Hong Kong Stock Exchange
   Shenzhen Stock Exchange
8. (New - SG, issue No. 81 of 2020)
   Colombia Bolsa de Valores de Colombia
9. (New, SG issue No. 81 of 2020) Costa
   Rica Bolsa Nacional de Valores de Costa Rica
10. (Previous item 8 - SG, issue 81 of 2020)
    Malaysia Bursa Malaysia
11. (Previous item 9 - SG, issue 81 of 2020)
    Mexico Bolsa Mexicana de Valores
12. (Previous item 10 - SG, issue 81 of 2020)
    New Zealand New Zealand Exchange
13. (Previous item 11 - SG, issue 81 of 2020,
    in force London Stock Exchange

a) from the day following the day of the expiration of the transitional period under Art. 126 of the Agreement on the withdrawal of United Kingdom of Great Britain and Northern Ireland from European Union and the European Atomic Energy Community in case this agreement enters into force; b) from the day on which the Treaty on the functioning of European Union and The Treaty on European Union cease to apply to United Kingdom according to Article 50, paragraph 3 of the Treaty on European Union, in case that the Agreement on the withdrawal of United Kingdom of Great Britain and Northern Ireland from European Union and the European Atomic Energy Community does not enter into force.) United Kingdom
14. (previous item 12 - SG, issue 81 of 2020)
Russia Moscow Exchange
15. (previous item 13 - SG, issue 81 of 2020)
North Macedonia Macedonian Stock Exchange
16. (previous item 14 - SG, issue 81 of 2020)
United States of America
New York Stock Exchange
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 BX
Nasdaq GEMX
Nasdaq ISE
Nasdaq MRX
Nasdaq PHLX
NYSE Arca
NYSE Chicago
NYSE MKT
NYSE National
17. (previous item 15 - SG, issue 81 of 2020) Singapore Exchange

Singapore
18. (previous item 16 - SG, issue 81 of 2020)
Taiwan Taiwan Stock Exchange
19. (previous item 17 - SG, issue 81 of 2020)
Thailand Stock Exchange of Thailand
20. (previous item 18 - SG, issue 81 of 2020)
Turkey Borsa Istanbul
21. (previous item 19 - SG, issue 81 of 2020)
Chile Santiago Stock Exchange (MILA)
22. (previous item 20 - SG, issue 81 of 2020)
Switzerland
SIX Swiss Exchange
BX Swiss
23. (previous item 21 - SG, issue 81 of 2020)
South Africa JSE Limited
24. (previous item 22 - SG, issue 81 of 2020)
South Korea Korea Exchange
25. (previous item 23 - SG, issue 81 of 2020)
Japan Tokyo Stock Exchange
(2) (New - SG, issue No. 8 of 2020, amended and supplemented, issue 81 of 2020) The countries, markets and indices referred to in Art. 176, para. 1, item 6, letter "b" of the SIC are:
No. State under Article 176, para. 1, item 6, letter "b" of the SIC Market under Article 176, para. 1, item 6, letter "b" of the SIC Index of market under Art. 176, para. 1, item 6, letter "b" of the SIC

1. Australia Australian Securities
   Exchange All Ordinaries Index
   Chi-X Australia Pty Ltd Chi-X Australia 200 Index
2. Brazil B3 Ibovespa
3. Israel Tel Aviv Stock Exchange ТА-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
7. China Shanghai Stock Exchange SSE 180 Index
   Hong Kong
   Stock Exchange Hang Seng Index
   Shenzhen Stock Exchange SZSE 100
8. (New - SG, issue No. 81 of
   2020) Colombia Bolsa de Valores de Colombia COLCAP
9. (New, SG issue No. 81 of 2020)
   Costa Rica
   Bolsa Nacional de Valores de
   Costa Rica
   Indice Accionario Costa
   Rica (IACR)
10. (Previous item 8 - SG, issue No.
    81 of 2020) Malaysia Bursa Malaysia FTSE Bursa Malaysia KLCI
11. (Previous item 9, amended - SG,
    issue No. 81 2020) Mexico Bolsa Mexicana de Valores S&P BMV IPC
12. (Previous item 10 - SG, issue No.
    81 of 2020) New Zealand New Zealand Exchange S&P/NZX 50 Index
13. (In force: a) from the day London Stock Exchange FTSE 100

following the day of expiration of the transitional period under Art.
126 of the Agreement on the withdrawal of United Kingdom of Great Britain and Northern Ireland from European Union and the European Atomic Energy Community, in case that agreement enters into force; b) from the day on which the Treaty on the functioning of the European Union and the Treaty on European Union cease to apply to the United Kingdom pursuant to Article 50, paragraph 3 of The Treaty on European Union, in case the Agreement for the withdrawal of United Kingdom Great Britain and North Ireland from European Union and The European Atomic Energy Community does not enter into force. previous row; 11

• SG No. 81 of 2020)
  United Kingdom

14. (previous item 12 - SG, issue
    No.81 of 2020) Russia Moscow Exchange RTS Index
15. (Previous item 13 – SG, issue No.
    81 of 2020) North Macedonia
    Macedonian
    Stock Exchange MBI 10
16. (previous item 14 - SG, issue No.
    81 of 2020) United States of
    America
    New York Stock Exchange
    S&P 500 Index
    Dow Jones Industrial
    Average (DJIA)
    NASDAQ NASDAQ 100
    NYSE Arca NYSE Arca Major Market
    Index
17. (previous item 15 - SG, issue No.
    81 of 2020) Singapore Singapore Exchange Straits Times Index (STI)
18. (previous item 16 - SG, issue No.
    81 of 2020) Taiwan Taiwan Stock Exchange TAIEX
19. (previous item 17 - SG, issue No.
    81 of 2020) Thailand Stock Exchange of Thailand SET 50 Index
20. (previous item 18, amended, -
    SG, issue No. 81 of 2020) Turkey Borsa Istanbul BIST 100
21. (previous item 19 - SG, issue No.
    81 of 2020) Chile
    Santiago Stock Exchange
    (MILA)
    Indice de Precios Selectivo de Acciones(IPSA)
22. (previous item 20 - SG, issue No.
    81 of 2020) Switzerland
    SIX Swiss Exchange Swiss Market Index (SMI)
    BX Swiss BIRW

23. (previous item 21 - SG, issue No.
81 of 2020) South Africa JSE Limited FTSE/JSE Top 40 Index
24. (previous item 22 - SG, issue No.
81 of 2020) South Korea Korea Exchange KRX 100
25. (previous item 23 - SG, issue No.
81 of 2020) Japan Tokyo Stock Exchange Nikkei 225 Nikkei 400 (3) (amended - SG, issue No. 94 of 2018, in force since19.11.2018, previous para. 2, amended, issue No. 8 of 2020) The indices under Art. 176, para. 1, item 6, letter "b" of the SIC may also be MSCI Global Investable Market Indices only if they are constructed on shares traded on the markets referred to in para. 2. Art. 5a. (New - SG, issue No. 94 of 2018, in force since 19.11.2018, amended, issue No. 8 of 2020, amended, issue 29 of 2023) The international financial organisations referred to in Art. 176, para. 1, item 1, letter "e" of the SIC 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 Stabilisation Mechanism;
11. The 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 29/2023 );

19. (repealed - SG 29/2023);
20. International Finance Corporation;
21. International Monetary Fund;
22. International Finance Facility for Immunization;
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 affected or threatened by severe financial problems. Art. 6. (1) Any person who commits or allows commission of a violation under this Ordinance shall be punished according to Art. 351 of the SIC. (2) Violations of provisions of this Ordinance shall be established by statements drawn up by officials authorised by the Deputy Chair of the Financial Supervision Commission in charge of the Social Insurance Supervision Division. (3) The penal decrees shall be issued by the Deputy Chair of the Financial Supervision Commission in charge of the Social Insurance Supervision Division, or by a person authorised by him. (4) The establishment of violations, the issuance, appeal and enforcement of the penal decrees shall be conducted as provided for in the Administrative Violations and Sanctions Act. Concluding provisions § 1. This Ordinance is issued on grounds of Art. 176, para. 3 of the Social Insurance Code and adopted by Decision No 60-N of 12 July 2006 of the Financial Supervision Commission. § 2. The Financial Supervision Commission shall provide guidance on the implementation of the Ordinance. Transitional and final provisions to the Ordinance on amendment of Ordinance No. 29 of 2006 on the minimum level of credit ratings of banks and for determination of countries, international financial organizations, markets and the indices of those markets according to art. 176, para. 2 of the Social Insurance Code (SG, issue 8 of 28.01.2020) § 4. Pension insurance companies align their activities with the provisions of this ordinance within six months of their entry into force. Transitional and final provisions to Regulation No. 70 from 29.06.2021 on the requirements for the 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 determination the countries, international financial organizations, markets and indices of these markets according to art. 176, para. 2 of the Social Insurance Code (promulgated, SG No. 62 of 2006; amended, No. 3 of 2008; amended and supplemented, no. 98 of 2009, no. 91 of 2011, no. 94 of 2018 and no. 8 and 81 of 2020) the following amendments and additions are made:
1. In art. 2:
a) in para. 2 after the words "additional pension insurance fund" are added the words "and to a fund for making payments"; b) in para. 3 and 6, the words "additional pension insurance fund" are replaced by the words "fund under para. 2".
2. In subparagraph 1 of the final provisions, the words "art. 176, para. 2" are replaced with the words
"art. 176, para. 3".
Transitional and final provisions to the Ordinance on amendment of Ordinance No. 63 of November 8, 2018 on the requirements for the content, the periodicity of preparation and deadlines for submission of reports for supervisory objectives of pension insurance companies and the funds they manage (SG, issue 64 of 09.08.2022, in force since 09.08.2022) § 19. In Ordinance No. 29 of 12.07.2006 on the minimum level of credit ratings of banks and for determination the countries, international financial organizations, markets and the indices of these markets according to art. 176, para. 2 of the Social Insurance Code (promulgated, SG No. 62 of 2006; amended, No. 3 of 2008; amended and supplemented, no. 98 of 2009, no. 91 of 2011, no. 94 of 2018, no. 8 and 81 of 2020 and no. 60 of 2021) the following changes are made:
1. In the name of the regulation, the words "para. 2" are replaced by "para. 3".
2. In art. 1, point 2 and in art. 5, para. 1 everywhere the words "point 11" are replaced by "point 12".