Regulatory Alerts2006-10-04
Added · Updated
Ordinance No. 34 of 04.10.2006 on Conditions for Concluding Transactions to Reduce Investment Risk for Supplementary Pension Funds, Sub-funds, and Payment Funds, and Related Requirements and Restrictions
The Financial Supervision Commission issued Ordinance No. 34, which defines the conditions, requirements, and restrictions for pension insurance companies to conclude hedging transactions aimed at reducing investment risk for supplementary pension insurance funds, their sub-funds, and payment funds. These transactions must align with the fund's investment policy and risk management strategy, and counterparties must meet specific credit rating and regulatory equivalence criteria. The ordinance also details how to determine the value of counterparty default risk and market risk for hedging instruments, setting limits on these risks relative to the fund's net assets.
ORDINANCE No. 34 of 04.10.2006 on the conditions for concluding transactions to reduce investment risk related to the assets of supplementary pension insurance funds, sub-funds within them, and payment funds, and on the requirements and restrictions for these transactions (Title amended, issue 60 of 2021; amended, issue 61 of 2026, effective from 01.01.2027) Promulgated - SG, issue 86 of 24.10.2006; amended and supplemented, issue 29 of 18.03.2008; amended and supplemented, issue 53 of 11.07.2009; amended and supplemented, issue 21 of 09.03.2018, effective from 19.11.2018; amended, issue 41 of 21.05.2019; amended and supplemented, issue 8 of 28.01.2020; supplemented, issue 81 of 15.09.2020; amended and supplemented, issue 60 of 20.07.2021; amended and supplemented, issue 70 of 20.08.2024; supplemented, issue 90 of 25.10.2024; amended and supplemented, issue 61 of 03.07.2026, effective from 01.01.2027. Adopted by Decision No. 66-N of 4.X.2006 of the Financial Supervision Commission
Section I General Provisions
Art. 1. (Amended and supplemented - SG, issue 21 of 2018, effective from 19.11.2018; supplemented, issue 61 of 2026