Ordinance on Valuation of Assets and Liabilities of Pension Insurance Companies and Managed Funds

Ordinance No. 9 of 19.11.2003 on the valuation of assets and liabilities of the pension insurance company and of the funds and sub-funds managed by it, on the determination of the value of net assets, on the value of a share, and on the maintenance of individual accounts, accounts for the pan-European personal pension product (PEPP), and analytical accounts in a payment fund (Title amended - State Gazette, No. 94 of 2018, effective from 19.11.2018; amended, No. 59 of 2021; amended, No. 70 of 2024; amended, No. 65 of 2026, effective from 01.01.2027) Published - State Gazette, No. 109 of 16.12.2003; effective from 01.07.2004; amended and supplemented, No. 34 of 27.04.2004; No. 57 of 12.07.2005; No. 32 of 18.04.2006; No. 86 of 24.10.2006; amended and supplemented, No. 39 of 15.05.2007, effective from 19.05.2007; amended and supplemented, No. 28 of 14.04.2009; amended and supplemented, No. 74 of 15.09.2009, effective from 19.09.2009; amended, No. 107 of 13.12.2013, effective from 01.01.2014; amended and supplemented, No. 94 of 13.11.2018, effective from 19.11.2018; amended and supplemented, No. 59 of 16.07.2021; amended and supplemented, No. 70 of 20.08.2024; amended, No. 20 of 11.03.2025, effective from the date of introduction of the euro in the Republic of Bulgaria; amended, No. 65 of 17.07.2026, effective from 01.01.2027. Issued by the CFS

Section I
General Provisions

Art. 1. (Supplemented - State Gazette, No. 94 of 2018, effective from 19.11.2018; amended and supplemented, No. 59 of 2021; amended and supplemented, No. 70 of 2024; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) This Ordinance regulates:

1. (Amended - State Gazette, No. 59 of 2021; amended, No. 70 of 2024; amended, No. 65 of 2026, effective from 01.01.2027.) the method and procedure for the valuation of assets and liabilities of a supplementary pension fund, the sub-funds therein, and a payment fund, as well as the determination of the net asset value of the respective fund and the net asset value in the sub-funds of universal and voluntary pension funds;
2. the method and procedure for the valuation of assets and liabilities of a pension insurance company;
3. (Amended - State Gazette, No. 59 of 2021; supplemented, No. 65 of 2026, effective from 01.01.2027.) the obligations of a pension insurance company regarding the valuation of assets and liabilities of managed funds and sub-funds and of its own assets and liabilities;
4. (Supplemented - State Gazette, No. 70 of 2024; amended, No. 65 of 2026, effective from 01.01.2027.) the calculation and publication of the value of a share of a professional pension fund, a fund for additional voluntary insurance without sub-funds, and a fund for additional voluntary pension insurance under professional schemes;
5. (New - State Gazette, No. 65 of 2026, effective from 01.01.2027.) the calculation and publication of the value of a share in the sub-funds of universal pension funds and in the sub-funds of voluntary pension funds;
6. (New - State Gazette, No. 70 of 2024; previous item 5, No. 65 of 2026, effective from 01.01.2027.) the calculation and publication of the value of a share in the sub-funds of the voluntary pension fund for PEPP;
7. (Previous item 5, amended - State Gazette, No. 70 of 2024; previous item 6, No. 65 of 2026, effective from 01.01.2027.) the requirements for the maintenance of individual accounts of insured persons in a fund for additional mandatory pension insurance, a fund for additional voluntary pension insurance, and a fund for additional voluntary pension insurance under professional schemes;
8. (New - State Gazette, No. 70 of 2024; previous item 7, No. 65 of 2026, effective from 01.01.2027.) the requirements for the maintenance of PEPP accounts in a voluntary pension fund for PEPP;
9. (New - State Gazette, No. 59 of 2021; previous item 6, No. 70 of 2024; repealed and replaced by previous item 8, amended, No. 65 of 2026, effective from 01.01.2027.) the requirements for the maintenance of analytical accounts of persons in a payment fund;

Section II
Valuation of assets and liabilities of a supplementary pension fund and a sub-fund therein and of a payment fund. Determination of the net asset value of funds and the net asset value in sub-funds of universal and voluntary pension funds (Title amended - State Gazette, No. 59 of 2021; amended, No. 70 of 2024; amended, No. 65 of 2026, effective from 01.01.2027)

Art. 2. (Amended and supplemented - State Gazette, No. 59 of 2021; supplemented, No. 70 of 2024; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) (1) (Previous text of Art. 2 - State Gazette, No. 59 of 2021; supplemented, No. 65 of 2026, effective from 01.01.2027.) The valuation of assets and liabilities of a supplementary pension fund and a sub-fund under Art. 1, item 1 is carried out every working day by the pension insurance company managing it, based on:
1. (Supplemented - State Gazette, No. 70 of 2024; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) information from the trustee bank, respectively the depositary under Art. 214a, para. 9 of the Social Security Code, on all completed transactions with the assets of the fund, respectively the sub-fund, for the previous working day;
2. (Supplemented - State Gazette, No. 65 of 2026, effective from 01.01.2027.) accounting of the liabilities of the fund, respectively the sub-fund, and of transactions with its assets for the previous working day;
3. (Amended - State Gazette, No. 32 of 2006; supplemented, No. 65 of 2026, effective from 01.01.2027.) information on the market prices of the assets of the fund, respectively the sub-fund, for the previous working day;
4. determination of the fair value of assets that do not have market prices, by using appropriate applicable methods.
(2) (New - State Gazette, No. 59 of 2021.) The valuation of assets and liabilities of a payment fund is carried out by the pension insurance company managing it at the end of each month on the first working day of the following month, with the exception of the valuation at the end of December, which is carried out by the fifth working day of the following month, based on:
1. information from the trustee bank on all completed transactions with the assets of the fund for the last working day of the previous month;
2. accounting of the liabilities of the fund and of transactions with its assets for the last working day of the previous month;
3. information on the market prices of the assets of the fund for the last working day of the previous month;
4. determination of the fair value of assets for which market prices are not applied, by using appropriate applicable methods.

Art. 3. (Amended and supplemented - State Gazette, No. 39 of 2007, effective from 19.05.2007; amended and supplemented, No. 94 of 2018, effective from 19.11.2018; amended and supplemented, No. 59 of 2021; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) (1) (Previous text of Art. 3, amended and supplemented - State Gazette, No. 39 of 2007, effective from 19.05.2007; amended, No. 59 of 2021; supplemented, No. 65 of 2026, effective from 01.01.2027.) The valuation of financial assets of a fund and a sub-fund under Art. 1, item 1 is carried out:
1. (Amended - State Gazette, No. 39 of 2007, effective from 01.01.2008.) upon initial acquisition (recognition) - at acquisition price;
2. (Amended - State Gazette, No. 57 of 2005.) upon subsequent valuation - according to the respective procedure and method determined in this Ordinance.
3. (New - State Gazette, No. 39 of 2007, effective from 19.05.2007; amended, No. 94 of 2018, effective from 19.11.2018.) in case of impossibility to apply the procedure and methods for valuation under this Ordinance, the subsequent valuation may be carried out in compliance with the principle of prudence using methods that are generally accepted on financial markets, which are duly and detailedly motivated and documented by the pension insurance company.
4. (New - State Gazette, No. 39 of 2007, effective from 19.05.2007.) By exception, when the valuation obtained under this Ordinance is in obvious contradiction with the principle of prudence, the pension insurance company may use the price determined under the Ordinance for the previous working day.
(2) (New - State Gazette, No. 94 of 2018, effective from 19.11.2018; amended, No. 59 of 2021; amended, No. 65 of 2026, effective from 01.01.2027.) When financial assets of the pension insurance company or of a fund and sub-fund managed by it:
1. are traded on more than one regulated market, including a growth market in a Member State, respectively on an official stock exchange market or on another organized market in a third country, including intended for instruments of issuers with small or medium market capitalization, on the day of acquisition of the respective asset, the company determines one of these markets as the primary market in accordance with the requirements of applicable accounting standards and reviews it annually, as well as when necessary for its change;
2. are debt securities and money market instruments under Art. 176, para. 1, item 1, letters "v" and "g" and item 2 of the Social Security Code, which are not admitted for trading on a regulated market or on another organized market in a third country, but are admitted for trading on more than one multilateral trading facility (MTF) or organized trading system (OTS) in a Member State, on the day of acquisition of the respective asset, the company determines one of these trading venues as primary in accordance with the requirements of applicable accounting standards and reviews it annually, as well as when necessary for its change.
(3) (New - State Gazette, No. 65 of 2026, effective from 01.01.2027.) When carrying out the subsequent valuation under Art. 5b, para. 1 and 2, Art. 6, para. 1, 2 and 6, Art. 7, para. 3 and 6, and Art. 10a, para. 1 and 2, the pension insurance company uses data only from the respective market/trading venue.
(4) (New - State Gazette, No. 39 of 2007, effective from 19.05.2007; previous para. 2, amended, No. 94 of 2018, effective from 19.11.2018; supplemented, No. 59 of 2021; previous para. 3, amended, No. 65 of 2026, effective from 01.01.2027.) In the cases under para. 1, items 3 and 4, the pension insurance company informs the Commission for Financial Supervision, hereinafter referred to as "the Commission", within the deadline for submission of daily reports for supervisory purposes, determined by the Ordinance under Art. 185, para. 3 of the Social Security Code, of the reasons and the procedure and method of carrying out the valuation.

Art. 4. (Amended and supplemented - State Gazette, No. 57 of 2005; amended, No. 94 of 2018, effective from 19.11.2018; amended, No. 59 of 2021; amended and supplemented, No. 70 of 2024; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) (1) (Previous text of Art. 4 - State Gazette, No. 70 of 2024; supplemented, No. 65 of 2026, effective from 01.01.2027.) The valuation under Art. 3, para. 1, item 2 of the financial assets of a fund and a sub-fund under Art. 1, item 1, hereinafter referred to as "subsequent valuation", is carried out for each financial instrument, including those initially recognized as of the valuation date. (2) (New - State Gazette, No. 70 of 2024; amended, No. 65 of 2026, effective from 01.01.2027.) When the same asset is present in several or all sub-funds, the pension insurance company determines the same valuation of this asset for the calculation of the asset value in each sub-fund for the respective working day according to this Section.

Art. 5. (Amended - State Gazette, No. 57 of 2005; amended, No. 39 of 2007, effective from 19.05.2007; amended in its entirety, No. 94 of 2018, effective from 19.11.2018; amended and supplemented, No. 59 of 2021; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) (1) (Amended and supplemented - State Gazette, No. 59 of 2021; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) Subsequent valuation of government securities and money market instruments issued and admitted for trading on a regulated market in the country is carried out at the last price of a transaction concluded with them for the previous working day (day "T"), announced in the stock exchange bulletin, to which the accrued coupon interest for the day to which the valuation refers, announced in the bulletin from day "T-2", is added. (2) If a price cannot be determined under para. 1, the subsequent valuation is carried out at the last "bid" price for the previous working day (day "T"), announced in the stock exchange bulletin, to which the accrued coupon interest for the day to which the valuation refers, announced in the bulletin from day "T-2", is added. (3) In case of impossibility to apply the valuation methods under para. 1 and 2, the subsequent valuation is carried out at the average price of each issue for the previous working day of the secondary interbank market. The average price of an issue is formed as the arithmetic mean of the "bid" and "ask" prices announced by no fewer than three primary dealers of government securities, determined in the manner specified in the rules under Art. 17. (4) In case of impossibility to apply the valuation methods under para. 1, 2, and 3, the comparable prices method for securities with similar payment terms, maturity, and rating or other generally accepted methods, determined in the rules under Art. 17, is used.

Art. 5a. (New - State Gazette, No. 94 of 2018, effective from 19.11.2018; supplemented, No. 59 of 2021; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) The subsequent valuation of government securities and money market instruments issued in the country, which are not admitted for trading on a regulated market, is carried out according to Art. 5, para. 3 and 4.

Art. 5b. (New - State Gazette, No. 94 of 2018, effective from 19.11.2018; supplemented, No. 59 of 2021; amended, No. 65 of 2026, effective from 01.01.2027.) (1) (Supplemented - State Gazette, No. 59 of 2021; amended, No. 65 of 2026, effective from 01.01.2027.) Subsequent valuation of debt securities and money market instruments traded on a regulated market or a growth market in a Member State, respectively on an official stock exchange market or on another organized market in a third country, including intended for instruments of issuers with small or medium market capitalization, and on MTFs and OTSs for the instruments under Art. 3, para. 2, item 2, is carried out at the last price of a transaction concluded with them for the previous working day, announced in a stock exchange bulletin or an electronic system for price information on financial instruments. When a net price is announced, the subsequent valuation is carried out by adding the accrued coupon interest to the date to which the valuation refers to this price. (2) If a price cannot be determined under para. 1, the subsequent valuation is carried out at the last "bid" price for the previous working day, announced in the stock exchange bulletin or an electronic system for price information on financial instruments. When a net price is announced, the subsequent valuation is carried out by adding the accrued coupon interest to the date to which the valuation refers to this price. (3) In case of impossibility to apply the valuation methods under para. 1 and 2, the comparable prices method for securities with similar payment terms, maturity, and rating or other generally accepted methods, determined in the rules under Art. 17, is used.

Art. 5v. (New - State Gazette, No. 94 of 2018, effective from 19.11.2018; supplemented, No. 59 of 2021; amended, No. 65 of 2026, effective from 01.01.2027.) Except for the securities under Art. 5a, the subsequent valuation of debt securities and money market instruments that are not traded on a market under Art. 3, para. 2, is carried out by the discounted cash flow method or by another suitable method specified in the rules under Art. 17.

Art. 5v1. (New - State Gazette, No. 59 of 2021; amended, No. 65 of 2026, effective from 01.01.2027.) The subsequent valuation of debt securities under Art. 176, para. 1, item 1 of the Social Security Code and money market instruments held to maturity by a payment fund may also be carried out at amortized cost in accordance with the requirements of applicable accounting standards.

Art. 5g. (New - State Gazette, No. 94 of 2018, effective from 19.11.2018; amended, No. 59 of 2021.) (1) (Amended - State Gazette, No. 59 of 2021.) In cases of valuation of debt securities by a method under Art. 5b, para. 3 or Art. 5v, the pension insurance company submits to the Commission together with the valuation information under Art. 2, para. 1, respectively Art. 2, para. 2:

1. a justification regarding the choice of the respective method, which includes the relevant data, characteristics of the security, and other significant circumstances for the company's assessment;
2. information on the application of the method chosen by the pension insurance company, as follows:
   a) a reference form according to Appendix No. 1 when valuing by the discounted cash flow method; b) the calculations and assumptions made when valuing by a method other than that specified in letter "a".
   (2) The information under para. 1, item 1 is not submitted when there is no change in the justification.
   (3) The information under para. 1, item 2 is not submitted when there is no change in the value of the components of the risk premium in the reference form under para. 1, item 2, letter "a", respectively in the assumptions under para. 1, item 2, letter "b".

Art. 6. (Amended and supplemented - State Gazette, No. 34 of 2004, No. 57 of 2005, amended, No. 32 of 2006; amended and supplemented, No. 28 of 2009; amended, No. 74 of 2009, effective from 19.09.2009; amended, No. 107 of 2013, effective from 01.01.2014; amended and supplemented, No. 94 of 2018, effective from 19.11.2018; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) (1) (Amended - State Gazette, No. 28 of 2009; amended, No. 107 of 2013, effective from 01.01.2014; amended, No. 94 of 2018, effective from 19.11.2018; amended, No. 65 of 2026, effective from 01.01.2027.) Subsequent valuation of shares traded on a regulated market or a growth market in a Member State, respectively on an official stock exchange market or on another organized market in a third country, including intended for instruments of issuers with small or medium market capitalization, which are included in an officially calculated index of the respective market according to Appendix No. 2, as well as shares and/or units of exchange-traded funds with headquarters in a Member State or in a third country, is carried out at:
a) the closing price of this market for the previous working day, announced in the stock exchange bulletin or an electronic system for price information on financial instruments; b) the last "bid" price for the previous working day, announced in the stock exchange bulletin or an electronic system for price information on financial instruments, if a price cannot be determined under letter "a".
(2) (Amended - State Gazette, No. 74 of 2009, effective from 19.09.2009; amended, No. 107 of 2013, effective from 01.01.2014; amended, No. 94 of 2018, effective from 19.11.2018; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) Subsequent valuation of shares traded on a regulated market or a growth market in a Member State, respectively on an official stock exchange market or on another organized market in a third country, including intended for instruments of issuers with small or medium market capitalization, outside those specified in para. 1, is carried out at the lower price from:
a) (Supplemented - State Gazette, No. 65 of 2026, effective from 01.01.2027.) the announced closing price on this market for the previous working day, in case continuous price information is provided, from which transactions with sufficient frequency and volume are visible for the last three consecutive months before the current month, and for financial instruments newly acquired during the respective month - for the last three consecutive months, counting from the date preceding the date of conclusion of the transaction; b) (Supplemented - State Gazette, No. 65 of 2026, effective from 01.01.2027.) the last "bid" price for the previous working day, announced in the stock exchange bulletin or an electronic system for price information, in case continuous price information is provided, from which transactions with sufficient frequency and volume are visible for the last three consecutive months before the current month, and for financial instruments newly acquired during the respective month - for the last three consecutive months, counting from the date preceding the date of conclusion of the transaction. (3) (Amended - State Gazette, No. 74 of 2009, effective from 19.09.2009; amended, No. 107 of 2013, effective from 01.01.2014; repealed, No. 94 of 2018, effective from 19.11.2018). (4) (Amended, in its entirety - State Gazette, No. 74 of 2009, effective from 01.01.2010; amended, No. 94 of 2018, effective from 19.11.2018.) In case of impossibility to apply the valuation method under para. 1, respectively para. 2, the subsequent valuation of shares is carried out by one of the following methods and models, described in the rules under Art. 17:
1. method of market multiples of comparable companies by using the comparable company multiples model;
2. method of net book value of assets by using the net book value of assets model;
3. method of discounted cash flows by using:
a) the discounted cash flow model of equity; b) the discounted cash flow model of the company, or c) the discounted dividends model.
(5) (New - State Gazette, No. 65 of 2026, effective from 01.01.2027.) In cases where the valuation under para. 4 exceeds the last closing price of the market under para. 1, announced in the stock exchange bulletin or an electronic system for price information in the last three consecutive months before the date of carrying out the valuation, and if there is no such price - the last announced "bid" price for the last three consecutive months before the date of carrying out the valuation, the subsequent valuation is carried out in the following order:
1. last closing price;
2. the last announced "bid" price;
3. if there are closing price and "bid" price for the same day, the lower of them is used.
(6) (Amended - State Gazette, No. 94 of 2018, effective from 19.11.2018; previous para. 5, supplemented, No. 65 of 2026, effective from 01.01.2027.) Subsequent valuation of rights or warrants on shares traded on a regulated market or a growth market in a Member State, respectively on an official stock exchange market or on another organized market in a third country, including intended for instruments of issuers with small or medium market capitalization, is carried out at the lower price from the closing price and the last "bid" price for the previous working day, announced in the stock exchange bulletin or an electronic system for price information. (7) (Amended, in its entirety - State Gazette, No. 28 of 2009; amended, No. 74 of 2009, effective from 19.09.2009; amended, No. 94 of 2018, effective from 19.11.2018; previous para. 6, amended, No. 65 of 2026, effective from 01.01.2027.) In case of impossibility to apply para. 6, the subsequent valuation of rights and warrants is carried out at fair value, determined by means of a suitable model specified in the rules under Art. 17. (8) (Amended - State Gazette, No. 74 of 2009, effective from 19.09.2009; amended, No. 94 of 2018, effective from 19.11.2018; previous para. 7, No. 65 of 2026, effective from 01.01.2027.) Subsequent valuation of shares acquired under the conditions of an initial public offering, from the date of their registration in the depository institution until the date of their admission for trading on the respective trading venue, is determined at the acquisition price from the initial public offering. (9) (Amended, in its entirety - State Gazette, No. 28 of 2009; amended, No. 74 of 2009, effective from 19.09.2009; repealed, No. 94 of 2018, effective from 19.11.2018; previous para. 8, No. 65 of 2026, effective from 01.01.2027).

Art. 6a. (New - State Gazette, No. 74 of 2009, effective from 01.01.2010; amended and supplemented, No. 94 of 2018, effective from 19.11.2018; amended and supplemented, No. 59 of 2021; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) (1) (New - State Gazette, No. 94 of 2018, effective from 19.11.2018; amended, No. 59 of 2021; amended, No. 65 of 2026, effective from 01.01.2027.) When carrying out subsequent valuation under Art. 6, para. 2, the pension insurance company submits to the Commission within the deadline under Art. 3, para. 4, a justification containing the data proving compliance with the criteria under Art. 17, para. 3, item 7. The justification is not submitted when there is no change in the information. (2) (Previous para. 1, amended - State Gazette, No. 94 of 2018, effective from 19.11.2018; supplemented, No. 59 of 2021; amended and supplemented, No. 65 of 2026, effective from 01.01.2027.) When carrying out subsequent valuation under Art. 6, para. 4, the choice of the respective method and model, as well as the non-use of other methods and models, is justified...