On Oct. 17, 2024, BUL FSC confirmed the next stage of work to introduce the euro in the country, in which the country's non-banking financial sector has a significant role.
BUL FSC pays special attention to process of preparation and introduction of euro by securities markets, market, intermediaries and by the Investor Compensation Fund.
Actions to be taken in connection with replacement of leva with the new monetary unit are provided for in National Plan for introduction of euro in the Republic of Bulgaria.
It is necessary for the persons under the supervision BUL FSC to prepare in a timely manner for work with the euro, with BUL FSC responsible for the implementation.
Relevant firms should therefore start the process of preparing the information systems in the non-banking sector to work with the euro, adapting current systems accordingly.
The processes of adapting the information systems of Central Depository to work with euros is needed, for the adaptation of all registers, clearing and settlement systems.
Processes for adapting information systems for working with euros at Bulgarian Stock Exchange and the other venues for trading financial instruments must be completed.
It is also necessary to complete the process of preparing the information systems in the Investor Compensation Fund, including those maintained by its information center.
Process to adapt information systems for the euro of intermediaries, fund management companies, alternative investment funds, insurers and re-insurers, pension insurance firms and funds managed, must be completed, as well as for other supervised persons.
The target date for this part of the transition process is currently set as Mar. 31, 2025.
On Sep. 26, BUL FSC reported next stage of work to introduce euro.
BUL FSC reported next stage of its work to introduce the euro in Republic of Bulgaria.
Follows BUL FSC Apr. 2024, meet with CRO HANFA on good practice, see #209481.
Non-Banking Financial Sector Role
BUL FSC is directly involved in the process of accession of the Republic of Bulgaria to the euro area, and notifies supervised entities of the transition to next stage of work.
Specifically for the introduction of the euro in the country, in which the non-banking financial sector plays a significant role, and BUL FSC focuses on this and other parts.
BUL FSC pays special attention to the process of preparation and introducing euro by regulated securities markets, market operators, and investment intermediaries.
Also, includes multilateral trading facilities, growth markets, central securities depositories, Investor Compensation Fund, and approved publication mechanisms.
Other stakeholders include management companies, alternative investment fund managers, and collective bargaining enterprises managed by them, amongst others.
Collective investment schemes and others included in non-banking financial sector.
Action to Adopt New Currency
The actions to be taken on the replacement of the lev with the new currency are envisaged in the National Plan for the introduction of the euro in Republic of Bulgaria.
Also, as developed by Coordination Council for preparation of Bulgarian membership in the euro area, and it is necessary for supervised entities to act in a timely manner.
Among the requirements for the non-banking supervised entities, includes Measure 10 of the Action Plan to Plan for the introduction of the euro in the Republic of Bulgaria.
In order to reach deadline of Nov. 30, 2024, entities need to start the process of preparing the information systems in non-banking sector for working with the euro.
On implementing this measure, supervised entities should prepare their IT systems.
On the basis of Art. 46, para. 3 of the Law on the Introduction of the Euro in the Republic of Bulgaria, the Minister of e-Government issues methodological instructions.
This includes adaptation of the information systems processing financial information in connection with the introduction of the euro in the Republic of Bulgaria.
BUL FSC emphasizes the need to implement the measures under the Action Plan to the Plan for the Introduction of the Euro in the Republic of Bulgaria, as per deadlines.
Oct. 2024 Further Transition Process
On Oct. 17, 2024, BUL FSC confirmed the next stage of work to introduce the euro in the country, in which the country's non-banking financial sector has a significant role.
BUL FSC pays special attention to process of preparation and introduction of euro by securities markets, market, intermediaries and by the Investor Compensation Fund.
Actions to be taken in connection with replacement of leva with the new monetary unit are provided for in National Plan for introduction of euro in the Republic of Bulgaria.
It is necessary for the persons under the supervision BUL FSC to prepare in a timely manner for work with the euro, with BUL FSC responsible for the implementation.
Relevant firms should therefore start the process of preparing the information systems in the non-banking sector to work with the euro, adapting current systems accordingly.
The processes of adapting the information systems of Central Depository to work with euros is needed, for the adaptation of all registers, clearing and settlement systems.
Processes for adapting information systems for working with euros at Bulgarian Stock Exchange and the other venues for trading financial instruments must be completed.
It is also necessary to complete the process of preparing the information systems in the Investor Compensation Fund, including those maintained by its information center.
Process to adapt information systems for the euro of intermediaries, fund management companies, alternative investment funds, insurers and re-insurers, pension insurance firms and funds managed, must be completed, as well as for other supervised persons.
The target date for this part of the transition process is currently set as Mar. 31, 2025.
