ABIRD Membership and the New Requirements of POSA

From 2017, Odit Konsult is a member of the Association of Bulgarian Investor Relation Directors (ABIRD), which allows the company to become part of the changes, taking place with respect to the regulatory framework and the new business practices for entities under its jurisdiction.

As a result of the changes in the regulatory framework on European level, the Bulgarian legislation implements the requirements of:

  • Directive 2013/50/EU of the European parliament and the Council;
  • Directive 2014/51/EU of the European parliament and the Council;
  • Article 92 of Directive 2014/65/EU of the European parliament and the Council;
  • Regulation (EU) No 909/2014 of the European parliament and the Council;
  • Regulation (EU) 2015/760 of the European parliament and the Council;
  • Regulation (EU) No 345/2013 of the European parliament and the Council and Regulation No 346/2013 of the European parliament and the Council;
  • Other amendments, which are not related to the European legislation.

They are reflected in the new Public Offering of Securities Act (POSA) and Ordinance No. 2 of the Financial Supervision Commission (FSC). They implement a number of new requirements regarding information disclosure by:

  • Public companies;
  • Entities of public interest;
  • Entities under paragraph 1d from the Supplementary Provisions of POSA.

Part of main changes include:

  • With respect to article 100n, paragraph 4 from POSA – content of the annual financial statements for the activity – other information, determined by an ordinance: the information according to appendices 10 and 11 and annual reports in a form determined by the Deputy Chairman of FSC.
  • With respect to article 100m, paragraph 5 from POSA – – content of the annual consolidated financial statements for the activity – other information, determined by an ordinance: the annual audited financial statement of the parent company, prepared in compliance with the national legislation of the member country of residence of the parent company and annual reports in a form determined by the Deputy Chairperson.
  • A new Section VII Disclosure of information about the persons under §1d of the Supplementary Provisions of POSA;
  • Specifying the information, which the persons under §1d of the Supplementary Provisions of POSA should disclose on a quarterly, six-month and annual basis;
  • Content and form of the interim and annual financial statements of the persons under §1d of the Supplementary Provisions of POSA;
  • And other changes.

Although the new legal requirements aim at improving the capital market in the country, as well as the awareness of investors in significant spheres of the economy, they make the regulatory framework even more complex and challenging. This requires a comprehensive approach in the work under the new legal requirements.

For more information on this topic, please follow our web page, as well as the page of ABIRD.

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