Nina Boteva Law Newsletter August 2021

On 18.08.2021 a Bill amending and supplementing the Law on the Activity of Collective Investment Schemes and Other Collective Investment Enterprises (hereinafter only the Bill) was submitted to the National Assembly of the Republic of Bulgaria. The project aims to introduce the requirements of Directive (EU) 2019/1160, Regulation (EU) 2019/1156 and Regulation (EU) 2019/2088.

• Proposed amendments in connection with the implementation of the requirements set out in Directive (EU) 2019/1160.

The reasons for the Bill state that it is necessary in the Bulgarian legislation to introduce regulations on cross-border pre-offers of alternative investment funds, which are carried out without notification to the competent authority of the home Member State or to the competent authority of the Member State in which such an offer is made.

In this connection, a clear definition is introduced, defining the cases of advance offering of alternative investment funds, as well as strict requirements under which the persons managing alternative investment funds from the EU may undertake such an offer, or when such an offer can be made on its behalf on the territory of the Republic of Bulgaria or another Member State, depending on the origin of the persons managing alternative investment funds from the EU.

It is proposed to harmonize with the Bill the procedure according to which the collective investment undertakings in transferable securities and the persons managing alternative investment funds, who have sent a notification for offering in a given Member State, may terminate the offering on the territory of the Republic of Bulgaria. Authorization for such withdrawal may be obtained from the Financial Supervision Commission or, accordingly, from the competent authority of the home Member State of those undertakings.

• Proposed amendments in relation to Regulation (EU) 2019/2088

The Bill proposes measures in the relevant sectoral national legislation, which provide conditions for effective implementation of Regulation (EU) 2019/2088 by financial market participants and financial advisers.

Proposals aim to regulate the models for setting performance fees in undertakings for collective investment in transferable securities and in certain types of alternative investment funds, their disclosure and supervision by the competent authorities arising from the Guidelines on Performance Fees in undertakings for collective investment in transferable securities and in certain types of alternative investment funds issued by the European Securities and Markets Authority.

The Bill shall be discussed at first reading.

Contributing Advisors