Financial Supervision Commission proposes introduction of semiannual dividends

Financial Supervision Commission

Financial Supervision Commission

Bulgarian Stock Exchange-listed to pay semiannual dividends, according to latest statutory changes proposed by the Financial Supervision Commission. The changes to the Public Offering of Securities Act have been published for public consultation. They entail listed companies to be able to distribute semiannual dividends if the latter has been stipulated in the company’s incorporation documents and shareholders have approved both an audited semiannual financial statement as well as profit distribution.

Currently, listed companies may distribute only annual dividends as shareholders must approve an audited annual financial statement at a mandatory annual meeting.

Financial Supervision Commission eases capital raising

The changes of the current legislation envisage an easier procedure for small companies willing to raise capital from the stock market without listing on the stock exchange. They will be able to participate in a new trading multi-party platform, which is to be developed by the Bulgarian Stock Exchange.

For companies that want to get listed on the Bulgarian Stock Exchange, the Financial Supervision Commission proposes shorter period of review and approval of prospectus.

Better protection of investors

The Financial Supervision Commission has detected some opportunities to better protect the investors through some regulatory changes such as improvement of regulating the governing bodies’ rights. They will be restricted in deals without General Assembly approval. The definition of conflict of interest also needs to be more precise, the regulatory body stated in its proposals.

Compensating investors

After the case with Corporate Commercial Bank bankruptcy and the fact that mutual funds’ assets were blocked in the bank, the regulator found that the Investor Compensation Fund should have a representative of the Asset Management Association in the governing body and the minimum annual fee for participation should be BGN 100.

Mystery shopping for scam brokers

The regulator introduced also changes that would allow more effective investigation in activity of brokers without any license in Bulgaria. An opportunity for using mystery shoppers will be included in the legal changes so that the Commission can chase the scam brokers.

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