The ordinance pertaining to the organization and operation of the Fund for Compensation of investors in Bulgaria was officially published in the State Gazette, according to RZB.
“The main purpose of the Fund is to pay compensation to non-professionals who are clients of investment intermediaries when the intermediaries cannot meet their obligations due to financial obstacles,” said Bettina Janoschek, a spokesperson for RZB.
Each investment intermediary will have to make an initial contribution, which is 1% of its minimum amount of capital required. The annual contributions are based on:
1) the total amount of funds of the intermediary and2) the total amount of the clients’ assets for the last preceding year.
The capital accumulated by the Fund will be invested in government bonds, short-term deposits and deposits with the Bulgarian National Bank.