/View.info/ Without any publicity or discussion, the Financial Supervision Commission appointed a new management of the Securities Investor Compensation Fund.
In the place of the chairman Mileti Mladenov, his former deputy and former MP from the NDSV, Teodora Drenska, was appointed. The member of the management board Atanas Boychev, who was a representative of the association of investment intermediaries (BALIP), has also been released, and instead of them, the teacher from the National University of Economics Diana Miteva-Boncheva and Mihaela Koleva, executive director of the intermediary “Intercapital Markets”.
The fund for compensating investors in securities manages a financial resource of nearly BGN 12 million, according to data from its website. It was created because of a European directive to compensate investors if their intermediary becomes insolvent. The money in it should be invested conservatively – in government debt, deposits in the BNB and deposits in commercial banks. The conservative investment policy is defined by the directive. However, the new management has the opportunity to increase the contributions of the investment intermediaries, and hence the resource of the fund. Hypothetically, they can target certain banks at the discretion of the board. Government securities can also be purchased through certain investment intermediaries who receive a commission.
From runner-up to a higher post
The change in its leadership took place after the mandates of Mladenov and Boychev expired, but the choice of Drenska is interesting – she was elected with a mandate of five years at the beginning of 2012. That is, she still has almost two years until the expiration. In order to prolong her stay in the management, however, she submitted her resignation, which was accepted on July 1 by the FSC. On the same day, the supervisor appointed Drenska to take Mladenov’s place. After she resigned, her mandate will be completed by Diana Miteva-Boncheva. Boncheva is an assistant in the Department of Finance at UNSS, where the former Finance Minister Petar Chobanov and the former Prime Minister Plamen Oresharski are associate professors. According to unofficial information, Boncheva is close to Chobanov, who is now an MP from the DPS.
The FSC announced to “Capital Daily” that Drenska has been released as deputy chairman with the aim of electing her as chairman. According to the supervisor’s responses, there were no proposals from ABB and BALIP within the legal term. The Ministry of Finance, which is related to the financial system, does not have the authority to determine the composition of the management board in the fund, the supervisor explained. According to the FSC’s answers, the rules for selecting members “do not provide for a competition or any other form of pre-selection of candidates”. From there, they ensured that all members of the management board met the requirements for education and professional experience.
The market is not that important
According to “Capital daily” sources, there were proposals from ABB and BALIP, albeit with a little delay. We were unable to contact BALIP chairman Lyubomir Boyadjiev for a comment until the editorial completion of the issue. According to unofficial information, they are not satisfied with the choice of Koleva and have proposed to the FSC that Atanas Boychev should remain on the board of the fund. In theory, the chairman of the FSC has no obstacle to agree to the nominations, even if they are overdue – if he simply proposes them himself. For now, it is not clear whether ABB agrees with the new members – their representative in the fund, Irina Marceva, continues to be a member of the board, albeit with an expired mandate. She can continue to work until the FSC releases her. It is not clear why the FSC did not replace Marceva and the other member with an expired mandate – Pavlina Anachkova-Kantareva, who is a joint representative of BALIP and ABB. Investment brokers and banks are the ones who contribute to the fund – in effect, it was created with their money.
Mihaela Koleva from the new management becomes the sole representative of the investment intermediaries. Intercapital Markets, of which he is the executive director, is not a member of BALIP’s management. The other executive director of the intermediary, Nikolay Meister, denied to “Capital Daily” that there was any lobbying for Koleva’s election.
“for honor”
“The FSC asked us if we would agree. We said it would be an honor for us,” explained Meister. According to him, he did not even know how exactly the selection of members of the fund’s management was done and there were no political connections between the appointment and the intermediary. “Intercapital Markets” also has an indirect connection with NDSV – its shareholder is Miroslav Sevlievski, one of the founders of the party of the former Tsar Simeon II, later a breakaway in “New Time”. It is clear from Meister’s words that they did not participate in the discussion of candidacies in BALIP
#FSC #secretly #appointed #management #fund #investors
