Bulgarian Financial Instruments Broker Exam study guide
Bulgarian Financial Instruments Broker Exam · Work through your exam, one topic at a time.
The Bulgarian Financial Instruments Broker credential is the qualification that lets an individual act as a licensed investment intermediary broker in Bulgaria, advising clients and handling orders in financial instruments under the supervision of the Financial Supervision Commission (Комисия за финансов надзор, FSC). Candidates are typically employees or prospective employees of investment firms, banks with investment services arms, and brokerage houses who need to demonstrate command of the Bulgarian and EU rulebook that governs the profession. The Bulgarian Financial Instruments Broker Exam study guide has 8 sections and about 2,150 words.
01Regulatory Framework and Market Supervision
Bulgaria's securities market is supervised by the Financial Supervision Commission (Комисия за финансов надзор, FSC), an integrated regulator covering capital markets, insurance and pensions. The legal framework rests on the Markets in Financial Instruments Act (Закон за пазарите на финансови инструменти, ZPFI), which transposes MiFID II, together with the Public Offering of Securities Act (ЗППЦК), the Market Abuse Regulation as applied domestically, and secondary FSC ordinances (наредби).
319 words, about 2 min02Financial Instruments: Types, Characteristics and Valuation
Candidates must know the MiFID II categories of financial instruments: transferable securities (shares, bonds, depositary receipts), money-market instruments, units in collective investment schemes, options, futures, swaps, forwards and other derivatives, and emission allowances. Key characteristics to master: for equities, voting and dividend rights and residual claim; for bonds, coupon, maturity, issuer credit risk and yield; for derivatives, underlying, notional, leverage, margining and counterparty risk.
274 words, about 1 min03Markets, Trading Venues and Order Handling
MiFID II defines trading venues: regulated markets (RM), multilateral trading facilities (MTF) and organised trading facilities (OTF), plus systematic internalisers (SI) as investment firms trading on own account. In Bulgaria, the BSE operates regulated markets; MTFs may be operated by investment firms or the exchange.
261 words, about 1 min04Investment Services, Client Categorisation and Suitability
MiFID II investment services include reception and transmission of orders, execution on behalf of clients, dealing on own account, portfolio management, investment advice, underwriting and placing, and operation of MTFs/OTFs. Ancillary services include custody, safekeeping, research, and foreign-exchange services connected to investment services.
231 words, about 1 min05Market Abuse
The Market Abuse Regulation (MAR) prohibits insider dealing, unlawful disclosure of inside information, and market manipulation. Inside information is precise, non-public information likely to have a significant effect on price.
221 words, about 1 min06Conduct of Business and Ethics
Conduct rules require firms to act honestly, fairly and professionally in the client's best interest. Key obligations: information to clients (fair, clear, not misleading), conflicts-of-interest management, inducements rules, client agreements, and best execution.
212 words, about 1 min07Anti-Money Laundering and Counter-Terrorist Financing
Bulgarian AML/CTF rules derive from the Measures Against Money Laundering Act (Закон за мерките срещу изпирането на пари, ЗМИП) and EU directives, supervised by the FSC for investment firms and by the State Agency for National Security (ДАНС) for intelligence. Core obligations: customer due diligence (CDD), including identification and verification, beneficial ownership identification, ongoing monitoring, record-keeping, and suspicious transaction reporting to the Financial Intelligence Unit (FIU, part of ДАНС).
231 words, about 1 min08Risk Management, Capital Adequacy and Client Asset Safeguards
Investment firms face market, credit, liquidity, operational and conduct risk. Capital adequacy under the Investment Firms Regulation and Directive (IFR/IFD) sets own-funds requirements based on minimum capital, fixed overheads, or K-factors reflecting risk to clients and markets.
401 words, about 2 min