LYUBOMIR VELKOV QUITS SSEC
Everybody knew that the State Securities Exchange Commission (SSEC) has been working under pressure for weeks because of the forthcoming adoption of the Act on Nonbank Financial Supervision. The draft bill, moved in Parliament last week, stipulates the dismissal of the seven-member management team of the SSEC as of January 1, 2003. Its functions will be undertaken by two new members who will supervise a much bigger part of the financial market. In addition to stock trading, they will also control social insurance and insurance services. Quite unexpectedly, however, SSEC Chairman Lyubomir Velkov handed in his resignation to the Council of Ministers on August 6, well-informed sources told the BANKER weekly. His reasons are not known yet, but the ruling National Movement Simeon II (NMSII) seems to have no idea how to react. The functions of the SSEC chairman are very important, because he is the only one, authorized to organize and preside sessions, take urgent decisions when there is no quorum, and issue punitive decrees.Art. 14 of the Public Offering of Securities Act stipulates that the SSEC chairman is the only person, allowed to appoint any of the other six members to undertake his functions until the government appoints a deputy, proposed by the Finance Ministry. It's curious, however, who will agree to take the post of the 67-year-old Velkov until December 31, 2002 only. If, of course, the MPs manage to pass by then the new law on unified nonbank financial supervision. That's why the post may well remain vacant until that time.Pundits claim that one reason for Mr. Velkov's resignation might has been his conflict meeting on August 2 with the MP from the NMSII Miroslav Sevlievsky. The deputy insisted that the SSEC should act faster and vacate the building on the cross-street of Vrabcha street and Vassil Levski boulevard. Recently the building was declared head-office of the NMSII. Obviously nervous, Lyubomir Velkov explained that the SSEC would not be able to leave until the National Statistics Institute left the building on 6th September street, which the Government approved as headquarters of the SSEC.Nobody expected Velkov to retire, so no applications have been considered yet, commented Valeri Dimitrov, Chairman of the Parliamentary Economic Commission, for the BANKER weekly. The case was not reported either to Yordan Yordanov, Capital Market Director at the Ministry of Economy.