DGKV was entrusted by the Financial Supervision Commission to represent it in a total of 19 proceedings before the Supreme Administrative Court based on an appeal of IsaOdit Ltd. (formerly named RSM Bulgaria OOD) against the watchdog’s decision to remove it from the list of approved auditors to verify the assets of Bulgarian pension and insurance companies. The regulator’s decision was taken on 2 September 2016 since a report by the European Insurance and Occupational Pensions Authority (EIOPA) revealed that the documents provided by the auditor contained significant false information. They proved RSM’s qualifications, experience and availability of resources and served as grounds for approving it as auditor by the Financial Supervision Commission. Although the auditor has almost entirely accomplished the inspections of several funds and insurance companies, the watchdog obliged the insurers and pension companies to immediately terminate their contracts with RSM and to select a new auditor from the approved list.
The review of the balance sheets of insurance companies and the assets of pension fund began on 15 July 2016 upon the recommendation of the European Commission, as such ? review shall be conducted for the first time within the EU. The idea was to examine the balance of the insurance sector by auditors identified by the companies and approved by the Financial Supervision Commission.