March 2010

NBR amends the current regulatory framework

regarding the working procedures

corresponding to the running of monetary

market operations performed by NBR and the

permanent facilities granted to eligible

participants

NBR enacted Order no. 3/2010 for the

amendment of NBR’s Order no. 8/2006

regarding the working procedures corresponding

to the running of monetary market operations

performed by NBR and the permanent facilities

granted to eligible participants. The above

mentioned Order was published in the Official

Gazette no. 165/15.03.2010, shall enter into

force on 19.04.2010 and may be accessed here.

NBR amends the interest rates paid for the

minimum mandatory reserves corresponding to

the period 24 February – 23 March 2010

NBR enacted Circular no. 9/2010 regarding the

interest rates paid for the minimum mandatory

reserves corresponding to the period 24 February

– 23 March 2010. The annual interest rates set

through the above mentioned Circular are the

following:

2.65% for RON;

1.19% for EUR;

0.71% for USD.

Circular 9/2010 above mentioned was published

in the Official Gazette no. 179/19.03.2010 and

may be accessed here.

NBR amends the fees applicable to the

performance of the operation regarding the

issuance and receipt of cash in relation to credit

institutions and State Treasury

NBR enacted Regulation no. 3/2010 on the fees

charged by NBR for the operations regarding the

issuance and receipt of cash in relation to credit

institutions and State Treasury. The above

mentioned regulation was published in the

Official Gazette no. 180/22.03.2010 and may be

accessed here.

NBR amends the current regulatory framework

regarding the liquidity of credit institutions

NBR enacted Regulation no. 4/2010 for the

amendment of NBR’s Regulation no. 24/2009 on

credit institutions liquidity by extending the

deadline until credit institutions should complete

the necessary steps to comply with the

provisions of the said Regulation no. 24/2009.

The above mentioned Regulation was published

in the Official Gazette no. 192/26.03.2010 and

may be accessed here.

NBR amends the current regulatory framework

regarding the reporting of the minimum capital

requirements applicable for credit institutions

NBR enacted Order no. 5/2010 for the

amendment of NBR’s Order no. 12/2007

regarding the reporting of the minimum capital

requirements for credit institutions. The main

amendments brought by Order no. 5/2010 are

described below as follows:

The term until when credit institutions

should send the reports on a consolidated

basis is set for May 15 of the following

financial year;

If, further to the approval of annual

financial statements by the general meeting

of shareholders, the level of own funds or

of comprising elements which enter into

the calculation of indicators of prudential

own funds calculated according to the own

funds as of December 31 change, the

report on the respective own funds and

prudential indicators affected by the

change, drafted for the last month of the

previous financial year and for each month

of the period since the beginning of the

year until the date of approval of annual

financial statements will be redrafted and

retransmitted to NBR within 20 calendar

days as of the date of approval of annual

financial statements, but not later than 15

May.

The said Regulation was published in the Official

Gazette no. 192/26.03.2010 and may be

accessed here.

Romanian Parliament amends the current

regulatory framework regarding the

incorporation and functioning of the Fund for

the Guarantee of Deposits in the Banking

System

Romanian Parliament enacted Law no. 44/2010

approving Government’s Emergency Ordinance

no. 80/2009 for the amendment of

Government’s Ordinance no. 39/1996 regarding

the incorporation and functioning of the Fund

for the Guarantee of Deposits in the Banking

System. The above mentioned Law was

published in the Official Gazette no.

200/30.03.2010 and may be accessed here.

FGDBS issued Communication no. 1/2010

regarding the list of credit institutions

participating to the Fund whose depositors’

benefit of the guarantee of their deposits

The above mentioned Communication was

published in the Official Gazette no.

139/02.03.2010 and may be accessed here.

(communication section therein)

Ministry of Finance enacted Order no. 708/2010

regarding the issuance prospectus of the

discount treasury certificates and benchmark

state bonds for March 2010. The above

mentioned Order was published in the Official

Gazette no. 140/3.03.2010.

The Committee amends the legal framework

regarding the state aide scheme to facilitate

access to financing in the current period of

economic and financial crisis, consisting of

guarantees granted for the benefit of small and

medium enterprises

The Committee adopted Decision no. 14/2010

amending the Norm establishing a state aid

scheme to facilitate access to financing in the

current period of economic and financial crisis,

consisting of guarantees granted for the benefit

of small and medium enterprises. Decision no.

14/2010 entered into force on the date of its

publication in the Official Gazette of Romania

no. 153/09.03.2010.

NBR amended the templates of the periodical

financial records and of methodological norms

regarding their drafting and utilization applicable

to non-banking financial institutions

NBR issued Order no. 4/2010 on amending the

templates of the periodical financial situations

and of methodological norms regarding their

drafting and utilization applicable to non -

banking financial institutions.

The above mentioned Order was published in

the Official Gazette no. 196/30.03.2010 and

may be accessed here.

PPSSC has amended the current regulatory

framework on the control procedure for entities

operating in the private pension system

PPSSC adopted Norm no. 3/2010 on the control

procedure for entities operating in the private

pension system. Norm no. 3/2010 was approved

through PPSSC’s Decision no. 4/2010, published

in the Official Gazette no. 185/23.03.2010 and

may be accessed here.

NSC repeals the national regulatory framework

regarding the criteria for agreeing the rating

agencies

NSC adopted Order no. 7/02.03.2010 repealing

Instruction no. 4 /2007 regarding the criteria for

agreeing the rating agencies, taking into

consideration Regulation (EC) no. 1060/2009 of

European Parliament and Council regarding the

credit rating agencies, published in the Official

Journal of European Union no. 302/17.11.2009,

directly applicable in all Member States. The

above mentioned Order may be accessed here.

NSC amended the current legal framework on

the exercise of certain rights of shareholders in

general meetings of the companies

NSC has adopted Regulation no. 7/2010

amending NSC’s Regulation no. 6/2009 on the

exercise of certain rights of shareholders in

general meetings of companies.

Among the amendments brought through the

above mentioned regulation it is to be outlined

the limitation at maximum 15 days as of the

date of the publishing of the summoning notice,

of the term within one or more shareholders

representing, individually or jointly, at least 5%

of the share capital have the right: (i) to

introduce new items on the agenda of the

general meeting and (ii) to submit draft

resolutions for items included or to be included

on the agenda of the general meeting.

The above mentioned regulation was published

in the Official Gazette no. 186/24.03.2010 and

can be accessed here.

NSC approves the registration of Property Fund

NSC approved Order no. 8/2010 regarding the

approval of the Regulation no. 4/2010 regarding

the registration with NSC and the functioning of

the ”Property Fund” Joint Stock Company.

The main provisions of the NSC Regulation no.

4/2010 are as follows:

Property Fund registration at the NSC

The Property Fund shall be registered with NSC

as other undertaking for collective investment of

a special kind, in the form of a closed-end

investment company, established in order to

grant reparations for cases where the restitution

in kind of real estate assets is not possible.

If prior to the submission of the registration

application with NSC, the Property Fund signed a

management agreement with an Investment

Management Company ("IMC") from other

Member State, that IMC shall request the

authorization from NSC for its Romanian branch

before performing the management of the

Property Fund’s portfolio.

Amending the Property Fund Documents

The subsequent amendments brought to the

constitutive act or to the management

agreement concluded between the Property

Fund and IMC, the increase or reduction of

capital, change of headquarters, set-up or

closing down of secondary offices, as well as the

amendments brought to the depository contract

or to the issuance prospectus, will be subject to

NSC approval before their entry into force.

Supervision and reporting requirements of the

IMC branch

NSC is responsible for supervising the Romanian

branch of the IMC from other Member State, as

concerns the management activities for Property

Fund portfolio.

The Romanian branch of the IMC shall draft and

submit to NSC half-yearly and annual reports on

its activity.

The method of calculating the net assets of

Property Fund

Property Fund's net assets value is determined as

the difference between the total assets value

and the summed value of company’s liabilities

and revenues recorded in advance.

The Property Fund’s total assets value is

calculated monthly, and also at any other time

required by the regulations of any regulated

market on which company’s shares are traded,

by aggregating the (i) fixed assets, (ii) current

assets, (iii) financial derivative instruments and

(iv) expenditures incurred in advance. The total

value of Property Fund’s liabilities is determined

based on the information provided by its own

accounting.

The unit value of the net assets at a certain date

will be calculated as the result of dividing the net

assets value with the number of shares issued

and placed in circulation at that time, including

the shares held in treasury.

After being admitted on a regulated

market/alternative trading system, the Property

Fund will comply with reporting requirements

established in accordance with the applicable

legal provisions. The above mentioned

Regulation entered into force on 12.03.2010,

the date of its publication in the Official Gazette

no. 161/12.03.2010, and may be accessed here.

NSC establishes the regulatory framework

applicable to securities lending operations and of

establishment of guarantees associated to these

and of short selling

NSC issued Regulation no. 5/2010 regarding the

usage of global accounts system, the usage of

mechanisms with and without pre-validation of

financial instruments, the performance of

securities lending and establishment of

guarantees associated to them and of short

selling (“Regulation”). The main provisions of

the Regulation are described below as follows:

in relation to the usage of global accounts

system for performing of securities lending

and establishing of associated guarantees

o the exclusive purposes for which the

securities lending operations can be

performed, respectively:

− performance of short selling

including, the case when the

securities are first borrowed by the

intermediaries who further borrow

them to their clients for performing

short selling;

− finalization of transaction

disbursement in case (i) the

custodian - intermediary does not

confirm the disbursement of a

transaction and (ii) the securities

are not available for disbursement

on the disbursement date;

− maintenance of the market maker

quality;

− performance of disbursement

operations of derivatives that imply

physical delivery;

− in any other situation in view of

finalizing the disbursement, in such

case the intermediary shall

immediately notify the NSC and

apply the corresponding penalties

in accordance with its own

regulations;

o in case the securities lending

operations and the establishment of

associated guarantees are performed

between an intermediary and one of

its clients or the client of another

intermediary, or the accounts of 2

clients of an intermediary, the

intermediaries have the obligation to

use a standard securities lending

agreement concluded in base of the

“Global Master Securities Lending

Agreement” harmonized with

Romanian legislation in force;

o the associated guarantees shall be

established in accordance with the

legal framing of the contracting parties

in the legislation regarding the

guarantees as: (i) financial guarantees

and (ii) as security interest

in relation with short selling operations

o the obligation to conclude a securities

lending framework agreement prior to

perform a short selling operation;

o obligations of the intermediaries to

assure the technical support of the

short selling operation;

o the price of order of short selling

should be at least equal with the best

selling price registered on the main

trading market at the moment when

the order was introduced

several accounting obligations of the central

depository and of the participants to the

central depository system;

o the prohibition of securities lending

operations having as sole purpose the

gain of dividends or voting rights in the

general meeting of shareholders;

o that the liability for the observance of

the purpose of the securities lending

belongs to the involved intermediaries

with respect to clients and, if case, to

the central depository;

o the technical and operational

conditions of usage;

in relation with the securities lending

operation and the establishment of

guarantees associated to them

o the obligation of the central depository

to publish the list of the securities

traded on a regulated market that can

be the object of short selling including:

(i) a section with the most liquid

securities and (ii) a section with any

other securities traded through market

makers;

o the central depository’s obligations of

supervision of the securities lending

operations;

o the obligation of the parties

performing securities lending

operations to conclude a framework

agreement and additional acts to it as

per the (i) prior to the submission of

the selling order, in case of applying

the pre-validation mechanism or (ii) the

latest at the date of disbursement of

the disbursement term, in case of

applying the mechanism without pre-

validation;

the obligation of the participants to the

central depository system to report to the

central depository, on the last working day

of the month, all information regarding the

identity of the clients owning shares of

financial investment undertakings (“SIF”)

and the number of SIF shares owned;

It is to be underline that the Regulation amends

in the same time NSC’s Regulation no. 13/2005

on the authorization and functioning of the

central depository, the clearing houses and

central counterparties. Regulation was published

in the Official Gazette no. 169/16.03.2010 and

may be accessed here.

NSC amends the current regulatory framework

applicable to the performance and registration

of the annual financial statements by the entities

which are authorized, regulated and supervised

by the said institution

NSC enacted Order no. 13/2010 for the approval

of NSC’s Instruction no. 1/2010 for the

amendment of NSC’s Instruction no. 2/2007

regarding the performance and registration of

the annual financial statements by the entities

which are authorized, regulated and supervised

by NSC, as subsequently amended. The above

mentioned Order was published in the Official

Gazette no. 173/17.03.2010 and may be

accessed here.

NSC sets new informing obligations for the

regulated entities

NSC established through Decisions no. 7 and 8

as of 11.03.2010 certain obligations for the

entities authorized, regulated and supervised by

NSC („the Entities”) as concerns the information

to be shared by internet. In this respect,

according to Decision no. 7/2010, the Entities

have the obligation of publishing on their own

internet pages the regulations/procedures/rules

approved by NSC, within 3 working days as of

the date of the approval’s notification by NSC.

Moreover, the Entities have the obligation to

ensure a non-discriminating treatment regarding

the information shared through internet means

for all participants to their own systems and/or

beneficiaries of the services offered.

Decision no. 8/2010 establishes the obligation of

the Entities to own and update a web page.

Moreover, the Entities covered by the provisions

of Law no. 656/2002 on preventing and

sanctioning money laundering shall create on

their website a section that will include at least:

public statements issued by MONEYVAL

Committee;

public statements issued by the Financial

Action Task Force (GAFI/F.A.T.F.);

alerts regarding the news occurred in the

field of preventing and sanctioning money

laundering and terrorism financing;

links to web pages of the Financial Action

Task Force (GAFI/F.A.T.F.), of the

MONEYVAL Committee and of the National

Authority for Prevention and Control of

Money Laundering.

Further on, the Entities covered by the provisions

of Government Emergency Ordinance no.

202/2008 regarding the implementation of

international sanctions have the obligation to

create on their own web page a different section

regarding the international sanctions, which shall

include at least one link to the section

“International Sanctions” of the web page of

NSC.

The deadline for implementing Decision no.

8/2010 is 30 business days as of its effective

date. Both Decision entered into force as of their

publication in the Electronic Bulletin of NSC

namely as of 12.03.2010. NSC’s Decision no.

7/2010 mentioned above may be accessed here,

while NSC’s Decision no. 8/2010 may be

accessed here.

Proposal for Order regarding the reporting of

potential amendments of the economic value of

the credit institutions as a result of changing

interest rate levels

Proposal for Order regarding the reporting of

the exposers towards the persons having special

relations with the credit institutions

The full text of the proposal can be accessed

here.

Proposal of Norms for the archiving activity of

insurers, reinsurers and insurance/reinsurance

intermediaries

The full text of the proposal can be accessed

here.

Proposal of Prudential Norms for resolving

complaints regarding the activity of insurers,

reinsurers and insurance/reinsurance

intermediaries

The full text of the proposal can be accessed

here.

Proposal of Norms on the profit rates of return

in case of privately managed pension funds

The said proposal can be accessed here.

Proposal of Norm regarding the obligations of

reporting and transparency in the voluntary

pensions system

The content of the proposal can be accessed

here.

Proposal of Instruction regarding the audit of

informatics systems of the entities authorized,

regulated and supervised by NSC

The aforementioned proposal may be accessed

here.

The European Central Bank has published its

Guidelines ECB/2010/1 on monetary policy

instruments and procedures of the Euro -

system.

The said Guidelines amend Guidelines

ECB/2000/7 and were published in the Official

Journal of European Union no. L

63.22/12.03.2010 which can be accessed here.

European Commission issued a Notice regarding

the current level of interest rates applicable to

the recovery of state aide and of reference/

discount for the 27 Member States applicable as

of 1st March 2010. The above mentioned Notice

can be accessed here.

The European Commission has published an

overview of the results of its public consultation

on an EU framework for cross-border crisis

management in the banking sector. For further

details please access here.

CEBS has published on 10 March 2010 a

consultation paper on draft guidelines on

liquidity cost benefit allocation.

The main objective of the draft guidelines is to

provide high-level guidance to institutions on the

main elements to be considered when creating

or reviewing adequate fund allocation

mechanisms including liquidity cost, benefits and

risks. The deadline for delivering any comments

on the consultation is 10 June 2010. For more

details please access here.

CEBS published on 11 March 2010 its

consultation paper on the review of its

Guidelines on the recognition of External Credit

Assessment Institutions. For further information

please access here.

CEBS initiated on 11 March 2010 the public

consultation regarding its Guidelines on the

exemptions from the rules applicable in case of

short-term large exposures. For more details

please access here.

Sectorul Serviciilor Financiare Buletin lunar 9

On the 3rd of March 2010, CEIOPS presented its

report regarding the liquidity premiums within

insurance and occupational pension systems.

The above mentioned report can be accessed

here.

Dates and time

20 April 2010, 9 – 11 am – Prague

21 April 2010, 9 – 11 am – Bratislava

22 April 2010, 9 – 11 am – Budapest

27 April 2010, 9 – 11 am – Bucharest, Deloitte

office

28 April 2010, 9 – 11 am – Warsaw

Location:

Deloitte Bucharest,

4-8 Nicolae Titulescu Road,

3rd floor, Brancusi conference room

Fee: Free of charge

Breakfast will be provided

Deloitte Tax and its Global Employer Services

teams are pleased to invite you to our Central

European Tax Business Breakfasts Road Show,

which will take place individually in five Central

European countries. The title of the upcoming

Business Breakfasts is “New EU Social Security

legislation – Regulation (EC) 883/2004”, which

will become effective as of 1 May 2010.

Do you have any international mobile

employees? Do you plan to assign your

employees to another EU country this year? Do

you have experience applying EU social security

rules? Are you aware that these rules will change

as of 1 May 2010? Are you ready for the

change?

If so, then this Business Breakfast is designed for

you. Separately in five locations in Central

Europe, you will have a chance to meet our

European social security specialists from Deloitte

London, as well as the local social security

experts from our local GES practices. The

Business Breakfast will give you a European

legislation overview, as well as local specifics and

social security planning opportunities. Time will

also be dedicated to answering any questions

you may have.

Agenda

Individuals covered by the EU rules

Basic rules

Changes from the current/old EU rules

Areas of uncertainty

Application of new EU legislation in practice

Deloitte capability to assist with social

security issues

Optimising/reducing social security costs

Presenters

Deloitte London – George Milmine (Senior

Manager)

Deloitte Romania – Raluca Bontas (Manager)

The event will be held in English. Q&A sessions

will be held in English.

Registration and other information

Participation to this event is by invitation only

but feel free to forward the invite to colleagues

if you consider it appropriate. The conference is

free of charge for recipients of the invitation.

Please take into consideration that due to the

limited number of seats, the first-come-first-

served policy applies.

You can register via e-mail at:

mciobanu@deloittece.com.

Sectorul Serviciilor Financiare Buletin lunar 11

Reff & Associates is the correspondent law firm of Deloitte Romania, fully

integrated with the Deloitte multi-disciplinary advisory practice and affiliated to a

network of law firms and legal departments working with Deloitte all over the

world. Deloitte’s correspondent legal practice provides assistance to clients in

Romania on various matters pertaining to mergers and acquisitions, corporate

and commercial law, finance, banking and capital markets, real estate, project

finance, employment, competition, fiscal and commercial litigation, and

intellectual property.

In the financial services sector, Reff & Associates provides the full range of services

to banks and financial institutions, including:

- Finance deals: transaction support in bilateral and syndicated loans, loan

workouts, securitisation, loan transfers and assists in drafting and

negotiating the transaction documentation (loan agreements, security and

other ancillary documentation).

- M&A transactions in the financial services sector: advice on the structure

of the transaction, the pre-contractual documentation, due diligence,

drafting/negotiating the purchase agreements and assisting the

implementation of the transaction.

- Regulatory assistance: ongoing assistance with respect to the specific

legal and regulatory requirements applicable to banks / non banking

financial institutions operating in Romania, development of new

financial products, representation in front of the regulators (National

Bank of Romania, Insurance Supervisory Commission, Securities

Commission etc.).

Andrei Burz Pinzaru

Partner

+ 40 21 207 52 05

aburzpinzaru@deloittece.com

Simina Mut

Manager

+ 40 21 207 52 69

smut@deloittece.com

Leontin Trifa

Manager

+ 40 21 207 53 13

ltrifa@deloittece.com

George Mucibabici Chairman

tel: + 40 21 207 52 55

e-mail: gmucibabici@deloittece.com

Audit Santiago Pardo

Partner

tel: + 40 21 207 54 92

e-mail: sapardo@deloittece.com

Enterprise Risk Services Gary Bauer

Director

tel: + 40 21 207 52 19

e-mail: gbauer@deloittece.com

Financial Advisory Antonis Ioannides Partner

tel: + 40 21 207 56 26

e-mail: anioannides@deloittece.com

Tax Rodica Segarceanu

Partner

tel: + 40 21 207 52 31

e-mail: rsegarceanu@deloittece.com

Legal Andrei Burz-Pinzaru

Partner, Reff&Associates

correspondent law firm of Deloitte Romania

tel: + 40 21 207 52 05

e-mail: aburzpinzaru@deloittece.com

Consulting Razvan Horobeanu Manager

tel: + 40 21 207 53 57

e-mail: rhorobeanu@deloittece.com

Actuarial & Insurance Solutions Slawomir Latusek

Consultant

tel: + 48 (22) 511 04 54

e-mail: slatusek@deloittece.com

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