September 2010

Financial Services Industry

Monthly Bulletin

III Domestic regulatory proposals

measures

1 Banking

2 Capital Markets

3 Insurance

IV International regulatory

proposals measures

1 Banking

2 Capital Markets

3 Commercial Law

4 Private Pensions

Contents

I Domestic regulatory updates

1 Banking

2 Capital Markets

3 Insurance

II International regulatory updates

1 Banking

Domestic regulatory

updates

Banking

Issuer National Bank of Romania

(ldquoNBRrdquo)

NBR established the level of the reference

interest rate applicable for September 2010

NBR enacted Circular no 302010 regarding the level of the reference interest rate valid for September 2010 According to the above mentioned Circular the reference interest rate valid for September 2010 was set at 625 per year The Circular was published in the Official

Gazette no 61801092010 and may be accessed here NBR established the level of the interest

rates paid for the minimum mandatory

reserves for 24 August - 23 September 2010

NBR enacted Circular no 312010 regarding

the interest rates paid on minimum mandatory

reserves for the period 24 August - 23

September 2010 described further below as

follows

173 per year for minimum mandatory reserves established in RON

106 per year for minimum mandatory reserves established in Euro

094 per year for minimum mandatory

reserves established in US dollars The said Circular was published in the Official

Gazette no 64616092010 and may be

accessed here

NBR amended the legal framework regarding the commencement of activity and the changes in the case of credit institutions NBR enacted Regulation no 102010 amending the Regulation of NBR no 62008 regarding the commencement of activity and the changes in the case of credit institutions Romanian legal entities and in case of local branches of the credit institutions from foreign countries The amendments are minor and mainly consist of rephrasings and the obligation of republishing of the Regulation

The Regulation was published in the Official Gazette no 65009202010 and may be accessed here

Domestic regulatory

updates

Banking

Issuer National Bank of Romania

(ldquoNBRrdquo)

NBR established the level of the reference

interest rate applicable for September 2010

NBR enacted Circular no 302010 regarding the level of the reference interest rate valid for September 2010 According to the above mentioned Circular the reference interest rate valid for September 2010 was set at 625 per year The Circular was published in the Official

Gazette no 61801092010 and may be accessed here NBR established the level of the interest

rates paid for the minimum mandatory

reserves for 24 August - 23 September 2010

NBR enacted Circular no 312010 regarding

the interest rates paid on minimum mandatory

reserves for the period 24 August - 23

September 2010 described further below as

follows

173 per year for minimum mandatory reserves established in RON

106 per year for minimum mandatory reserves established in Euro

094 per year for minimum mandatory

reserves established in US dollars The said Circular was published in the Official

Gazette no 64616092010 and may be

accessed here

NBR amended the legal framework regarding the commencement of activity and the changes in the case of credit institutions NBR enacted Regulation no 102010 amending the Regulation of NBR no 62008 regarding the commencement of activity and the changes in the case of credit institutions Romanian legal entities and in case of local branches of the credit institutions from foreign countries The amendments are minor and mainly consist of rephrasings and the obligation of republishing of the Regulation

The Regulation was published in the Official Gazette no 65009202010 and may be accessed here

Banking

Issuer National Bank of Romania

(ldquoNBRrdquo)

NBR established the level of the reference

interest rate applicable for September 2010

NBR enacted Circular no 302010 regarding the level of the reference interest rate valid for September 2010 According to the above mentioned Circular the reference interest rate valid for September 2010 was set at 625 per year The Circular was published in the Official

Gazette no 61801092010 and may be accessed here NBR established the level of the interest

rates paid for the minimum mandatory

reserves for 24 August - 23 September 2010

NBR enacted Circular no 312010 regarding

the interest rates paid on minimum mandatory

reserves for the period 24 August - 23

September 2010 described further below as

follows

173 per year for minimum mandatory reserves established in RON

106 per year for minimum mandatory reserves established in Euro

094 per year for minimum mandatory

reserves established in US dollars The said Circular was published in the Official

Gazette no 64616092010 and may be

accessed here

NBR amended the legal framework regarding the commencement of activity and the changes in the case of credit institutions NBR enacted Regulation no 102010 amending the Regulation of NBR no 62008 regarding the commencement of activity and the changes in the case of credit institutions Romanian legal entities and in case of local branches of the credit institutions from foreign countries The amendments are minor and mainly consist of rephrasings and the obligation of republishing of the Regulation

The Regulation was published in the Official Gazette no 65009202010 and may be accessed here

Insurance

Issuer Insurance Supervision

Commission (ldquoISCrdquo)

ISC amended the legal framework regarding

the information that the insurers have to provide to their customers

ISC enacted Order no 112010 supplementing the Norms with respect to the information that the insurance companies and intermediaries have to provide to the customers as well as other elements that the insurance contract

have to comprise implemented through the Order of the president of the ISC no 232009 The above mentioned Order was published in the Official Gazette no 65120092010 and may be accessed here

Capital Markets

Issuer National Securities Commission (ldquoNSCrdquo) NSC enacted the Decision no

117615092010 regarding the drafting and

submission to NSC by the financial

investment companies (FIC) entities

registered with the NSC in section Collective

Investment Undertakings with a diversified

investment policy of the consolidated annual

financial statements in accordance with the

International Financial Reporting Standards

enacted by European Union within 8 months as

of the end of the financial year The above

mentioned Decision may be accessed here

Issuer Inter-ministerial Committee for Finance Securities and Insurance (ldquoICFSIrdquo) ICFSI establishes a state aid scheme designed to facilitate access to finance

ICFSI enacted Decision no 1122010 approving the Norm concerning the establishment of a state aid scheme designed to facilitate access to financing in the current economic and financial crisis period consisting of guarantees granted to SMEs and large enterprises Both the above mentioned Decision and Norm

were published in the Official Gazette no

65020092010 and may be accessed here

International

regulatory updates

Banking

Issuer European Central Bank

(ldquoECBrdquo)

ECB established the interest rate on the

main refinancing operations and the

interest rates on the marginal lending

facility and the deposit facility On

September 2 2010 the Governing Council of

ECB decided that the interest rate on the main

refinancing operations and the interest rates on

the marginal lending facility and the deposit

facility at the level of 100 175 and

respectively 025 For more information

please access here

On September 21 2010 ECB enacted the decision regarding the administration of European Financial Stability Facility loans to Member States whose currency is the

euro The decision was published in the Official Journal of the European Union no L 25358 dated September 28 2010 and may be

accessed here

Banking

Issuer European Central Bank

(ldquoECBrdquo)

ECB established the interest rate on the

main refinancing operations and the

interest rates on the marginal lending

facility and the deposit facility On

September 2 2010 the Governing Council of

ECB decided that the interest rate on the main

refinancing operations and the interest rates on

the marginal lending facility and the deposit

facility at the level of 100 175 and

respectively 025 For more information

please access here

On September 21 2010 ECB enacted the decision regarding the administration of European Financial Stability Facility loans to Member States whose currency is the

euro The decision was published in the Official Journal of the European Union no L 25358 dated September 28 2010 and may be

accessed here

Domestic regulatory

proposals measures

Banking

Issuer NBR NSC

Draft order for approval of the regulation of

NBR and NSC regarding great exposures of

the credit institutions and investment

companies

By issuing the new regulation of the NBR and

NSC on large exposures of credit institutions

and investment firms it is considered the

replacement of the current regulatory

framework in the field represented by the

provisions of Articles 141 142 278 384 and

art 385 of Government Emergency Ordinance

no992006 on credit institutions and capital

adequacy approved with amendments by Law

2272007 as amended and supplemented

under the provisions of art420 of Government

Emergency Government no 992006 on credit

institutions and capital adequacy approved

with amendments by Law 2272007 as

amended and supplemented and of article 48

of Law no 3122004 on the NBR and the

provisions of Article 1 Article 2 and Article 7

para (A) para (3) para (10) and para (15)

NSC Statute approved by Government

Emergency Ordinance no 252002 approved

with amendments by Law no5142002 as

amended and supplemented by Law no

2972004 on the capital market as amended

and supplementedFor more details please

access here

Issuer NBR

Draft Order for approval of the Accounting

regulations according to International

Financial Reporting Standards (IFRSs)

applicable to credit institutions

General objective and reasons for issuing

the normative act

Implementation of IFRS by the banking sector is an objective set out in the Letter of Intent

signed in Bucharest on the 5th of February

2010 and approved by the Decision of the International Monetary Fundrsquos Executive Board

on the 19th of February 2010 whereby the

NBR and the Ministry of Public Finance have to adopt the necessary legal framework so as to ensure the implementation of IFRSs starting

with the beginning of 2012

This draft order was drawn up in compliance with the provisions of the NBR Order no916072010 on the application of

International Financial Reporting Standards

(IFRSs) by credit institutions as basis of accounting and for the preparation of the annual individual financial statements starting with financial year 2012 in order to create a general framework for banking sector in terms of keeping of accounts according to the treatments provided in the new accounting

standards preserving the current compulsory Chart of accounts will facilitate the preparation of the financial reporting packages required by NBR in order to accomplish its duties regarding the prudential supervision

The main provisions of the draft order refer

to the following issues

The rules for accounting banksrsquo operations in accordance with the treatments set out by IFRSs

The provisions regarding the preparation approval auditing and publication of the annual individual and consolidated

financial statements

The chart of accounts and the content of accounts

The table of concordances between the accounts from the chart of accounts provided by the national accounting regulations transposing the European directives and those provided by the draft order

The provisions relating to documents forms accounting books and rules for their preparation and use

For further details please access here

Banking

Issuer NBR NSC

Draft order for approval of the regulation of

NBR and NSC regarding great exposures of

the credit institutions and investment

companies

By issuing the new regulation of the NBR and

NSC on large exposures of credit institutions

and investment firms it is considered the

replacement of the current regulatory

framework in the field represented by the

provisions of Articles 141 142 278 384 and

art 385 of Government Emergency Ordinance

no992006 on credit institutions and capital

adequacy approved with amendments by Law

2272007 as amended and supplemented

under the provisions of art420 of Government

Emergency Government no 992006 on credit

institutions and capital adequacy approved

with amendments by Law 2272007 as

amended and supplemented and of article 48

of Law no 3122004 on the NBR and the

provisions of Article 1 Article 2 and Article 7

para (A) para (3) para (10) and para (15)

NSC Statute approved by Government

Emergency Ordinance no 252002 approved

with amendments by Law no5142002 as

amended and supplemented by Law no

2972004 on the capital market as amended

and supplementedFor more details please

access here

Issuer NBR

Draft Order for approval of the Accounting

regulations according to International

Financial Reporting Standards (IFRSs)

applicable to credit institutions

General objective and reasons for issuing

the normative act

Implementation of IFRS by the banking sector is an objective set out in the Letter of Intent

signed in Bucharest on the 5th of February

2010 and approved by the Decision of the International Monetary Fundrsquos Executive Board

on the 19th of February 2010 whereby the

NBR and the Ministry of Public Finance have to adopt the necessary legal framework so as to ensure the implementation of IFRSs starting

with the beginning of 2012

This draft order was drawn up in compliance with the provisions of the NBR Order no916072010 on the application of

International Financial Reporting Standards

(IFRSs) by credit institutions as basis of accounting and for the preparation of the annual individual financial statements starting with financial year 2012 in order to create a general framework for banking sector in terms of keeping of accounts according to the treatments provided in the new accounting

standards preserving the current compulsory Chart of accounts will facilitate the preparation of the financial reporting packages required by NBR in order to accomplish its duties regarding the prudential supervision

The main provisions of the draft order refer

to the following issues

The rules for accounting banksrsquo operations in accordance with the treatments set out by IFRSs

The provisions regarding the preparation approval auditing and publication of the annual individual and consolidated

financial statements

The chart of accounts and the content of accounts

The table of concordances between the accounts from the chart of accounts provided by the national accounting regulations transposing the European directives and those provided by the draft order

The provisions relating to documents forms accounting books and rules for their preparation and use

For further details please access here

Issuer NBR Draft Order amending and supplementing

NBRrsquos Order no132008 for approval of accounting regulations according with european directives applicable to credit institutions non-bank financial institutions and Deposit Guarantee Fund in the Banking System

General objective and reasons for

elaboration of the normative act

The draft order is issued following the

recommendation of the Superior Council of

Accounting and Financial Reporting Council to

establish a unified framework in terms of

accounting rules and treatments applied by

entities covered by the regulation and

supervision of the NBR for similar operations

with those performed by the other economic

operators The draft order aims at

implementing and tailoring of changes and

supplementations made by the Ministry of

Public Finance Order no30552009 for

approval of accounting regulations according

with European directives to the extent they are

applicable to institutions regulated and

supervised by the NBR

The main changes and supplementations to

existing accounting rules (Order NBR no

132008) brought by the draft order refer to

the following issues

Inserting of provisions relating to the annual financial statementsrsquo users categories and the qualitative characteristics of these reports

Examples and additions to provisions on general accounting principles

Supplementing the provisions on valuation of assets liabilities and equity when inventoried and on presenting these elements in balance sheet

Supplementing the provisions on

accounting errors correction

Change in accounting treatment for government grants

Expanding the current provisions of the accounting treatment for given and received trade discounts

Specifying the factors which indicate impairment of tangible and intangible assets

Separate accounting for tangible assets and inventories purchased in case of which the risks and benefits were

transferred but that are not yet received

For further details please access here

Capital Markets

Issuer NSC

Draft layout measures regarding the delegated agents The draft may be accessed

here Draft order amending the Norms regarding

the amount withholding and payment of capital gain tax obtained by individuals through transfer of securities approved by Order of Minister of Finance and Economy and of the President of the NSC no 34831442008 The draft may be accessed here Draft instruction regarding the implementation of International Financial Reporting Standards by the authorized entities regulated and supervised by the NSC The draft may be accessed here

Insurance

Issuer ISC

Draft order for implementation the

accounting regulation as per International

Financial Reporting Standards by the

insurance insurance-reinsurance and

reinsurance companies The draft may be

accessed here

part I

part II

part III

International regulatory

proposals measures

Banking

Issuer Committee of European Banking Supervisors (bdquoCEBSrdquo) CEBS has published its comments on the

European Commission green paper on

corporate governance in financial

institutions and remuneration policies For

more information please access here

CEBS has published its revised Guidelines

on the management of concentration risk

under the supervisory review process and

Position paper on the recognition of

diversification benefits under Pillar 2 For

more information please access here

Issuer ECB ECB published statistic information

regarding the evolution of interest rates in

the Euro zone On September 1 2010 ECB

made public available the statistical data of an

investigation operated by International

Monetary Fund concerning interest rates

across Euro zone For more information please

access here

ECB published on 6 September 2010 the document on the payment system and the role of the Eurosystem

ECB has published on 6 September 2010 a

document entitled ldquoThe payment system ndash

payments securities and derivatives and the

role of the Eurosystemrdquo The said document

provides comprehensive insight into the

handling of financial transactions and the

functioning of the related financial market

infrastructure ndash a core component of the

financial system It also explains the role and

policies of the Eurosystem ndash which comprises

the ECB and the 16 national central banks of

the euro area ndash in this field For more

information please access here

ECB published on 7 September 2010 the

second part of ldquoHandbook on Securities

Statisticsrdquo

ECB released on 7 September 2010 the second part of the ldquoHandbook on Securities Statisticsrdquo The aim of the said Handbook is to assist national and international agencies in the production of relevant coherent and internationally comparable securities statistics for use in monetary policy formulation and

financial stability analysis For more information please access here

ECB published on 23 September 2010 a

study on the trends of financial markets

ECB has published on 23 September 2010 a

study that reflects all major financial market

developments in the second quarter of 2010

compared to same period of last year

A summary of this report may be accessed here

Issuer Federal Reserve Board On September 30 2010 the Federal Reserve

Board announced that it will implement

changes to its Payment System Risk policy

on March 24 2011 The press release may be

accessed here

Banking

Issuer Committee of European Banking Supervisors (bdquoCEBSrdquo) CEBS has published its comments on the

European Commission green paper on

corporate governance in financial

institutions and remuneration policies For

more information please access here

CEBS has published its revised Guidelines

on the management of concentration risk

under the supervisory review process and

Position paper on the recognition of

diversification benefits under Pillar 2 For

more information please access here

Issuer ECB ECB published statistic information

regarding the evolution of interest rates in

the Euro zone On September 1 2010 ECB

made public available the statistical data of an

investigation operated by International

Monetary Fund concerning interest rates

across Euro zone For more information please

access here

ECB published on 6 September 2010 the document on the payment system and the role of the Eurosystem

ECB has published on 6 September 2010 a

document entitled ldquoThe payment system ndash

payments securities and derivatives and the

role of the Eurosystemrdquo The said document

provides comprehensive insight into the

handling of financial transactions and the

functioning of the related financial market

infrastructure ndash a core component of the

financial system It also explains the role and

policies of the Eurosystem ndash which comprises

the ECB and the 16 national central banks of

the euro area ndash in this field For more

information please access here

ECB published on 7 September 2010 the

second part of ldquoHandbook on Securities

Statisticsrdquo

ECB released on 7 September 2010 the second part of the ldquoHandbook on Securities Statisticsrdquo The aim of the said Handbook is to assist national and international agencies in the production of relevant coherent and internationally comparable securities statistics for use in monetary policy formulation and

financial stability analysis For more information please access here

ECB published on 23 September 2010 a

study on the trends of financial markets

ECB has published on 23 September 2010 a

study that reflects all major financial market

developments in the second quarter of 2010

compared to same period of last year

A summary of this report may be accessed here

Issuer Federal Reserve Board On September 30 2010 the Federal Reserve

Board announced that it will implement

changes to its Payment System Risk policy

on March 24 2011 The press release may be

accessed here

Capital Markets

Issuer Committee of European Securities Regulators (ldquoCESRldquo) CESR updates the list of measures adopted

by the Member States regarding short-

selling For more information please access

here

CESR published on 6 September 2010 its

feedback statement on the Investor

Protection and Intermediaries part of the

Markets in Financial Instruments Directive

For more information please access here

CESR published on September 13 2010 two

feedback statements in the field of Credit

Rating Agencies

Feedback statement on CESR consultation on enforcement practices

Feedback statement on CESR consultation on common standards for assessment of compliance of credit rating methodologies

For more details please access here and here

CESR published on 23 September 2010 an

annual report regarding the international

standards on financial reporting

CESR published its first annual report

regarding the international standards on

financial reporting The document shows that

at European level there was a better

coordination of the authorities ensuring

compliance with financial reporting standards

Furthermore the report contains a list of issues

that require greater attention from listed

companies in order to improve the information

of the investors

The above mentioned report may be accessed

here

Issuer Committee of European Insurance and Occupational Pensions Supervisors (bdquoCEIOPSrdquo) CESR CEBS European Parliament

CESR CEIOPS and CEBS welcome the

decision of the European Parliament to

support the reform of financial system

supervision

CESR CEIOPS and CEBS welcome the

decision of the European Parliament to create

an institutional change that will allow the

formation of a joint European financial market

more robust and adapted to market needs The

institutional transformation will consist in the

change of the three committees into European

authorities by January 2011

The declaration of the three committees may be accessed here The summary of the decision may be accessed here

Issuer European Commission On 15 September 2010 the European

Commission drew into attention a working

paper regarding the impact assessment of a

proposal for a draft regulation on OTC

derivatives central counterparties and

trade repositories

The draft may be accessed here

Commercial Law

Issuer International Chamber of Commerce International Chamber of Commerce

launched on 16 September 2010 the latest

revision of its internationally-recognized

trade terms Incotermsreg 2010 The rules will

come into effect on 1 January 2011

For more information please access here

Private pensions

Issuer CEIOPS CEIOPS has released on September 28

2010 for public consultation its draft

methodology for equivalence assessments

under Solvency II The draft may be accessed

here

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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

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In the financial services sector Reff amp 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)

- MampA transactions in the financial services sector advice on the

structure of the transaction the pre-contractual documentation due

diligence draftingnegotiating 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)

For more details on our services and credentials in the FSI sector please

click here

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+ 40 21 207 52 69

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Manager

+ 40 21 207 53 13

ltrifadeloittececom

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tel + 40 21 207 52 55

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tel + 40 21 207 52 30

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