September 2010 edition of Financial Services Industry Monthly Bulletin – a banking and finance law publication by Reff & Associates, correspondent law firm of Deloitte Romania and Deloitte Tax.

1. Financial Services Industry
Monthly Bulletin
Contents III. Domestic regulatory proposals /
measures
I. Domestic regulatory updates
1. Banking
1. Banking
2. Capital Markets
2. Capital Markets
3. Insurance
3. Insurance
IV. International regulatory
II. International regulatory updates
proposals / measures
1. Banking
1. Banking
2. Capital Markets
3. Commercial Law
4. Private Pensions
September 2010

2. Domestic regulatory
updates

3. NBR amended the legal framework
Banking regarding the commencement of activity
and the changes in the case of credit
institutions
Issuer: National Bank of Romania
(“NBR”) NBR enacted Regulation no. 10/2010
amending the Regulation of NBR no. 6/2008
NBR established the level of the reference regarding the commencement of activity and
the changes in the case of credit institutions,
interest rate applicable for September 2010
Romanian legal entities, and in case of local
branches of the credit institutions from foreign
NBR enacted Circular no. 30/2010 regarding
countries.
the level of the reference interest rate valid for
September 2010. According to the above
The amendments are minor and mainly consist
mentioned Circular, the reference interest rate
of rephrasings and the obligation of
valid for September 2010 was set at 6.25% per
republishing of the Regulation.
year. The Circular was published in the Official
Gazette no. 618/01.09.2010 and may be
The Regulation was published in the Official
accessed here.
Gazette no. 650/09.20.2010 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. 31/2010 regarding
the interest rates paid on minimum mandatory
reserves for the period 24 August - 23
September 2010, described further below as
follows:
 1.73% per year for minimum mandatory
reserves established in RON;
 1.06% per year for minimum mandatory
reserves established in Euro;
 0.94% per year for minimum mandatory
reserves established in U.S. dollars.
The said Circular was published in the Official
Gazette no. 646/16.09.2010 and may be
accessed here.

4. Capital Markets Insurance
Issuer: National Securities Issuer: Insurance Supervision
Commission (“NSC”) Commission (“ISC”)
NSC enacted the Decision no. ISC amended the legal framework regarding
1176/15.09.2010 regarding the drafting and the information that the insurers have to
submission to NSC by the financial provide to their customers
investment companies (FIC), entities
registered with the NSC in section Collective ISC enacted Order no. 11/2010 supplementing
Investment Undertakings with a diversified the Norms with respect to the information that
the insurance companies and intermediaries
investment policy of the consolidated annual
have to provide to the customers, as well as
financial statements, in accordance with the other elements that the insurance contract
International Financial Reporting Standards have to comprise, implemented through the
enacted by European Union within 8 months as Order of the president of the ISC no. 23/2009.
of the end of the financial year. The above
mentioned Decision may be accessed here. The above mentioned Order was published in
the Official Gazette no. 651/20.09.2010 and
may be accessed here.
Issuer: Inter-ministerial Committee
for Finance, Securities and Insurance
(“ICFSI”)
ICFSI establishes a state aid scheme
designed to facilitate access to finance
ICFSI enacted Decision no. 112/2010
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.
650/20.09.2010 and may be accessed here.

5. International
regulatory updates

6. Banking
Issuer: European Central Bank
(“ECB”)
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 1.00%, 1.75% and
respectively 0.25%. 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
253/58 dated September 28, 2010 and may be
accessed here.

7. Domestic regulatory
proposals / measures

8. This draft order was drawn up in compliance
Banking with the provisions of the NBR Order
no.9/16.07.2010 on the application of
International Financial Reporting Standards
Issuer: NBR / NSC (IFRSs) by credit institutions as basis of
accounting and for the preparation of the
Draft order for approval of the regulation of annual individual financial statements starting
NBR and NSC regarding great exposures of with financial year 2012 in order to create a
the credit institutions and investment general framework for banking sector in terms
companies of keeping of accounts according to the
treatments provided in the new accounting
standards; preserving the current compulsory
By issuing the new regulation of the NBR and
Chart of accounts will facilitate the preparation
NSC on large exposures of credit institutions of the financial reporting packages required by
and investment firms it is considered the NBR in order to accomplish its duties regarding
replacement of the current regulatory the prudential supervision.
framework in the field, represented by the
provisions of Articles 141, 142, 278 , 384 and The main provisions of the draft order refer
art. 385 of Government Emergency Ordinance to the following issues:
no.99/2006 on credit institutions and capital
adequacy, approved with amendments by Law  The rules for accounting banks’ operations
227/2007, as amended and supplemented, in accordance with the treatments set out
by IFRSs;
under the provisions of art.420 of Government
Emergency Government no. 99/2006 on credit
 The provisions regarding the preparation,
institutions and capital adequacy, approved approval, auditing and publication of the
with amendments by Law 227/2007, as annual individual and consolidated
amended and supplemented and of article 48 financial statements;
of Law no. 312/2004 on the NBR, and the
provisions of Article 1, Article 2 and Article 7  The chart of accounts and the content of
para. (A), para. (3), para. (10) and para. (15) accounts;
NSC Statute, approved by Government
 The table of concordances between the
Emergency Ordinance no. 25/2002, approved
accounts from the chart of accounts
with amendments by Law no.514/2002, as provided by the national accounting
amended and supplemented by Law no. regulations transposing the European
297/2004 on the capital market, as amended directives and those provided by the draft
and supplemented.For more details please order;
access here.
 The provisions relating to documents,
forms, accounting books and rules for
Issuer: NBR
their preparation and use.
Draft Order for approval of the Accounting
regulations according to International For further details please access here.
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 Fund’s 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.

9. Issuer: NBR The main changes and supplementations to
existing accounting rules (Order NBR no.
Draft Order amending and supplementing 13/2008) brought by the draft order, refer to
NBR’s Order no.13/2008 for approval of the following issues:
accounting regulations according with
european directives, applicable to credit
institutions, non-bank financial institutions  Inserting of provisions relating to the
and Deposit Guarantee Fund in the Banking annual financial statements’ users
System categories and the qualitative
characteristics of these reports;
General objective and reasons for  Examples and additions to provisions on
elaboration of the normative act: general accounting principles;
 Supplementing the provisions on valuation
The draft order is issued following the of assets, liabilities and equity when
recommendation of the Superior Council of inventoried and on presenting these
Accounting and Financial Reporting Council to elements in balance sheet;
establish a unified framework in terms of
 Supplementing the provisions on
accounting rules and treatments applied by accounting errors correction;
entities covered by the regulation and
supervision of the NBR for similar operations  Change in accounting treatment for
with those performed by the other economic government grants;
operators. The draft order aims at  Expanding the current provisions of the
implementing and tailoring of changes and accounting treatment for given and
supplementations made by the Ministry of received trade discounts;
Public Finance Order no.3055/2009 for
 Specifying the factors which indicate
approval of accounting regulations according impairment of tangible and intangible
with European directives, to the extent they are assets;
applicable to institutions regulated and
supervised by the NBR.  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.

10. Capital Markets Insurance
Issuer: NSC Issuer: ISC
Draft layout measures regarding the Draft order for implementation the
delegated agents. The draft may be accessed accounting regulation as per International
here. Financial Reporting Standards by the
insurance, insurance-reinsurance and
Draft order amending the Norms regarding
the amount, withholding and payment of reinsurance companies. The draft may be
capital gain tax obtained by individuals accessed here:
through transfer of securities, approved by
Order of Minister of Finance and Economy part I;
and of the President of the NSC no.
3483/144/2008. The draft may be accessed part II;
here.
part III.
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.

11. International regulatory
proposals / measures

12. ECB published on 7 September 2010 the
Banking second part of “Handbook on Securities
Statistics”
Issuer: Committee of European ECB released on 7 September 2010 the
Banking Supervisors („CEBS”) second part of the “Handbook on Securities
Statistics”. The aim of the said Handbook is to
CEBS has published its comments on the assist national and international agencies in
European Commission green paper on the production of relevant, coherent and
corporate governance in financial internationally comparable securities statistics
institutions and remuneration policies. For for use in monetary policy formulation and
financial stability analysis. For more
more information please access here.
information please access here.
CEBS has published its revised Guidelines
on the management of concentration risk
ECB published on 23 September, 2010 a
under the supervisory review process and
study on the trends of financial markets
Position paper on the recognition of
diversification benefits under Pillar 2. For ECB has published on 23 September, 2010 a
more information please access here. study that reflects all major financial market
developments in the second quarter of 2010
Issuer: ECB compared to same period of last year.
ECB published statistic information A summary of this report may be accessed
regarding the evolution of interest rates in here.
the Euro zone. On September 1, 2010, ECB
made public available the statistical data of an Issuer: Federal Reserve Board
investigation operated by International
Monetary Fund concerning interest rates On September 30, 2010 the Federal Reserve
across Euro zone. For more information please Board announced that it will implement
access here. changes to its Payment System Risk policy
on March 24, 2011. The press release may be
accessed 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 “The payment system –
payments, securities and derivatives, and the
role of the Eurosystem”. The said document
provides comprehensive insight into the
handling of financial transactions and the
functioning of the related financial market
infrastructure – a core component of the
financial system. It also explains the role and
policies of the Eurosystem – which comprises
the ECB and the 16 national central banks of
the euro area – in this field. For more
information please access here.

13. Issuer: Committee of European
Capital Markets Insurance and Occupational
Pensions Supervisors („CEIOPS”) /
Issuer: Committee of European CESR / CEBS / European Parliament
Securities Regulators (“CESR“)
CESR, CEIOPS and CEBS welcome the
CESR updates the list of measures adopted decision of the European Parliament to
by the Member States regarding short- support the reform of financial system
selling. For more information please access supervision
here.
CESR, CEIOPS and CEBS welcome the
CESR published on 6 September 2010 its decision of the European Parliament to create
feedback statement on the Investor an institutional change that will allow the
Protection and Intermediaries part of the formation of a joint European financial market,
Markets in Financial Instruments Directive. more robust and adapted to market needs. The
For more information please access here. institutional transformation will consist in the
change of the three committees into European
CESR published on September 13, 2010 two authorities by January 2011.
feedback statements in the field of Credit
Rating Agencies: The declaration of the three committees may
be accessed here .
 Feedback statement on CESR
consultation on enforcement practices; The summary of the decision may be accessed
here.
 Feedback statement on CESR
consultation on common standards for Issuer: European Commission
assessment of compliance of credit
rating methodologies. On 15 September 2010, the European
Commission drew into attention a working
For more details please access here and here. paper regarding the impact assessment of a
proposal for a draft regulation on OTC
CESR published on 23 September 2010 an derivatives, central counterparties and
annual report regarding the international trade repositories.
standards on financial reporting
The draft may be accessed here.
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.

14. Commercial Law Private pensions
Issuer: International Chamber of Issuer: CEIOPS
Commerce
CEIOPS has released on September 28,
International Chamber of Commerce 2010 for public consultation its draft
launched on 16 September 2010 the latest methodology for equivalence assessments
revision of its internationally-recognized under Solvency II. The draft may be accessed
trade terms Incoterms® 2010. The rules will here.
come into effect on 1 January 2011.
For more information please access here.

15. 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.).
For more details on our services and credentials in the FSI sector, please
click here
Subscribe to the Financial Services Industry Monthly Bulletin.
Contacts
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

16. Financial Services Industry Contacts in
Deloitte Romania:
George Mucibabici
Chairman
tel: + 40 21 207 52 55
e-mail: gmucibabici@deloittece.com
Audit
Ahmed Hassan
Partner
tel: + 40 21 207 52 60
e-mail: ahhassan@deloittece.com
Enterprise Risk Services
Gary Bauer
Director
tel: + 40 21 207 52 19
e-mail: gbauer@deloittece.com
Financial Advisory
Hein van Dam
Partner in Charge
tel: + 40 21 207 52 30
e-mail: hvandam@deloittece.com
Tax
Daniel Petre
Manager
tel: + 40 21 207 54 44
e-mail: dpetre@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

17. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by
guarantee, and its network of member firms, each of which is a legally separate and independent entity.
Please see www.deloitte.com/ro/about for a detailed description of the legal structure of Deloitte Touche
Tohmatsu Limited and its member firms.
Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients
spanning multiple industries. With a globally connected network of member firms in more than 140
countries, Deloitte brings world-class capabilities and deep local expertise to help clients succeed
wherever they operate. Deloitte's approximately 170 000 professionals are committed to becoming the
standard of excellence.
This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited,
Deloitte Global Services Limited, Deloitte Global Services Holdings Limited, the Deloitte Touche Tohmatsu
Verein, any of their member firms, or any of the foregoing’s affiliates (collectively the “Deloitte Network”)
are, by means of this publication, rendering accounting, business, financial, investment, legal, tax, or other
professional advice or services. This publication is not a substitute for such professional advice or
services, nor should it be used as a basis for any decision or action that may affect your finances or your
business. Before making any decision or taking any action that may affect your finances or your business,
you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible
for any loss whatsoever sustained by any person who relies on this publication.
© 2010 Deloitte Romania