Financial Services Industry Monthly Bulletin – a banking and finance law publication by Reff & Associates, correspondent law firm of Deloitte Romania and Deloitte Tax. Includes a summary of the latest legal, tax and regulatory developments relevant for banks, non-banking financial institutions, private pensions and capital markets in Romania as well as the most recent changes and trends in the international financial services industry regulatory framework.

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

2. Domestic regulatory
updates

3. NBR established the level of the penalty
Banking interest rates for the deficits of foreign
currency minimum mandatory reserves for
24 August - 23 September 2010
Issuer: National Bank of Romania
(“NBR”) NBR enacted Circular no. 29/2010 regarding
the level of the penalty interest rates for the
NBR established the level of the reference
deficits of foreign currency minimum
interest rate applicable for August 2010
mandatory reserves for the period 24 August -
23 September 2010, described further below
NBR enacted Circular no. 25/2010 regarding
as follows:
the level of the reference interest rate valid for
August 2010. According to the above
 13 % per year for minimum
mentioned Circular, the reference interest rate mandatory reserves established in
valid for August 2010 was set at 6.25% per Euro;
year. The above mentioned Circular was
published in the Official Gazette no.  13 % per year for minimum
538/02.08.2010 and may be accessed here. mandatory reserves established in
U.S. dollars.
NBR established the level of the interest
The said Circular was published in the Official
rates paid for the minimum mandatory Gazette no. 581/17.08.2010 and may be
reserves for 24 July - 23 August 2010 accessed here.
NBR enacted Circular no. 28/2010 regarding Issuer: Deposit Guarantee Fund in the
the interest rates paid on minimum mandatory Banking System (“DGFBS”)
reserves for the period 24 July - 23 August
2010, described further below as follows: DGFBS amended the regulatory framework
regarding the transmission of the situation
 1.88% per year for minimum of the guaranteed depositors
mandatory reserves established in
RON; DGFBS enacted Regulation no. 5/2010 for the
amendment of DGFBS’s Regulation no. 3/2009
 1.09% per year for minimum regarding the transmission of the situation of
mandatory reserves established in the guaranteed depositors. The above
Euro; mentioned Regulation was published in the
Official Gazette no. 583/17.08.2010.
 0.93% per year for minimum
mandatory reserves established in
U.S. dollars.
The said Circular was published in the Official
Gazette no. 581/17.08.2010 and may be
accessed here.

4. PPSSC amended the regulatory framework
Private Pensions regarding the reporting and transparency
obligations in the privately managed
pension system
Issuer: Private Pension System
Supervision Commission (“PPSSC”) PPSSC enacted Decision no. 20/2010 for the
approval of Norm no. 10/2010 regarding the
PPSSC amended the regulatory framework reporting and transparency obligations in the
regarding the accounting reporting system privately managed pension system (“Pillar II”).
for 30 June 2010
The said Norm shall enter into force on 1
PPSSC enacted Decision no. 19/2010 for the January 2011, was published in the Official
approval of Norm no. 9/2010 regarding the Gazette no. 605/26.08.2010 and may be
accounting reporting system on 30 June 2010 accessed here.
for entities authorized, regulated and
supervised by PPSSC (“Pillar II and III”). The PPSSC amended the regulatory framework
above mentioned Decision was published in regarding the reporting and transparency
the Official Gazette no. 579/16.08.2010 and obligations in the voluntary pension system
may be accessed here.
PPSSC adopted Decision no. 21/2010 for the
approval of Norm no. 11/2010 regarding the
reporting and transparency obligations in the
voluntary pension system (“Pillar III”). The said
Norm shall enter into force on 1 January 2011,
was published in the Official Gazette no.
605/26.08.2010 and may be accessed here.

5. NSC approved the registration of the
Capital Markets “Property Fund”
Issuer: National Securities NSC enacted Decision no. 34/2010 for the
Commission (“NSC”) approval of the registration of “Property Fund”
as an undertaking for collective investments in
NSC amended the regulatory framework transferable securities. The said decision may
regarding the half-year accounting be accessed here.
reporting system
NSC (jointly with NBR) amended the
NSC enacted Order no. 50/2010 for the regulatory framework regarding the manner
approval of Instruction no. 3/2010 for the of determining the minimum capital
amendment of NSC’s Instruction no. 5/2006 requirements of credit institutions and
regarding the half-year accounting reporting investment firms for operational risk
system of entities authorized, regulated and
supervised by NSC. The above mentioned NSC (jointly with NBR) enacted Regulation no.
Order was published in the Official Gazette no. 13/2010 for the amendment of Regulation no.
580/16.08.2010 and may be accessed here. 24/29/2006 regarding the manner of
determining the minimum capital requirements
NSC sets the regulatory framework related of credit institutions and investment firms for
to the prudential valuation of qualified
operational risk. The above mentioned
participations within a financial brokerage
investment company Regulation was published in the Official
Gazette no. 547/04.08.2010 and may be
NSC enacted Decision no. 1069/19.08.2010 accessed here.
regarding the prudential valuation by NSC of
qualified participations within a financial
brokerage investment company. The valuation
to be performed by NSC with respect to the
acquisition of a qualified participation within a
financial brokerage investment company shall
be performed on a case by case basis taking
into consideration all the specific elements of
the respective acquisition. The above
mentioned Decision may be accessed here.

6. International regulatory
updates

7. Banking
Issuer: European Central Bank
(“ECB”)
ECB enacted Decision no. 10 as of 19
August 2010 on non-compliance reporting
statistics.
For more details please access here.

8. Domestic regulatory
proposals / measures

9. Banking Private Pensions
Issuer: NBR/NSC Issuer: PPSSC
Proposal of Regulation regarding credit risk Proposal of Norm regarding the prospectus
treatment regarding securitized exposures of the voluntary pension scheme (“Pillar
and securitisation positions III”).
The draft Regulation mentioned above The full text of the proposal may be accessed
envisages the replacement of the present here.
regulatory framework in this field, represented
by the Regulation NBR/NSC no. 21/26/2006 on Proposal of Norm regarding the amendment
credit risk treatment regarding securitized
of Norm no. 7/2007 on the prospectus
exposures and securitisation positions. The
new regulation takes over in a restructured and scheme of the private pension (“Pillar II”).
enhanced form the provisions relative to the
treatment of securitization transactions of the The full text of the proposal may be accessed
Directive 2006/48/EC, such as they are here.
modified by Directive 83 amending certain
Annexes to Directive 2006/48/EC of the
European Parliament and of the Council as
regards technical provisions concerning risk
management, by Directive 111 amending
Directives 2006/48/EC, 2006/49/EC and
2007/64/EC as regards banks affiliated to
central institutions, certain own funds items,
large exposures, supervisory arrangements,
and crisis management and by draft Directive
of the European Parliament and of the Council
amending Directives 2006/48/EC and
2006/49/EC as regards capital requirements
for the trading book and for re-securitizations,
and the supervisory review of remuneration
policies (CRD III) that are to entry into force on
1 January 2011.
For more details please access here.

10. International regulatory
proposals / measures

11. Banking Capital Markets
Issuer: ECB Issuer: Committee of European
Securities Regulators (“CESR“)
On 29 July 2010 ECB enacted its Decision
on access to and use of certain data within
CESR published on 30 August 2010 its
Trans European Automated Real-Time
Gross Settlement Express Transfer System. guidelines regarding the information to be
provided by Credit Rating Agencies.
The said decision was published in the Official
Gazette of the European Union no. The above mentioned guidelines may be
211/12.08.2010 and may be accessed here. accessed here.
On 11 August 2010 ECB issued an Opinion on CESR published on 30 August 2010 its
a proposal for a Commission Regulation laying responses to the consultation on
down detailed rules for the implementation of
standardization and exchange trading of
Council Regulation no. 2494/95 as regards
minimum standards for the quality of OTC derivatives.
Harmonized Indices of Consumer Prices. For
more information please access here. For more information please access here.
Issuer: Federal Reserve Board Issuer: International Swaps and
Derivatives Association
Federal Reserve Board published on 10
August 2010 an advance notice of proposed International Swaps and Derivatives
rulemaking regarding alternatives to the
Association published on 23 August 2010
use of credit ratings in their risk-based
capital rules for banking organizations. its amendments to the International Swaps
and Derivatives Association Master
For more information please access here. Agreement and comprised in the so called
“2010 Hire Act Protocol”.
For more information please access here.

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world. Deloitte’s correspondent legal practice provides assistance to clients in
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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,
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negotiating the transaction documentation (loan agreements, security
and other ancillary documentation).
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structure of the transaction, the pre-contractual documentation, due
diligence, drafting/negotiating the purchase agreements and assisting
the implementation of the transaction.
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specific legal and regulatory requirements applicable to banks / non
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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
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13. Financial Services Industry Contacts in
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tel: + 40 21 207 52 55
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Partner, Reff&Associates
correspondent law firm of Deloitte Romania
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Solutions
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e-mail: slatusek@deloittece.com

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