The Financial Services Industry Monthly Bulletin is a banking and finance law publication by Reff & Associates (correspondent law firm of Deloitte Romania) and Deloitte Tax. Each month, our specialist team of finance lawyers and tax advisors will keep you updated with the latest legal, regulatory and tax developments in the financial services industry in Romania as well as with the recent changes and trends in the international financial regulations. The areas covered by our bulletin include: Banking and non-banking financial institutions Capital markets Insurance companies Private pension funds

1. September 2009

2. Domestic regulatory updates 3
1. Banking 4
2. Insurance 5
3. Private pensions 6
4. Capital Markets 7
International regulatory updates 8

3. Financial Services Industry Monthly Bulletin 8

4. Issuer: National Bank of Romania (“NBR”)  The documentation necessary for the
issuance of the set up authorization
NBR amends know your customer legal
framework in view of preventing money Each direct/indirect shareholder, legal entity,
laundering and financing of terrorism except for the credit institutions/non banking
financial institutions registered with the special
NBR issued Regulation no. 16/2009 for the registry, Romanian legal entities, shall submit
amendment of NBR’s Regulation no. 9/2008 estimations of the balance sheet and profits &
regarding know your customer procedures in loss accounts for the following 3 years, at
view of preventing money laundering and individual or consolidated level, signed by the
financing of terrorism (“Regulation 16/2009”). shareholders and accompanied by the
The main amendments brought by Regulation substantiation of the forecasted values.
16/2009 refer to:
Regulation 17/2009 was published in the Official
a) Identification of individuals Gazette no. 626/21.09.2009 and may be
accessed here
 The following amendments were brought
to the minimum identification criteria of the NBR adopted a new regulation regarding the
individuals: instead of “nationality”, the administration framework of credit institutions’
identification data shall comprise activity, the internal process of evaluation of
“citizenship”; capital adequacy to risks and the conditions of
 “Important Public Function” held by the outsourcing their activities
client, shall be mandatory disclosed only in
case of clients residing abroad. NBR issued Regulation no. 18/2009 regarding
the administration framework of credit
b) Implementation institutions’ activity, the internal process of
evaluation of capital adequacy to risks and the
The term for implementing the measures conditions of outsourcing their activities.
regarding knowing the customers is extended to
18 months, starting with the date when the The new Regulation shall be applicable to credit
managing bodies of the company shall approve institutions, Romanian legal entities, as well as to
the norms for knowing the customers. branches of credit institutions from third party
states, regulating on individual and/or, upon the
Regulation 16/2009 was published in the Official case may be, consolidated or sub-consolidated
Gazette no. 626/21.09.2009 and may be level, and on the level of cooperatives, the
accessed here general framework for the administration of the
activity of credit institutions, the internal process
NBR amends the legal framework regarding the of evaluation of capital adequacy to risks and the
authorization of credit institutions, Romanian conditions of outsourcing their activities.
legal entities, and branches of credit institutions
from third party states On 30th of June 2010, NBR’s Norm no. 17/2003
regarding the organization and internal control
NBR issued Regulation no. 17/2009 for the of the activity of credit institutions and the
amendment of NBR’s Regulation no. 11/2007 administration of the significant risks, as well as
regarding the authorization of credit institutions, the organization and performance of internal
Romanian legal entities, and branches of credit audit within credit institutions shall be repealed.
institutions from third party states (“Regulation
17/2009”). The main amendments brought by The above mentioned Regulation was published
Regulation 17/2009 refer to: in the Official Gazette no. 630/23.09.2009 and
may be accessed here
 The general criteria for the evaluation of
significant shareholders The reference interest rate applicable for the
month of September was set by NBR at 8.53 %
The contribution to the share capital must be per annum.
paid through credit institutions or financial
institutions supervised by proper authorities form The reference interest rate above mentioned was
member states or from third party states set through NBR’s Circular no. 32/2009,
considered to have similar systems with those published in the Official Gazette no.
from European Union against money laundering 603/1.09.2009, which may be accessed here
and financing of terrorism.
4

5. Issuer: Insurance Supervision Commission ISC amended the current legal framework
(“ISC”) regarding the authorization of insurers for the
execution of the compulsory insurance of the
ISC approved the Norms regarding the Insurance dwellings against earthquakes, landslides or
Pool against natural disasters flooding.
ISC issued Order no. 17/2009 for the application ISC issued Order no. 19/2009 for the
of the Norms regarding the insurance pool amendment of the Norms regarding the
against natural disasters. The above mentioned authorization of insurers for the execution of the
Order was published in the Official Gazette no. compulsory insurance of the dwellings against
610/7.09.2009 and may be accessed here earthquakes, landslides or flooding,
implemented through ISC’s Order no. 23/2008.
ISC approved the Norms regarding the
organization principles of a system of internal The above mentioned Order was published in
control and risk management, as well as the the Official Gazette no. 621/16.09.2009 and
organization and development of the activity of may be accessed here
internal audit in case of insurance/reinsurance
companies
ISC issued Order no. 18/2009 for the approval of
the Norms regarding the organization principles
of a system of internal control and risk
management, as well as the organization and
development of the activity of internal audit in
case of insurance/reinsurance companies.
The above mentioned Order was published in
the Official Gazette no. 621/16.09.2009 and
may be accessed here
Financial Services Industry Monthly Bulletin 5

6. Issuer: Private Pension System Supervision
Commission (“PPSSC”)
PPSSC approved the Norms regarding the use of
personal assets of the participant to a voluntary
pension fund
PPSSC issued Decision no. 22/2009 for the
approval of Norm no. 14/2009 regarding the use
of personal assets of the participant to a
voluntary pension fund.
Upon it’s entering into force, namely 2.09.2009,
PPSSC’s Norm no. 17/2008 regarding the use of
personal assets of the participant to a voluntary
pension fund in case of invalidity and death shall
be repealed.
The above mentioned Decision was published in
the Official Gazette no. 606/2.09.2009 andmay
be accessed here
6

7. Issuer: National Securities Commission (“NSC”)
NSC imposes the obligation for establishing
audit committees in case of certain regulated
financial institutions.
NSC adopted on 23.09.2009 decision no.
15/2009 in accordance to which financial
investment services companies, asset
management companies and undertakings in
collective investments for transferable securities
established through Articles of Association must
establish an audit committee, formed from non
– executive members of the board of directors
and/or supervisory council, with the observance
of the legal provisions.
The text of the decisions above mentioned may
be accessed here
Financial Services Industry Monthly Bulletin 7

9. The European Union adopted a Community
program for supporting the specific activities
within financial services industry, financial
reporting and audit.
European Parliament and the Council adopted
Decision no. 716/2009/CE for establishing a
Community program for supporting the specific
activities within financial services industry,
financial reporting and audit.
The said Decision was published in the Official
Journal of the European Union no. L
253/25.09.2009 and may be accessed here
Financial Services Industry Monthly Bulletin 9

10. 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

11. 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
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Consultant
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e-mail: slatusek@deloittece.com

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