May 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. Each month, our specialist team of finance lawyers and tax advisors prepares for you a summary of the latest legal, tax and regulatory developments relevant for banks, non-banking financial institutions, private pensions and capital markets in Romania. In addition, our bulletin updates you on the most recent changes and trends in the international financial services industry regulatory framework.

1. May 2010

3. NBR amends the penalty interest rates paid for
deficits of mandatory minimum reserves
established in national currency
NBR enacted Circular no. 17/2010 regarding the
penalty interest rates paid for deficits of
NBR issued Circular no. 15/2010 regarding the mandatory minimum reserves established in
reference interest rate valid in May 2010. national currency. The above mentioned Circular
According to the above mentioned circular, the sets forth the penalty interest rates paid for
reference interest rate for May was 6.5%/year. deficits of mandatory minimum reserves
established in national currency during May 24 -
The above mentioned Circular was published in June 23, 2010 as being 15.50% per year.
the Official Gazette no. 288/03.05.2010 and can
be accessed here. The said Circular was published in the Official
Gazette no. 327/18.05.2010 and may be
NBR amends the interest rates paid on minimum accessed here.
mandatory reserves
NBR enacted Circular no. 16/2010 regarding the
interest rates paid on minimum mandatory
reserves. The above mentioned Circular sets
forth the interest rates paid on minimum
mandatory reserves during April 24 - May 23,
2010 as follows:
 2.07% per year for minimum
mandatory reserves set up in RON;
 1.09% per year for minimum
mandatory reserves set up in Euro;
 1.00% per year for minimum
mandatory reserves set up in U.S.
dollars.
The said Circular was published in the Official
Gazette no. 327/18.05.2010 and may be
accessed here.

4. ISC has amended the current regulatory NSC establishes the regulatory framework
framework regarding the mandatory civil liability regarding the special administration of NSC
insurance for damages produced by car authorized entities
accidents
NSC enacted Order no. 24/2010 for the approval
ISC issued Order no. 5/2010 for the approval of of Regulation no. 11/2010 regarding the special
the Norms regarding the mandatory civil liability administration of the entities authorized by NSC.
insurance for damages produced by car The above mentioned Regulation was published
accidents. The above mentioned Order was in the Official Gazette no. 288/03.05.2010 and
published in the Official Gazette no. may be accessed here.
344/25.05.2010 and may be accessed here.
NSC has amended the regulatory framework
regarding the documents of the undertakings
for collective investment in transferable securities
NSC issued Decision no. 662/25.05.2010
regarding the amendments of the documents of
the undertakings for collective investment in
PPSSC has amended the current regulatory transferable securities in view of aligning them
framework regarding the level of the to the regulations of capital market. The above
authorization, approval and functioning taxes in mentioned Decision was published on NSC’s
privately managed pensions system website and may be accessed here.
PPSSC issued Decision no. 6/2010 for the
approval of Norm no. 5/2010 amending Norm
no. 7/2008 regarding the authorization, approval
and functioning taxes in privately administrated
pensions system. The above mentioned Decision
was published in the Official Gazette no.
293/05.05.2010 and may be accessed here.
PPSSC has amended the current regulatory
framework regarding the level of the
authorization, approval and functioning taxes in
voluntary pensions system
PPSSC issued Decision no. 7/2010 for the
approval of Norm no. 6/2010 amending Norm
no. 8/2008 regarding the authorization, approval
and functioning taxes in voluntary system. The
above mentioned Decision was published in the
Official Gazette no. 293/05.05.2010 and may be
accessed here.

5. In case the financial institution does not present
at the term provided by the tax authority a
Impact of new transfer pricing rules for financial complete transfer pricing file (including the
services industry intercompany transactions between Romanian
related parties), it will be liable to:
The Romanian Parliament has adopted Law no.
76/2010 regarding the approval of the  adjustments of the income and
Government Emergency Ordinance no. expenses resulted from the
109/2009 amending and supplementing Law intercompany transactions not
571/2003 regarding the Fiscal Code. presented;
Until now the Methodological Norms regarding  late payment interest of 0.1% for each
the Fiscal Code provided that Romanian tax day of delay; and
authorities have the possibility to adjust income
or expenses resulted only from intercompany  a fine between RON 12,000 and
transactions concluded by Romanian taxpayers 14,000 (approximately EUR 2,900 –
with foreign affiliated parties, in order to reflect 3,500).
the market value of services provided within
such transactions (e.g., loans, deposits and The above mentioned law was published in the
placements, assignment of debts). The Law Official Gazette no. 307/11.05.2010.
comes to clarify that also intercompany
transactions concluded between two affiliated
Romanian taxpayers might be subject to such
adjustments.
Consequently, companies part of a Romanian
financial group (e.g., banks, leasing companies,
insurance and reinsurance companies), should
present in the transfer pricing file all transactions
concluded with related parties, including the
transactions performed between the entities of
the Romanian financial group.

7. EC establishes a European financial stabilization
mechanism
EC adopted Council Regulation no. 407/2010 of
11 May 2010 establishing a European financial
stabilization mechanism. With a view in
preserving the financial stability of the European
Union, this Regulation establishes the conditions
and procedures under which Union financial
assistance may be granted to a Member State
which is experiencing, or is seriously threatened
with, a severe economic or financial disturbance
caused by exceptional occurrences beyond its
control, taking into account the possible
application of the existing facility providing
medium-term financial assistance for non-euro-
area Member States’ balances of payments. The
above mentioned Regulation no. 407/2010 was
published in the European Union Official Journal
on May 12, 2010, entered into force as of May
13, 2010 and can be accessed here.

9. Proposal of Regulation regarding the electronic
supervision through reporting. The full text of
the proposal may be accessed here.
Proposal of Regulation regarding the application
of some provisions of CE Regulation no.
1060/2009 of the European Parliament and of
the Council regarding credit rating agencies. The
above mentioned proposal for a Regulation was
published on NSC’s website and may be
accessed here.

11. CESR publishes its technical advice to the
European Commission on the equivalence
between the US regulatory and supervisory
framework and the EU regulatory framework
applicable to Credit Rating Agencies. The advice
ECB announced measures to address severe is available here.
tensions in financial markets
CESR publishes a report to the European
Considering the exceptional situation in the
Commission on the technical details of the pan-
financial markets, ECB decided to implement
European short selling disclosure regime. The
some measures regarding the long term
above mentioned report was published on
refinancing operations at fixed rates and CESR’s website and may be accessed here.
reactivation of temporary U.S. dollar liquidity
swap facilities. The above mentioned CESR published a report related to Accepted
announcement may be accessed here. Market Practices: Liquidity Enhancement
Agreements and Purchase of own shares to set
up a shares warehouse position. The above
mentioned document was published on CESR’s
website and may be accessed here.
CESR published its guidelines on a common
definition of European money market funds. The
guidelines may be accessed here.
CESR updates the list of measures recently taken
by its Members regarding short-selling. For more
information please access here.

12. Date
22 – 23 June 2010
Venue
Novotel Hotel
Bucharest
At first glance, the Romanian VAT system seems
to be simple. It appears to involve collecting and
deducting VAT, which works more or less
neutral for taxpayers. In practice this is far from
the truth as various issues pop up when least
expected. Difficulties in correctly applying the
VAT rules are frequently encountered.
Our workshop will help participants to spot
opportunities leading to an improvement of their
company’s tax position.
For additional information, please visit the
VAT in Practice page.

13. 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
Sectorul Serviciilor Financiare Buletin lunar 11

14. 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
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

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