sept 2009 financial services industry monthly bulletin
DESCRIPTION
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 fundsTRANSCRIPT
September 2009
Domestic regulatory updates 3
1. Banking 4
2. Insurance 5
3. Private pensions 6
4. Capital Markets 7
International regulatory updates 8
Financial Services Industry Monthly Bulletin 8
4
Issuer: National Bank of Romania (“NBR”)
NBR amends know your customer legal
framework in view of preventing money
laundering and financing of terrorism
NBR issued Regulation no. 16/2009 for the
amendment of NBR’s Regulation no. 9/2008
regarding know your customer procedures in
view of preventing money laundering and
financing of terrorism (“Regulation 16/2009”).
The main amendments brought by Regulation
16/2009 refer to:
a) Identification of individuals
The following amendments were brought
to the minimum identification criteria of the
individuals: instead of “nationality”, the
identification data shall comprise
“citizenship”;
“Important Public Function” held by the
client, shall be mandatory disclosed only in
case of clients residing abroad.
b) Implementation
The term for implementing the measures
regarding knowing the customers is extended to
18 months, starting with the date when the
managing bodies of the company shall approve
the norms for knowing the customers.
Regulation 16/2009 was published in the Official
Gazette no. 626/21.09.2009 and may be
accessed here
NBR amends the legal framework regarding the
authorization of credit institutions, Romanian
legal entities, and branches of credit institutions
from third party states
NBR issued Regulation no. 17/2009 for the
amendment of NBR’s Regulation no. 11/2007
regarding the authorization of credit institutions,
Romanian legal entities, and branches of credit
institutions from third party states (“Regulation
17/2009”). The main amendments brought by
Regulation 17/2009 refer to:
The general criteria for the evaluation of
significant shareholders
The contribution to the share capital must be
paid through credit institutions or financial
institutions supervised by proper authorities form
member states or from third party states
considered to have similar systems with those
from European Union against money laundering
and financing of terrorism.
The documentation necessary for the
issuance of the set up authorization
Each direct/indirect shareholder, legal entity,
except for the credit institutions/non banking
financial institutions registered with the special
registry, Romanian legal entities, shall submit
estimations of the balance sheet and profits &
loss accounts for the following 3 years, at
individual or consolidated level, signed by the
shareholders and accompanied by the
substantiation of the forecasted values.
Regulation 17/2009 was published in the Official
Gazette no. 626/21.09.2009 and may be
accessed here
NBR adopted a new regulation regarding the
administration framework of credit institutions’
activity, the internal process of evaluation of
capital adequacy to risks and the conditions of
outsourcing their activities
NBR issued Regulation no. 18/2009 regarding
the administration framework of credit
institutions’ activity, the internal process of
evaluation of capital adequacy to risks and the
conditions of outsourcing their activities.
The new Regulation shall be applicable to credit
institutions, Romanian legal entities, as well as to
branches of credit institutions from third party
states, regulating on individual and/or, upon the
case may be, consolidated or sub-consolidated
level, and on the level of cooperatives, the
general framework for the administration of the
activity of credit institutions, the internal process
of evaluation of capital adequacy to risks and the
conditions of outsourcing their activities.
On 30th of June 2010, NBR’s Norm no. 17/2003
regarding the organization and internal control
of the activity of credit institutions and the
administration of the significant risks, as well as
the organization and performance of internal
audit within credit institutions shall be repealed.
The above mentioned Regulation was published
in the Official Gazette no. 630/23.09.2009 and
may be accessed here
The reference interest rate applicable for the
month of September was set by NBR at 8.53 %
per annum.
The reference interest rate above mentioned was
set through NBR’s Circular no. 32/2009,
published in the Official Gazette no.
603/1.09.2009, which may be accessed here
Financial Services Industry Monthly Bulletin 5
Issuer: Insurance Supervision Commission
(“ISC”)
ISC approved the Norms regarding the Insurance
Pool against natural disasters
ISC issued Order no. 17/2009 for the application
of the Norms regarding the insurance pool
against natural disasters. The above mentioned
Order was published in the Official Gazette no.
610/7.09.2009 and may be accessed here
ISC approved 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
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
ISC amended the current legal framework
regarding the authorization of insurers for the
execution of the compulsory insurance of the
dwellings against earthquakes, landslides or
flooding.
ISC issued Order no. 19/2009 for the
amendment of the Norms regarding the
authorization of insurers for the execution of the
compulsory insurance of the dwellings against
earthquakes, landslides or flooding,
implemented through ISC’s Order no. 23/2008.
The above mentioned Order was published in
the Official Gazette no. 621/16.09.2009 and
may be accessed here
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
Financial Services Industry Monthly Bulletin 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 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
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In the financial services sector, Reff & Associates provides the full range of services
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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.).
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