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ALB Leasing CouncilJanuary 31, 2012ALB HQ

Technical committees-report of activity-

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Agenda

1. Main debated topics and implemented actions

2. Most debated topics

3. Most active committee

4. Conclusion

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1) Main debated topics and implemented actions Fiscal and accounting topics

Accounting Debates related to the IFRS transition

Training with KPMG NBR Order 26 concerning the treatments of recovered goods from early

termination of the leasing contracts Topic on the agenda of several fiscal committees Training with KPMG Several letters sent to NBR

Update on ALB - KPMG accounting monographs Established meeting with KPGM for working on monograph

Fiscal VAT treatment concerning non-recovered goods from cancelled leasing

contracts Present on agenda of several fiscal committees Started the infringement procedure on VAT at European Commission

Other debates on Romanian Tax Code Local taxes on real-estate properties and vehicles in case of early

termination of the contract Treatment concerning the fines of the leasing contract user

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1) Main debated topics and implemented actions

Juridical topics

Law approving GO 50/2010 on consumer credit agreements – reviews and comments

Seminars with ANPC Letters to ANPC

Law project on Debts collection Working document with AMCC-AOMR. Project in stand-by.

Updating the leasing law Topic on the agenda of several legal committees Several working-group meetings

Changes on Fiscal Code – VAT Infringement procedure initiated by ALB

Compensatory interests perceived by some custom points Meetings with Ministry of Finance

Fines due to not having the Romanian vignettes perceived through the CESTRIN electronic system

Letter to CNADNR New Civil Code

Seminar with Voicu & Filipescu Topic on the agenda of several legal committees Future seminar to be organized with Stoica and Associates

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ALB letter to the German authorities on fraudulent registration of some vehicles in Germany

Analysis of the NBR answer concerning the interpretation of some stipulations of the Order 26/2010 on NBFI according standards

Joint Committee (Legal and Fiscal) to analyze the legal framework NBR Regulation no. 24/2011 concerning the credits granted to individuals

Letter to NBR Debates and interpretations on the text of the law in few meetings of the legal

committee

1) Main debated topics and implemented actions

Juridical topics

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1) Main debated topics and implemented actions

Logistic committee

Compensatory interests imposed by some customs points Meetings with Ministry of Finance and Custom Authorities

Local Taxes and Fines – date of imposition Meetings with Ministry of Finance

The erasure of registration in case of early terminated contracts Discussions and meetings with Police authority Future lobby actions in Romanian Parliament

Impact of the compensatory interests related to the financial leasing contracts initiated from August 2006 to January 2007

Survey Vehicles fraudulently registered outside Romania. Recovery procedures

Debates and letter to German authorities The new Road Code

discussion and analysis Future lobby in Parliament

The fines for not holding a vignette incorrectly perceived from the leasing companies

Letter to CNADNR

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1) Main debated topics and implemented actions

Logistic committee

The new pollution tax Lobby process initiated to Ministry of Environment

TRANSBORDER CRIMES Meeting with Mr. Chief Commissioner Marian Iorga, Head of Department for stolen

vehicles, D.G.P.M.B. Local taxes imposed to vehicles that are objects of cancelled leasing contracts

Meeting with Ministry of Finance Letter proposing the change the Norms of the Fiscal Code

ALB – DGPMB collaboration Meeting with Head of DGPMB (Bucharest’s General Police Department)

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1) Main debated topics and implemented actions

Antifraud Topics

ALB-IGPR cooperation agreement – updates on issues related to the surveillance of the theft leased goods Debates and proposals for improving the collaboration with IGPR New procedure implemented with IGPR

Viable solutions for anti-fraud policies the presentation of the Real Time SRL and Dios Detective SRL services, societies specialized in

collecting and recovering commercial and civil claims and respectively in investigation activity IGPR request for ALB database on early terminated contracts

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1) Main debated topics and implemented actions

Risk Topics

Regulation project concerning the classification of the credits and the settlement, regulation and use of provisions specific to the credit risk applicable to entities supervised by the NBR, other than the credit institutions. Letter to NBR for changing the adjustment coefficient of real intrinsic guarantees

from 25% to 74%

Study on the impact of the law approving EGO 50/2010 on industry Updates on NBR regulation no. 3 concerning the individual crediting NBR regulation no. 20 concerning NBFI activity List of topics for ONPCSB training Meeting with IGPR antifraud experts Study of the EU Implementation Basel III. Draft legislative Proposals Appliance of the banking prudential requirements within the context of the

IFRS Analyst of the NBR Regulation Concerning the credits of the individuals Project of the regulation concerning the classification of credits and

investments as well as establishing an using the value of prudential adjustment

Second-hand vehicle market: Evaluating ways of the market risk on short and average term; Evaluating ways of the just value and of the residual value in the leasing contract

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1) Main debated topics and implemented actions

Marketing Topics

Updates on leasing reporting model Modification of the reporting model Definition and interpretation of the terms according to the new reporting model of ALB

Identifying ways of promoting the leasing industry Debates concerning the ALB National Conference. Proposals for promoting the

event.

Proposals for the Annual Year Book titles of the articles.

Interpretation of leasing industry results for different periods of 2011

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2) Most debated topics

1. NBR order no. 26 concerning the accounting rules2. Updates on leasing law3. VAT treatment and updates on infringement procedure4. Local taxes on real-estate and vehicles in case of early termination of the contract5. New Civil Code6. The new Road Code7. ALB- IGPR collaboration8. Regulation project concerning the classification of the credits and the settlement,

regulation and use of provisions specific to the credit risk applicable to entities supervised by the NBR, other than the credit institutions.

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3) Most active committee

Members attendance rate

45%

34%

30%

18%

27%28%

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

FiscalCommittee

Legal Committee LogisticCommittee

Risc Committee AntifraudCommittee

MarketingCommittee

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4) Conclusion

1. Need for standard agenda for each committee according to – 2012 industry list of priorities

2. Need for standard “expert profile” for each committee

3. Need for decision related to the role and functioning of Antifraud committee Marketing committee Risk committee