Communication CBFA_2009_28 / Annual Individual Accounts of Credit Institutions, Investment Firms and UCITS Management Companies

rue du Congrès 12-14 | 1000 Bruxelles t +32 2 220 53 42| f +32 2 220 54 93 | www.cbfa.be Communication CBFA_2009_28 of September 9, 2009 Annual Individual Accounts of Credit Institutions, Investment Firms and UCITS Management Companies Scope: 1 Credit institutions referred to in Article 1 of the Law of March 22, 1993 on the status and supervision of credit institutions, with the exception of institutions referred to in Article 2, § 1, of that Law; 2 Investment firms referred to in Article 44 of the Law of April 6, 1995 on the status and supervision of investment firms, with the exception of institutions referred to in Article 45 of that Law; 3 UCITS management companies referred to in Article 138 of the Law of July 20, 2004 on certain forms of collective management of investment portfolios. Summary/Objectives: This communication aims to remind the concerned institutions, firms, and companies of the regulatory changes that will enter into force from January 1, 2010, for the preparation of their annual individual accounts relating to financial years starting from that date. The main modification concerns investment firms and UCITS management companies, for which a new accounting law will apply from 2010. Madam, Sir, This communication aims to remind the concerned credit institutions, investment firms, and UCITS management companies of the regulatory changes that will enter into force from January 1, 2010, for the preparation of their annual individual accounts relating to financial years starting from that date. These changes result from the Royal Decree of September 28, 2008, which amended the Royal Decree of September 23, 1992, on the annual accounts of credit institutions, and the Royal Decree of September 23, 1992, on the accounting information to be published concerning branches established in Belgium by foreign credit institutions. The Royal Decree of September 28, 2008, was published in the Belgian Official Gazette of October 3, 2008 (pages 52809 and following). A coordinated version of the Royal Decrees of September 23, 1992, taking into account the modifications introduced in 2008, is available on the CBFA website.

CBFA_2009_28 of September 9, 2009 2 / 2 CBFA rue du Congrès 12-14 | 1000 Bruxelles t +32 2 220 53 42| f +32 2 220 54 93 | www.cbfa.be The main modification concerns investment firms and UCITS management companies. For these firms and companies, the applicable accounting law from January 1, 2010, will indeed be the accounting law resulting from the Royal Decree of September 23, 1992 (whose provisions will then be applicable to these firms and companies). It is essential that investment firms and UCITS management companies do everything possible to ensure the best and timely transition to the new accounting standards. They will inform the CBFA, by October 31, 2009 at the latest (via the new secure communication platform "eCorporate"), of their preparation plan for the transition to the new accounting standards (in particular: responsible persons, planned procedures and timing, possible IT adaptations, allocated resources, ...). They will also inform the CBFA in case of delay or significant problem in the implementation of the plan. The balance sheets and income statements, as well as the notes, relating to the financial year starting after December 31, 2009, will, for the first time, be prepared in accordance with the schemes and prescriptions of the Royal Decree of September 23, 1992. These accounts will therefore be published for the first time in 2011. It should be noted that investment firms and UCITS management companies are exempt from preparing certain notes provided for by the Royal Decree of September 23, 1992 (see the last paragraph of section III of chapter I of the annex to the Royal Decree of September 23, 1992). Other modifications were made by the Royal Decree of September 28, 2008. These apply from January 1, 2010, to both credit institutions already subject to the Royal Decree of September 23, 1992, and to investment firms and UCITS management companies which, as indicated above, will be subject to it from 2010. These other modifications are essentially:

• a simplification of the provisions relating to the accounting of spot transactions (new article 11bis of the Decree);
• The updating of accounting provisions on mergers and divisions (new articles 36ter to 36sexies) and the definition of leasing operations (chapter II of the annex, section I, item IX.C);
• the introduction, in line with the transposition of the MiFID directive, of a new annex to the accounts relating to securities held by the institution for third-party accounts (chapter I of the annex, section III, new heading XXX);
• various terminological adaptations and updates of texts and annexes. A copy of this communication is transmitted to your auditor, who is required, within the framework of the reporting function, to react appropriately if it seems to him that the measures taken by an institution to prepare for its future accounting obligations raise prudential questions. We ask you to accept, Madam, Sir, the assurance of our distinguished consideration. The President, Jean-Paul SERVAIS.