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act_2015_33 MT

AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.

117 Articles / Provisions · Malta
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Table of Provisions (117)

Preamble Art. 1 Short title and commencement. Art. 2 Amendment of the Insurance Business Act, Art. 3 Renaming and renumbering of Parts of the principal Act. Art. 4 Art. 5 Art. 6 Art. 7 Art. 8 Amendment of article 6 of the principal Act. Art. 9 Art. 10 Art. 11 Art. 12 Art. 13 Sostituzzjoni tal-artikolu 11 li ġej: tal-Att prinċipali. Art. 14 Emenda tal- artikolu 12 tal- ġej: Att prinċipali. Art. 15 Art. 16 Art. 17 Art. 18 Art. 18A Art. 18B Art. 18D Art. 18E Art. 18F Art. 18G Art. 18H Art. 18I Art. 19 Art. 20 Amendment of article 23 of the follows: principal Act. Art. 21 Art. 24 Art. 25 Amendment of article 28 of the follows: principal Act. Art. 26 Art. 27 Art. 28 Art. 29 Art. 30 Amendment of article 31A of follows: the principal Act. Art. 31 Addition of articles 31B and 31C to the principal Act. Art. 31B " Supervisory Art. 31C Power to set a capital add- on. Art. 32 Amendment of article 32 of the principal Act. Art. 33 Addition of new Part VIIA of the principal Act. Art. 34 Art. 35 Amendment of article 34 of the follows: principal Act. Art. 36 Amendment of article 35 of the follows: principal Act. Art. 37 Art. 38 Art. 39 Addition of article 37A to the principal Act. " Transfer of Art. 40 Art. 41 Art. 42 Amendment of article 38B of the principal Act. Art. 43 Art. 44 Amendment of article 39 of the follows: principal Act. Art. 45 Art. 46 Art. 47 Art. 48 Amendment of article 42 of the follows: principal Act. Art. 49 Art. 50 Amendment of article 44 of the follows: principal Act. Art. 51 Amendment of article 45 of the principal Act. Art. 52 Amendment of article 47 of the follows: principal Act. Art. 53 Art. 54 Amendment of article 48A of the principal Act. Art. 55 Art. 56 Art. 57 Amendment of article 49 of the principal Act. Art. 58 Amendment of article 50 of the principal Act. Art. 59 Amendment of article 51 of the principal Act. Art. 60 Art. 61 Art. 62 Art. 63 Art. 64 Art. 65 Art. 66 Art. 67 Art. 68 Art. 69 Amendment of article 62 of the principal Act. Art. 70 Amendment of article 63 of the principal Act. Art. 71 Amendment of article 64 of the follows: principal Act. Art. 72 Art. 73 Art. 74 Art. 75 Art. 76 Art. 77 General amendment of the principal Act. Art. 78 Amendment of the Insurance Intermediaries Act. Art. 79 Amendment of article 2 of the principal Act. Art. 80 Amendment of article 4 of the principal Act. Art. 81 Amendment of article 10 of the principal Act. Art. 82 Amendment of article 31 of the principal Act. Art. 83 Art. 84 Art. 85 Amendment of article 35 of the principal Act. Art. 86 Amendment of article 36 of the follows: principal Act. Art. 87 Amendment of article 37 of the follows: principal Act. Art. 88 Amendment of article 38 of the principal Act. Art. 89 Art. 90 Art. 91 Art. 92 Art. 93 Art. 94 Art. 95 Amendment of article 47 of the deleted. principal Act. Art. 96 Amendment of article 48 of the follows: principal Act. Art. 97 Amendment of article 49 of the follows: principal Act. Art. 98 Amendment of article 50 of the follows: principal Act. Art. 99 Amendment of article 52 of the principal Act. Art. 100 Amendment of article 53 of the principal Act. Art. 101 Art. 102 Art. 103 Amendment to the Companies Act. Art. 104 Amendment of article 84A of the principal Act. Art. 105 Amendment to the Income Tax Act. Art. 106 Amendment of article 51 of the follows: principal Act. Art. 107 Art. 108

Statutory Text (117 Articles)

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Preamble — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

I assent.

M ARIE L OUISE

(L.S.)

C OLEIRO P RECA

President

20th November, 2015

ACT No XXXIII of 2015

AN ACT to amend various financial services laws, to transpose

Directive 2009/138/EC ("the Solvency II Directive"), and to provide

for matters ancillary or incidental thereto.

BE IT ENACTED by the President, by and with the advice and

consent of the House of Representatives, in this present Parliament

assembled, and by the authority of the same, as follows:-

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 1 Short title and commencement. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

(1) The short title of this Act is the Various Financial

Services Laws (Amendment No 2) Act, 2015.

(2) The provisions of this Act, except Parts IV and V, shall

come into force on such date as the Minister responsible for finance

may, by notice in the Gazette, establish, and different dates may be so

established for different provisions of this Act.

PART I

AMENDMENT OF THE INSURANCE BUSINESS ACT, CAP. 403

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 2 Amendment of the Insurance Business Act, — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

This Part amends and shall be read and construed as one

with the Insurance Business Act, hereinafter in this Part referred to as

"the principal Act".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 3 Renaming and renumbering of Parts of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

The "ARRANGEMENT OF ACT" of the principal Act

shall be amended as follows

(a)

in "Part IV. Conditions for carrying on Business of

Insurance", under the heading "Articles", for the figures "14-

18", there shall be substituted the figures "14-18I";

(b)

immediately after "Part IV. Conditions for carrying

on Business of Insurance", there shall be added the following

new titles

"Title I: Financial Requirements

Title II: Systems of Governance";

(c)

in the new Titles I and II, under the heading

"Articles", there shall be inserted the figures "14-18G", and

"18H-18I" respectively;

(d) in "Part VII. Supervision of Authorised Companies",

for the words "of Authorised Companies", there shall be

substituted the words "of Authorised Insurance and Reinsurance

Undertakings";

(e)

immediately after "Part VII. Supervision of

Authorised Insurance and Reinsurance Undertakings", there

shall be added the following new Part

"Part VIIA. Group Supervision";

(f)

in the new "Part VIIA. Group Supervision", under

the heading "Articles", there shall be inserted the figures "32A-

32E"; and

(g) in "Part X. Conduct of Business of Insurance",

under the heading "Articles", for the figures "43-48", there shall

be substituted the figures "43-48C".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 4 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 2 of the principal Act shall be amended as follows

Amendment of

article 2 of the

principal Act.

(a)

in sub-article (1) thereof

(i) the definition "advertisement" shall be

amended as follows

(aa) for the words "means any form of

advertising, whether done verbally or in writing",

there shall be substituted the words "means any

form or medium of advertising";

(bb) for the words "by means of letters,

circulars, prospectuses, catalogues", there shall be

substituted the words "by means of letters,

circulars, catalogues"; and

(cc) for the words "by the distribution of

recordings or in any other manner, and references",

there shall be substituted the words "by the

distribution of recordings or in any other manner,

the contents of which invite persons, or contain

material calculated to induce persons to enter into

contracts of insurance, and references";

(ii)immediately

after

the

definition

"authorisation" there shall be added the following

new definition

" "authorised insurance undertaking" means

an undertaking, which has received authorisation

pursuant to article 7 to carry on direct general

business and, or long term business, and includes

an undertaking authorised to carry on direct and

reinsurance business;";

(iii) immediately after the new definition

"authorised insurance undertaking" there shall be

added the following new definition

" "authorised reinsurance undertaking" means

an undertaking which has received authorisation

pursuant to article 7 to carry on business restricted

to reinsurance;";

(iv)in the definition "body corporate", for the

words "distinct from that of its members;", there

shall be substituted the words "distinct from that of

its members and also includes a foreign

corporation;";

(v)in the definition "branch", for the words

"means premises of the company, other then its head

office", there shall be substituted the words "means

premises of an authorised insurance and reinsurance

undertaking, other than its head office";

(vi)for sub-paragraph (ii) of paragraph (a) of the

definition "business of insurance", there shall be

substituted the following new sub-paragraph

"(ii) capital redemption contracts based on

actuarial calculation whereby, in return for single

or periodic payments agreed in advance,

commitments of specified duration and amount are

undertaken;";

(vii)immediately after the definition "business of

insurance" there shall be added the following new

definition

" "captive insurance undertaking" means an

authorised insurance undertaking, owned either by a

financial undertaking, other than an insurance or

reinsurance undertaking or a group of insurance or

reinsurance undertakings within the meaning of

article 2, or by a non-financial undertaking, the

purpose of which is to provide insurance cover

exclusively for the risks of the undertaking or

undertakings to which it belongs or of an

undertaking or undertakings of the group of which it

is a member;";

(viii) immediately after the new definition

"captive insurance undertaking" there shall be added

the following new definition

" "captive reinsurance undertaking" means an

authorised reinsurance undertaking, owned either by

a financial undertaking, other than an insurance or

reinsurance undertaking or a group of insurance or

reinsurance undertakings within the meaning of

article 2, or by a non-financial undertaking, the

purpose of which is to provide reinsurance cover

exclusively for the risks of the undertaking or

undertakings to which it belongs or of an

undertaking or undertakings of the group of which it

is a member;";

(ix) immediately after the definition "cell

company" there shall be added the following new

definition

" "close links" means a situation in which two

or more natural or legal persons are linked by

control or participation, or a situation in which two

or more natural or legal persons are permanently

linked to one and the same person by a control

relationship;";

(x) the definition "company" shall be deleted;

(xi) the definition "company whose head office

is in Malta" shall be deleted;

(xii) the definition "company whose head office

is in a country outside Malta" shall be deleted;

(xiii)for the definition "control", there shall be

substituted the following new definition

" "control" means the relationship between a

parent undertaking and a subsidiary undertaking, as

set out in Article 22 of Directive 2013/34/EU of the

European Parliament and of the Council of 26 June

2013 on the annual financial statements,

consolidated financial statements and related

reports of certain types of undertakings, amending

Directive 2006/43/EC of the European Parliament

and of the Council and repealing Council

Directives 78/660/EEC and 83/349/EEC, or a

similar relationship between any natural or legal

person and an undertaking;";

(xiv) in the definition "controller", for the words

"exercises control of the body corporate;", there shall

be substituted the words "exercises the power to

determine the financial and operating policies of the

body corporate;";

(xv) for the definition "director", there shall be

substituted the following new definition

" "director", in relation to an undertaking,

includes an individual occupying the position of a

director of the undertaking, by whatever name he

may be called, empowered to carry out

substantially the same functions in relation to the

direction of the undertaking as those carried out by

a director and, in respect of a third country

insurance undertaking or a third country

reinsurance undertaking, includes a member of a

local board, and the person designated as the

representative of that undertaking for the purpose

of article 11(1)(b)(i);";

(xvi) immediately after the definition "director",

there shall be added the following new definition

" "document" or "documentation" includes

information recorded in any form and, in relation to

information recorded otherwise than in legible

form, references to its production include

references to producing a copy of the information

in legible form;";

(xvii) immediately after the definition "EEA

State", there shall be added the following new

definition

" "EIOPA" means the European Insurance

and Occupational Pensions Authority established in

terms of article 1 of Regulation (EU) No 1094/

2010;";

(xviii) for the definition "establishment", there

shall be substituted the following new definition

" "establishment" means the head office, or

any branches of an authorised insurance

undertaking or an authorised reinsurance

undertaking;";

(xix) for the definition "European insurance

undertaking", there shall be substituted the following

new definition

" "European insurance undertaking" means an

undertaking having its head office in a Member

State or an EEA State, other than Malta, pursuing

the activity of direct insurance within the meaning

of Article 2 of the Solvency II Directive, which has

received authorisation in accordance with Article

14 of the Solvency II Directive;";

(xx) immediately after the new definition

"European insurance undertaking", there shall be

added the following new definition

" "European regulatory authority" means the

supervisory authority or supervisory authorities as

defined in Article 13 of the Solvency II Directive,

designated by a Member State or EEA State, other

than Malta, empowered by law or regulation to

supervise insurance or reinsurance undertakings;";

(xxi) immediately after the new definition

"European regulatory authority", there shall be added

the following new definition

" "European reinsurance undertaking" means

an undertaking having its head office in a Member

State or an EEA State, other than Malta, pursuing

business restricted to reinsurance within the

meaning of Article 2 of the Solvency II Directive

which has received authorisation in accordance

with Article 14 of the Solvency II Directive;";

(xxii) immediately after the new definition

"European reinsurance undertaking", there shall be

added the following new definition

" "European right" means the entitle-

ment of an authorised insurance undertaking,

authorised

reinsurance

undertaking,

European insurance undertaking or a

European reinsurance undertaking to

establish a branch, or provide services, in a

Member State or an EEA State, other than

that in which it has its head office -

(a) in accordance with the Treaty

of Rome as applied in a Member State

or an EEA State;

(b) subject to the requirements

of the Solvency II Directive and

subject to any regulations made under

this Act, or Insurance Rules issued by

the competent authority pursuant to

this

Act,

implementing

such

requirements;";

(xxiii) immediately after the new definition

"European right", there shall be added the following

new definition

" "European Systemic Risk Board" means the

European Systemic Risk Board established by

Regulation (EU) No 1092/2010 of the European

Parliament and of the Council of 24 November

2010 on European Union macro-prudential

oversight of the financial system and establishing a

European Systemic Risk Board;";

(xxiv) immediately after the new definition

"European Systemic Risk Board", there shall be

added the following new definition

" "financial undertaking" means any of the

following entities

(a) a credit institution, a financial

institution or an ancillary banking services

undertaking within the meaning of sub-

paragraphs (1), (17) and (22) of paragraph (1)

of Article 3 of Directive 2013/36/EU

respectively;

(b) an insurance undertaking, or a

reinsurance undertaking or an insurance

holding company within the meaning of

Article 212(1)(f) of the Solvency II Directive;

(c) an investment firm or a financial

institution within the meaning of Article

4(1)(1) of Directive 2004/39/EC; or

(d) a mixed financial holding company

within the meaning of Article 2(15) of

Directive 2002/87/EC;";

(xxv) immediately after the definition "general

business", there shall be added the following new

definition

" "group" means a group of undertakings that

(a) consists

of

a

participating

undertaking, its subsidiaries and the entities

in which the participating undertaking or its

subsidiaries hold a participation, as well as

undertakings linked to each other by a

relationship as set out in Article 22 of

Directive 2013/34/EU of the European

Parliament and of the Council of 26 June

2013 on the annual financial statements,

consolidated financial statements and related

reports of certain types of undertakings,

amending Directive 2006/43/EC of the

European Parliament and of the Council and

repealing Council Directives 78/660/EEC and

83/349/EEC; or

(b) is based on the establishment,

contractually or otherwise, of strong and

sustainable financial relationships among

those undertakings, and that may include

mutual or mutual-type associations, provided

that

(i)

one of those undertakings

effectively

exercises,

through

centralised coordination, a dominant

influence over the decisions, including

financial decisions, of the other

undertakings that are part of the group;

and

(ii) the

establishment

and

dissolution of such relationships for the

purposes of Title III of the Solvency II

Directive are subject to prior approval

by the group supervisor,

where the undertaking exercising the

centralised coordination shall be considered

as the parent undertaking, and the other

undertakings shall be considered as

subsidiaries;";

(xxvi) for the definition "guarantee fund", there

shall be substituted the following

" "guarantee fund" means the body referred

to in Article 10(1) of Directive 2009/103/EC of the

European Parliament and of the Council of 16

September 2009 relating to insurance against civil

liability in respect of the use of motor vehicles, and

the enforcement of the obligation to insure against

such liability;";

(xxvii) in the Maltese text, for the definition

"holding company" there shall be substituted the

following

" "kumpannija holding" għandha l-istess

tifsira bħal dik mogħtija lill-kliem "parent

company" fl-Att dwar il-Kumpanniji;";

(xxviii) for the definition "insurance rule", there

shall be substituted the following

" "Insurance Rules" means rules in respect of

the business of insurance issued by the competent

authority under various articles of this Act and

under any regulations made thereunder;",

(xxix) for the definition "Lloyd’s", there shall be

substituted the following

" "Lloyd’s" means the society and corpor-

ation incorporated by Lloyd’s Act, 1871, of the

United Kingdom;";

(xxx) for the definition "Malta’s international

commitments", there shall be substituted the

following

" "Malta’s international commitments"

means Malta’s commitments, responsibilities and

obligations arising out of membership of the

European Union and membership of, or affiliation

to, or relationship with, any international, global or

regional organisations or grouping of countries or

out of any treaty, convention or other international

agreement, however called, whether bilateral or

multilateral,

including

Memoranda

of

Understanding, to which Malta is a party;";

(xxxi) the definition " "margin of solvency" and

"Malta margin of solvency" and "EEA margin of

solvency" " shall be deleted;

(xxxii) immediately after the definition "money

laundering", there shall be added the following new

definition

" "motor vehicle" has the same meaning

as assigned to it by article 2 of the Motor

Vehicle Insurance (Third Party Risks)

Ordinance;";

(xxxiii) the definition "mutual association" shall

be deleted;

(xxxiv) in the definition "officer", for the words

"in relation to a company, includes a director,

partner,", there shall be substituted the words "in

relation to an undertaking, includes a director,";

(xxxv) immediately after the definition "officer",

there shall be added the following new definition

" "outsourcing" means an arrangement of any

form between an authorised insurance or

reinsurance undertaking and a service provider,

whether a supervised entity or not, by which that

service provider performs a process, a service or an

activity, whether directly or by sub-outsourcing,

which would otherwise be performed by the

authorised insurance or reinsurance undertaking

itself, and "outsource" shall be construed

accordingly;";

(xxxvi) for the definition "overseas regulatory

authority", there shall be substituted the following

" "overseas regulatory authority" means

an authority in a country or territory outside

Malta, that is not a Member State or EEA State,

which exercises any regulatory or supervisory

function in relation to financial services

corresponding to a function of the competent

authority as defined in the Malta Financial

Services Authority Act;";

(xxxvii) for the definition "own funds", there

shall be substituted the following

" "own funds" shall be construed in

accordance with Insurance Rules made by the

competent authority for the purposes of this Act;";

(xxxviii) immediately after the definition "own

funds", as amended, there shall be added the

following new definition

" "participation" means the ownership, direct

or by way of control, of 20% or more of the voting

rights or capital of an undertaking;";

(xxxix)immediately after the new definition

"participation", as amended, there shall be added the

following new definition

" "participating undertaking" means an

undertaking which is either a parent undertaking or

other undertaking which holds a participation, or an

undertaking linked with another undertaking by a

relationship as set out in Article 22 of Directive

2013/34/EU of the European Parliament and of the

Council of 26 June 2013 on the annual financial

statements, consolidated financial statements and

related reports of certain types of undertakings,

amending Directive 2006/43/EC of the European

Parliament and of the Council and repealing

Council Directives 78/660/EEC and 83/349/EEC;";

(xl)

for

the

definition

"qualifying

shareholding", there shall be substituted the

following

" "qualifying shareholding" means a direct or

indirect holding in an undertaking which represents

ten per centum or more of the share capital or of the

voting rights, taking into account the voting rights

as set out in Articles 9 and 10 of Directive 2004/

109/EC of the European Parliament and of the

Council of 15 December 2004 on the

harmonisation of transparency requirements in

relation to information about issuers whose

securities are admitted to trading on a regulated

market, and amending Directive 2001/34/EC, as

well as the conditions regarding aggregation

thereof laid down in Article 12(4) and (5) of that

Directive, or which makes it possible to exercise a

significant influence over the management of the

undertaking in which that holding subsists, and

"qualifying shareholder" shall be construed

accordingly

Provided that, in determining whether the

criteria for a qualifying shareholding are fulfilled,

the competent authority shall not take into account

voting rights or shares which investment firms or

credit institutions may hold as a result of providing

the underwriting of financial instruments and, or

placing of financial instruments on a firm

commitment basis in terms of point 6 of Section A

of Annex 1 to Directive 2004/39/EC of the

European Parliament and of the Council of 21 April

2004 on markets in financial instruments amending

Council Directives 85/611/EEC and 96/6/EEC and

Directive 2000/12/EC of the European Parliament

and of the Council and repealing Council Directive

93/22/EEC, provided that those rights are, on the

one hand, not exercised or otherwise used to

intervene in the management of the issuer and, on

the other, disposed of within one year of

acquisition;";

(xli)

immediately after the definition

"reconstruction", there shall be added the following

new definition

" "regulated market" means either of the

following

(a) in the case of a market situated in

Malta, a market authorised in terms of the

Financial Markets Act;

(b) in the case of a market situated in a

Member State or an EEA State, other than

Malta, a regulated market as defined in

Article 4(1)(14) of Directive 2004/39/EC of

the European Parliament and of the Council

of 21 April 2004 on markets in financial

instruments amending Council Directive 85/

611/EEC and 96/6/EEC and Directive 2000/

12/EC of the European Parliament and of the

Council and repealing Council Directive 93/

22/EEC, as amended from time to time; or

(c) in the case of a market situated in a

non-Member State or non-EEA State, a

financial market which fulfils the following

conditions

(i)

it is recognised by the

competent

authority

and

fulfils

requirements comparable to those laid

down in Directive 2004/39/EC; and

(ii) the financial instruments

dealt in on that market are of a quality

comparable to that of the instruments

dealt in on the regulated market or

markets in Malta;";

(xlii) immediately after the new definition

"regulated market", there shall be added the

following new definition

" "Regulation (EU) No 1094/2010" refers to

Regulation (EU) No 1094/2010 of the European

Parliament and of the Council of 24 November

2010 establishing a European Supervisory

Authority (European Insurance and Occupational

Pensions Authority), amending Decision No 716/

2009/EC and repealing Commission Decision

2009/79/EC;";

(xliii) in the proviso to paragraph (b) of the

definition "risk situated in Malta", for the words

"Provided that, where a vehicle is dispatched from a

Member State", there shall be substituted the words

"Provided that, where a motor vehicle is dispatched

from a Member State";

(xliv) immediately after the definition

"subsidiary", there shall be added the following new

definition

" "Solvency II Directive" means Directive

2009/138/EC of the European Parliament and of

the Council of 25 November 2009 on the taking-up

and pursuit of the business of Insurance and

Reinsurance (Solvency II) (recast), as amended

from time to time, and includes any delegated acts

and any technical standards that have been or may

be issued thereunder;";

(xlv) for the definition "technical provisions",

there shall be substituted the following

" "technical provisions" shall be construed in

accordance with article 18E;";

(xlvi) immediately after the definition "technical

provisions", there shall be added the following new

definition

" "third country insurance undertaking"

means an undertaking, other than a European

insurance undertaking, which would require

authorisation as an authorised insurance

undertaking pursuant to article 7 as if its head

office were situated in Malta;";

(xlvii) immediately after the new definition

"third country insurance undertaking", there shall be

added the following new definition

" "third country reinsurance undertaking"

means an undertaking, other than a European

reinsurance undertaking, which would require

authorisation as an authorised reinsurance

undertaking in accordance with article 7 as if its

head office were situated in Malta;";

(xlviii) immediately after the new definition

"third country reinsurance undertaking", there shall

be added the following new definitions

" "undertaking" refers to an undertaking

whose head office is in Malta or in a country

outside Malta;

"undertaking whose head office is in Malta"

means a limited liability company formed and

registered in Malta in accordance with the

Companies Act;";

(xlix) the definition "valuation regulations"

shall be deleted;

(l)

the definition "vehicle" shall be deleted; and

(b) for sub-article (2) thereof, there shall be substituted

the following

"(2) The objective of this Act is, in part, to

transpose and implement the provisions of

(a)

the Solvency II Directive;

(b) the Omnibus II Directive: Directive

2014/51/EU of the European Parliament and of the

Council of 16 April 2014 amending Directives

2003/71/EC and 2009/138/EC and Regulations

(EC) No 1060/2009, (EU) No 1094/2010 and (EU)

No 1095/2010 in respect of the powers of the

European Supervisory Authority (European

Insurance and Occupational Pensions Authority)

and the European Supervisory Authority (European

Securities and Markets Authority);

(c) Directive 2009/103/EC of the European

Parliament and of the Council of 16 September

2009, relating to insurance against civil liability in

respect of the use of motor vehicles, and the

enforcement of the obligation to insure against

such liability, as amended from time to time; and

(d) any other European Union Directives

and Regulations that may be issued and amended

from time to time relating to the regulation of and

the prudential requirements applicable to insurance

and reinsurance undertakings,

and consequently this Act and any regulations and

Insurance Rules issued thereunder shall be interpreted and

applied accordingly.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 5 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 3 of the principal Act shall be amended as follows

Amendment of

article 3 of the

principal Act.

(a)

for the words "under this Act and to ensure that

persons authorised to carry on the business of insurance", there

shall be substituted the words "under this Act and any

regulations or Insurance Rules made thereunder and to ensure

that insurance and reinsurance undertakings carrying on the

business of insurance"; and

(b) for the words "with any insurance rule made by the

competent authority", there shall be substituted the words "with

any Insurance Rules made and directives issued by the

competent authority".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 6 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

For article 4 of the principal Act, there shall be substituted Substitution of

article 4 of the

principal Act.

" Powers and

4. (1)When carrying out its functions

duties of the

under this Act, the competent authority shall, in

competent

particular, have regard to

authority.

(a)

the protection of insured persons,

policy holders, beneficiaries and the general

public;

(b) the protection of the reputation of

Malta, taking into account Malta's

international commitments; and

(c)

the promotion of competition and

choice.

(2) The competent authority shall, in the

exercise of its duties, take into account the

convergence in respect of supervisory tools and

supervisory practices in the application of this Act,

and of the regulations and Insurance Rules made

thereunder, pursuant to the Solvency II Directive.

(3) For the purpose of sub-article (2)

(a)

the competent authority shall

participate in the activities of EIOPA;

(b) the competent authority shall

comply

with

the

guidelines

and

recommendations issued by EIOPA in

accordance with Article 16 of Regulation

(EU) No 1094/2010 and, if not, shall state

the reasons for not doing so; and

(c)

national mandates conferred on

the competent authority shall not inhibit the

performance of its duties under this Act or as

a member of EIOPA.

(4) The competent authority may make

Insurance Rules as may be required for carrying

into effect any of the provisions of this Act and of

any regulations made thereunder. The competent

authority may amend or revoke such Insurance

Rules. Insurance Rules and any amendment or

revocation

thereof

shall

be

officially

communicated to the persons concerned.

(5) The competent authority may make

Insurance Rules as may be required for the

purpose of implementing the guidelines and

recommendations issued by EIOPA under Article

16 of Regulation (EU) No 1094/2010, for the

preparation, phasing-in, and implementation of the

Solvency II Directive.

(6) Insurance Rules shall be binding on

authorised insurance and reinsurance undertakings

and others as may be specified therein.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 7 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 5 of the principal Act shall be amended as follows

Amendment of

article 5 of the

principal Act.

(a)

in the marginal note thereto, for the words

"Classification of business of insurance.", there shall be

substituted the words "Classification of business of insurance

and ancillary risks.";

(b) in sub-article (1) thereof, for the words "Subject to

the provisions of sub-articles (5) and (6),", there shall be

substituted the words "Subject to the provisions of sub-article

(c)

for sub-articles (2), (3) and (4) thereof, there shall be

substituted the following

"(2) An authorised insurance undertaking which

has obtained an authorisation for a principal risk

belonging to one class or group of classes as specified in

the Third Schedule may also insure risks included in

another class in the said Schedule without the need to

obtain authorisation in respect of such risks provided that

the risks fulfil all the following conditions

(a) they are connected with the principal

risk;

(b) they concern the object which is covered

against the principal risk; and

(c) they are covered by the contract insuring

the principal risk.

(3) Notwithstanding the provisions of sub-article

(2), the risks included in classes 14, 15 and 17 in Part I of

the Third Schedule shall not be regarded as risks

ancillary to other classes

Provided that, legal expenses insurance as set out in

class 17 may be regarded as a risk ancillary to class 18,

where the conditions laid down in sub-article (2) and

either of the following conditions are fulfilled

(a) the main risk relates solely to the

assistance provided for persons who fall into

difficulties while travelling, while away from the

home or their habitual residence; or

(b) the insurance concerns disputes or risks

arising out of, or in connection with, the use of sea-

going vessels.

(4) For the purposes of this article, a contract of

insurance is to be treated as falling within the Second

Schedule, notwithstanding the fact that it contains related

and subsidiary provisions within general business class 1

or 2 of Part I of the Third Schedule to the Act, if its

principal object is that of a contract falling within the

Second Schedule to the Act and if such contract is

effected or carried out by an undertaking authorised

under article 7 to carry on long term business class 1.";

(d)

sub-articles (5), (6) and (7) thereof shall be deleted;

(e)

sub-article (8) thereof shall be renumbered as sub-

article (5);

(f)

in sub-article (5) thereof, as renumbered

(i) in the Maltese text, for the words "permezz ta’

regola dwar l-assigurazzjoni li ssir għall-finijiet ta’ dan l-

artikolu,", there shall be substituted the words "permezz

ta’ Regoli dwar l-Assigurazzjoni li jsiru għall-finijiet ta’

dan l-artikolu,"; and

(ii) for the words "in the rule contain such

conditions or include such requirements or arrangements

as may be determined by the rule.", there shall be

substituted the words "in the Insurance Rules, contain

such conditions or include such requirements or

arrangements as may be determined by such Insurance

Rules.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 8 Amendment of article 6 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 6 of the principal Act shall be amended as follows

(a)

for sub-article (2) thereof, there shall be substituted

the following

"(2) Sub-article (1) shall not apply to a European

insurance undertaking and a European reinsurance

undertaking establishing a branch or providing services

in Malta in exercise of a European right.";

(b)

sub-article (3) thereof shall be deleted; and

(c)

sub-articles (4) and (5) thereof shall be renumbered

as sub-articles (3) and (4) respectively.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 9 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 7 of the principal Act shall be amended as follows

Amendment of

article 7 of the

principal Act.

(a)

in sub-article (1) thereof

(i) for the words "may authorise a company",

there shall be substituted the words "may authorise an

undertaking";

(ii) in paragraph (a) thereof, for the words "in the

case of a company", there shall be substituted the words

"in the case of an undertaking";

(iii) for paragraph (b) thereof, there shall be

substituted the following

"(b) in the case of a third country insurance

undertaking or a third country reinsurance

undertaking, in or from Malta,";

(b) in sub-article (2) thereof, for the words "and a

company may not carry", there shall be substituted the words

"and an undertaking may not carry";

(c)

sub-articles (3), (4), (5), (6), (7), (8) and (9) thereof

shall be renumbered as sub-articles (5), (6), (7), (8), (9), (10)

and (12) respectively;

(d) immediately after sub-article (2) thereof, there shall

be added the following new sub-articles

"(3) An authorisation issued under this article shall

entitle an undertaking whose head office is in Malta to

carry on business of insurance in a Member State or EEA

State, in exercise of a European right, subject to a

notification to the competent authority as determined in

accordance with regulations made under article 64.

(4) Without prejudice to article 5, an authorisation

under this article shall also be required if an undertaking,

which holds an authorisation to carry on business of

insurance or reinsurance in a class or classes of

insurance, intends to extend its business to a class or to

classes of business other than those classes for which it is

already authorised.";

(e)

in sub-article (5) thereof, as renumbered, for the

words "any company to provide such information", there shall

be substituted the words "any undertaking to provide such

information";

(f)

sub-article (9) thereof, as renumbered, shall be

amended as follows

(i) for the words "Subject to sub-article (8)",

there shall be substituted the words "Subject to sub-

article (10)"; and

(ii) for the words "within six months of receiving

the information required", there shall be substituted the

words "within six months of receiving a properly

completed application form together with the requisite

documentation required";

(g) in sub-article (10) thereof, as renumbered, for the

words "by sub-article (7)", there shall be substituted the words

"by sub-article (9)";

(h) immediately after sub-article (10) thereof, as

renumbered, there shall be added the following new sub-article

"(11) The competent authority shall not consider

the economic needs of the market as a criterion when

examining an application for an authorisation.";

(i)

for sub-article (12) thereof, as renumbered, there

shall be substituted the following

"(12) On the issue to an undertaking of an

authorisation under this article, any previous

authorisation of that undertaking under this article shall

lapse."; and

(j)

immediately after sub-article (12) thereof, as

renumbered, there shall be added the following new sub-article

"(13) The competent authority shall notify EIOPA

of every authorisation issued in terms of this article.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 10 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

For article 8 of the principal Act, there shall be substituted Amendment of

article 8 of the

the following

principal Act.

" Authorisation

8. (1) The competent authority shall not

requirements.

issue an authorisation under article 7 unless it is

satisfied that -

(a)

an application for authorisation is

made in writing by an undertaking in such

form and manner as the competent authority

may from time to time determine;

(b) (i) in the case of an undertaking

which intends to carry on business not

restricted to reinsurance, the undertaking’s

objects are limited to business of insurance

and operations arising directly therefrom, to

the exclusion of all other commercial

business;

(ii) in the case of an undertaking

which intends to carry on business restricted

to reinsurance, the undertaking’s objects are

limited to the business of reinsurance and

related operations; this may include a

holding company function and activities with

respect to financial sector activities within

the meaning of Article 2(8) of Directive

2002/87/EC of the European Parliament and

of the Council of 16 December 2002 on the

supplementary

supervision

of

credit

institutions, insurance undertakings and

investment firms in a financial conglomerate

and amending Council Directives 73/239/

EEC, 79/267/EEC, 92/49/EEC, 92/96/EEC,

93/6/EEC and 93/22/EEC, and Directives 98/

78/EC and 2000/12/EC of the European

Parliament and of the Council, as amended

from time to time;

(c)

the undertaking has disclosed to

the satisfaction of the competent authority

such information as the competent authority

has requested of it in relation to persons who

will, upon the authorisation of the

undertaking, have any proprietary, financial

or other interest in, or in connection with,

that undertaking;

(d) the undertaking has disclosed the

identities of the shareholders, direct or

indirect, whether natural or legal persons

who will have qualifying holdings in that

undertaking and the amounts of those

holdings;

(e)

all

qualifying

shareholders,

directors, controllers and all persons who

will effectively direct or manage the business

of insurance are fit and proper persons to

ensure the sound and prudent management of

the undertaking;

(f)

the undertaking has submitted to

the satisfaction of the competent authority a

scheme of operations which shall include the

particulars or proof as may be determined by

Insurance Rules made for the purpose of this

article;

(g) the undertaking holds eligible

basic own funds to cover the absolute floor

of the Minimum Capital Requirement in

accordance with article 17;

(h) the undertaking shows evidence

that it will be in a position to hold eligible

own funds to cover the Solvency Capital

Requirement, in accordance with article 15,

going forward;

(i)

the undertaking shows evidence

that it will be in a position to hold eligible

basic own funds to cover the Minimum

Capital Requirement, in accordance with

article 17, going forward;

(j)

the undertaking shows evidence

that it will be in a position to comply with the

system of governance provided for in article

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 11 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

L-artikolu 9 tal-Att prinċipali għandu jiġi emendat kif ġej

Emenda tal-

artikolu 9 tal-

Att prinċipali.

(a)

minflok is-subartikolu (1) tiegħu, għandu jidħol dan

"(1) Bla ħsara għas-subartikoli (2) u

(3), l-awtorità kompetenti m’għandhiex, taħt

l-artikolu 7, tawtorizza impriża li l-uffiċċju

prinċipali tagħha jkun f’Malta biex tmexxi

kemm kummerċ fit-tul kif ukoll kummerċ

ġenerali.";

(b) is-subartikoli (2) u (3) tiegħu għandhom jiġu

enumerati mill-ġdid bħala s-subartikoli (3) u (4) rispettivament;

minnufih wara s-subartikolu (1) tiegħu, għandu

jiżdied dan is-subartikolu (2) ġdid li ġej

"(2) Bla ħsara għad-dispożizzjonijiet

tas-subartikolu (1) -

(a) impriża tal-assigurazzjoni awtorizzata

biex tmexxi kummerċ fit-tul tista’ tingħata

awtorizzazzjoni biex tmexxi kummerċ ġenerali

għar-riskji elenkati fil-klassijiet 1 u 2 tat-Taqsima I

tat-Tielet Skeda; jew

(b) impriża tal-assigurazzjoni awtorizzata

biss biex tmexxi kummerċ ġenerali tal-

assigurazzjoni għar-riskji elenkati fil-klassijiet 1 u

2 tat-Taqsima I tat-Tielet Skeda tista’ tingħata

awtorizzazzjoni biex tmexxi kummerċ fit-tul; jew

(ċ) impriża tal-assigurazzjoni awtorizzata

biss biex tmexxi kummerċ ġenerali tal-

assigurazzjoni tista’ tingħata awtorizzazzjoni biex

tmexxi

kummerċ

fit-tul

ristrett

għar-

rijassigurazzjoni.";

(d) minflok is-subartikolu (3) tiegħu, kif enumerat mill-

ġdid, għandu jidħol dan li ġej

"(3) Bla ħsara għad-dispożizzjonijiet

tas-subartikolu (4), id-dispożizzjonijiet ta’

dan l-artikolu m’għandhomx japplikaw għal

impriża li jkollha awtorizzazzjoni biex

tmexxi kemm kummerċ fit-tul kif ukoll

kummerċ ġenerali taħt dan l-Att kif kien fis-

seħħ minnufih qabel id-dħul fis-seħħ ta’ dan

l-Att.";

(e) fis-subartikolu (4) tiegħu, kif enumerat mill-ġdid,

minflok il-kliem "Kumpannija awtorizzata", gћandhom jidћlu l-

kliem "Impriża awtorizzata"; u

(f)

minnufih wara s-subartikolu (4) tiegħu, kif enumerat

mill-ġdid, għandhom jiżdiedu dawn is-subartikoli ġodda li

"(5) Impriża

tal-assigurazzjoni

awtorizzata li tmexxi kummerċ fit-tul u li

tkun trid tikseb awtorizzazzjoni biex testendi

l-kummerċ tagħha għar-riskji elenkati fil-

klassijiet 1 jew 2 tat-Taqsima I tat-Tielet

Skeda għandha tissottometti prova għas-

sodisfazzjon tal-awtorità kompetenti li din

(a) iżżomm il-fondi bażiċi eliġibbli tal-

impriża stess li jkunu jkopru l-inqas livell assolut

tal-Kapital Minimu Rekwiżit għal impriżi

awtorizzati biex imexxu kummerċ fit-tul u l-inqas

livell assolut tal-Kapital Minimu Rekwiżit għal

impriżi awtorizzati biex imexxu kummerċ ġenerali,

skont l-artikolu 17;

(b) tintrabat li tkopri l-obbligi finanzjarji

minimi li jkopru l-avvanz, stabbiliti skont Regoli

dwar l-Assigurazzjoni.

(6) Impriża

tal-assigurazzjoni

awtorizzata li tmexxi kummerċ ġenerali għar-

riskji elenkati fil-klassijiet 1 jew 2 tat-

Taqsima 1 tat-Tielet Skeda u li tkun trid

tikseb awtorizzazzjoni biex testendi l-

kummerċ tagħha għal kummerċ fit-tul

għandha tissottometti prova lil awtorità

kompetenti li din

(a) iżżomm il-fondi bażiċi eliġibbli tal-

impriża stess li jkunu jkopru l-inqas livell assolut

tal-Kapital Minimu Rekwiżit għal impriżi

awtorizzati biex imexxu kummerċ fit-tul u l-inqas

livell assolut tal-Kapital Minimu Rekwiżit għal

impriżi awtorizzati biex imexxu kummerċ ġenerali,

skont l-artikolu 17;

(b) tintrabat li tkopri obbligi finanzjarji

minimi li jkopru l-avvanz, stabbiliti skont ir-Regoli

dwar l-Assigurazzjoni.

(7) Biex jiġi evitat kull dubju,

impriża li l-kummerċ tagħha ristrett għar-

rijassigurazzjoni,

tista’

tingħata

awtorizzazzjoni biex tmexxi kemm kummerċ

ġenerali kif ukoll kummerċ fit-tul fil-

klassijiet kollha ta’ kummerċ.".

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 12 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

L-artikolu 10 tal-Att prinċipali għandu jiġi emendat kif Emenda tal-

artikolu 10 tal-

Att prinċipali.

(a)

minflok is-subartikolu (1) tiegħu, għandu jidħol dan

"(1) L-awtorità

kompetenti

m’għandhiex toħroġ awtorizzazzjoni taħt l-

artikolu 7 lil impriża li l-uffiċċju prinċipali

tagħha jkun f’Malta, lanqas m’għandha l-

awtorità kompetenti tippermetti lil impriża

bħal dik li żżomm awtorizzazzjoni maħruġa

bis-saħħa tiegħu, kemm-il darba ma tkunx

sodisfatta li l-impriża tkun wettqet jew ħarset

il-ħtiġiet tal-artikolu 8 u, meta jkun adatt, tal-

artikolu 9.";

(b) fis-subartikolu (2) tiegħu, minflok il-kliem

"Kumpannija awtorizzata", gћandhom jidћlu l-kliem "Impriża

awtorizzata"; u

(ċ)

minflok is-subartikolu (3) tiegħu, għandu jidħol dan

li ġej

"(3) Ħlief bil-kunsens bil-miktub tal-awtorità

kompetenti, ebda impriża awtorizzata kif imsemmi qabel

m’għandha la tmexxi, lanqas tippreżenta ruħha bħala li

qiegħda tmexxi kummerċ tal-assigurazzjoni f’pajjiż jew

minn pajjiż barra minn Malta jew tiftaħ fergħa, aġenzija

jew uffiċċju jew tistabilixxi jew takkwista xi sussidjarja

f’xi pajjiż barra minn Malta.".

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 13 Sostituzzjoni tal-artikolu 11 li ġej: tal-Att prinċipali. — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

Minflok l-artikolu 11 tal-Att prinċipali, gћandu jidћol dan

" Applikanti li

11. (1) L-awtorità kompetenti m’għandhiex

jkollhom l-

toħroġ awtorizzazzjoni taħt l-artikolu 7 lil impriża

uffiċċju

tal-assigurazzjoni ta’ pajjiż terz jew impriża tar-

prinċipali

tagħhom barra

rijassigurazzjoni ta’ pajjiż terz, lanqas m’għandha

minn Malta.

l-awtorità kompetenti tippermetti lil impriża bħal

dik li żżomm awtorizzazzjoni maħruġa bis-saħħa

tiegħu, kemm-il darba l-impriża -

(a)

ma jkollhiex permess fil-pajjiż

fejn jinsab l-uffiċċju prinċipali tagħha biex

tmexxi l-kummerċ tal-assigurazzjoni li

jifforma l-għan tal-applikazzjoni;

(b) ma jkollhiex f’Malta f’kull

żmien

(i) rappreżentant ġenerali li

jwettaq il-ħtiġiet tal-artikolu 12; u

(ii) fergħa;

(ċ)

ma timpenjax ruħha li twaqqaf

fil-post ta’ maniġġ tal-fergħa, kontijiet

speċifiċi għall-kummerċ tal-assigurazzjoni li

tkun qiegħda tmexxi f’Malta, u li żżomm

hemmhekk kull reġistrazzjoni li jkollha

x’taqsam mal-kummerċ li tmexxi;

(d) ma tintrabatx li tkopri l-Kapital

Rekwiżit għas-Solvibbiltà u l-Kapital

Minimu Rekwiżit skont il-ħtiġiet imsemmija

fl-artikoli 15 u 17;

(e)

ma tissottomettix skema ta’

operazzjonijiet skont l-artikolu 8(1)(f); u

(f)

ma twettaqx il-ħtiġiet ta’

governanza skont l-artikolu 18I.

(2) Dwar

fergħa

ta’

impriża

tal-

assigurazzjoni ta’ pajjiż terz jew impriża tar-

rijassigurazzjoni ta’ pajjiż terz, il-kummerċ tal-

assigurazzjoni għandu jitmexxa taħt il-ġestjoni ta’

persuna li tissodisfa dawn il-ħtiġiet li ġejjin ta’ dan

is-subartikolu

(a)

il-persuna

għandha

tkun

individwu residenti f’Malta jew manager fl-

assigurazzjoni li jkun ġie nominat mill-

impriża għall-fini ta’ dan l-artikolu;

(b) il-persuna m’għandhiex tkun l-

uditur approvat, jew soċju jew impjegat tal-

uditur approvat, tal-impriża;

(ċ)

il-persuna jkollha l-kwalifiki u

twettaq jew tħares il-ħtiġiet stabbiliti

b’Regoli dwar l-Assigurazzjoni magħmula

għall-fini ta’ dan l-artikolu; u

(d) il-persuna tkun xierqa u idonea

biex tiżgura t-tmexxija b’mod tajjeb u

prudenti.

(3) Impriża tal-assigurazzjoni jew tar-

rijassigurazzjoni ta’ pajjiż terz għandha tkun

meħtieġa li

(a)

tistabbilixxi proviżjonijiet tekniċi

adegwati biex ikopru l-obbligi tal-

assigurazzjoni u tar-rijassigurazzjoni li

joriġinaw mill-kummerċ immexxi mill-

fergħa f’Malta, meqjusa skont ir-Regoli dwar

l-Assigurazzjoni; u

(b) tevalwa l-attiv u l-passiv u

tistabbilixxi fondi tal-impriża stess skont ir-

Regoli dwar l-Assigurazzjoni.

(4) Impriża tal-assigurazzjoni u tar-

rijassigurazzjoni ta’ pajjiż terz għandha tkun

meħtieġa li żżomm f’Malta f’kull żmien ammont

ta’ fondi eliġibbli tal-impriża stess li jikkonsistu

f’dawk l-elementi li jiġu stabbiliti skont

regolamenti magħmulin għall-finijiet tal-Att u li

tiddepożita proporzjon speċifikat minn dawk il-

fondi tal-impriża stess li jista’ jiġi preskritt taħt l-

artikolu 18G.

(5) (a)

Il-fergħat

ta’

impriżi

tal-

assigurazzjoni ta’ pajjiż terz m’għandhomx

imexxu simultanjament kummerċ fit-tul u

kummerċ ġenerali f’Malta.

(b) Biex jiġi evitat kull dubju, fergħa

ta’ impriża tar-rijassigurazzjoni ta’ pajjiż terz tista’

tingħata awtorizzazzjoni biex tmexxi kummerċ

kemm ġenerali kif ukoll kummerċ fit-tul, fil-

klassijiet kollha ta’ kummerċ, ristretti għar-

rijassigurazzjoni.

(6) Għall-finijiet ta’ dan l-artikolu, "fergħa"

tfisser preżenza permanenti f’Malta ta’ impriża

tal-assigurazzjoni ta’ pajjiż terz jew impriża tar-

rijassigurazzjoni ta’ pajjiż terz, li tkun irċeviet

awtorizzazzjoni f’Malta biex tmexxi kummerċ tal-

assigurazzjoni f’Malta.

(7) Id-dispożizzjonijiet ta’ dan l-artikolu

għandhom ikunu bla ħsara għal kull ftehim

konkluż mill-Komunità Ewropea ma’ pajjiż terz,

wieħed jew iktar, skont l-Artikolu 171 tad-

Direttiva Solvibbiltà II.".

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 14 Emenda tal- artikolu 12 tal- ġej: Att prinċipali. — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

L-artikolu 12 tal-Att prinċipali għandu jiġi emendat kif

(a)

fis-subartikolu (1) tiegħu

(i) minflok il-kliem "fl-artikolu

11(1)(d)(i)", gћandhom jidћlu l-kliem "fl-

artikolu 11(1)(b)(i)";

(ii) fil-paragrafu (a) tiegħu, minflok

il-kliem "nominata bħala r-rappreżentant tal-

kumpannija", gћandhom jidћlu l-kliem

"nominata bħala r-rappreżentant tal-impriża";

(iii) fil-paragrafu (b) tiegħu, minflok

il-kliem "f’isem il-kumpannija", gћandhom

jidћlu l-kliem "f’isem l-impriża";

(iv) fil-paragrafu (ċ) tiegħu, minflok

il-kliem "tal-kumpannija", gћandhom jidћlu

l-kliem "tal-impriża"; u

(b) fis-subartikolu (2) tiegħu, minflok il-kliem "obbligi

tal-kumpannija", gћandhom jidћlu l-kliem "obbligi tal-impriża".

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 15 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

Minflok it-Taqsima IV tal-Att prinċipali, għandu jidħol Sostituzzjoni

tat-Taqsima IV

dan li ġej

tal-Att

prinċipali.

"TAQSIMA IV

KUNDIZZJONIJIET GĦAT-TMEXXIJA TA’

KUMMERĊ TAL-ASSIGURAZZJONI

Titolu I: Ħtiġiet Finanzjarji

14. (1) Il-fondi ta’ impriża stess tal-

Fondi tal-

impriżi stess tal-

assigurazzjoni u tar-rijassigurazzjoni awtorizzata

assigurazzjoni u

tar-

għandhom jinkludu s-somma tal-fondi bażiċi tal-

rijassigurazzjoni

impriża stess u tal-fondi anċillari tal-impriża stess.

awtorizzati.

(2) L-ammonti ta’ elementi ta’ fondi

anċillari tal-impriża stess li għandhom jitqiesu

meta jkunu qed jiġu stabbiliti l-fondi tal-impriża

stess

għandhom

ikunu

soġġetti

għall-

approvazzjoni minn qabel bil-miktub tal-awtorità

kompetenti.

(3) L-awtorità kompetenti għandha toħroġ

Regoli dwar l-Assigurazzjoni biex tistabbilixxi l-

elementi li jikkostitwixxu l-fondi bażiċi tal-

impriża stess u l-fondi anċillari tal-impriża stess,

tistabbilixxi x’jikkostitwixxi fondi żejda, tipprovdi

dwar il-klassifikazzjoni tal-fondi tal-impriża stess

f’livelli u l-eliġibbiltà tal-fondi tal-impriża stess, u

kull ħaġa oħra li jkollha x’taqsam ma’ dan.

15. (1) Impriża tal-assigurazzjoni u tar-

Kapital Rekwiżit

għas-Solvibbiltà.

rijassigurazzjoni awtorizzata għandha żżomm

fondi eliġibbli tal-impriża stess li jkopru l-Kapital

Rekwiżit għas-Solvibbiltà.

(2) Il-Kapital Rekwiżit għas-Solvibbiltà

għandu jiġi kkalkulat jew skont il-formula

standard kif stabbilit fir-Regoli dwar l-

Assigurazzjoni jew billi jiġi użat mudell intern,

sħiħ jew parzjali, kif approvat mill-awtorità

kompetenti. Il-proċess għall-approvazzjoni tal-użu

ta’ mudell intern għandu jiġi stipulat fir-Regoli

dwar l-Assigurazzjoni.

(3) Meta ma jkunx xieraq għal impriża tal-

assigurazzjoni

jew

tar-rijassigurazzjoni

awtorizzata li tikkalkula l-Kapital Rekwiżit għas-

Solvibbiltà skont il-formula standard, kif stabbilit

fir-Regoli dwar l-Assigurazzjoni billi l-profil tar-

riskju tal-impriża konċernata jkollu devjazzjoni

sinifikanti mis-suppożizzjonijiet sottostanti għall-

kalkolu

tal-formula

standard,

l-awtorità

kompetenti tista’, permezz ta’ deċiżjoni fejn tgħid

x’inhuma r-raġunijiet, teħtieġ illi l-impriża

konċernata tuża mudell intern biex tikkalkula l-

Kapital Rekwiżit għas-Solvibbiltà, jew il-moduli

tar-riskju rilevanti tiegħu.

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 16 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

(1) Impriża tal-assigurazzjoni jew

Nuqqas ta’

konformità mal-

tar-rijassigurazzjoni awtorizzata li tonqos milli

Kapital Rekwiżit

għas-Solvibbiltà.

tikkonforma ruħha mal-artikolu 15 għandha

minnufih tgħarraf lill-awtorità kompetenti malli

tosserva li l-Kapital Rekwiżit għas-Solvibbiltà ma

jkunx għadu qed jitħares, jew meta jkun hemm

riskju ta’ nuqqas ta’ konformità fit-tliet xhur

sussegwenti.

(2) Fi żmien xahrejn minn meta jiġi

osservat in-nuqqas ta’ konformità mal-Kapital

Rekwiżit

għas-Solvibbiltà,

l-impriża

tal-

assigurazzjoni

jew

tar-rijassigurazzjoni

awtorizzata għandha tissottometti pjan ta’ rkupru

realistiku skont ir-Regoli dwar l-Assigurazzjoni

maħruġa taħt l-artikolu 18A għall-approvazzjoni

tal-awtorità kompetenti.

(3) L-awtorità kompetenti għandha teħtieġ

lill-impriża konċernata tieħu l-miżuri meħtieġa

sabiex tikseb, fi żmien sitt xhur minn meta jiġi

osservat in-nuqqas ta’ konformità mal-Kapital

Rekwiżit għas-Solvibbiltà, it-twaqqif mill-ġdid

tal-livell ta’ fondi eliġibbli tal-impriża stess li

jkopru l-Kapital Rekwiżit għas-Solvibbiltà jew it-

tnaqqis tal-profil tar-riskju tal-impriża sabiex tiġi

żgurata l-konformità mal-Kapital Rekwiżit għas-

Solvibbiltà.

(4) L-awtorità kompetenti tista’, jekk ikun

xieraq, ittawwal dak il-perjodu bi tliet xhur.

(5) L-awtorità kompetenti tista’ toħroġ

Regoli dwar l-Assigurazzjoni biex tistabbilixxi ċ-

ċirkostanzi li fihom jista’ jiġi estiż iż-żmien

imsemmi fis-subartikolu (4) u l-ħtiġiet li

għandhom jitħarsu mill-impriżi tal-assigurazzjoni

u tar-rijassigurazzjoni awtorizzati f’dawk iċ-

ċirkostanzi.

(6) F’ċirkostanzi eċċezzjonali, meta l-

awtorità kompetenti tkun tal-fehma li s-

sitwazzjoni

finanzjarja

tal-impriża

tal-

assigurazzjoni

jew

tar-rijassigurazzjoni

awtorizzata konċernata tkun se tiddeterjora aktar,

hija tista’ wkoll tirrestrinġi jew tipprojbixxi d-

disponiment ħieles tal-attiv ta’ dik l-impriża.

(7) Meta l-awtorità kompetenti tiddeċiedi li

tirrestrinġi jew tipprojbixxi d-disponiment ħieles

tal-attiv ta’ dik l-impriża, hija għandha tgħarraf

lill-awtoritajiet regolatorji Ewropej tal-Istati

Membri ospitanti jew lill-awtoritajiet regolatorji

barranin b’kull miżura li tkun ħadet. L-awtorità

kompetenti tista’ titlob lil dawk l-awtoritajiet

involuti biex jieħdu l-istess miżuri, u għandha

ssemmi liema attiv ikun kopert minn dawk il-

miżuri.

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 17 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

(1) Impriża tal-assigurazzjoni u tar-

Kapital Minimu

Rekwiżit.

rijassigurazzjoni għandha żżomm fondi bażiċi

eliġibbli tal-impriża stess li jkunu jkopru l-Kapital

Minimu Rekwiżit.

(2) Il-Kapital Minimu Rekwiżit għandu jiġi

kkalkulat skont ir-Regoli dwar l-Assigurazzjoni

magħmulin għall-finijiet ta’ dan l-artikolu, u

m’għandux ikun inqas mill-ammonti (l-inqas livell

assolut) kif stabbiliti bir-Regoli dwar l-

Assigurazzjoni msemmija.

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 18 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

(1) Impriża tal-assigurazzjoni jew

Nuqqas ta’

konformità mal-

tar-rijassigurazzjoni awtorizzata li tonqos milli

Kapital Minimu

Rekwiżit.

tikkonforma ruħha mal-artikolu 17 għandha

minnufih tgħarraf lill-awtorità kompetenti meta

hija tosserva li l-Kapital Minimu Rekwiżit ma

jkunx għadu qiegħed jitħares jew meta jkun hemm

riskju ta’ nuqqas ta’ konformità fit-tliet xhur

sussegwenti.

(2) Fi żmien xahar minn meta jiġi osservat

nuqqas ta’ konformità mal-Kapital Minimu

Rekwiżit,

l-impriża

konċernata

għandha

tissottometti, għall-approvazzjoni tal-awtorità

kompetenti, skema realistika ta’ finanzjament għal

żmien qasir, skont ir-Regoli dwar l-Assigurazzjoni

maħruġa taħt l-artikolu 18A, biex jiġu ristawrati, fi

żmien tliet xhur minn dik l-osservazzjoni, il-fondi

bażiċi eliġibbli tal-impriża stess, mill-inqas għal-

livell tal-Kapital Minimu Rekwiżit jew biex

jitnaqqas il-profil tar-riskju tiegħu sabiex tiġi

żgurata l-konformità mal-Kapital Minimu

Rekwiżit.

(3) L-awtorità kompetenti tista’ wkoll

tirrestrinġi jew tipprojbixxi d-disponiment ħieles

tal-attiv tal-impriża konċernata.

(4) Meta l-awtorità kompetenti tiddeċiedi li

tirrestrinġi jew tipprojbixxi d-disponiment ħieles

tal-attiv tal-impriża konċernata involuta, hija

għandha tgħarraf lill-awtoritajiet regolatorji

Ewropej tal-Istat Membru ospitanti jew lill-

awtoritajiet regolatorji barranin b’kull miżura li

tkun ħadet. L-awtorità kompetenti tista’ titlob lil

dawk l-awtoritajiet involuti biex jieħdu l-istess

miżuri, u għandha ssemmi liema attiv ikun kopert

minn dawk il-miżuri.

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 18A — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

Il-partikolaritajiet li għandhom jiġu

Pjan ta’ rkupru u

skema ta’

provduti fil-pjan ta’ rkupru u fl-iskema ta’

finanzjament.

finanzjament meħtieġa li jiġu sottomessi

konformement mal-artikoli 16 u 18 għandhom jiġu

stabbiliti b’Regoli dwar l-Assigurazzjoni.

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 18B — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

Impriża tal-assigurazzjoni jew tar-

Proċeduri ta’

identifikazzjoni

rijassigurazzjoni awtorizzata għandu jkollha l-

u ta’ notifika.

proċeduri tagħha lesti, inkluż l-użu ta’ indikaturi li

jagħtu twissija bikrija, biex jidentifikaw id-

deterjorament ta’ kundizzjonijiet finanzjarji u

għandha minnufih tavża lill-awtorità kompetenti

meta jseħħ deterjorament bħal dak.

18Ċ. (1) Minkejja d-dispożizzjonijiet tal-

Setgħat tal-

awtorità

artikoli 16 u 18 u bla ħsara għal xi miżura li tista’

kompetenti fid-

deterjorament ta’

tittieħed mill-awtorità kompetenti konformement

kundizzjonijiet

mal-artikolu 28, meta l-pożizzjoni ta’ solvibbiltà

finanzjarji.

tal-impriża

tal-assigurazzjoni

jew

tar-

rijassigurazzjoni awtorizzata tkompli tiddeterjora,

l-awtorità kompetenti jkollha s-setgħa li tieħu kull

miżura meħtieġa biex tissalvagwardja l-interessi

ta’ detenturi ta’ polza, fil-każ ta’ kuntratti tal-

assigurazzjoni, jew tal-obbligi li joħorġu minn

kuntratti ta’ rijassigurazzjoni.

(2) Meta tkun qed tikkunsidra l-miżuri li

għandhom jittieħdu, l-awtorità kompetenti

għandha tqis il-livell u għal kemm żmien idum id-

deterjorament tal-pożizzjoni ta’ solvibbiltà tal-

impriża konċernata.

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 18D — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

Impriżi tal-assigurazzjoni u tar-

Valutazzjoni tal-

attiv u l-passiv.

rijassigurazzjoni awtorizzati għandhom jivvalutaw

l-attiv u l-passiv tagħhom skont ir-Regoli dwar l-

Assigurazzjoni magħmulin għall-finijiet ta’ dan l-

Att.

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 18E — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

(1) Impriżi tal-assigurazzjoni u tar-

Proviżjonijiet

tekniċi.

rijassigurazzjoni

awtorizzati

għandhom

jistabbilixxu u jżommu proviżjonijiet tekniċi fir-

rigward tal-obbligi ta’ assigurazzjoni u tar-

rijassigurazzjoni kollha tagħhom lejn detenturi ta’

polza u persuni assigurati ta’ kuntratti tal-

assigurazzjoni jew tar-rijassigurazzjoni.

(2) Il-valur u l-kalkolu ta’ proviżjonijiet

tekniċi għandhom jiġu stabbiliti skont ir-Regoli

dwar l-Assigurazzjoni magħmulin għall-finijiet ta’

dan l-artikolu.

(3) Bla ħsara għal kull ħaġa li tinsab f’xi

dispożizzjoni oħra taħt l-Att, l-awtorità kompetenti

tista’, kull meta tqis li jkun hekk neċessarju,

teħtieġ lill-impriża tal-assigurazzjoni jew tar-

rijassigurazzjoni awtorizzata konċernata biex turi

kemm ikun xieraq il-livell tal-proviżjonijiet

tekniċi tal-impriża, kif ukoll l-applikabilità u r-

rilevanza tal-metodi applikati, u l-adegwatezza tal-

informazzjoni statistika sottostanti użata.

(4) Sal-limitu li l-kalkolu ta’ proviżjonijiet

tekniċi ta’ impriża tal-assigurazzjoni jew tar-

rijassigurazzjoni awtorizzata ma jkunx konformi

mar-Regoli dwar l-Assigurazzjoni magħmulin

għall-finijiet ta’ dan l-artikolu, l-awtorità

kompetenti tista’ teħtieġ lill-impriża tal-

assigurazzjoni jew tar-rijassigurazzjoni konċernata

żżid l-ammont ta’ proviżjonijiet tekniċi biex dawn

ikunu jikkorrispondu mal-livell stabbilit b’dawk

ir-Regoli dwar l-Assigurazzjoni.

(5) Meta impriża tal-assigurazzjoni jew tar-

rijassigurazzjoni

awtorizzata

tonqos

milli

tikkonforma ruħha mad-dispożizzjonijiet ta’ dan l-

artikolu, l-awtorità kompetenti tista’ tipprojbixxi

d-disponiment ħieles tal-attiv tagħha wara li tkun

ikkomunikat xi tkun biħsiebha tagħmel lill-

awtorità regolatorja Ewropea tal-Istat Membru

ospitanti jew lill-awtorità regolatorja barranija. L-

awtorità kompetenti għandha ssemmi liema attiv

ikun kopert minn dawk il-miżuri.

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 18F — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

(1) Bla ħsara għall-informazzjoni li

Rapport fuq is-

solvibbiltà u l-

għandha tiġi sottomessa lill-awtorità kompetenti

kundizzjoni

finanzjarja.

konformement mal-artikolu 32, impriża tal-

assigurazzjoni u tar-rijassigurazzjoni awtorizzata

għandha tiżvela pubblikament, ta’ kull sena,

rapport fuq is-solvibbiltà u l-kundizzjoni

finanzjarja tal-impriża. Ir-rapport għandu jkun fih

l-informazzjoni stabbilita b’Regoli dwar l-

Assigurazzjoni magħmulin għall-finijiet ta’ dan l-

artikolu.

(2) L-awtorità kompetenti għandha, meta

ssirilha talba bil-miktub minn impriża tal-

assigurazzjoni

jew

tar-rijassigurazzjoni

awtorizzata, tippermetti lil impriża biex ma

tiżvelax informazzjoni meta

(a) bl-iżvelar ta’ dik l-informazzjoni,

il-kompetituri tal-impriża konċernata kieku

jiksbu vantaġġ sinifikanti mhux dovut;

(b) jkun hemm obbligi lejn detenturi

ta’

polza

jew

relazzjonijiet

ma’

kontropartijiet oħra li jorbtu lill-impriża

konċernata b’segretezza jew kunfidenzjalità.

(3) Meta n-nuqqas ta’ żvelar ta’

informazzjoni

jkun

permess

mill-awtorità

kompetenti, l-impriża tal-assigurazzjoni jew tar-

rijassigurazzjoni awtorizzata konċernata għandha

tagħmel dikjarazzjoni f’dan is-sens fir-rapport

tagħha dwar is-solvibbiltà u l-kundizzjoni

finanzjarja filwaqt li tagħti r-raġunijiet għal dan.

(4) L-awtorità

kompetenti

għandha

tippermetti lil impriża tal-assigurazzjoni jew tar-

rijassigurazzjoni awtorizzata tuża jew tagħmel

referenza għal xi żvelar pubbliku magħmul taħt

ħtiġiet oħra legali jew regolatorji, sal-limitu li dak

l-iżvelar ikun ekwivalenti għall-informazzjoni

meħtieġa li tiġi sottomessa taħt is-subartikolu (1)

kemm fix-xorta u kemm fl-iskop tiegħu.

(5) Meta ma tibqax teżisti r-raġuni għan-

nuqqas ta’ żvelar permess li jkun inkiseb

konformement mas-subartikolu (2) l-impriża

konċernata

għandha

tgħarraf

lill-awtorità

kompetenti bla ebda dewmien u dik l-impriża

għandha tikkonforma ruħha mal-obbligi li

joriġinaw taħt is-subartikolu (1).

(6) Fil-każ ta’ xi żvilupp kbir li jolqot

b’mod sinifikanti r-rilevanza tal-informazzjoni

żvelata skont dan l-artikolu, impriża tal-

assigurazzjoni

jew

tar-rijassigurazzjoni

awtorizzata għandha tiżvela informazzjoni xierqa

dwar ix-xorta u l-effetti ta’ dak l-iżvilupp kbir. Iċ-

ċirkostanzi kkunsidrati bħala żviluppi kbar u kull

żvelar li għandu jsir mill-impriża f’dawk iċ-

ċirkostanzi għandhom jiġu stabbiliti minn Regoli

dwar l-Assigurazzjoni.

(7) Impriża tal-assigurazzjoni u tar-

rijassigurazzjoni awtorizzata tista’ tiżvela, fuq bażi

volontarja, kull informazzjoni jew spjegazzjoni li

jkollha x’taqsam mas-solvibbiltà u mal-

kundizzjoni finanzjarja tagħha li mhux diġà

meħtieġa li tiġi żvelata skont dan l-artikolu.

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 18G — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

(1) L-awtorità kompetenti tista’,

Kustodja tal-attiv

li hu meħtieġ li

dwar attiv li impriża jeħtiġilha b’dan l-Att jew

jinżamm

f’Malta.

taħtu li żżomm f’Malta, timponi ħtieġa

addizzjonali li l-attiv kollu jew proporzjon

speċifikat tiegħu jkun depożitat u miżmum

f’kustodja akkont tal-impriża minn persuna hekk

kif jista’ jiġi preskritt b’regolamenti magħmula

għall-finijiet ta’ dan l-artikolu kemm-il darba dik

il-ħtieġa ma tkunx xort’oħra imposta b’xi

dispożizzjoni oħra ta’ dan l-Att; u l-awtorità

kompetenti għandha f’kull żmien ikollha d-dritt li

titlob mingħand dik il-persuna dik l-informazzjoni

li tista’ teħtieġ biex tiżgura li d-dispożizzjonijiet

ta’ dan l-artikolu qed jiġu mħarsa.

(2) Kull ħtieġa b’dan l-Att jew taħtu li l-

attiv ta’ kull xorta jew ammont għandu jinżamm

f’Malta tkun sodisfatta jekk dak l-attiv jinżamm

f’dak il-pajjiż barra minn Malta u f’dik il-forma u

b’dak il-mod għas-sodisfazzjon tal-awtorità

kompetenti bla ħsara għal dawk ir-regolamenti li

jistgħu jiġu preskritti għal dak il-fini taħt dan l-Att.

(3) Kull dispożizzjoni b’dan l-Att jew taħtu

li teħtieġ li impriża żżomm f’Malta attiv ta’ kull

xorta jew ammont tista’ tiġi sodisfatta mill-impriża

jekk l-impriża ġġib rahan f’forma u b’mod għas-

sodisfazzjon tal-awtorità kompetenti bla ħsara għal

dawk ir-regolamenti li jistgħu jiġu preskritti għal

dak il-fini taħt dan l-Att.

(4) L-attiv meħtieġ li jinżamm f’Malta

b’dan l-Att jew taħtu m’għandux jiġi trasferit,

irtirat jew b’xi mod jitgħabba b’xi piż mingħajr il-

permess tal-awtorità kompetenti mogħti bil-

miktub jew sakemm l-impriża tkun waqfet milli

tmexxi l-kummerċ li hi kienet awtorizzata li

tmexxi u ġġib prova għas-sodisfazzjon tal-awtorità

kompetenti li ma fadlilhiex passiv ieħor. Dak l-

attiv m’għandux ikun sekwestrabbli minn ebda

qorti.

Titolu II: Sistemi ta’ Governanza

Gazzetta tal-Gvern ta' Malta — Att 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta.
Art. 18H — ATT Nru XXXIII tal-2015 ACT No. XXXIII of 2015 ATT maħruġ b’liġi mill-Parlament ta’ AN ACT enacted by the Parliament of Malta. Open official source

Il-Bord tad-Diretturi ta’ impriża tal-

Responsabbiltà

tal-Bord tad-

assigurazzjoni

jew

tar-rijassigurazzjoni

Diretturi.

awtorizzata għandu jkollu r-responsabbiltà

aħħarija għal konformità mill-impriża konċernata

mal-Att, regolamenti, u Regoli dwar l-

Assigurazzjoni maћruġin taћtu, inkluż kull

obbligu ieħor konformement mad-Direttiva

Solvibbiltà II.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 18I — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

(2) Without prejudice to article 5, an

undertaking seeking authorisation to extend its

business of insurance to other classes or to extend

an authorisation covering only some of the risks

pertaining to one class shall be required to

(a)

submit a scheme of operations

referred to in sub-article (1)(f);

(b) submit proof that it possesses

eligible own funds to cover the Solvency

Capital Requirement and Minimum Capital

Requirement in accordance with articles 15

and 17 respectively.

(3) The competent authority shall not issue

an authorisation under article 7, where close links

exist between an undertaking applying for

authorisation and any other natural or legal

persons

(a)

if it considers that such close

links prevent it from effectively exercising

its supervisory functions; and

(b) if it considers that the laws,

regulations or administrative provisions of a

third country governing any one or more

natural or legal persons with whom the

undertaking has close links or difficulties

involved in the enforcement of those

measures, prevent it from effectively

exercising its supervisory functions.

(4) For the purpose of ensuring compliance

with the provisions of sub-article (3)(a), the

competent authority shall require authorised

insurance and reinsurance undertakings to provide

it with the information necessary for it to monitor

compliance with the conditions referred to in sub-

article (3)(a) on a continuous basis.".

11. Article 9 of the principal Act shall be amended as follows

Amendment of

article 9 of the

principal Act.

(a)

for sub-article (1) thereof, there shall be substituted

the following

"(1) Subject to sub-articles (2) and (3), the

competent authority shall not, under article 7, authorise

an undertaking with its head office in Malta to carry on

both long term business and general business.";

(b) sub-articles (2) and (3) thereof shall be renumbered

as sub-articles (3) and (4) respectively;

(c)

immediately after sub-article (1) thereof, there shall

be inserted the following new sub-article (2)

"(2) Without prejudice to the provisions of sub-

article (1) -

(a)

an insurance undertaking authorised

to carry on long term business may be granted an

authorisation to carry on general business for the

risks listed in classes 1 and 2 of Part I of the Third

Schedule; or

(b)

an insurance undertaking authorised

solely to carry on general business of insurance for

the risks listed in classes 1 and 2 of Part I of the

Third Schedule may be granted authorisation to

carry on long term business; or

(c)

an insurance undertaking authorised

solely to carry on general business of insurance

may be granted authorisation to carry on long term

business restricted to reinsurance.";

(d) for sub-article (3) thereof, as renumbered, there shall

be substituted the following

"(3) Without prejudice to the provisions of sub-

article (4), the provisions of this article shall not apply to

an undertaking which holds an authorisation to carry on

both long term business and general business under this

Act as in force immediately before the coming into force

of this Act.";

(e)

in sub-article (4) thereof, as renumbered, for the

words "A company authorised", there shall be substituted the

words "An undertaking authorised"; and

(f)

immediately after sub-article (4) thereof, as

renumbered, there shall be added the following new sub-

"(5) An authorised insurance undertaking carrying

on long term business and seeking authorisation to

extend its business to the risks listed in classes 1 or 2 of

Part I of the Third Schedule shall submit proof to the

satisfaction of the competent authority that it

(a)

possesses the eligible basic own funds

to cover the absolute floor of the Minimum Capital

Requirement for undertakings authorised to carry

on long term business and the absolute floor of the

Minimum Capital Requirement for undertakings

authorised to carry on general business, in

accordance with article 17; and

(b)

undertakes to cover the minimum

financial obligations as determined in accordance

with Insurance Rules, going forward.

(6) An authorised insurance undertaking carrying

on general business for the risks listed in classes 1 or 2 of

Part 1 of the Third Schedule and seeking authorisation to

extend its business to long term business shall submit

proof to the competent authority that it

(a)

possesses the eligible basic own funds

to cover the absolute floor of the Minimum Capital

Requirement for undertakings authorised to carry

on long term business and the absolute floor of the

Minimum Capital Requirement for undertakings

authorised to carry on general business, in

accordance with article 17;

(b)

undertakes to cover the minimum

financial obligations as determined in accordance

with Insurance Rules, going forward.

(7) For the avoidance of doubt, an undertaking

whose business is restricted to reinsurance, may be

granted an authorisation to carry on both general and

long term business in all classes of business.".

12. Article 10 of the principal Act shall be amended as Amendment of

article 10 of the

principal Act.

(a)

for sub-article (1) thereof, there shall be substituted

the following

"(1) The competent authority shall not issue an

authorisation under article 7 to an undertaking whose

head office is in Malta, nor shall the competent authority

permit such undertaking to hold the authorisation issued

thereunder, unless it is satisfied that the undertaking has

fulfilled or complied with the requirements of article 8

and, where appropriate, of article 9.";

(b) in sub-article (2) thereof, for the words "A company

authorised", there shall be substituted the words "An

undertaking authorised"; and

(c)

for sub-article (3) thereof, there shall be substituted

the following

"(3) Except with the written consent of the

competent authority, no undertaking authorised as

aforesaid shall carry on, nor hold itself out as carrying on

business of insurance in or from a country outside Malta

or open a branch, agency or office or set up or acquire

any subsidiary in any country outside Malta.".

13. For article 11 of the principal Act, there shall be

substituted the following

" Applicants

11. (1) The competent authority shall not

with head

issue an authorisation under article 7 to a third

office outside

country insurance undertaking or third country

reinsurance undertaking, nor shall the competent

authority permit such undertaking to hold the

authorisation issued thereunder, unless the

undertaking -

(a)

is permitted in the country where

its head office is situated to carry on the

business of insurance which forms the object

of the application;

(b) has in Malta at all times

(i) a general representative

fulfilling the requirements of article

12; and

(ii) a branch;

(c)

undertakes to set up at the place

of management of the branch, accounts

specific to the business of insurance which it

carries on in Malta, and to maintain there all

the records relating to the business carried

on;

(d) undertakes to cover the Solvency

Capital Requirement and the Minimum

Capital Requirement in accordance with the

requirements referred to in articles 15 and

17;

(e)

submits a scheme of operations in

accordance with article 8(1)(f); and

(f)

fulfils

the

governance

requirements referred to in article 18I.

(2) In relation to a branch of a third country

insurance undertaking or third country reinsurance

undertaking, the business of insurance shall be

carried on under the management of a person

fulfilling the following requirements of this sub-

article

(a)

the person must be an individual

resident in Malta or an insurance manager

who has been designated by the undertaking

for the purpose of this article;

(b) the person must not be the

approved auditor, or a partner or an

employee of the approved auditor, of the

undertaking;

(c)

the

person

possesses

the

qualifications and fulfils or complies with

the requirements determined by Insurance

Rules made for the purpose of this article;

and

(d) the person is fit and proper to

ensure its sound and prudent management.

(3) A third country insurance or

reinsurance undertaking shall be required to

(a)

establish adequate technical

provisions to cover the insurance and

reinsurance obligations arising from the

business carried out by the branch in Malta,

calculated in accordance with Insurance

Rules; and

(b) value assets and liabilities and

determine own funds in accordance with

Insurance Rules.

(4) A third country insurance and

reinsurance undertaking shall be required to

maintain in Malta at all times an amount of

eligible own funds consisting of the items to be

determined in accordance with regulations made

for the purposes of this Act and deposit a specified

proportion of such own funds as may be prescribed

under article 18G.

(5) (a)

Branches of third country

insurance undertakings shall not simultaneously

pursue long term business and general business in

Malta.

(b) For the avoidance of doubt, a

branch of a third country reinsurance undertaking

may be granted an authorisation to carry on both

general and long term business, in all classes of

business, restricted to reinsurance.

(6) For the purposes of this article,

"branch" means a permanent presence in Malta of

a third country insurance undertaking or third

country reinsurance undertaking, which has

received authorisation in Malta to carry on

business of insurance in Malta.

(7) The provisions of this article shall be

without prejudice to any agreements concluded by

the European Community with one or more third

countries in terms of Article 171 of the Solvency II

Directive.".

14. Article 12 of the principal Act shall be amended as

(a)

in sub-article (1) thereof

(i) for the words "article 11(1)(d)(i)", there shall

be substituted the words "article 11(1)(b)(i)";

(ii) in paragraph (a) thereof, for the words

"designated as the company’s representative", there shall

be substituted the words "designated as the undertaking’s

representative";

(iii) in paragraph (b) thereof, for the words "on

behalf of the company", there shall be substituted the

words "on behalf of the undertaking"; and

(iv) in paragraph (c) thereof, for the words "of the

company", there shall be substituted the words "of the

undertaking"; and

(b) in sub-article (2) thereof, for the words "obligations

of the company", there shall be substituted the words

"obligations of the undertaking".

15. For Part IV of the principal Act, there shall be substituted Substitution of

Part IV of the

the following

principal Act.

"PART IV

CONDITIONS FOR CARRYING ON BUSINESS

OF INSURANCE

Title I: Financial Requirements

14. (1) The own funds of an authorised

Own funds of

authorised

insurance and reinsurance undertaking shall

insurance and

reinsurance

comprise the sum of basic own funds and ancillary

undertakings.

own funds.

(2) The amounts of ancillary own fund

items to be taken into account when determining

own funds shall be subject to the prior written

approval of the competent authority.

(3) The competent authority shall issue

Insurance Rules to determine the items making up

the basic own funds and ancillary own funds,

determine what constitutes surplus funds, provide

for the classification of own funds into tiers and

the eligibility of the own funds, and any other

matter relating thereto.

15. (1) An authorised insurance and

Solvency

Capital

reinsurance undertaking shall hold eligible own

Requirement.

funds covering the Solvency Capital Requirement.

(2) The Solvency Capital Requirement

shall be calculated either in accordance with the

standard formula as set out in Insurance Rules or

using a full or partial internal model as approved

by the competent authority. The process for the

approval of the use of an internal model shall be

set out in Insurance Rules.

(3) Where it is inappropriate for an

authorised insurance or reinsurance undertaking to

calculate the Solvency Capital Requirement in

accordance with the standard formula, as set out in

the Insurance Rules since the risk profile of the

undertaking concerned deviates significantly from

the assumptions underlying the standard formula

calculation, the competent authority may, by

means of a decision stating the reasons, require the

undertaking concerned to use an internal model to

calculate the Solvency Capital Requirement, or the

relevant risk modules thereof.

16. (1) An authorised insurance or

Non-

Compliance

reinsurance undertaking which fails to comply

with the

Solvency

with article 15 shall immediately inform the

Capital

competent authority as soon as it observes that the

Requirement.

Solvency Capital Requirement is no longer

complied with, or where there is a risk of non-

compliance in the following three months.

(2) Within two months from the

observation of non-compliance with the Solvency

Capital Requirement, the authorised insurance or

reinsurance undertaking shall submit a realistic

recovery plan in accordance with Insurance Rules

issued under article 18A for approval by the

competent authority.

(3) The competent authority shall require

the undertaking concerned to take the necessary

measures to achieve, within six months from the

observation of non-compliance with the Solvency

Capital Requirement, the re-establishment of the

level of eligible own funds covering the Solvency

Capital Requirement or the reduction of the risk

profile of the undertaking to ensure compliance

with the Solvency Capital Requirement.

(4) The competent authority may, if

appropriate, extend that period by three months.

(5) The competent authority may issue

Insurance Rules to determine the circumstances

within which the period set out in sub-article (4)

may be extended and the requirements to be

complied with by the authorised insurance and

reinsurance undertakings in such circumstances.

(6) In exceptional circumstances, where the

competent authority is of the opinion that the

financial situation of the authorised insurance or

reinsurance undertaking concerned will deteriorate

further, it may also restrict or prohibit the free

disposal of the assets of that undertaking.

(7) Where the competent authority decides

to restrict or prohibit the free disposal of the assets

of that undertaking, it shall inform the European

regulatory authorities of the host Member States or

the overseas regulatory authorities of any

measures it has taken. The competent authority

may request those authorities concerned to take the

same measures, and shall designate the assets to be

covered by such measures.

17. (1) An authorised insurance and

Minimum

Capital

reinsurance undertaking shall hold eligible basic

Requirement.

own funds to cover the Minimum Capital

Requirement.

(2) The Minimum Capital Requirement

shall be calculated in accordance with Insurance

Rules made for the purpose of this article, and

shall be not less than the amounts (the absolute

floor) as determined by the said Insurance Rules.

18. (1) An authorised insurance or

Non-

Compliance

reinsurance undertaking which fails to comply

with Minimum

Capital

with article 17 shall immediately inform the

Requirement.

competent authority where it observes that the

Minimum Capital Requirement is no longer

complied with or where there is a risk of non-

compliance in the following three months.

(2) Within one month from the observation

of non-compliance with the Minimum Capital

Requirement, the undertaking concerned shall

submit, for approval by the competent authority, a

short-term realistic finance scheme, in accordance

with Insurance Rules issued under article 18A, to

restore, within three months of that observation,

the eligible basic own funds, at least to the level of

the Minimum Capital Requirement or to reduce its

risk profile to ensure compliance with the

Minimum Capital Requirement.

(3) The competent authority may also

restrict or prohibit the free disposal of the assets of

the undertaking concerned.

(4) Where the competent authority decides

to restrict or prohibit the free disposal of assets of

the undertaking concerned, it shall inform the

European regulatory authorities of the host

Member State or the overseas regulatory

authorities, of any measures it has taken. The

competent authority may request those authorities

concerned to take the same measures, and shall

designate the assets to be covered by such

measures.

18A. The particulars to be provided in the

Recovery plan

and finance

recovery plan and the finance scheme required to

scheme.

be submitted pursuant to articles 16 and 18 shall

be determined by Insurance Rules.

18B. An authorised insurance or reinsurance

Identification

and notification

undertaking shall have procedures in place,

procedures.

including the use of early warning indicators, to

identify deteriorating financial conditions and

shall immediately notify the competent authority

when such deterioration occurs.

18C. (1) Notwithstanding the provisions

Powers of the

competent

of articles 16 and 18 and without prejudice to any

authority in

deteriorating

of the measures that may be taken by the

financial

competent authority pursuant to article 28, where

conditions.

the solvency position of the authorised insurance

or reinsurance undertaking continues to

deteriorate, the competent authority shall have the

power to take all measures necessary to safeguard

the interests of policyholders, in the case of

contracts of insurance, or the obligations arising

out of contracts of reinsurance.

(2) In considering the measures to be taken,

the competent authority shall take into account the

level and duration of the deterioration of the

solvency position of the undertaking concerned.

18D. Authorised insurance and reinsurance

Valuation of

assets and

undertakings shall value their assets and liabilities

liabilities.

in accordance with Insurance Rules made for the

purposes of this Act.

18E. (1) Authorised

insurance

and

Technical

provisions.

reinsurance undertakings shall establish and

maintain technical provisions with respect to all of

their insurance and reinsurance obligations

towards policyholders and insureds of insurance or

reinsurance contracts.

(2) The value and calculation of technical

provisions shall be determined in accordance with

Insurance Rules made for the purposes of this

article.

(3) Without prejudice to anything contained

in any other provisions under the Act, the

competent authority may, whenever it deems it

necessary, require the authorised insurance or

reinsurance undertaking concerned to demonstrate

the appropriateness of the level of the

undertaking’s technical provisions, as well as, the

applicability and relevance of the methods applied,

and the adequacy of the underlying statistical data

used.

(4) To the extent that the calculation of

technical provisions of an authorised insurance or

reinsurance undertaking does not comply with the

Insurance Rules made for the purposes of this

article, the competent authority may require the

insurance or reinsurance undertaking concerned to

increase the amount of technical provisions so that

they correspond to the level determined by such

Insurance Rules.

(5) Where an authorised insurance or

reinsurance undertaking fails to comply with the

provisions of this article, the competent authority

may prohibit the free disposal of its assets after

having communicated its intentions to the

European regulatory authority of the host Member

State or the overseas regulatory authority. The

competent authority shall designate the assets to be

covered by such measures.

18F. (1) Without

prejudice

to

the

Report on

solvency and

information which is to be submitted to the

financial

condition.

competent authority pursuant to article 32, an

authorised insurance and reinsurance undertaking

shall disclose publicly, on an annual basis, a report

on the undertaking’s solvency and financial

condition. The report shall contain the information

determined by Insurance Rules made for the

purposes of this article.

(2) The competent authority shall, upon a

written request by an authorised insurance or

reinsurance undertaking, permit an undertaking

not to disclose information where

(a) by disclosing such information,

the competitors of the undertaking concerned

would gain significant undue advantage;

(b) there

are

obligations

to

policyholders

or

other

counterparty

relationships binding the undertaking

concerned to secrecy or confidentiality.

(3) Where non-disclosure of information is

permitted by the competent authority, the

authorised insurance or reinsurance undertaking

concerned shall make a statement to this effect in

its report on solvency and financial condition and

shall state the reasons.

(4) The competent authority shall permit an

authorised insurance or reinsurance undertaking to

make use of or refer to public disclosures made

under other legal or regulatory requirements, to the

extent that those disclosures are equivalent to the

information required to be submitted under sub-

article (1) in both their nature and scope.

(5) Where the reason for any permitted

non-disclosure obtained pursuant to sub-article (2)

ceases to exist, the undertaking concerned shall

inform the competent authority without undue

delay and such undertaking shall comply with the

obligations arising under sub-article (1).

(6) In the event of any major development

affecting significantly the relevance of the

information disclosed in accordance with this

article, an authorised insurance or reinsurance

undertaking shall disclose appropriate information

on the nature and effects of that major

development. The circumstances considered as

major developments and the disclosures to be

made by the undertaking in such circumstances

shall be determined by Insurance Rules.

(7) An

authorised

insurance

and

reinsurance undertaking may disclose, on a

voluntary basis, any information or explanation

related to their solvency and financial condition

which is not already required to be disclosed in

accordance with this article.

18G. (1) The competent authority may,

Custody of

assets required

with respect to assets which an undertaking is

to be

maintained in

required by or under this Act to maintain in Malta,

Malta.

impose an additional requirement that the whole or

a specified proportion of such assets shall be

deposited with and held in custody for the

undertaking’s account by a person as may be

prescribed by regulations made for the purposes of

this article unless that requirement is otherwise

imposed by any other provision of this Act; and

the competent authority shall at all times have the

right to demand from such person any information

it may require to ensure that the provisions of this

article are being complied with.

(2) Any requirement by or under this Act

that assets of any kind or amount are to be

maintained in Malta shall be satisfied if such

assets are maintained in such country outside

Malta and in such form and manner to the

satisfaction of the competent authority subject to

such regulations as may be prescribed for such

purpose under this Act.

(3) Any provision by or under this Act

requiring an undertaking to maintain in Malta

assets of any kind or amount may be satisfied by

the undertaking if the undertaking produces a

security in a form and manner to the satisfaction of

the competent authority subject to such regulations

as may be prescribed for such purpose under this

Act.

(4) The assets required to be maintained in

Malta by or under this Act shall not be transferred,

withdrawn or in any way encumbered without the

permission of the competent authority given in

writing or until the company has ceased to carry on

the business it was authorised to carry on and

proves to the satisfaction of the authority that it

has no further liability. Such assets shall not be

attachable by any court.

Title II: Systems of Governance

18H. The Board of Directors of an authorised

Responsibility

of the Board of

insurance or reinsurance undertaking shall be

Directors.

ultimately responsible for the compliance by the

undertaking concerned with the Act, regulations,

and Insurance Rules issued thereunder, including

any other obligations pursuant to the Solvency II

Directive.

18I. (1) Authorised

insurance

and

System of

governance.

reinsurance undertakings shall be required to have

in place an effective system of governance which

provides for sound and prudent management of the

business of the undertaking. The system of

governance requirements shall be laid down in

Insurance Rules.

(2) An

authorised

insurance

and

reinsurance undertaking shall

(a)

ensure that all persons who

effectively run the undertaking or have other

key functions, at all times, satisfy the fit and

proper criteria;

(b) have in place an effective risk

management system, including a risk

management function;

(c)

as part of its risk management

system, conduct its own risk and solvency

assessment;

(d) have in place an effective internal

control system, which shall include a

compliance function;

(e)

provide for an effective internal

audit function;

(f)

provide for an effective actuarial

function; and

(g) if it outsources any of its

functions or any insurance or reinsurance

activities, remain fully responsible for

discharging all of its obligations under this

Act.

(3) The systems and functions referred to in

sub-article (2) shall be determined by Insurance

Rules.

(4) The system of governance shall be

proportionate to the nature, scale and complexity

of the operations of the authorised insurance or

reinsurance undertaking.".

16. Article 19 of the principal Act shall be amended as Amendment of

article 19 of the

principal Act.

(a)

in the marginal note thereto, for the words

"Financial year of authorised companies.", there shall be

substituted the words "Financial year of authorised

undertakings.";

(b) for sub-article (1) thereof, there shall be substituted

the following

"(1) Every undertaking whose head office is in

Malta applying for authorisation under article 7 of this

Act to carry on business of insurance in or from Malta

shall notify in writing the competent authority of its

financial year; and, failing such notice, the undertaking’s

financial year shall terminate on the thirty-first day of

December of each year.";

(c)

in sub-article (2) thereof, for the words "No

company as aforesaid", there shall be substituted the words "No

undertaking as aforesaid";

(d)

in sub-article (3) thereof

(i) for the words "Every company whose head

office is in a country outside Malta", there shall be

substituted the words "Every third country insurance or

reinsurance undertaking"; and

(ii) for the words "an authorised company", there

shall be substituted the words "an authorised

undertaking";

(e)

in sub-article (4) thereof

(i) in paragraph (a) thereof, for the words "an

authorised company", there shall be substituted the words

"an authorised undertaking";

(ii) for paragraph (b) thereof, there shall be

substituted the following

"(b) in relation to a third country insurance

or reinsurance undertaking, means an accounting

period as is construed in accordance with the

provisions of the laws of the country where the

head office of the undertaking is situated governing

the accounting period of such undertakings.".

17. Article 20 of the principal Act shall be amended as

(a)

in sub-article (1) thereof

(i) for the words "every company authorised under

this Act shall, not later than six months from the closing

of its financial year", there shall be substituted the words

"every undertaking authorised under this Act shall, within

the period stipulated by regulations made or Insurance

Rules issued under article 32 or at any other time as may

be authorised in writing by the competent authority, -";

(ii) in paragraph (a) thereof, for the words

"competent authority;", there shall be substituted the

words "competent authority; and";

(iii) paragraph (b) thereof shall be deleted;

(iv) paragraph (c) thereof shall be renumbered as

paragraph (b); and

(v) for sub-paragraphs (i) and (ii) thereof, there

shall be substituted the following

"(i) in the case of an undertaking whose

head office is in Malta, in accordance with

Insurance Rules made for the purposes of this

article; and

(ii) in the case of a third country insurance

or reinsurance undertaking, in accordance with the

provisions of the laws of the country where the

head office of the undertaking is situated governing

the financial statements of such undertakings.";

(b)

in sub-article (1A) thereof

(i) for the words "In each of the cases referred to

in paragraphs (i) and (ii) in sub-article (1) the company

shall provide", there shall be substituted the words "The

undertaking shall provide"; and

(ii) in the proviso thereof, for the words "Provided

that the company", there shall be substituted the words

"Provided that the undertaking";

(c)

sub-article (2) thereof shall be deleted;

(d) sub-article (3) thereof shall be renumbered as sub-

article (2);

(e)

in sub-article (2) thereof, as renumbered, for the

words "In the case of a company whose head office is in Malta,

sub-article (1)(c) shall apply as respects the company’s offices",

there shall be substituted the words "In the case of an

undertaking whose head office is in Malta, sub-article (1)(b)

shall apply as respects the undertaking’s offices"; and

(f)

immediately after sub-article (2) thereof, as

renumbered, there shall be added the following new sub-article

"(3) The audited financial statements shall be drawn

up and published in such manner and form as may be

specified in Insurance Rules.".

18. Article 21 of the principal Act shall be amended as Amendment of

article 21 of the

principal Act.

(a)

for sub-article (1) thereof, there shall be substituted

the following

"(1) Every undertaking authorised under this Act

shall every year appoint an approved auditor as auditor to

the undertaking whose duty shall be to report on the

financial statements of the undertaking examined by him

and on financial statements prepared by the

undertaking.";

(b)

in sub-article (2) thereof

(i) for the words "If an authorised company fails",

there shall be substituted the words "If an authorised

undertaking fails"; and

(ii) for the words "for that company and shall fix

the remuneration to be paid by that company", there shall

be substituted the words "for that undertaking and shall

fix the remuneration to be paid by that undertaking";

(c)

in sub-article (3) thereof

(i) in the Maltese text, for the words "u ta’ kull

regola dwar l-assigurazzjoni", there shall be substituted

the words "u ta’ Regoli dwar l-Assigurazzjoni"; and

(ii) for the words "in respect of the company", there

shall be substituted the words "in respect of the

undertaking";

(d)

in sub-article (4) thereof

(i) for the words "auditor of an authorised

company", there shall be substituted the words "auditor of

an authorised undertaking"; and

(ii) for the words "under an appointment from, that

company.", there shall be substituted the words "under an

appointment from, that undertaking.";

(e)

in sub-article (6) thereof

(i) for the words "An authorised company", there

shall be substituted the words "An authorised

undertaking"; and

(ii) for the words "before the company’s annual

general meeting", there shall be substituted the words

"before the undertaking’s annual general meeting";

(f)

in sub-article (7) thereof, for the words "the

authorised company shall,", there shall be substituted the words

"the authorised undertaking shall,";

(g) in sub-article (8) thereof, for the words "an

authorised company to change", there shall be substituted the

words "an authorised undertaking to change";

(h)

in sub-article (9) thereof

(i) for the words "an authorised company", there

shall be substituted the words "an authorised

undertaking";

(ii) for the words "to the company"; there shall be

substituted the words "to the undertaking"; and

(iii) for the words "with the company", there shall

be substituted the words "with the undertaking";

(i)

in sub-article (11) thereof, for the words "in the case

of a company whose head office is in a country outside Malta",

there shall be substituted the words "in the case of a third

country insurance or reinsurance undertaking"; and

(j)

in sub-article (12) thereof, for the words "apply to

authorised companies", there shall be substituted the words

"apply to authorised undertakings".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 19 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 22 of the principal Act shall be amended as Amendment of

article 22 of the

principal Act.

(a)

in the marginal note thereto, for the words

"Appointment of actuary by company with long term business.",

there shall be substituted the words "Appointment of actuary by

an undertaking with long term business.";

(b)

in sub-article (1) thereof

(i) for the words "Every company authorised

under this Act to carry on long term business shall -",

there shall be substituted the words "Every authorised

insurance undertaking carrying on long term with-profits

business in terms of classes I and III as specified in the

Second Schedule shall -"; and

(ii) in paragraph (a) thereof, for the words "to the

company;", there shall be substituted the words "to the

undertaking to perform the with-profits actuary function

in respect of the said classes of its with-profits business,

(if any);";

(c)

in sub-article (2) thereof

(i) for the words "A company", there shall be

substituted the words "An undertaking"; and

(ii) for the words "the company shall,", there shall

be substituted the words "the undertaking shall,";

(d) for sub-article (3) thereof, there shall be substituted

the following

"(3) If, on the expiry of any period specified in sub-

article (1), the undertaking fails to make the required

appointment, the undertaking shall not effect and carry

out any new long term contracts of insurance in terms of

the classes specified in sub-article (1) until the

appointment is made."; and

(e)

in sub-article (5) thereof

(i) paragraphs (a) and (b) thereof shall be

renumbered as paragraphs (b) and (c) respectively;

(ii) immediately before paragraph (b) thereof, as

renumbered, there shall be added the following new

paragraph

"(a) does not hold a role or perform a

function on behalf of the undertaking which could

give rise to a significant conflict of interest;";

(iii) for paragraph (b) thereof as renumbered, there

shall be substituted the following

"(b) is a Fellow of an Institute of Actuaries,

or a Fellow of a Faculty of Actuaries, or holds

actuarial qualifications of similar standing of an

institute of repute recognised for such purposes by

the competent authority and has the required skill

and holds appropriate practical experience to

perform his functions as an actuary; and";

(iv) for paragraph (c) thereof, as renumbered, there

shall be substituted the following

"(c) holds the competent authority’s

approval to act as actuary to perform the with-

profits actuary function as set out in article 23.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 20 Amendment of article 23 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 23 of the principal Act shall be amended as

(a)

in the marginal note thereto, for the words

"investigation of company", there shall be substituted the words

"investigation of an undertaking";

(b) for sub-article (1) thereof, there shall be substituted

the following

"(1) Every authorised insurance undertaking

carrying on long term with-profits business in terms of

classes I and III as specified in the Second Schedule shall,

at the close of its financial year, require the approved

actuary to provide a report in respect of the period

covered by the report affecting those classes of with-

profits business of the undertaking.";

(c)

sub-articles (2), (3), (4), (6) and (7) thereof, shall be

deleted;

(d) immediately after sub-article (1) thereof, as

amended, there shall be added the following new sub-article (2)

"(2) The information to be provided in the report

shall be determined by Insurance Rules issued by the

competent authority for the purposes of this article.";

(e)

sub-articles (5) and (8) thereof, shall be renumbered

as sub-articles (3) and (4), respectively;

(f)

for sub-article (3) thereof, as renumbered, there shall

be substituted the following

"(3) The actuary’s report shall be forwarded by the

undertaking concerned to the competent authority,

together with the audited financial statements of the

undertaking required to be forwarded under article 20.";

and

(g)

in sub-article (4) thereof, as renumbered

(i) for the words "a company whose head office is

in a country outside Malta", there shall be substituted the

words "a third country insurance undertaking"; and

(ii) for the words "authorised to carry on long term

business, the competent authority may", there shall be

substituted the words "authorised to carry on long term

with-profits business in terms of classes I and III as

specified in the Second Schedule, the competent authority

may".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 21 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

For article 24 of the principal Act, there shall be Substitution of

article 24 of the

substituted the following

principal Act.

" Obligations of

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 24 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

(1) An auditor or an actuary of an

auditors and

authorised insurance or reinsurance undertaking or

actuaries to the

of a branch in Malta of a third country insurance or

competent

authority.

reinsurance undertaking shall have the duty to

report immediately to the competent authority any

fact or decision concerning that undertaking of

which he becomes aware of in his capacity as

auditor or actuary of any such authorised insurance

or reinsurance undertaking or of any such branch

which relates to any matter which may be

prescribed or is likely to bring about the following

(a)

a serious qualification, or refusal,

of the auditor’s report on the accounts of the

undertaking or the branch; or

(b) a grave impairment of the

undertaking’s ability to continue as a going

concern; or

(c) a material breach of the

provisions of this Act, regulations or any

Insurance Rules which lay down the

conditions governing authorisation or which

specifically govern the carrying on of

business of insurance by an authorised

undertaking or branch; or

(d) non-compliance

with

the

Solvency Capital Requirement; or

(e) non-compliance

with

the

Minimum Capital Requirement.

(2) The auditor or actuary, as the case may

be, shall likewise have a duty to report to the

competent authority any facts or decisions of

which he becomes aware of in the course of

carrying out his duties which relate to or have a

serious adverse effect upon the insured, the

policyholder or any other interested person

relating to the undertaking or the branch in Malta

of a third country insurance or reinsurance

undertaking of which he becomes aware of in his

capacity as auditor or actuary to an undertaking

having close links with an authorised insurance or

reinsurance undertaking.

(3) Without prejudice to any provision

contained in this Act, the competent authority may

request the auditor or the actuary, as the case may

be, to provide it with such information and

documentation relating to any fact or decision as

specified in sub-articles (1) or (2) concerning the

authorised insurance or reinsurance undertaking or

branch in Malta of a third country insurance or

reinsurance undertaking.".

22. Article 25 of the principal Act shall be amended as Amendment of

article 25 of the

principal Act.

(a)

for the words "if the authorised company -", there

shall be substituted the words "if the authorised insurance or

reinsurance undertaking -";

(b)

paragraph (a) thereof shall be deleted;

(c)

paragraphs (b), (c) and (d) thereof shall be

renumbered as paragraphs (a), (b) and (c), respectively;

(d) in paragraph (b) thereof, as renumbered, for the

words "another company carrying on business", there shall be

substituted the words "another undertaking carrying on

business"; and

(e)

for paragraph (c) thereof, as renumbered, there shall

be substituted the following

"(c) is a third country insurance or reinsurance

undertaking, and the overseas regulatory authority in the

country of registration, incorporation or constitution

withdraws the authorisation from the undertaking.".

23. Article 26 of the principal Act shall be amended as Amendment of

article 26 of the

principal Act.

(a)

in paragraph (a) thereof

(i) for the words "or if the authorised company has

concealed,", there shall be substituted the words "or if the

authorised insurance or reinsurance undertaking has

concealed,"; and

(ii) for the words "any regulations made thereunder

or any insurance rule;", there shall be substituted the

words "any regulations, or any Insurance Rules made

thereunder;";

(b) for paragraph (b) thereof, there shall be substituted

the following

"(b) the authorised insurance or reinsurance

undertaking ceases to carry on the business for which

the authorisation was issued for more than six

months; or";

(c)

in paragraph (c) thereof, for the words "the

authorised company", there shall be substituted the words "the

authorised insurance or reinsurance undertaking";

(d) in paragraph (d) thereof, for the words "the

authorised company does not fulfil", there shall be substituted

the words "the authorised insurance or reinsurance undertaking

does not fulfil";

(e)

in paragraph (e) thereof, for the words "that any

officer who effectively controls the business the company",

there shall be substituted the words "that any of the directors,

the controllers and any other person who effectively directs the

business the undertaking";

(f)

in paragraph (f) thereof, for the words "the

authorised company", there shall be substituted the words "the

authorised insurance or reinsurance undertaking";

(g) paragraphs (g), (h) and (i) thereof shall be

renumbered as paragraphs (h), (j) and (k), respectively;

(h) immediately after paragraph (f) thereof, there shall

be added the following new paragraph

"(g) the authorised insurance or reinsurance

undertaking does not commence to carry on business

pursuant to the authorisation within twelve months of its

issue; or";

(i)

for paragraph (h) thereof, as renumbered, there shall

be substituted the following

"(h) the authorised insurance or reinsurance

undertaking no longer possesses sufficient own funds as

determined in article 14; or";

(j)

immediately

after

paragraph

(h)

thereof,

as

renumbered, there shall be added the following new paragraph

"(i) the authorised insurance or reinsurance

undertaking does not comply with the Minimum Capital

Requirement and the competent authority considers that

the finance scheme submitted is manifestly inadequate or

the undertaking concerned fails to comply with the

approved scheme within three months from the

observation of non-compliance with the Minimum

Capital Requirement;";

(k) in paragraph (j) thereof, as renumbered, for the

words "the authorised company", there shall be substituted the

words "the authorised insurance or reinsurance undertaking";

(l)

in paragraph (k) thereof, as renumbered

(i) for the words "close links within the meaning

of article 8, exist between the authorised company", there

shall be substituted the words "close links exist between

the authorised insurance or reinsurance undertaking"; and

(ii) for the words "in their enforcement.", there

shall be substituted the words "in their enforcement; or";

and

(m) immediately after paragraph (k) thereof, as

renumbered, there shall be added the following new paragraph

"(l) any of the circumstances under which the

competent authority would have been precluded from

issuing an authorisation under this Act, materialises itself

or where under this Act it would have been entitled to

refuse to issue such authorisation.".

24. Article 27 of the principal Act shall be amended as Amendment of

article 27 of the

principal Act.

(a)

in sub-article (1) thereof, for the words ''where the

competent authority intends to suspend or revoke an

authorisation it shall give the company concerned notice in

writing'', there shall be substituted the words ''where the

competent authority intends to suspend or revoke an

authorisation pursuant to article 26, it shall give the undertaking

concerned notice in writing.'';

(b)

in sub-article (2) thereof

(i) for the words "shall state that the company

concerned", there shall be substituted the words "shall

state that the undertaking concerned"; and

(ii) for the words "not longer than fifteen days),",

there shall be substituted the words "not longer than thirty

days),";

(c)

in sub-article (3) thereof, for the words "to the

company concerned.", there shall be substituted the words "to

the undertaking concerned.";

(d) in sub-article (4) thereof, for the words "issued to a

company whose head office is in a country outside Malta", there

shall be substituted the words "issued to a third country

insurance or reinsurance undertaking";

(e)

for sub-article (5) thereof, there shall be substituted

the following

"(5) In the case of a suspension or a revocation of an

authorisation of an undertaking whose head office is in

Malta, the competent authority shall

(a) notify

the

European

regulatory

authorities accordingly in order to enable them to

take appropriate measures to prevent the insurance

or reinsurance undertaking from commencing new

operations within their territories;

(b) inform accordingly the overseas

regulatory authority of any state in which the

undertaking or its subsidiaries are carrying on the

business of insurance."; and

(f)

immediately after sub-article (5) thereof, as

amended, there shall be added the following new sub-article

"(6) The competent authority shall notify EIOPA of

any revocation of authorisation in terms of articles 25 and

26.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 25 Amendment of article 28 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 28 of the principal Act shall be amended as

(a)

in sub-article (1) thereof

(i)

in paragraph (a) thereof, for the words "require

the company", there shall be substituted the words

"require the undertaking";

(ii) in paragraph (b) thereof, for the words "to

advise the company", there shall be substituted the words

"to advise the undertaking";

(iii) paragraphs (c), (d), (e), (f), (g), (h) and (i)

thereof, shall be renumbered as paragraphs (d), (e), (f),

(g), (h), (i) and (j) respectively;

(iv) immediately after paragraph (b) thereof, there

shall be added the following new paragraph

"(c) restrict the free disposal of the assets of

the authorised insurance undertaking, to safeguard

the interests of the insured persons;";

(v) in paragraph (d) thereof, as renumbered

(aa) for the words "the assets of the

company", there shall be substituted the words "the

assets of the undertaking"; and

(bb) for the words "policyholders, creditors

and shareholders of the company", there shall be

substituted the words "policyholders and legitimate

creditors of the undertaking";

(vi) in paragraph (e) thereof, as renumbered, for the

words "the business of the company", there shall be

substituted the words "the business of the undertaking";

(vii) in paragraph (f) thereof, as renumbered, for the

words "the company or, in the case of a company whose

head office is in a country outside Malta", there shall be

substituted the words "the undertaking or, in the case of a

third country insurance or reinsurance undertaking";

(viii) in paragraph (g) thereof, as renumbered, for

the words "the affairs of the company", there shall be

substituted the words "the affairs of the undertaking";

(ix) in paragraph (h) thereof, as renumbered, for the

words "paid by the company", there shall be substituted

the words "paid by the undertaking";

(x) paragraph (i) thereof, as renumbered, shall be

deleted; and

(xi) paragraph (j) thereof, as renumbered, shall be

renumbered as paragraph (i);

(b)

in sub-article (2) thereof

(i) in paragraph (a) thereof, for the words "it shall

be the duty of the company to act", there shall be

substituted the words "it shall be the duty of the

undertaking to act";

(ii) in paragraph (b) thereof

(aa) for the words "under sub-article (1)(c),

the company", there shall be substituted the words

"under sub-article (1)(d), the undertaking";

(bb) for the words "of the company in respect

of those assets, whether exercisable by the

company in general meeting", there shall be

substituted the words "of the undertaking in respect

of those assets, whether exercisable by the

undertaking in general meetings"; and

(cc) for the words "judicial representation of

the company", there shall be substituted the words

"judicial representation of the undertaking";

(iii) for paragraph (c) thereof, there shall be

substituted the following

"(c) under sub-article (1)(e), the undertaking

shall submit its business to the control of such

person and shall provide him with such facilities as

he may require the undertaking to provide him to

carry on that business or to carry out the functions

assigned to him under the said paragraph; and all

the powers, functions and duties of the

undertaking, whether exercisable by the

undertaking in general meeting, or by the directors,

or by any other person, including the legal and

judicial representation of the undertaking in all

matters, shall be exercisable by and vest in him to

the exclusion of any other person;";

(iv) in paragraph (d) thereof, for the words "under

sub-article (1)(f) such person shall be the liquidator of the

company", there shall be substituted the words "under

sub-article (1)(g) such person shall be the liquidator of

the undertaking";

(c)

for sub-article (3) thereof, there shall be substituted

the following

"(3) In the case of a third country insurance or

reinsurance undertaking, the branches and offices in

Malta of that undertaking shall, if the competent authority

so directs and to the extent it so directs, be deemed to

constitute a separate undertaking.";

(d) for sub-article (4) thereof, there shall be substituted

the following

"(4) The provisions of article 16(8) of the

Malta Financial Services Authority Act shall apply

mutatis mutandis to any administrative or

disciplinary sanction or measure, of whatever type,

including reprimands or warnings, imposed or

decided by the competent authority under this Act,

and any regulations made thereunder or any

Insurance Rules."; and

(e)

in sub-article (5) thereof, for the words "may require

the company concerned", there shall be substituted the words

"may require the undertaking concerned".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 26 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In the heading of PART VII of the principal Act, for the Amendment of

words "SUPERVISION OF AUTHORISED COMPANIES", there Part

principal Act.

shall be substituted the words "SUPERVISION OF AUTHORISED

INSURANCE AND REINSURANCE UNDERTAKINGS".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 27 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 29 of the principal Act shall be amended as Amendment of

article 29 of the

principal Act.

(a)

in sub-article (1) thereof

(i) for the words "an authorised company", there

shall be substituted the words "an authorised insurance or

reinsurance undertaking";

(ii) for the words "require any such company to -

", there shall be substituted the words "require any such

undertaking or any person who appears to be in

possession of any relevant information and, or

documentation to do all or any of the following:";

(iii) for paragraph (a) thereof, there shall be

substituted the following

"(a) to furnish to it, at such time and place

and in such form as it may specify, such

information and documentation as it may require

including existing telephone and existing data

traffic records, with respect to the business such

undertaking is authorised to carry on; or with

respect to any person with whom the undertaking

has close links;";

(iv) for paragraph (b) thereof, there shall be

substituted the following

"(b) to furnish to it any information or

documentation aforesaid verified in such manner

and in such language, as it may specify;";

(v) in paragraph (c) thereof, for the words "attend

before it", there shall be substituted the words "to attend

before it";

(b)

in sub-article (3) thereof

(i) for the words "an authorised company", there

shall be substituted the words "an authorised insurance or

reinsurance undertaking"; and

(ii) for the words "may require any person, whether

indicated", there shall be substituted the words "may

require any person, including a person to which the

undertaking has outsourced any activities or functions,

whether indicated";

(c)

immediately after sub-article (7) thereof, there shall

be added the following new sub-article (8)

"(8) Without prejudice to the other

provisions of this article, an authorised insurance

or reinsurance undertaking may be required by the

competent authority to submit to the Central Bank

of Malta such information as the Bank may

reasonably require for the discharge of its duties

under the Central Bank of Malta Act.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 28 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 30 of the principal Act shall be amended as Amendment of

article 30 of the

principal Act.

(a)

in the marginal note thereto, for the words "examine

the affairs of authorised companies.", there shall be substituted

the words "examine the affairs of authorised undertakings and

service providers.";

(b)

in sub-article (1) thereof

(i) for the words "the investigation of companies",

there shall be substituted the words "the investigation of

undertakings"; and

(ii) for the words "one or more inspectors to

examine the affairs of an authorised company", there

shall be substituted the words "one or more inspectors to

investigate and report on the affairs of an authorised

insurance or reinsurance undertaking";

(c)

in paragraph (b) of sub-article (2) thereof, for the

words "to the said Authority.", there shall be substituted the

words "to the said authority.";

(d) in sub-article (3) thereof, for the words "may

forward to the company concerned a copy of any report", there

shall be substituted the words "may forward to the authorised

insurance or reinsurance undertaking concerned a copy of any

report, or any part thereof,";

(e)

for sub-article (4) thereof, there shall be substituted

the following

"(4) Where the affairs of an authorised insurance or

reinsurance undertaking are under examination, it shall be

the duty of all officers and agents of the undertaking to

produce to an inspector all books and documents of or

relating to the undertaking and otherwise to give to an

inspector all assistance in connection with the

examination which they are reasonably able to give; and

if an officer or an agent of the undertaking refuses to

produce any books or documents which it is his duty

under this article to produce, or refuses to answer any

question which is put to him by an inspector with respect

to the affairs of the undertaking, an inspector shall refer

the matter to the competent authority and the competent

authority shall thereupon enquire into the case and take

appropriate action as it deems necessary.";

(f)

in sub-article (5) thereof, for the words "to an

authorised company", there shall be substituted the words "to an

authorised insurance or reinsurance undertaking";

(g) sub-articles (6) and (7) shall be renumbered as sub-

articles (9) and (10) respectively;

(h) immediately after sub-article (5) thereof, there shall

be added the following new sub-articles

"(6) Where the information relating to an authorised

insurance or reinsurance undertaking is in any language

other than Maltese or English, the competent authority or

any inspector appointed by it, may require that such

information be submitted in either the English or Maltese

language.

(7) (a) Where an authorised insurance or

reinsurance undertaking outsources a function or activity,

the competent authority shall have effective access to the

business premises of the service provider and must be

able to exercise those rights of access.

(b) Where the service provider is located in a

Member State or EEA State, other than Malta, the

competent authority shall inform the appropriate

authority of the Member State or EEA State of the service

provider prior to conducting an on-site inspection at the

premises of the service provider. In the case of a non-

supervised entity, the appropriate authority shall be the

European regulatory authority concerned. The competent

authority may delegate such on-site inspections to the

European regulatory authority of the Member State or

EEA State where the service provider is located.

(8) Where the competent authority has informed

the European regulatory authority that it intends to carry

out an on-site inspection in accordance with sub-article

(7), or where it carries out an on-site inspection in

accordance with the said sub-article, where the competent

authority is unable in practice to exercise its right to carry

out that on-site inspection, the competent authority may

refer the matter to EIOPA and request its assistance in

accordance with Article 19 of Regulation (EU) No 1094/

2010.";

(i)

in sub-article (9) thereof, as renumbered, for the

words "shall be paid by the company concerned", there shall be

substituted the words "shall be paid by the undertaking

concerned";

(j)

for sub-article (10) thereof, as renumbered, there

shall be substituted the following

"(10) In this article, any reference to officers

or to agents shall include a reference to former as

well as present officers or agents and the

expression "agents", in relation to an authorised

insurance or reinsurance undertaking, shall include

an insurance intermediary, registered or enrolled

under the Insurance Intermediaries Act, or

registered with an authority or body in the Member

State or EEA State responsible for the supervision

of insurance intermediaries acting for the

undertaking, the bankers, the auditors and, in the

case of an undertaking authorised to carry on long

term business, the actuary of the undertaking and a

person as may be prescribed by regulations made

for the purposes of article 18G."; and

(k) immediately after sub-article (10) thereof, as

renumbered, there shall be added the following new sub-

articles

"(11) The powers available to the competent

authority pursuant to articles 29 to 31A with regard to

authorised insurance and reinsurance undertakings shall

also be available with regard to the outsourced activities of

such undertakings.

(12) The provisions of sub-article (7) shall apply

mutatis mutandis where the service provider is located in a

country outside Malta, which is not a Member State or

EEA State.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 29 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 31 of the principal Act shall be amended as Amendment of

article 31 of the

follows

principal Act.

(a)

in sub-article (2) thereof, for the words "on

producing evidence of his authority,", there shall be substituted

the words "on producing, if required, evidence of his

authority,"; and

(b)

in the proviso to sub-article (3) thereof, for the

words "Provided that where an entry", there shall be substituted

the words "Provided that, where an entry".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 30 Amendment of article 31A of follows: the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 31A of the principal Act shall be amended as

(a)

in sub-article (1) thereof, for the words "within the

time and in the manner stated in the directive.", there shall be

substituted the words "within the time and in the manner stated

in the directive or any further directive.";

(b) sub-articles (2) and (3) thereof shall be renumbered

as sub-articles (3) and (4), respectively; and

(c)

immediately after sub-article (1) thereof, there shall

be added the following new sub-article

"(2) Without prejudice to the generality of the

foregoing provisions of this article, a directive under this

article may –

(a) require anything to be done or be

omitted to be done, or impose any prohibition,

restriction or limitation, or any other requirement,

including any requirement emanating from

European Union legislation, and confer powers,

with respect to any transaction or other act, or to

any assets, or to any other thing whatsoever;

(b) require that any officer of an

undertaking having functions in relation to the

holder of an authorisation be prohibited,

temporarily or otherwise, suspended from carrying

out activities licensable under the Act, or removed,

or removed and replaced, by another person

acceptable to the competent authority;".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 31 Addition of articles 31B and 31C to the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Immediately after article 31A of the principal Act, there

shall be added the following new articles

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 31B " Supervisory — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

(1) The competent authority shall review

and evaluate the strategies, processes and reporting

procedures which are established by authorised

undertakings to comply with this Act, regulations

made and Insurance Rules issued thereunder. This

review and evaluation shall comprise the assessment

of the qualitative requirements relating to the system

of governance, the assessment of the risks which the

undertakings concerned face or may face and the

assessment of the ability of those undertakings to

assess those risks taking into account the environment

in which the undertakings are operating.

(2) The competent authority shall in particular

review and evaluate compliance with the following

(a) the system of governance, including

the own-risk and solvency assessment, as set out

in article 18I;

(b) the technical provisions as provided

for in article 18E;

(c)

the capital requirements as provided

for in articles 15 and 17;

(d) the investment rules as set out in

Insurance Rules issued in terms of this Act;

(e)

the quality and quantity of own

funds as determined by Insurance Rules issued

pursuant to article 14; and

(f)

where the authorised insurance or

reinsurance undertaking uses a full or partial

internal model, on-going compliance with the

requirements for full and partial internal models

set out in Insurance Rules issued pursuant to

article 15.

(3) The competent authority shall assess the

adequacy of the methods and practices of the

authorised insurance or reinsurance undertakings

designed to identify possible events or future changes

in economic conditions that could have adverse

effects on the overall financial standing of the

undertaking concerned.

(4) The competent authority shall assess the

ability of the authorised undertakings to withstand

those possible events or future changes in economic

conditions.

(5) Where the competent authority identifies

any weakness or deficiency as a consequence of the

supervisory review process, it shall request the

insurance or reinsurance undertaking concerned to

remedy such weakness or deficiency within such

period and in such manner as it may deem necessary

or appropriate in the circumstances.

(6) The reviews, evaluations and assessments

referred to sub-articles (1) to (4), shall be conducted

regularly and the competent authority shall establish

the minimum frequency and the scope of those

reviews, evaluations and assessments having regard

to the nature, scale and complexity of the activities of

the insurance or reinsurance undertaking concerned.

(7) In the case of events or future changes in

economic conditions that could have unfavourable

effects on the overall financial standing of authorised

insurance or reinsurance undertakings, in addition to

the calculation of the Solvency Capital Requirement,

the competent authority may require undertakings to

carry out such tests as may be determined to assess

the ability of the undertakings concerned to withstand

such events or future changes in economic conditions

that could have unfavourable effects on their overall

financial stability.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 31C Power to set a capital add- on. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

(1) Following the supervisory review

process carried out in terms of article 31B, the

competent

authority

may,

in

exceptional

circumstances, set a capital add-on for an authorised

insurance or reinsurance undertaking stating the

reasons for its decision. Such power shall be

exercised in the following cases

(a)

where it concludes that the risk

profile of the authorised insurance or

reinsurance undertaking deviates significantly

from the assumptions underlying the Solvency

Capital Requirement, as calculated using the

standard formula in accordance with article 15;

and

(i) the requirement to use an

internal model under article 15(3) is

inappropriate or has been ineffective; or

(ii) while a partial or full internal

model is being developed in accordance

with article 15(3);

(b) where it concludes that the risk

profile of the authorised insurance or

reinsurance undertaking deviates significantly

from the assumptions underlying the Solvency

Capital Requirement, as calculated using an

internal model or partial internal model because

certain quantifiable risks are captured

insufficiently and the adaptation of the model to

better reflect the given risk profile has failed

within an appropriate timeframe;

(c)

where it concludes that the system

of governance of an authorised insurance or

reinsurance undertaking deviates significantly

from the standards laid down in article 18I and

Insurance Rules issued thereunder, that those

deviations prevent the undertaking from being

able to properly identify, measure, monitor,

manage and report the risks that it is or could be

exposed to and the application of other

measures is in itself unlikely to improve the

deficiencies sufficiently within an appropriate

timeframe;

(d) the

authorised

insurance

or

reinsurance undertaking applies the matching

adjustment or the volatility adjustment referred

to in Articles 77b and 77d of the Solvency II

Directive, respectively, or the transitional

measures referred to in Articles 308c and 308d

of the said Directive and the competent

authority concludes that the risk profile of that

undertaking deviates significantly from the

assumptions underlying those adjustments and

transitional measures; or

(e)

in any of those circumstances as

may be additionally specified by the Solvency II

Directive.

(2) In the circumstances set out

(a)

in paragraphs (a) and (b) of sub-

article (1), the capital add-on shall be calculated

in such a way as to ensure that the undertaking

complies with Article 101(3) of the Solvency II

Directive;

(b) in paragraph (c) of sub-article (1),

the capital add-on shall be proportionate to the

material risk arising from the deficiencies which

gave rise to the decision of the competent

authority to set the add-on; and

(c)

in paragraph (d) of sub-article (1),

the capital add-on shall be proportionate to the

material risk arising from the deviation referred

to in that paragraph.

(3) In the cases set out in paragraphs (b) and

(c) of sub-article (1), the authorised insurance or

reinsurance undertaking shall remedy the deficiencies

that led to the imposition of the capital add-on

without delay.

(4) The competent authority shall review the

capital add-on, at least once a year and it shall

approve the removal of such capital add-on when the

undertaking has remedied the deficiencies which led

to its imposition.

(5) The Solvency Capital Requirement

including the capital add-on imposed shall replace the

inadequate Solvency Capital Requirement

Provided that, the Solvency Capital

Requirement shall not include the capital add-on

imposed in accordance with sub-article (1)(c), for the

purposes of the calculation of the risk margin referred

to in Article 77(5) of the Solvency II Directive.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 32 Amendment of article 32 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

For article 32 of the principal Act, there shall be

substituted the following

" Information

32. An

authorised

insurance

and

to be provided

reinsurance undertaking shall submit to the

competent authority the information which is

supervisory

necessary for the purposes of supervision, taking

into account the objectives of supervision, as may

be specified by means of regulations or Insurance

Rules which shall also specify the period within

which this information is to be submitted.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 33 Addition of new Part VIIA of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Immediately after Part VII of the principal Act, there shall

be added the following new part

"PART VIIA

GROUP SUPERVISION

32A. The competent authority shall provide

Group

supervision.

for supervision, at the level of the group, of

insurance and reinsurance undertakings which are

part of a group in accordance with regulations or

Insurance Rules issued for the purposes of this

Part.

32B. (1) The

group

supervisor

of

Group

supervisor.

insurance and reinsurance undertakings which are

part of a group, shall be responsible for co-

ordination and the exercise of group supervision.

(2) For the purposes of this Part, "group

supervisor" means the supervisory authority

responsible for group supervision, determined in

accordance with Article 247 of the Solvency II

Directive.

(3) Where the competent authority is the

group supervisor, it shall, with regard to group

supervision, carry out the following functions

(a)

coordination of the gathering and

dissemination of relevant or essential

information for going concern and

emergency

situations,

including

the

dissemination of information which is of

importance for the carrying out of the

supervisory tasks of authorities responsible

for the supervision of an individual insurance

or reinsurance undertaking in the group;

(b) supervisory

review

and

assessment of the financial situation of the

group;

(c)

assessment of compliance of the

group with the rules on solvency and of risk

concentration and intra-group transactions as

set out in Articles 218 to 245 of the Solvency

II Directive;

(d) assessment of the system of

governance of the group, as set out in Article

246 of the Solvency II Directive, and of

whether the board of directors of the

participating

undertaking

fulfils

the

requirements of fitness and properness set

out in Articles 42 and 257 of the Solvency II

Directive;

(e)

planning

and

coordination,

through regular meetings held at least

annually or through other appropriate means,

of supervisory activities in going-concern as

well as in emergency situations, in

cooperation with the authorities responsible

for the supervision of an individual insurance

or reinsurance undertaking in a group, and

taking into account the nature, scale and

complexity of the risks inherent in the

business of all undertakings that are part of

the group;

(f)

other tasks, measures and

decisions assigned to the competent

authority, as group supervisor, by the

Solvency II Directive or deriving from the

application of that Directive, in particular

leading the process for validation of any

internal model at group level as set out in

Articles 231 and 233 of Solvency II

Directive and leading the process for

permitting the application of the regime

established in Articles 237 to 240 of the said

Directive.

(4) In order to facilitate the exercise of

group supervision tasks, set out in sub-article (3), a

college of supervisors shall be established. It shall

be chaired by the competent authority where it is

the group supervisor. The membership,

functioning and consultation processes of the

college of supervisors shall be determined by

regulations or Insurance Rules.

32C. (1) Where the competent authority is

Co-operation

and exchange

the group supervisor, it shall cooperate closely

of information

with respect to

with the other authorities responsible for the

group

supervision of individual insurance or reinsurance

supervision.

undertakings in a group, in particular, in cases

where an insurance or reinsurance undertaking

within the group encounters financial difficulties.

(2) Where the competent authority is one of

the authorities responsible for the supervision of

an individual insurance or reinsurance undertaking

in a group, it shall cooperate closely with other

responsible authorities in the group and the group

supervisor, in particular, in cases where an

insurance or reinsurance undertaking encounters

financial difficulties.

(3) Where the competent authority is the

group supervisor or is one of the authorities

responsible for the supervision of an individual

insurance or reinsurance undertaking in a group, it

shall -

(a)

provide

other

authorities

responsible for the supervision of an

individual

insurance

or

reinsurance

undertaking in a group with such information

so as to allow and facilitate the exercise of

the supervisory tasks concerned under the

Solvency II Directive;

(b) communicate

all

relevant

information to such authorities without

delay, as soon as it becomes available or

exchange information on request; and

(c)

call immediately for a meeting of

all the authorities involved in the supervision

of the group, at least where -

(i) it becomes aware of a

significant breach of the Solvency

Capital Requirement or a breach of the

Minimum Capital Requirement of an

individual insurance or reinsurance

undertaking;

(ii) it becomes aware of a

significant breach of the Solvency

Capital Requirement at group level

calculated on the basis of consolidated

data or the aggregated group Solvency

Capital Requirement, in accordance

with whichever calculation method is

used, in Title III, Chapter II, Section I,

Subsection 4 of the Solvency II

Directive; or

(iii) other exceptional circum-

stances are occurring or have occurred.

(4) Where one of the authorities

responsible for the supervision of an individual

insurance or reinsurance undertaking in a group

has not communicated relevant information, or a

request for cooperation, in particular to exchange

relevant information, has been rejected or has not

been acted upon within two weeks, the competent

authority may refer the matter to EIOPA.

(5) Where the group supervisor fails to

carry out the tasks referred to in paragraph (1) of

Article 248 of the Solvency II Directive, or where

the members of the college of supervisors do not

cooperate to the extent required by that sub-article,

the competent authority may refer the matter to

EIOPA and request its assistance in accordance

with Article 19 of Regulation (EU) No 1094/2010.

(6) Where the competent authority is the

group supervisor, it shall provide the authorities

responsible for the supervision of an individual

insurance or reinsurance undertaking in a group

and EIOPA with information regarding the group

in accordance with Article 19, Article 51(1) and

Article 254(2) of the Solvency II Directive, in

particular regarding the legal structure and the

governance and organisational structure of the

group.

(7) Without prejudice to Article 248 of the

Solvency II Directive, the competent authority

shall, where a decision is of importance for the

supervisory tasks of the other authorities

responsible for the supervision of an individual

insurance or reinsurance undertaking in a group,

prior to taking any decision, consult the said

authorities in the college of supervisors with

regard to the following

(a)

changes in the shareholding

structure, organisational or management

structure of an authorised insurance and

reinsurance undertaking which is part of a

group and which requires the approval or

authorisation of the competent authority;

(b) the decision on the extension of

the recovery period in accordance with

Article 138(3) and (4) of the Solvency II

Directive;

(c)

major sanctions or exceptional

measures taken by the competent authority,

including the imposition of a capital add-on

to the Solvency Capital Requirement under

article 31C and the imposition of any

limitation on the use of an internal model for

the calculation of the Solvency Capital

Requirement as determined in Insurance

Rules made for the purposes of Title I,

Chapter VI, Section 4, Subsection 3 of the

Solvency II Directive.

(8) For the purposes of paragraph (b) and

(c) of sub-article (7) and where the competent

authority is not the group supervisor, the group

supervisor shall always be consulted.

(9) Where the competent authority is

considering a decision based on information

received from other authorities responsible for the

supervision of an individual insurance or

reinsurance undertaking in a group, it shall consult

such authorities concerned before taking that

decision.

(10) Without prejudice to Article 248 of the

Solvency II Directive, the competent authority

may decide not to consult other authorities in cases

of urgency or where such consultation may

jeopardise the effectiveness of its decision. In such

a case, the competent authority shall without delay,

inform the other authorities responsible for the

supervision of an individual insurance or

reinsurance undertaking in a group.

(11) Where the competent authority is the

group supervisor and requires information from an

undertaking for the purposes of Article 254(2) of

the Solvency II Directive, which has already been

given to another authority responsible for the

supervision of an individual insurance or

reinsurance undertaking in a group, the competent

authority shall, whenever possible, contact that

authority to obtain such information.

(12) Where a parent undertaking has its head

office in Malta and the competent authority is not

the group supervisor pursuant to Article 247 of the

Solvency II Directive, the competent authority

shall, upon request by the group supervisor,

require the parent undertaking to provide any

relevant information for the exercise of group

supervision as set out in Article 248 of the

Solvency II Directive, and the competent authority

shall transmit such information to the group

supervisor.

(13) Where the competent authority is the

group supervisor, it may ask the European

regulatory authority of a parent undertaking which

has its head office in another Member State, to

request such undertaking to submit any

information which would be relevant for the

exercise of its co-ordination rights and duties as

set out in Article 248 of the Solvency II Directive,

and to transmit it directly to the competent

authority.

(14) Information received for the purposes

of this article shall be treated as confidential and

protected by the duty of professional secrecy.

32D. (1) Without prejudice to article 30,

Verification of

information.

the competent authority may carry out in Malta,

itself or through a person appointed for that

purpose, on-site verification of information as

referred to in Article 254 of the Solvency II

Directive on the premises of any of the following

(a)

an insurance or reinsurance

undertaking which is subject to group

supervision;

(b) related undertakings of the

undertaking referred to in paragraph (a);

(c)

parent undertakings of the

undertaking referred to in paragraph (a);

(d) related undertakings of a parent

undertaking of the undertaking referred to in

paragraph (a).

(2) Where

the

competent

authority

requires, in specific cases, to verify information

concerning an undertaking, whether regulated or

not, which forms part of a group and is situated in

another Member State, the competent authority

shall

(a)

request the European regulatory

authority to enable the competent authority

to carry out the on-site verification itself; or

(b) request the European regulatory

authority to carry out such verification on its

behalf, or to appoint an auditor or an expert

to carry out such verification; or

(c)

in cases where it does not carry

out the on-site verification itself, request to

participate in the carrying out of such

verification.

(3) Where

the

competent

authority

receives, in specific cases, a request by a European

regulatory authority to verify the information

concerning an undertaking situated in Malta,

whether regulated or not, which is part of a group,

the competent authority shall act upon that request

either by carrying out the on-site verification itself,

by allowing an auditor or expert to carry it out, or

by allowing the European regulatory authority

which made the request to carry it out itself, and

such authority may, where it does not carry out

such verification itself, participate in the on-site

verification.

(4) Where the competent authority has

received a request pursuant to sub-article (3), it

shall inform the group supervisor of the action

taken pursuant to sub-article (3).

(5) Where the request to a European

regulatory authority to have a verification carried

out in accordance with sub-article (2) has not been

acted upon within two weeks, the competent

authority may refer the matter to EIOPA and may

request its assistance in accordance with Article 19

of Regulation (EU) No 1094/2010.

(6) For the purposes of sub-articles (2) and

(3), in accordance with Article 21 of Regulation

(EU) No 1094/2010, EIOPA shall be entitled to

participate in on-site examinations where they are

carried out jointly by the competent authority and

any one or more European regulatory authorities.

32E. The competent authority may adopt

Parent

undertakings

regulations or Insurance Rules for the purposes of

outside the

Union

verification of equivalence of supervision of

verification of

parent undertakings with their head office in a

equivalence.

third country, which form part of a group, as set

out in Chapter IV of the Solvency II Directive.

32F. The competent authority may adopt

Parent

undertaking as

regulations or Insurance Rules where the parent

a mixed-

activity

undertaking of one or more insurance or

insurance

reinsurance undertakings is a mixed-activity

holding

company.

insurance holding company.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 34 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 33 of the principal Act shall be amended as

Amendment of

article 33 of the

follows

principal Act.

(a)

in sub-article (1) thereof

(i) for the words "under which a company

authorised under this Act ("the transferor"), is to transfer to

another company,", there shall be substituted the words

"under which an authorised insurance undertaking ("the

transferor"), is to transfer to another undertaking,";

(ii) in sub-paragraph (a) thereof, for the words "the

transferor is a company whose head office is in Malta,",

there shall be substituted the words "the transferor is an

undertaking whose head office is in Malta,"; and

(iii) in sub-paragraph (b) thereof, for the words "the

transferor is a company whose head office is in a country

outside Malta,", there shall be substituted the words "the

transferor is a third country insurance undertaking,";

(b)

in sub-article (2) thereof

(i) in sub-paragraph (ii) of paragraph (a) thereof, for

the words "where the transferor is a company which carries

on business from Malta", there shall be substituted the

words "where the transferor is an undertaking which carries

on business from Malta"; and

(ii) in sub-paragraph (ii) of paragraph (c) thereof, for

the words "where the transferor is a company which carries

on business from Malta", there shall be substituted the

words "except in so far as the competent authority has

otherwise directed, where the transferor is an undertaking

which carries on business from Malta";

(c)

in sub-article (4) thereof

(i) in sub-paragraph (ii) of paragraph (a) thereof, for

the words "authorised under article 6 or article 23 of First

Council Directive of 24 July 1973 on the co-ordination of

laws, Regulations, and administrative provisions relating to

the taking up and pursuit of direct insurance other than life

assurance (73/239/EEC) to carry on general business",

there shall be substituted the words "authorised under

Article 14 or Article 162 of the Solvency II Directive to

carry on general business";

(ii) in sub-paragraph (iii) of paragraph (a) thereof,

for the words "within sub-paragraphs (i) and (ii), the

transferee has", there shall be substituted the words "within

sub-paragraphs (i) and (ii) of this paragraph, the transferee

(iii) for paragraph (b) thereof, there shall be

substituted the following

"(b) (i) the transferee referred to in sub-

paragraph (i) of paragraph (a) of this sub-article

possesses, after taking the proposed transfer into

account, the necessary eligible own funds to cover

the Solvency Capital Requirement required to be

maintained under this Act;

(ii) the transferee referred to in sub-

paragraph (ii) of paragraph (a) of this sub-article

possesses, after taking the proposed transfer into

account, the necessary eligible own funds to cover

the Solvency Capital Requirement provided for in

Article 100 of the Solvency II Directive; or

(iii) if the transferee does not fall

within sub-paragraphs (i) and (ii) of this paragraph,

the transferee possesses, or will possess before the

scheme takes effect, the solvency requirements

required of it by, or under, the law applicable in the

place to which the business is being transferred;

and";

(iv) in paragraph (c) thereof

(aa) in sub-paragraph (i) thereof, for the

words "if the transferee is a company authorised",

there shall be substituted the words "if the

transferee is an undertaking authorised";

(bb) sub-paragraph (ii) thereof shall be

renumbered

as

sub-paragraph

(iii),

and

immediately after sub-paragraph (i) thereof, there

shall be added the following new sub-paragraph

(ii)

"(ii) if the transferee is a European

insurance undertaking, the transferee’s

financial resources are consequential to the

transfer, adequate to fulfil the other

obligations required of it by, or under, the law

applicable in the place to which the business

is being transferred; or"; and

(cc) in sub-paragraph (iii) thereof, as

renumbered, for the words "if the transferee is a

company whose head office is in a country outside

Malta,", there shall be substituted the words "if the

transferee is a third country insurance

undertaking,";

(v) in paragraph (d) thereof

(aa) for the words "the transferor is a

company", there shall be substituted the words "the

transferor is an undertaking";

(bb) in sub-paragraph (i) thereof, for the

words "the overseas regulatory authority", there

shall be substituted the words "the European

regulatory authority"; and

(cc) in sub-paragraph (ii) thereof, for the

words "the overseas regulatory authority", there

shall be substituted the words "the European

regulatory authority";

(vi) in paragraph (e) thereof

(aa) for the words "if the transferor is a

company", there shall be substituted the words "if

the transferor is an undertaking";

(bb) in sub-paragraph (i) thereof, for the

words "the overseas regulatory authority", there

shall be substituted the words "the European

regulatory authority";

(cc) sub-paragraph (ii) thereof shall be

renumbered

as

sub-paragraph

(iii),

and

immediately after sub-paragraph (i) thereof, there

shall be added the following new sub-paragraph

(ii)

"(ii) the overseas regulatory authority

where the risk is situated has been notified of

the proposed transfer; and"; and

(dd) in sub-paragraph (iii) thereof, as

renumbered, for the words "either the overseas

regulatory authority has consented to the transfer

or the overseas regulatory authority has not

refused", there shall be substituted the words

"either the European regulatory authority or the

overseas regulatory authority has consented to the

transfer or the European regulatory authority or the

overseas regulatory authority has not refused"; and

(d) in paragraph (a) of sub-article (5) thereof, for the

words "of its decision in the Gazette and in such other manner",

there shall be substituted the words "of its decision in such

manner".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 35 Amendment of article 34 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 34 of the principal Act shall be amended as

(a)

sub-article (2) thereof shall be renumbered as sub-

article (3), and immediately after sub-article (1) thereof, there

shall be added the following new sub-article (2)

"(2) A transfer approved by the competent authority

shall automatically be valid against policyholders, the

insured persons and any other person having rights or

obligations arising out of the contracts transferred."; and

(b) for sub-article (3) thereof, as renumbered, there shall

be substituted the following

"(3) Except in so far as the competent authority may

otherwise direct, a policyholder whose policy is included in

such a scheme shall be given written notice of its carrying

out by the transferee.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 36 Amendment of article 35 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 35 of the principal Act shall be amended as

(a)

in sub-article (1) thereof

(i) for the words "carried on by a company

authorised under this Act ("the transferor company"), is to

be transferred to another company whether authorised

thereunder or not ("the transferee company"),", there shall

be substituted the words "carried on by an authorised

insurance undertaking under this Act ("the transferor"), is

to be transferred to another undertaking whether authorised

thereunder or not ("the transferee"),";

(ii) in paragraph (a) thereof, for the words "where

the transferor company is a company", there shall be

substituted the words "where the transferor is an

undertaking";

(iii) in paragraph (b) thereof, for the words "the

transferor company is a company whose head office is in a

country outside Malta,", there shall be substituted the

words "the transferor is a third country insurance

undertaking,"; and

(iv) in the paragraph immediately following

paragraph (b), for the words "the transferor company or the

transferee company shall,", there shall be substituted the

words "the transferor or the transferee shall,", and in the

Maltese text, for the words "titlob", there shall be

substituted the words "jitlob";

(b)

in sub-article (3) thereof

(i) in sub-paragraph (ii) of paragraph (a) thereof, for

the words "where the transferor company is a company

which carries on business", there shall be substituted the

words "where the transferor is an undertaking which carries

on business";

(ii) in sub-paragraph (ii) of paragraph (b) thereof, for

the words "policyholders of the companies concerned,",

there shall be substituted the words "policyholders of the

undertakings concerned,";

(iii) in the paragraph immediately following sub-

paragraph (ii) of paragraph (b), for the words "claim to the

transferor company", there shall be substituted the words

"claim to the transferor";

(iv) in paragraph (c) thereof, for the words "elapsed

since the date of service; and", there shall be substituted the

words "elapsed since the date of service;";

(v) in paragraph (d) thereof

(aa) in sub-paragraph (i) thereof, for the

words "of the companies concerned;", there shall

be substituted the words "of the undertakings

concerned;";

(bb) in sub-paragraph (ii) thereof, for the

words "the transferor company", there shall be

substituted the words "the transferor";

(cc) in indent (aa) of sub-paragraph (ii)

thereof, for the words "a company whose", there

shall be substituted the words "an undertaking

whose";

(dd) in indent (bb) of sub-paragraph (ii)

thereof, for the words "a company whose head

office is in a country outside Malta", there shall be

substituted the words "a third country insurance

undertaking";

(vi) in the paragraph immediately following indent

(bb) of sub-paragraph (ii) of paragraph (d) thereof, for the

words "such fee as may be fixed by the Tribunal.", there

shall be substituted the words "such fee as may be fixed by

the Tribunal; and"; and

(vii)immediately after the paragraph following indent

(bb) of sub-paragraph (ii) of paragraph (d) thereof, there

shall be inserted the following new paragraph (e)

"(e) the notice and the statement referred to

in this sub-article shall state that written

representations concerning the transfer may be sent

to the Tribunal within a period determined by the

Tribunal.";

(c)

for sub-article (4) thereof, there shall be substituted

the following

"(4) On any application filed under sub-article (1)

(a) the competent authority may be heard

by the Tribunal; and

(b) the competent authority and any

policyholder who alleges that he would be

adversely affected by the carrying out of the

scheme and every other person who claims an

interest in a policy included in the proposed

transfer and has given notice of such interest to the

transferor, shall be entitled to make written

representations.";

(d)

in sub-article (5) thereof

(i) in sub-paragraph (i) of paragraph (a) thereof, for

the words "the transferee company is,", there shall be

substituted the words "the transferee is,", and in the

Maltese text, for the words "tkun awtorizzata taħt l-artikolu

7 biex tmexxi kummerċ fit-tul", there shall be substituted

the words "ikun awtorizzat taħt l-artikolu 7 biex imexxi

kummerċ fit-tul";

(ii) in sub-paragraph (ii) of paragraph (a) thereof

(aa) for the words "the transferee company

is,", there shall be substituted the words "the

transferee is,";

(bb) for the words "authorised under article

4 or article 51 of Directive 2002/83/EC of the

European Parliament and of the Council of 5

November 2002 concerning life assurance,", there

shall be substituted the words "authorised under

Article 14 or Article 162 of the Solvency II

Directive,";

(iii) for paragraph (b) thereof, there shall be

substituted the following

"(b) (i) the transferee referred to in sub-

paragraph (i) of paragraph (a) of this sub-article,

produces evidence that after taking the transfer into

account, it possesses the necessary eligible own

funds to cover the Solvency Capital Requirement

required to be maintained under this Act;

(ii) the transferee referred to in sub-

paragraph (ii) of paragraph (a) of this sub-article,

produces evidence that after taking the transfer into

account, it possesses the necessary eligible own

funds to cover the Solvency Capital Requirement

provided for in Article 100 of the Solvency II

Directive ; or

(iii) if the transferee does not fall

within sub-paragraphs (i) and (ii), the transferee

possesses, or will possess before the scheme takes

effect, the solvency requirements required of it by,

or under, the law applicable in the place to which

the business is being transferred;

(iv) (aa) if

the

transferee

is

authorised under this Act, its financial resources

are, consequential to the transfer, adequate to fulfil

the other obligations required of it by, or under, this

Act; or

(bb) if the transferee is a third

country insurance undertaking, the transferee’s

financial resources are, consequential to the

transfer, adequate to fulfil the other obligations

required of it by, or under, the law applicable in the

place to which the business is being transferred;";

(iv) in paragraph (c) thereof

(aa) for the words "if the transferor is a

company", there shall be substituted the words "if

the transferor is an undertaking";

(bb) in sub-paragraph (i) thereof, for the

words "the overseas regulatory authority", there

shall be substituted the words "the European

regulatory authority";

(cc) in sub-paragraph (ii) thereof, for the

words "the overseas regulatory authority", there

shall be substituted the words "the European

regulatory authority";

(e)

in sub-article (6) thereof

(i) for the words "the transferor company is a

company", there shall be substituted the words "the

transferor is an undertaking";

(ii) for paragraph (a) thereof, there shall be

substituted the following

"(a) that the European regulatory authority

in that country has been notified; or";

(iii) paragraph (b) thereof shall be renumbered as

paragraph (c), and immediately after paragraph (a) thereof,

there shall be added the following new paragraph (b)

"(b) the overseas regulatory authority has

been notified of the proposed transfer; and"; and

(iv) in paragraph (c) thereof, as renumbered, for the

words "the authority has consented to the scheme or that

the authority", there shall be substituted the words "the

European regulatory authority or the overseas regulatory

authority has consented to the scheme or that any such

authority"; and

(f)

in sub-article (7) thereof, for the words ''the

transferee company shall, within ten days from the date on

which the approval is made or such longer period as the

competent authority may allow,'' there shall be substituted the

words ''the transferee shall, within ten days from the date on

which the approval is made or such longer period as the

Tribunal may allow,''; and in the Maltese text, for the word

''tiddepożita'' there shall be substituted the word ''jiddepożita''.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 37 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In article 36 of the principal Act, for the words "against the Amendment of

transferee company of any legal proceedings pending by or against article

principal Act.

the transferor company which relate to the scheme.", there shall be

substituted the words "against the transferee of any legal proceedings

pending by or against the transferor which relate to the scheme.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 38 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 37 of the principal Act shall be amended as Amendment of

article 37 of the

follows

principal Act.

(a)

in the marginal note thereto, for the words

"Exemption under this Part.", there shall be substituted the

words "Transfer of business restricted to reinsurance.";

(b)

sub-article (1) thereof shall be deleted;

(c)

sub-article (2) thereof shall be renumbered as the

whole article;

(d)

in the said article, as renumbered

(i) for the words "Where a company authorised",

there shall be substituted the words "Where an undertaking

authorised"; and

(ii) in sub-paragraph (ii) of paragraph (a) thereof, for

the words "article 4 of Directive 2005/68/EC of the

European Parliament and of the Council of 16 November

2005 on reinsurance and amending Council Directives 73/

239/EEC, 92/49/EEC and Directives 98/78/EEC and 2002/

83/EC,", there shall be substituted the words "Article 14 or

162 of the Solvency II Directive,";

(iii) for sub-paragraphs (i) and (ii) of paragraph (b)

thereof, there shall be substituted the following

"(i) the transferee referred to in sub-

paragraph (i) of paragraph (a) possesses, after

taking the proposed transfer into account, the

necessary eligible own funds to cover the Solvency

Capital Requirement required to be maintained

under this Act;

(ii) the transferee referred to in sub-

paragraph (ii) of paragraph (a) possesses, after

taking the proposed transfer into account, the

necessary eligible own funds to cover the Solvency

Capital Requirement referred to in Article 100 or

166 of the Solvency II Directive; or"; and

(iv) in paragraph (c) thereof

(aa) in sub-paragraph (i) thereof, for the

words "the transferee is a company", there shall be

substituted the words "the transferee is an

undertaking"; and

(bb) in paragraph (ii) thereof, for the words

"transferee is a company whose head office is in a

country outside Malta,", there shall be substituted

the words "transferee is a third country reinsurance

undertaking,".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 39 Addition of article 37A to the principal Act. " Transfer of — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Immediately after article 37 of the principal Act, there

shall be added the following new article 37A

37A. (1) Where it is proposed to carry out

a transfer of business of insurance under which the

whole or part of the general business or long term

business of an insurance or reinsurance

undertaking is to be transferred to an undertaking

authorised under this Act ("the transferee") by an

undertaking whose head office is in a country

outside Malta, the transferee shall notify the

competent authority of the particulars of the

proposed transfer and no such transfer shall take

place unless and until the competent authority has

signified its consent in writing.

(2) Where the competent authority has

required a recovery plan or a finance scheme in

terms of article 16 or 18, it shall refrain from

issuing a certificate of solvency for the purposes of

this Part of this Act for as long as it considers that

the rights of policyholders or the contractual

obligations of the reinsurance undertaking are

prejudiced.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 40 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 38 of the principal Act shall be amended as Amendment of

article 38 of the

principal Act.

(a)

in the marginal note thereto, for the words

"Participation in an authorised company.", there shall be

substituted the words "Changes in shareholding of an authorised

undertaking.";

(b)

in sub-article (1) thereof

(i) in sub-paragraph (a) thereof, for the words "an

authorised company;", there shall be substituted the words

"an authorised insurance or reinsurance undertaking;";

(ii) in sub-paragraph (b) thereof, for the words "in an

authorised company;", there shall be substituted the words

"in an authorised insurance or reinsurance undertaking;";

(iii) in sub-paragraph (c) thereof

(aa) for the words "in an authorised

company", there shall be substituted the words "in

an

authorised

insurance

or

reinsurance

undertaking";

(bb) for the words "the authorised company

would become its subsidiary,", there shall be

substituted the words "the authorised insurance or

reinsurance undertaking would become its

subsidiary,";

(c)

in sub-article (2) thereof

(i) in paragraph (a) thereof, for the words "in an

authorised company;", there shall be substituted the words

"in an authorised insurance or reinsurance undertaking;";

(ii) in paragraph (c) thereof, for the words "the

authorised company", there shall be substituted the words

"the authorised insurance or reinsurance undertaking";

(d) in sub-article (3) thereof, the words "within the

meaning of the Financial Markets Act or on an equivalent

market in a non-Member State or non-EEA State" shall be

deleted;

(e)

for sub-article (4) thereof, there shall be substituted

the following

"(4) Notwithstanding the provisions of sub-articles

(1) and (2), it shall be the duty of an authorised insurance

or reinsurance undertaking and of the directors thereof, to

notify the competent authority forthwith upon becoming

aware that any person intends to take any of the actions set

out in these sub-articles.";

(f)

in sub-article (5) thereof

(i) for the words "any authorised company takes or

decides", there shall be substituted the words "any

authorised insurance or reinsurance undertaking takes or

intends";

(ii) in sub-paragraph (a) thereof, for the words

"authorised company", there shall be substituted the words

"authorised insurance or reinsurance undertaking";

(iii) in sub-paragraph (c) thereof, for the words

"authorised company", there shall be substituted the words

"authorised insurance or reinsurance undertaking";

(iv) in sub-paragraph (d) thereof, for the words

"authorised company", there shall be substituted the words

"authorised insurance or reinsurance undertaking";

(v) in sub-paragraph (e) thereof, for the words

"authorised company", there shall be substituted the words

"authorised insurance or reinsurance undertaking";

(g) in sub-article (6) thereof, for the words "an

authorised company", there shall be substituted the words "an

authorised insurance or reinsurance undertaking"; and

(h)

in sub-article (7) thereof

(i) for the words "a company whose head office is in

a country outside Malta", there shall be substituted the

words "a third

country

insurance

or

reinsurance

undertaking"; and

(ii) for the words "requiring such company", there

shall be substituted the words "requiring such

undertaking".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 41 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 38A of the principal Act shall be amended as Amendment of

article 38A of

the principal

Act.

(a)

in sub-article (5) thereof, for the words "an

interruption of such period.", there shall be substituted the

words "an interruption of such assessment period.";

(b)

in paragraph (b) of sub-article (6) thereof

(i) sub-paragraphs (i), (ii), (iii), and (v) thereof,

shall be deleted and sub-paragraphs (iv) and (vi) shall be

renumbered as sub-paragraphs (i) and (ii) respectively;

(ii) for sub-paragraph (ii) thereof, as renumbered,

there shall be substituted the following

''(ii) Directive 2013/36/EU of the European

Parliament and of the Council of 26 June 2013 on

access to the activity of credit institutions and the

prudential supervision of credit institutions and

investment firms, amending Directive 2002/87/EC

and repealing Directives 2006/48/EC and 2006/49/

EC;'';

(iii) immediately after sub-paragraph (ii) thereof, as

renumbered, there shall be added the following new sub-

paragraphs (iii) and (iv)

"(iii) Directive 2009/65/EC of the European

Parliament and of the Council of 13 July 2009 on

the co-ordination of laws, regulations and

administrative provisions relating to undertakings

for collective investment in transferable securities

(UCITS)(recast);

(iv)

the Solvency II Directive.";

(c)

in the Maltese text of sub-article (9) thereof, for the

words "stipulati fir-regola dwar l-assigurazzjoni msemmija",

there shall be substituted the words "stipulati fir-Regoli dwar l-

Assigurazzjoni msemmijin";

(d) in sub-article (12) thereof, for the words "any other

penalty which may be imposed under this Act, where a

qualifying shareholding in an authorised company", there shall

be substituted the words "any other measure which may be

taken under this Act, where a qualifying shareholding in an

authorised insurance or reinsurance undertaking"; and

(e)

in sub-article (14) thereof, for the words "the same

authorised company", there shall be substituted the words "the

same authorised insurance or reinsurance undertaking".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 42 Amendment of article 38B of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 38B of the principal Act shall be amended as

follows

(a)

in the marginal note thereto, for the words "Co-

operation with overseas regulatory authorities", there shall be

substituted the words "Co-operation with European regulatory

authorities or overseas regulatory authorities";

(b)

in sub-article (1) thereof

(i) for the words "with overseas regulatory

authorities", there shall be substituted the words "with

European regulatory authorities";

(ii) for the words "the assessment referred to in

article 38A(2)", there shall be substituted the words "the

assessment referred to in article 38A";

(iii) in paragraph (a) thereof, for the words "a credit

institution, assurance undertaking, insurance undertaking",

there shall be substituted the words "a credit institution,

insurance undertaking";

(iv) in paragraph (b) thereof, for the words "a credit

institution, assurance undertaking, insurance undertaking",

there shall be substituted the words "a credit institution,

insurance undertaking";

(v) in paragraph (c) thereof, for the words "a credit

institution, assurance undertaking, insurance undertaking",

there shall be substituted the words "a credit institution,

insurance undertaking";

(c)

in sub-article (2) thereof

(i) for the words "in article 38A(2) to the overseas

regulatory authority", there shall be substituted the words

"in article 38A to the European regulatory authority";

(ii) for the words "communicate to the overseas

regulatory authority", there shall be substituted the words

"communicate to the European regulatory authority"; and

(iii) for the words "expressed by the overseas

regulatory authority", there shall be substituted the words

"expressed by the European regulatory authority"; and

(d) immediately after sub-article (2) thereof, there shall

be added the following new sub-article

"(3) The procedure set out in sub-articles (1) and (2)

shall apply mutatis mutandis where the proposed acquirer

is authorised or established in a third country.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 43 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 38C of the principal Act shall be amended as Amendment of

article 38C of

the principal

Act.

(a)

in sub-article (1) thereof

(i) for the words "an authorised company may",

there shall be substituted the words "an authorised

undertaking may";

(ii) in paragraph (a) thereof, for the words "any other

company,", there shall be substituted the words "any other

undertaking,";

(b)

in sub-article (2) thereof

(i) for the words "of an authorised company", there

shall be substituted the words "of an authorised

undertaking";

(ii) for the words "that such company", there shall be

substituted the words "that such undertaking";

(c)

in the paragraph immediately following paragraph

(c) of sub-article (3) thereof, for the words "or the authorised

company concerned", there shall be substituted the words "or

the authorised undertaking concerned";

(d)

in sub-article (4) thereof

(i) for the words "or any authorised company", there

shall be substituted the words "or any authorised

undertaking";

(ii) in paragraph (a) thereof, for the words "or

authorised company", there shall be substituted the words

"or authorised undertaking";

(iii) in paragraph (c) thereof, for the words "or

authorised company", there shall be substituted the words

"or authorised undertaking";

(iv) in paragraph (d) thereof, for the words "or

authorised company", there shall be substituted the words

"or authorised undertaking"; and

(v) in paragraph (e) thereof, for the words "or

authorised company", there shall be substituted the words

"or authorised undertaking".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 44 Amendment of article 39 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 39 of the principal Act shall be amended as

(a)

in the marginal note thereto, for the words

"Companies ceasing", there shall be substituted the words

"Undertakings ceasing";

(b)

in sub-article (1) thereof

(i) for the words "if an authorised company", there

shall be substituted the words "if an authorised insurance

undertaking";

(ii) for the words "such company shall,", there shall

be substituted the words "such undertaking shall,";

(iii) for the words "and the company", there shall be

substituted the words "and the authorised insurance

undertaking";

(c)

in sub-article (2) thereof

(i) for the words "an authorised company", there

shall be substituted the words "an authorised insurance

undertaking";

(ii) in paragraph (a) thereof, for the words "the

company", there shall be substituted the words "the

undertaking";

(iii) for paragraph (b) thereof, there shall be

substituted the following

"(b) may require the undertaking to

ascertain that its technical provisions meet the

requirements of article 18E."; and

(d)

in sub-article (3) thereof

(i) for the words "a company", there shall be

substituted the words "an authorised insurance

undertaking"; and

(ii) for the words "to the company" there shall be

substituted the words "to the authorised insurance

undertaking".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 45 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 40 of the principal Act shall be amended as Amendment of

article 40 of the

follows

principal Act.

(a) in the marginal note thereto, for the words

"Companies carrying out", there shall be substituted the words

"Undertakings carrying out"; and

(b) for the words "Every company issued", there shall

be substituted the words "Every authorised insurance

undertaking issued".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 46 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Immediately after article 40 of the principal Act, there Addition of new

shall be added the following new article 40A

the principal

Act.

" Reinsurance

40A. The provisions of articles 39 and 40

undertakings

shall apply mutatis mutandis to undertakings

ceasing and

whose business is restricted to reinsurance.".

carrying out

servicing or

run-off of

business of

insurance.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 47 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 41 of the principal Act shall be amended as Amendment of

article 41 of the

follows

principal Act.

(a) in the marginal note thereto, for the words

"Dissolution and winding up of authorised companies", there

shall be substituted the words "Reorganisation, dissolution and

winding up of authorised undertakings.";

(b)

in sub-article (1) thereof

(i) for the words "this article, any company

authorised to carry on the business of insurance shall - ",

there shall be substituted the words "this article - ";

(ii) for paragraph (a) thereof, there shall be

substituted the following

"(a) in the case of an authorised insurance

undertaking whose head office is in Malta

(i) where any reorganisation measures

are adopted in relation to the undertaking,

such measures shall be applied in accordance

with regulations made for the purposes of this

article;

(ii) such undertaking shall, dissolve and

consequentially wind up under and in

accordance with regulations made under this

article; and";

(iii) for paragraph (b) thereof, there shall be

substituted the following

"(b) in the case of an authorised third

country insurance undertaking, shall dissolve and

wind up under and in accordance with the

provisions of the laws of the country where the

head office of such undertaking is situated

governing the dissolution and winding up of such

undertakings.";

(c)

in sub-article (2) thereof

(i) for the words "authorised company", there shall

be substituted the words "authorised insurance

undertaking";

(ii) in paragraph (a) thereof

(aa) for the words "in the case of a company

whose head office is in Malta", there shall be

substituted the words "in the case of an undertaking

whose head office is in Malta";

(bb) for the words "the assets of the

company", there shall be substituted the words "the

assets of the undertaking";

(iii) for paragraph (b) thereof, there shall be

substituted the following

"(b) in the case of an authorised third

country insurance undertaking, prohibit the free

disposal of the assets of the undertaking situated in

Malta or in any other country if such assets relate to

the undertaking’s business in Malta,";

(d) in the paragraph immediately after paragraph (b), for

the words "imposed on the company", there shall be substituted

the words "imposed on the insurance undertaking";

(e)

in sub-article (3) thereof

(i) for the words "a company which", there shall be

substituted the words "an authorised insurance undertaking

which";

(ii) for the words "of the company attributable",

there shall be substituted the words "of the undertaking

attributable";

(f)

in sub-article (5) thereof, for the words "not apply to

such companies.", there shall be substituted the words "not

apply to such undertakings.";

(g)

in sub-article (6) thereof

(i) for the words "of companies whose head office

is in Malta,", there shall be substituted the words "of

authorised insurance undertakings whose head office is in

Malta,";

(ii) for the words "of companies whose head office

is outside of Malta", there shall be substituted the words

"of third country insurance undertakings"; and

(iii) for the words "of such companies or of

branches thereof;", there shall be substituted the words "of

such undertakings or of branches thereof;"; and

(h) immediately following sub-article (6) thereof, there

shall be added the following new sub-articles (7) and (8)

"(7) Where an authorised insurance or

reinsurance undertaking takes a decision to dissolve

and wind up, it shall immediately notify, in writing, the

competent authority of such decision before taking any

further action to that effect.

(8) (a)

An

authorised

reinsurance

undertaking with its head office in Malta shall dissolve

and wind up in accordance with the provisions of the

Companies Act.

(b) An

authorised

third

country

reinsurance undertaking shall dissolve and wind up in

accordance with the laws of the country where the head

office of such undertaking is situated governing the

dissolution and winding up of such undertakings.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 48 Amendment of article 42 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 42 of the principal Act shall be amended as

(a)

in the marginal note thereto, for the words

"authorised companies with long term business.", there shall be

substituted the words "an authorised undertaking carrying on

long term business.";

(b) for sub-article (1) thereof, there shall be substituted

the following

"(1) An authorised undertaking whose head office is

in Malta, carrying on long term business may not be

dissolved and consequently wound up voluntarily without

the consent of the competent authority.";

(c)

sub-articles (2) and (3) shall be renumbered as sub-

articles (3) and (4) respectively;

(d) immediately after sub-article (1) thereof, as

amended, there shall be added the following new sub-article (2)

"(2) It shall be the duty of an authorised undertaking

and the directors thereof, to notify the competent authority

forthwith upon becoming aware of any measures to be

taken in terms of sub-article (1).";

(e)

in sub-article (3) thereof, as renumbered

(i) for the words "of a company as aforesaid",

there shall be substituted the words "of an undertaking as

aforesaid";

(ii) in paragraph (a) thereof

(aa) for the words "by the company", there

shall be substituted the words "by the undertaking";

(bb) for the words "of the company

attributable", there shall be substituted the words "of

the undertaking attributable";

(iii) in paragraph (b) thereof

(aa) for the words "of the company shall be

available", there shall be substituted the words "of the

undertaking shall be available";

(bb) for the words "of the company

attributable", there shall be substituted the words "of

the undertaking attributable"; and

(f)

in sub-article (4) as renumbered, for the words "in

either sub-article (2)(a) or (2)(b) exceeds the amount of the

liabilities mentioned in either paragraph the restriction", there

shall be substituted the words "in either paragraph (a) or (b) of

sub-article (3) exceeds the amount of the liabilities mentioned in

either paragraph, the restriction".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 49 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 43 of the principal Act shall be amended as Amendment of

article 43 of the

follows

principal Act.

(a)

in sub-article (1) thereof, for the words "in the

documentation provided", there shall be substituted the words

"in the documentation or information provided";

(b)

in sub-article (2) thereof

(i) for the words "a company whose head office is

in Malta authorised under this Act", there shall be

substituted the words "an authorised insurance or

reinsurance undertaking whose head office is in Malta";

(ii) in paragraph (a) thereof, for the words

"constituting the company,", there shall be substituted the

words "constituting the undertaking,";

(iii) in paragraph (b) thereof

(aa) for the words "in the company", there

shall be substituted the words "in the undertaking";

and

(bb) in the Maltese text, for the words "dik l-

informazzjoni għandha wkoll tiġi stabbilita b’dik

ir-regola.", there shall be substituted the words "dik

l-informazzjoni għandha wkoll tiġi stabbilita

b’dawk ir-Regoli."; and

(c)

in sub-article (3) thereof

(i) for the words "an authorised company", there

shall be substituted the words "an authorised insurance or

reinsurance undertaking"; and

(ii) for the words "the existence of close links

within the meaning of article 8.", there shall be substituted

the words "the existence of close links.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 50 Amendment of article 44 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 44 of the principal Act shall be amended as

(a) in the marginal note thereto, for the words "notice

by authorised companies", there shall be substituted the words

"notice by an authorised undertaking";

(b)

in sub-article (1) thereof

(i) for the words "No company authorised", there

shall be substituted the words "No insurance undertaking

authorised";

(ii) for the words "unless such company either - ",

there shall be substituted the words "unless such

undertaking either - "; and

(c)

in paragraph (b) of sub-article (3) thereof, for the

words "on the authorised company.", there shall be substituted

the words "on the authorised undertaking.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 51 Amendment of article 45 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In paragraph (a) of article 45 of the principal Act, for the

words "entered into by a company", there shall be substituted the

words "entered into by an insurance undertaking".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 52 Amendment of article 47 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 47 of the principal Act shall be amended as

(a)

in the Maltese text of sub-article (2) thereof, for the

words "Fin-nuqqas ta’ xi regola dwar l-assigurazzjoni bħal

dik,", there shall be substituted the words "Fin-nuqqas ta’ xi

Regoli dwar l-Assigurazzjoni bħal dawk,"; and

(b) in sub-article (3) thereof, for the words "shall not

apply to a company", there shall be substituted the words "shall

not apply to an undertaking".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 53 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 48 of the principal Act shall be amended as Amendment of

article 48 of the

principal Act.

(a)

in sub-article (1) thereof

(i) for the words "No company authorised", there

shall be substituted the words "No insurance undertaking

authorised"; and

(ii) for the words "cause to be issued in Malta any

advertisement or carry out or cause to be carried in Malta

any promotional activity", there shall be substituted the

words "cause to be issued any advertisement or carry out

or cause to be carried any promotional activity";

(b) in the proviso to sub-article (1) thereof, for the

words "in the case of a company", there shall be substituted the

words "in the case of an undertaking";

(c)

in sub-article (3) thereof, for the words "apply to a

company", there shall be substituted the words "apply to an

undertaking";

(d)

in sub-article (4) thereof

(i) for the words "Where a company", there shall

be substituted the words "Where an undertaking"; and

(ii) for the words "directing the company - ", there

shall be substituted the words "directing the undertaking -

"; and

(e)

in sub-article (5) thereof

(i) for the words "If a company", there shall be

substituted the words "If an undertaking";

(ii) for the words "which the company", there shall

be substituted the words "which the undertaking"; and

(iii) for the words "the company concerned,", there

shall be substituted the words "the undertaking

concerned,".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 54 Amendment of article 48A of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 48A of the principal Act shall be amended as

follows

(a)

for sub-article (1) thereof, there shall be substituted

the following

"(1) For the purposes of this article, "syndicate"

means a member or group of members of Lloyd’s

underwriting business of insurance at Lloyd’s through the

agency of a managing agent to which a particular syndicate

number is assigned by or under the authority of the

Council of Lloyd’s.";

(b) sub-articles (2), (3), (4) and (5) thereof shall be

renumbered as sub-articles (3), (4), (5) and (6) respectively;

(c)

immediately after sub-article (1) thereof, as

amended, there shall be added the following new sub-article (2)

"(2) Where the members of Lloyd’s carry on

business of insurance in Malta, they shall carry on such

business in exercise of a European right.";

(d) in sub-article (3) thereof, as renumbered, the words

"The representative shall be designated by a letter addressed to

the competent authority by the chairman of Lloyd’s.", shall be

deleted;

(e)

in sub-article (4) thereof, as renumbered,

immediately after the words "the debts and obligations of

Lloyd’s or any of its members", there shall be added the words

"and accordingly no execution of any precautionary or

executive warrant against Lloyd’s or any of its members shall be

made against Lloyd’s general representative.";

(f)

in sub-article (5) thereof, as renumbered, for the

words "in Malta as representative of those members; provided

the act contains a statement", there shall be substituted the

words "in Malta as representative of those members; provided

the act commencing proceedings contains a statement";

(g) in sub-article (6) thereof, as renumbered, for the

words "if they has been named", there shall be substituted the

words "if they had been named"; and

(h) immediately after sub-article (6) thereof, as

renumbered, there shall be added the following new sub-article

"(7) Any judicial act filed by or against Lloyd’s or

any of its members in connection with a policy

underwritten by them shall be served upon the Lloyd’s

general representative in Malta at its registered address in

Malta.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 55 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

For article 48B of the principal Act, there shall be Amendment of

article 48B of

substituted the following

the principal

Act.

" Appointment

48B. Every authorised insurance or

of insurance

reinsurance undertaking shall utilise the services

intermediaries

of insurance intermediaries which are

(a)

enrolled under the Insurance

Intermediaries Act; or

(b) registered under Article 3 of

Directive 2002/92/EC of the European

Parliament and of the Council of 9 December

2002 on insurance mediation, as amended

from time to time; or

(c)

registered or regulated to carry

out such services in a non-Member State or

non-EEA State in accordance with the

provisions of the laws applicable in such

State.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 56 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Immediately after article 48B of the principal Act, there Addition of new

shall be added the following new article 48C

the principal

Act.

" Policy

48C. (1) An authorised undertaking shall

conditions and

not be required to submit to the competent

scales of

authority for its prior approval or systematically

premiums.

notify the competent authority of

(a) general and special policy

conditions, of scales of premiums, of the

technical bases used in particular for

calculating scales of premiums and technical

provisions, or of forms and other printed

documents which the authorised undertaking

intends to use in its dealings with

policyholders or ceding or retro-ceding

undertakings;

(b) premium rates or proposed

increases of premium rates, other than as part

of general price-control systems.

(2) Notwithstanding the provisions of sub-

article (1), the competent authority may require

(a)

in respect of general business, the

notification of the policy conditions, other

documents and information referred to in

sub-article (1) for the purpose of verifying

compliance with the law applicable to

contracts of insurance;

(b) in respect of long term business,

the notification of the technical bases used in

particular for calculating scales of premiums

and technical provisions for the sole purpose

of verifying compliance with any actuarial

principles which may be established by this

Act, regulations or Insurance Rules issued

thereunder.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 57 Amendment of article 49 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In paragraph (a) of article 49 of the principal Act, for the

words "against a company authorised to carry on business of

insurance in Malta, remaining unpaid by reason of the insolvency of

such company", there shall be substituted the words "against an

insurance undertaking carrying on business of insurance in Malta,

remaining unpaid by reason of the insolvency of such undertaking".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 58 Amendment of article 50 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Sub-article (2) of article 50 of the principal Act shall be

amended as follows

(a)

for the words "All companies authorised under this

Act to carry on business of insurance in Malta", there shall be

substituted the words "All insurance undertakings, as prescribed

by the regulations, which carry on business of insurance in

Malta"; and

(b) for the words "kinds of authorised companies,",

there shall be substituted the words "kinds of insurance

undertakings,".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 59 Amendment of article 51 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 51 of the principal Act shall be amended as

follows

(a)

in the first proviso thereof

(i) for the words "by companies authorised to

carry on long term business", there shall be substituted the

words "by undertakings to carry on long term business";

(ii) for the words "by companies authorised to

carry on general business", there shall be substituted the

words "by undertakings to carry on general business"; and

(b) in the second proviso thereof, for the words "in the

insolvent company and holds twenty per centum or more of the

issued shares of such company.", there shall be substituted the

words "in the insolvent undertaking and holds twenty per

centum or more of the issued shares of such undertaking.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 60 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In paragraph (a) of article 52 of the principal Act, for the Amendment of

words "the company is struck off the register or such company", there article

principal Act.

shall be substituted the words "the undertaking is struck off the

register or such undertaking".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 61 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

For article 55 of the principal Act, there shall be Substitution of

article 55 of the

substituted the following

principal Act.

" Co-operation

55. (1) Notwithstanding the provisions

in supervisory

of article 59, the competent authority shall co-

duties and

operate and exchange information

sharing of

information.

(a)

with

European

regulatory

authorities, and the European Commission

for the purpose of facilitating the supervision

of insurance and reinsurance within the

European Union and the application of the

Solvency II Directive;

(b) with

overseas

regulatory

authorities for the purposes of the exercise of

one or more of their regulatory functions;

(c)

with authorities or bodies, or

persons listed in sub-article (2).

(2) The competent authority shall co-

operate and exchange information with

(a)

authorities responsible for the

supervision of credit institutions and other

financial organisations and the authorities

responsible for the supervision of financial

markets;

(b) bodies involved in the liquidation

and insolvency of insurance or reinsurance

undertakings and in other similar procedures;

(c)

the authorities responsible for

overseeing the bodies involved in the

liquidation and insolvency of insurance

undertakings, reinsurance undertakings and

other similar procedures;

(d) persons responsible for carrying

out statutory audits of the accounts of

insurance

undertakings,

reinsurance

undertakings and other financial institutions;

(e)

bodies

which

administer

compulsory winding-up proceedings or

guarantee funds, where that information is

necessary for the performance of their duties;

(f)

the

authorities

or

bodies

responsible

for

the

detection

and

investigation of breaches of company law;

(g) the authorities responsible for

overseeing the persons charged with carrying

out statutory audits of the accounts of

insurance

undertakings,

reinsurance

undertakings, credit institutions, investment

firms and other financial institutions; and

(h) actuaries appointed by insurance

or reinsurance undertakings carrying out

actuarial tasks in relation to those

undertakings and the bodies responsible for

overseeing such actuaries.

(3) For the purposes of the exchanges of

information referred to in paragraphs (c), (g) and

(h) of sub-article (2), the following conditions, as a

minimum, shall be met by the recipient of such

information

(a)

the information required must be

for the purpose of carrying out the

overseeing or supervision of the functions or

activities of such authorities, bodies or

persons;

(b) the information received by such

authorities, bodies or persons shall be subject

to the duty of professional secrecy;

(c)

where the information in the

possession of the competent authority

originates from a European regulatory

authority or an overseas regulatory authority,

it shall not be disclosed without the express

consent of the European regulatory authority

or the overseas regulatory authority from

which it originates and, where appropriate,

solely for the purposes for which that

authority gave its consent.

(4) For the purposes of exchanges of

information referred to in paragraph (f) of sub-

article (2), the competent authority shall ensure

that, as a minimum, the following conditions shall

be met by the recipient of such information

(a)

the information exchanged shall

be intended for the purpose of the detection

and investigation of breaches of company

law;

(b) the information received shall be

subject to the duty of professional secrecy;

(c)

where the information in the

possession of the competent authority

originates from a European regulatory

authority or an overseas regulatory authority,

it shall not be disclosed without the express

agreement of the European regulatory

authority or the overseas regulatory authority

from which it originates and, where

appropriate, solely for the purposes for

which the authority gave its agreement;

(d) such recipient shall provide the

name and responsibilities of the persons to

whom such information shall be sent

Provided that, where the authorities or

bodies perform their tasks of detection or

investigation with the assistance of persons

appointed for that purpose, in view of their

specific competence, and such persons are not

employed with such bodies or persons, such

information may only be exchanged with such

persons if the conditions set out in this sub-article

are met.

(5) The

competent

authority

shall

communicate to the Commission and to other

Member States or EEA States the names of the

authorities, persons or bodies which may receive

information in terms of this article.

(6) (a)

Without

prejudice

to

the

provisions of this article and article 59, the

competent authority may transmit information

intended for the performance of their tasks to the

following

(i) the Central Bank of Malta,

the central banks of the European

System of Central Banks (including the

European Central Bank) and other

bodies with a similar function in their

capacity as monetary authorities where

this information is relevant to their

respective statutory tasks, including the

conduct of monetary policy and related

liquidity provision, oversight of

payments, clearing and securities

settlement systems and safeguarding the

stability of the financial system;

(ii) where appropriate, other

national public authorities responsible

for overseeing payment systems; and

(iii) the European Systemic Risk

Board, where that information is

relevant to carrying out its tasks.

(b) In an emergency situation,

including a situation as defined in Article 18 of

Regulation (EU) No 1094/2010, the competent

authority shall communicate, without delay,

information to the central banks of the European

System of Central Banks (including the European

Central Bank) where that information is relevant to

their statutory tasks, including the conduct of

monetary policy and related liquidity provision,

oversight of payments, clearing and securities

settlement systems and safeguarding the stability

of the financial system, and to the European

Systemic Risk Board, where such information is

relevant to its tasks.

(c)

Such authorities or bodies may

also communicate to the competent authority such

information as they may need for the purposes of

article 59(4).

(7) Without prejudice to article 59, the

competent authority may exchange information

with other departments of Member States central

government administrations responsible for

legislation on the supervision of credit institutions,

financial institutions, investment services and

insurance and reinsurance undertakings and to

inspectors acting on behalf of those departments

provided that

(a)

such disclosures may be made

only where necessary for reasons of

prudential control;

(b) persons having access to such

information shall be subject to professional

secrecy.

(8) Without prejudice to the foregoing

provision of this article, the competent authority

may exercise the following powers at the request

of, or for the purposes of, assisting a European

regulatory authority or an overseas regulatory

authority

(a)

the power to impose, revoke or

vary conditions on the grant of an

authorisation pursuant to the provisions of

article 7;

(b) the power to suspend or revoke

an authorisation under article 26;

(c)

the power to take any action

under article 28, in lieu of or in addition to

any suspension or revocation of an

authorisation;

(d) the power to require information

and documentation under article 29;

(e)

the power to appoint inspectors

under article 30;

(f)

the power of entry to obtain

information and documentation under article

31;

(g) the power to issue a directive

under article 31A;

(h) the power to communicate to the

European regulatory authority information in

its possession, whether such information is

the result of any of the above powers or

otherwise; and

(i)

the power to prohibit the free

disposal of the undertaking’s assets located

in Malta in the circumstances referred to in

Articles 137 to 139 and Article 144(2) of the

Solvency II Directive; the undertaking’s

home Member State shall designate the

assets to be covered by such measures.

(9) There shall be meetings between an

authorised insurance or reinsurance undertaking,

its approved auditors, and, in the case of an

undertaking authorised to carry on long term

business, its approved actuary and the competent

authority on a bilateral or a multilateral basis as

circumstances may warrant. Such meetings may be

called by any of the parties, and shall in each case

be chaired by the competent authority.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 62 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Immediately after article 55 of the principal Act, there

Addition of new

articles 55A and

shall be inserted the following new articles

55B to the

principal Act .

" Co-operation

55A. (1) The competent authority shall

with EIOPA.

cooperate with EIOPA for the purposes of the

Solvency II Directive in accordance with

Regulation (EU) No 1094/2010.

(2) The competent authority shall provide

EIOPA with all information necessary to carry out

its duties in accordance with Regulation (EU) No

1094/2010.

55B. (1) The competent authority may

Co-operation

with third

enter into co-operation agreements with overseas

countries.

regulatory authorities or with such authorities or

bodies as defined in article 55(2), in countries that

are not Member States or EEA States only if the

information disclosed is subject to the guarantees

of professional secrecy at least equivalent to those

required under articles 55 and 59. Such exchange

of information must be intended for the

performance of the supervisory task of such

overseas regulatory authorities, authorities or

bodies.

(2) Where the information to be disclosed

by the competent authority to the authorities or

bodies referred to in sub-article (1), had originated

from a European regulatory authority, it may only

be disclosed to an overseas regulatory authority

with the express agreement of such European

regulatory authority which had transmitted it and,

where appropriate, solely for the purposes for

which that authority had given its agreement.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 63 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 56 of the principal Act shall be amended as Amendment of

article 56 of the

follows

principal Act.

(a)

in paragraph (a) of sub-article (1) thereof, for the

words "an actuary of a company;", there shall be substituted the

words "an actuary of an undertaking;";

(b) in sub-article (2) thereof, for the words "an

authorised company,", there shall be substituted the words "an

authorised undertaking,";

(c)

in sub-article (3) thereof, for the words "the

company in relation to", there shall be substituted the words

"the undertaking in relation to"; and

(d) in sub-article (4) thereof, for the words "and

authorised companies, make rules", there shall be substituted

the words "and authorised undertakings, make rules".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 64 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In the proviso to sub-article (4) of article 57 of the Amendment of

principal Act, for the words "made under sub-article (13) of the said article

principal Act.

article 21", there shall be substituted the words "made under the said

article 21".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 65 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 58 of the principal Act shall be amended as Amendment of

article 58 of the

follows

principal Act.

(a)

in sub-article (1) thereof

(i) for the words "any person who is aggrieved by

a decision of the competent authority", there shall be

substituted the words "an appeal shall lie to the Financial

Services Tribunal with respect to - ";

(ii) paragraphs (a), (b), (c), (d), (e) and (f) thereof,

shall be renumbered as paragraphs (b), (c), (d), (g), (h) and

(i) respectively;

(iii) immediately before paragraph (b) thereof, as

renumbered, there shall be added the following new

paragraph

"(a) any failure to inform an applicant

within the term provided in sub-article (9) or (10)

of article 7;";

(iv) in paragraph (b) thereof, as renumbered, for the

words "to refuse", there shall be substituted the words "any

refusal to";

(v) in paragraph (c) thereof, as renumbered, for the

words "to impose any condition", there shall be substituted

the words "any condition imposed";

(vi) in paragraph (d) thereof, as renumbered, for the

words "to suspend or revoke", there shall be substituted the

words "any suspension or revocation of";

(vii) immediately after paragraph (d) thereof, as

renumbered, there shall be added the following new

paragraphs

"(e) any one or more measures taken under

article 28;

(f)

any directive given under article 31A;";

(viii) in paragraph (g) thereof, as renumbered, for

the words "to refuse" there shall be substituted the words

"any refusal of";

(ix) in paragraph (h) thereof, as renumbered, for the

words "to issue any notice or make any order", there shall

be substituted the words "any notice issued or any order

made";

(x) in paragraph (i) thereof, as renumbered, for the

words "to impose an administrative penalty", there shall be

substituted the words "any administrative penalty

imposed";

(b) for sub-article (2) thereof, there shall be substituted

the following

"(2) The provisions of article 21 of the Malta

Financial Services Authority Act shall apply

mutatis mutandis to appeals that may be brought

before the Tribunal under this article."; and

(c)

sub-article (3) thereof shall be deleted.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 66 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 59 of the principal Act shall be amended as Amendment of

article 59 of the

principal Act.

(a)

sub-article (1) thereof shall be deleted;

(b) sub-article (2) thereof shall be renumbered as sub-

article (1);

(c)

in sub-article (1) thereof, as renumbered

(i) for the words "agents, as well as by inspectors,

auditors and experts engaged by the competent authority",

there shall be substituted the words "agents, including

former officers, employees or agents, as well as by

inspectors, auditors and experts acting on behalf of the

competent authority";

(ii) for the words "by the duty of professional

secrecy, and shall not be disclosed to any other person,

except in the following cases:", there shall be substituted

the words "by the duty of professional secrecy.";

(iii) paragraphs (a) to (i) thereof shall be deleted;

(d)

sub-articles (3) to (6) thereof shall be deleted; and

(e)

immediately after sub-article (1) thereof, as

renumbered, there shall be added the following new sub-articles

(2) to (6)

"(2) Without prejudice to cases covered by

criminal law, the persons referred to in sub-article

(1) shall not disclose information obtained from an

authorised insurance or reinsurance undertaking

unless such disclosure of information be done in

summary or aggregate form, so as not to enable the

identity of such undertaking, to whom such

information relates, to be ascertained

Provided that, such persons may

disclose confidential information in civil or

commercial proceedings where an authorised

insurance or reinsurance undertaking has been

declared insolvent or is being compulsorily wound

up, as long as such information does not concern

third parties involved in attempts to rescue that

undertaking.

(3) Nothing in this Act shall authorise the

competent authority to enquire or cause an enquiry

to be made in an authorised insurance or

reinsurance undertaking into the affairs of any

individual policyholder of the authorised insurance

or reinsurance undertaking except for the purpose

of ensuring compliance with any of the provisions

of this or of any other Act.

(4) Where the competent authority receives

confidential information from a European

regulatory authority under this article and article

55 it may only use such confidential information in

the course of its duties and for the following

purposes

(a)

to check that the conditions

governing the carrying on of business of

insurance or reinsurance are met and to

facilitate the monitoring of the carrying on of

such business especially with regard to the

monitoring of the technical provisions, the

Solvency

Capital

Requirement,

the

Minimum Capital Requirement and the

system of governance;

(b) to impose penalties or adopt

other administrative measures and to

consider representations received in their

regard;

(c)

in appeals against decisions of

the competent authority under article 58; and

(d) in judicial proceedings under the

Solvency II Directive.

(5) When an officer or an employee of an

authorised insurance or reinsurance undertaking

has reason to believe that a transaction or a

proposed transaction could involve money

laundering or the funding of terrorism, he shall act

in compliance with the reporting and other

obligations set out in the regulations made under

article 12 of the Prevention of Money Laundering

Act and any procedures and guidance issued

thereunder, and such disclosure shall not constitute

a breach of confidentiality.

(6) In this article, any reference to agents

has the meaning assigned to it in article 30(10).".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 67 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 60 of the principal Act shall be amended as Amendment of

article 60 of the

principal Act.

(a)

in sub-article (1) thereof

(i) for the words "or potential policyholders",

there shall be substituted the words "potential

policyholders, insureds, claimants or other related parties";

and

(ii) in paragraph (a) thereof, for the words

"amongst companies", there shall be substituted the words

"amongst insurance undertakings"; and

(b) for sub-article (2) thereof, there shall be substituted

the following

"(2) Notwithstanding the provisions of the

Data Protection Act, the collection, use, storage

and transmission of information for the purposes

of the exchanging of personal data referred to in

sub-article (1) is deemed to be a necessary

measure for the prevention, detection or

suppression of insurance fraud.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 68 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 61 of the principal Act shall be amended as Amendment of

article 61 of the

principal Act.

(a)

for the words "or any regulations made", there shall

be substituted the words "or any regulations or Insurance Rules

made";

(b) in paragraph (e) thereof, for the words "an officer, or

a clerk of that body or to or on the person designated by that

body under article 11(1)(d)(i) or article 48A(2), as the case may

be;", there shall be substituted the words "an officer, secretary,

or a clerk of that body or to any person designated by that body

for that purpose as the case may be; or"; and

(c)

immediately after paragraph (e) thereof, there shall

be added the following new paragraph (f)

"(f) in the case of a third country insurance or

reinsurance undertaking or Lloyd’s, it has been given or

served to the person designated under article 11(1)(b)(i) or

article 48A(3), respectively;".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 69 Amendment of article 62 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 62 of the principal Act shall be amended as

follows

(a)

in the marginal note thereto, for the words

"Continuance of companies carrying on business of insurance,

insurance manager or insurance broker.", there shall be

substituted the words "Continuance of undertakings carrying on

business of insurance or companies enrolled as insurance

manager or insurance broker.";

(b)

in sub-article (1) thereof

(i)

in paragraph (a) thereof

(aa) for the words "as a company carrying

on business of insurance,", there shall be

substituted the words "as an undertaking carrying

on business of insurance or a company enrolled to

act as an insurance manager or insurance broker

under the Insurance Intermediaries Act,";

(bb) for the words "a company carrying on

business of insurance under the Companies Act and

under this Act; and", there shall be substituted the

words "authorised under this Act or enrolled under

the Insurance Intermediaries Act; and";

(ii) in paragraph (b) thereof, for the words "a

company carrying on business of insurance authorised

under this Act", there shall be substituted the words "an

undertaking carrying on business of insurance authorised

under this Act or a company enrolled to act as insurance

manager or insurance broker under the Insurance

Intermediaries Act"; and

(iii) in the paragraph immediately following

paragraph (b) thereof, for the words "such bodies corporate

or companies carrying on business of insurance,", there

shall be substituted the words "such bodies, undertakings

or companies,";

(c)

in sub-article (2) thereof

(i) in paragraph (a) thereof, for the words "such

body or company", there shall be substituted the words

"such body, undertaking or company";

(ii) in the paragraph

immediately

following

paragraph (b) thereof

(aa) for the words "continuance of a

company carrying on business of insurance as a

body corporate under a foreign jurisdiction shall",

there shall be substituted the words "continuance of

an undertaking or company as stated in paragraph

(b) of sub-article (1), as a body corporate under a

foreign jurisdiction, shall";

(bb) for sub-paragraph (ii) thereof, there

shall be substituted the following

"(ii) such continuance (or similar

process) will operate the continuation of the

corporate existence of the undertaking or

company as, or its conversion into, a body

corporate which will continue to retain or will

succeed to all assets, rights, and liabilities of

such undertaking or company.";

(d) sub-article (3) thereof, shall be substituted by the

following

"(3) In this article, reference to the "company" shall

include reference to a partnership en commandite or to a

similar or equivalent body corporate the capital of which is

divided into shares."; and

(e)

in sub-article (4) thereof, for the words "with respect

to continuance of companies.", there shall be substituted the

words "with respect to continuance of undertakings or

companies.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 70 Amendment of article 63 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 63 of the principal Act shall be deleted.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 71 Amendment of article 64 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 64 of the principal Act shall be amended as

(a)

in sub-article (1) thereof

(i) in paragraph (b) thereof, for the words "any

company authorised", there shall be substituted the words

"any undertaking authorised";

(ii) paragraphs (d) and (e) thereof shall be deleted;

and

(iii) paragraphs (f), (g), (h) and (i) thereof shall be

renumbered as paragraphs (d), (e), (f) and (g) respectively;

(b)

sub-article (3) thereof shall be deleted;

(c)

sub-articles (4), (5), and (6) thereof shall be

renumbered as sub-articles (3), (4) and (5), respectively;

(d) for sub-article (3) thereof, as renumbered, there shall

be substituted the following

"(3) The Minister may, after consultation with the

competent authority, make regulations providing for the

determination and regulation of any matter which relates to

finite reinsurance contracts or finite reinsurance activities,

including the identification, measurement, monitoring,

management, control and reporting of risks arising from

such contracts or activities.";

(e)

in sub-article (4) thereof, as renumbered, for the

words "within the meaning of Directive 2005/68/EC of the

European Parliament and of the Council of 16 November 2005

on reinsurance and amending Council Directives 73/239/EEC,

92/49/EEC, as well as Directives 98/78/EC and 2002/83/EC",

there shall be substituted the words "within the meaning of the

Solvency II Directive";

(f)

in sub-article (5) thereof, as renumbered, for the

words "exempting any person or any class or classes", there

shall be substituted the words "exempting any person, activity

or operation or any class or classes";

(g)

immediately

after

sub-article

(5)

thereof,

as

renumbered, there shall be added the following new sub-article

(6)

"(6) The Minister may, after consultation with the

competent authority, make regulations applicable to

captive insurance undertakings and captive reinsurance

undertakings, exempting from and modifying any of the

provisions of this Act or of any regulations made

thereunder.";

(h)

sub-article (8) thereof shall be deleted;

(i)

immediately after sub-article (7) thereof, there shall

be added the following new sub-article (8)

"(8) The Minister may, after consultation with the

competent authority, make regulations determining the

class or classes of long term business and the class or

classes or part classes of general business that may be

effected and carried out under this Act."; and

(j)

in sub-article (9) thereof, for the words "Regulations

made under this article may make", there shall be substituted the

words "Regulations made under this Act may make".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 72 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 65 of the principal Act shall be deleted.

Amendment of

article 65 of the

principal Act.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 73 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 66 of the principal Act shall be amended as Amendment of

article 66 of the

principal Act.

(a)

for the words "a function under this Act or any

regulations", there shall be substituted the words "a function

under this Act, regulations or Insurance Rules"; and

(b) for the words "of any functions under this Act or any

regulations", there shall be substituted the words "of any

functions under this Act or any regulations or Insurance Rules".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 74 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 67 of the principal Act shall be amended as Amendment of

article 67 of the

principal Act.

(a)

in sub-article (2) thereof

(i) in paragraph (a) thereof, for the words "for the

purpose of obtaining the issue of an authorisation under

this Act or any regulations made thereunder, furnishes",

there shall be substituted the words "for the purpose of

obtaining the issue of an authorisation under this Act or

pursuant to any of the provisions of this Act or any

regulations or Insurance Rules made thereunder,

furnishes";

(ii) in paragraph (c) thereof, for the words "or any

regulations made thereunder; or", there shall be substituted

the words "or any regulations or Insurance Rules made

thereunder; or";

(iii) paragraphs (d) and (e) thereof shall be

renumbered as paragraphs (e) and (f) respectively;

(iv) immediately after paragraph (c) thereof, there

shall be added the following new paragraph

"(d) who is knowingly a party to the carrying on

of the business of insurance with a fraudulent intent

or for a fraudulent purpose; or";

(v) in paragraph (f) thereof, as renumbered

(aa) for the words "or an employee of a

company -", there shall be substituted the words

"or an employee of an undertaking - ";

(bb) for sub-paragraph (i) thereof, there

shall be substituted the following sub-paragraph

"(i) fails to take all reasonable steps

to secure compliance by the undertaking

with any of the provisions of this Act or of

any regulations, or any Insurance Rules

made thereunder, or any authorisation or

permit issued thereunder; or";

(b)

in sub-article (3) thereof

(i) for the words "of sub-article (2)(e),", there shall

be substituted the words "of sub-article (2)(f),";

(ii) for the words "to a company,", there shall be

substituted the words "to an undertaking,";

(iii) for the words "for the company", there shall be

substituted the words "for the undertaking";

(c)

in sub-article (5) thereof

(i) in paragraph (a) thereof, for the words "greater

than two years;", there shall be substituted the words

"greater than four years;";

(ii) in paragraph (b) thereof, for the words "shall

not provide for a fine (multa) of less than two hundred and

thirty euro (€230) or greater than one hundred and sixteen

thousand euro (€116,000).", there shall be substituted the

words "shall not provide for a fine (multa) of less than two

hundred and thirty euro (€230) or greater than four

hundred and sixty-six thousand euro (€466,000); or";

(iii) immediately after paragraph (b) thereof, as

amended, there shall be added the following new

paragraph

''(c) may provide for both such fine and

imprisonment.''.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 75 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

The Second Schedule to the principal Act shall be Amendment of

the Second

amended as follows

Schedule to the

principal Act.

(a)

paragraph (1) thereof shall be deleted;

(b) in paragraph (2) thereof, for the words "2. Classes of

Long Term Business", there shall be substituted the words

"Classes of Long Term Business";

(c)

in Class I, "Life and annuity", under the heading

"Description"

(i) for the words "Effecting and carrying out

contracts", there shall be substituted the words

"Contracts";

(ii) for the words "contracts within Class III of this

Schedule", there shall be substituted the words "contracts

within Classes II and III of this Schedule";

(d) in Class II, "Marriage and Birth", under the heading

"Description"

(i) for the words "Effecting and carrying out

contracts", there shall be substituted the words

"Contracts";

(ii) for the words "for a period as may be specified

by the insurance rule.", there shall be substituted the words

"for a period of more than one year.";

(e)

in Class III, "Linked long term", under the heading

"Description", for the words "Effecting and carrying out

contracts", there shall be substituted the word "Contracts";

(f)

in Class IV, "Permanent Health", under the heading

"Description"

(i) for the words "Effecting and carrying out

contracts", there shall be substituted the word "Contracts";

(ii) in paragraph (a) thereof, for the words "for a

period as may be specified by the insurance rule,", there

shall be substituted the words "for a period of not less than

five years,";

(g) for Class V "Tontines", under the heading

"Description", for the words "Effecting and carrying out

tontines" there shall be substituted the words "Contracts of

insurance providing for operations whereby associations of

subscribers are to be set up with a view to capitalising their

contributions jointly and subsequently distributing the assets

thus accumulated among the survivors or among the

beneficiaries of the deceased.";

(h) for Class VI, "Capital redemption", under the

heading "Description", for the words "Effecting and carrying

out capital redemtion contracts" there shall be substituted the

words "Contracts of insurance providing for capital redemption

operations based on actuarial calculation whereby, in return for

single or periodic payments agreed in advance, commitments of

specified duration and amount are undertaken.";

(i)

in Class VII, "Pension fund management", under the

heading "Description"

(i) the words "Effecting and carrying out -", shall

be deleted;

(ii) for paragraph (a) thereof, there shall be

substituted the following new paragraph

"(a) Contracts to manage the investments of

pension funds, and in particular the assets

representing the reserves of bodies that effect

payments on death or survival or in the event of

discontinuance or curtailment of activity; or"; and

(iii) in paragraph (b) thereof, for the words

"contracts", there shall be substituted the word

"Contracts";

(j)

for Class VIII, "Collective insurance", under the

heading "Description", for the words "Effecting and carrying

out contracts of a kind as may be specified by the insurance

rule" there shall be substituted the words "Contracts of a kind

referred to in Article 2(3)(b)(v) of the Solvency II Directive.";

and

(k) for Class IX, "Social insurance", under the heading

"Description", for the words "Effecting and carrying out

contracts of a kind as may be specified by the insurance rule"

there shall be substituted the words "Contracts of a kind referred

to in Article 2(3)(c) of the Solvency II Directive.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 76 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

The Third Schedule to the principal Act shall be amended Amendment of

the Third

as follows

Schedule to the

principal Act.

(a)

in Part I thereof

(i) immediately preceding the table thereof, there

shall be added the words "Classification of risks according

to classes of insurance";

(ii) in Class 1, "Accident", in paragraph (c) thereof,

for the words "combinations of the two;", there shall be

substituted the words "combination of the two;";

(iii) in Class 18, "Assistance", in paragraph (a)

thereof, for the words "away from their permanent

residence;", there shall be substituted the words "away

from their habitual residence;"; and

(b)

in Part II thereof

(i) immediately preceding the table thereof, there

shall be added the words "The following names shall be

given to authorisations which simultaneously cover the

following classes:"; and

(ii) for the heading "Composition", in the third

column of the table thereof, there shall be substituted the

words "Classes of Business".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 77 General amendment of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

For the words "an insurance rule", "any insurance rule",

"the insurance rule" and "such insurance rule", wherever they appear

in the Act, there shall be substituted the words "Insurance Rules".

PART II

AMENDMENTS TO THE INSURANCE

INTERMEDIARIES ACT, CAP. 487

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 78 Amendment of the Insurance Intermediaries Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

This Part amends and shall be read and construed as one

with the Insurance Intermediaries Act, hereinafter in this Part referred

to as "the principal Act".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 79 Amendment of article 2 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Sub-article (1) of article 2 of the principal Act shall be

amended as follows

(a)

for the definition "advertisement", there shall be

substituted the following new definition

" "advertisement", in relation to insurance

intermediaries activities, means any form or medium of

advertising, and without prejudice to the generality of the

foregoing, includes advertising in a publication, the

display of notices, signs, labels or showcards, by means of

letters, circulars, catalogues, price lists or other documents,

by an exhibition of pictures or photographic or

cinematographic films, by way of sound broadcasting or

television, by the distribution of recordings or in any other

manner, and references to the issue of an advertisement

shall be construed accordingly;";

(b) for the definition "authorised company", there shall

be substituted the following new definition

" "authorised undertaking" means an authorised

insurance undertaking or an authorised reinsurance

undertaking which has received authorisation pursuant

to article 7 of the Insurance Business Act or any person

deemed authorised under the said Act, to carry on

business of insurance and includes a company enrolled

under this Act to act as an insurance agent of the

undertaking, as well as a European insurance

undertaking or a European reinsurance undertaking

having its head office in a Member State or an EEA

State establishing a branch or providing services in

Malta in exercise of a European right;";

(c)

in the definition "body corporate", for the words

"distinct from that of its members;", there shall be substituted

the words "distinct from that of its members and also includes a

foreign corporation;";

(d) immediately after the definition "class", there shall

be added the following new definition

" "close links" means a situation in which two or

more natural or legal persons are linked by control or

participation, or a situation in which two or more natural or

legal persons are permanently linked to one and the same

person by a control relationship;";

(e)

for the definition "control", there shall be substituted

the following new definition

" "control" means the relationship between a parent

undertaking and a subsidiary undertaking, as set out in

Article 22 of Directive 2013/34/EU of the European

Parliament and of the Council of 26 June 2013 on the

annual financial statements, consolidated financial

statements and related reports of certain types of

undertakings, amending Directive 2006/43/EC of the

European Parliament and of the Council and repealing

Council Directives 78/660/EEC and 83/349/EEC, or a

similar relationship between any natural or legal person

and an undertaking;";

(f) in the definition "controller", for the words

"exercises control of the body corporate;", there shall be

substituted the words "exercises the power to determine the

financial and operating policies of the body corporate;";

(g) for the definition "European insurance undertaking",

there shall be substituted the following

" "European insurance undertaking" means an

undertaking having its head office in a Member State or an

EEA State, other than Malta, pursuing the activity of direct

insurance within the meaning of Article 2 of the Solvency

II Directive, which has received authorisation in

accordance with Article 14 of the Solvency II Directive;";

(h) immediately after the definition "European

insurance undertaking", there shall be added the following new

definition

" "European reinsurance undertaking" means an

undertaking having its head office in a Member State or an

EEA State, other than Malta, pursuing business restricted

to reinsurance within the meaning of Article 2 of the

Solvency II Directive which has received authorisation in

accordance with Article 14 of the Solvency II Directive;";

(i)

for the definition "insurance intermediaries rule",

there shall be substituted the following

" "insurance intermediaries rule" means a rule in

respect of insurance intermediaries activities issued by the

competent authority under various articles of this Act and

under any regulations issued thereunder;";

(j)

immediately after the definition "own funds", there

shall be added the following new definition

" "participation" means the ownership, direct or by

way of control, of 20% or more of the voting rights or

capital of an undertaking;";

(k) immediately after the definition "registered", there

shall be added the following new definition

" "regulated market" means either of the

following

(a)

in the case of a market situated in

Malta, a market authorised in terms of the

Financial Markets Act;

(b) in the case of a market situated in

a Member State or an EEA State, other than

Malta, a regulated market as defined in

Article 4(1)(14) of Directive 2004/39/EC of

the European Parliament and of the Council

of 21 April 2004 on markets in financial

instruments amending Council Directive 85/

611/EEC and 96/6/EEC and Directive 2000/

12/EC of the European Parliament and of the

Council and repealing Council Directive 93/

22/EEC, as amended from time to time; or

(c)

in the case of a market situated in

a non-Member State or non-EEA State, a

financial market which fulfils the following

conditions

(i) it is recognised by the

competent

authority

and

fulfils

requirements comparable to those laid

down in Directive 2004/39/EC; and

(ii) the financial instruments

dealt in on that market are of a quality

comparable to that of the instruments

dealt in on the regulated market or

markets in Malta;";

(l)

immediately after the definition "Schedule", there

shall be added the following new definition

" "Solvency II Directive" means Directive 2009/138/

EC of the European Parliament and of the Council of 25

November 2009 on the taking-up and pursuit of the

business of Insurance and Reinsurance (Solvency II)

(recast), as amended from time to time, and includes any

delegated acts and any technical standards that have been

or may be issued thereunder;";

(m) immediately after the new definition "Solvency II

Directive", there shall be added the following new definition

" "third country insurance undertaking"

means an undertaking, other than a European

insurance undertaking, which would require

authorisation as an authorised insurance

undertaking pursuant to article 7 of the Insurance

Business Act, as if its head office were situated in

Malta;";

(n) immediately after the new definition "third country

insurance undertaking", there shall be added the following new

definition

" "third country reinsurance undertaking"

means an undertaking, other than a European

reinsurance undertaking, which would require

authorisation as an authorised reinsurance

undertaking in accordance with article 7 of the

Insurance Business Act, as if its head office were

situated in Malta;";

(o) in the definition "tied insurance intermediaries

activities", for the words "under the responsibility of an

authorised company", there shall be substituted the words

"under the responsibility of an authorised undertaking";

(p) for the definition "Tied Insurance Intermediaries

Company Register", there shall be substituted the following

" "Tied Insurance Intermediaries Company Register"

in relation to an authorised undertaking means the Tied

Insurance Intermediaries Company Register established

and maintained by an authorised undertaking under article

34(1);".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 80 Amendment of article 4 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 4 of the principal Act shall be amended as follows

(a)

in sub-article (2) thereof, immediately after the

words "revoke such insurance intermediaries rules.", there shall

be added the words " revoke such insurance intermediaries rules

and any amendment or revocation thereof shall be officially

communicated to the persons concerned.";

(b) for sub-article (3) thereof, there shall be substituted

the following

"(3) Insurance intermediaries rules shall be binding

on insurance intermediaries and others as may be specified

therein."; and

(c)

in paragraph (d) of sub-article (4) thereof, for the

words "between insurance intermediaries and insurance

companies", there shall be substituted the words "between

insurance

intermediaries

and

authorised

insurance

undertakings".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 81 Amendment of article 10 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 10 of the principal Act shall be amended as

follows

(a)

sub-article (3) thereof shall be deleted; and

(b) sub-article (4) thereof shall be renumbered as sub-

article (3).

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 82 Amendment of article 31 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 31 of the principal Act shall be amended as

follows

(a)

in sub-article (1) thereof, for the words "shall be

taken out with an authorised company.", there shall be

substituted the words "shall be taken out with an authorised

undertaking.";

(b)

sub-article (2) thereof shall be deleted;

(c)

sub-article (3) thereof shall be renumbered as sub-

article (2); and

(d)

in sub-article (2) thereof, as renumbered

(i) for the words "Save as otherwise provided in

sub-article (2), the provisions of this article shall not apply

to - ", there shall be substituted the words "The provisions

of this article shall not apply to - " ; and

(ii) for paragraph (b) thereof, there shall be

substituted the following

"(b) large risks as defined in Article 13 of

the Solvency II Directive.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 83 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 32 of the principal Act shall be amended as Amendment of

article 32 of the

principal Act.

(a)

in sub-article (1) thereof, for the words "with any

authorised company.", there shall be substituted the words "with

any authorised undertaking.";

(b)

in sub-article (7) thereof

(i) for the words "an agreement between an

authorised company and a person enrolled in the Brokers

List", there shall be substituted the words "an agreement

between an authorised undertaking and a person enrolled in

the Brokers List"; and

(ii) for the words "on behalf of the authorised

company;", there shall be substituted the words "on behalf

of the authorised undertaking;".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 84 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 34 of the principal Act shall be amended as Amendment of

article 34 of the

principal Act.

(a)

in sub-article (1) thereof, for the words "every

authorised company desirous of appointing", there shall be

substituted the words "every authorised undertaking desirous of

appointing"; and

(b) in sub-article (2) thereof, for the words "every

authorised company shall determine", there shall be substituted

the words "every authorised undertaking shall determine".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 85 Amendment of article 35 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In sub-article (1) of article 35 of the principal Act, for the

words "registered by an authorised company in the Tied Insurance

Intermediaries Company Register of the company if the company is

satisfied", there shall be substituted the words "registered by an

authorised undertaking in the Tied Insurance Intermediaries Company

Register of such undertaking if it is satisfied".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 86 Amendment of article 36 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 36 of the principal Act shall be amended as

(a)

in sub-article (2) thereof

(i) for the words "the duty of an authorised

company", there shall be substituted the words "the duty of

an authorised undertaking"; and

(ii) for the words "Tied Insurance Intermediaries

Company Register of the company under article 37.", there

shall be substituted the words "Tied Insurance

Intermediaries Company Register established and

maintained by it under article 37."; and

(b)

in sub-article (3) thereof

(i) for the words "an authorised company shall

furnish", there shall be substituted the words "an authorised

undertaking shall furnish"; and

(ii) for the words "issued to the company by the

competent authority.", there shall be substituted the words

"issued to the authorised undertaking by the competent

authority.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 87 Amendment of article 37 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 37 of the principal Act shall be amended as

(a)

in sub-article (1) thereof

(i) for the words "every authorised company

desirous of appointing a person", there shall be

substituted the words "every authorised undertaking

desirous of appointing a person";

(ii) for the words "Tied Insurance Intermediaries

Company Register of the company", there shall be

substituted the words "Tied Insurance Intermediaries

Company Register of the authorised undertaking";

(iii) in the first proviso to sub-article (1) thereof

(aa)

for the words "a company is

prohibited from appointing and registering in the

Tied Insurance Intermediaries Company Register

of the company", there shall be substituted the

words "an undertaking is prohibited from

appointing and registering in its Tied Insurance

Intermediaries Company Register"; and

(bb) in paragraph (c) thereof, for the words

"a company authorised under the Insurance

Business Act", there shall be substituted the words

"an undertaking authorised under the Insurance

Business Act";

(iv) in the second proviso to sub-article (1) thereof,

for the words "a company is prohibited from", there shall

be substituted the words "an undertaking is prohibited

from";

(b) in sub-article (2) thereof, for the words "Where an

authorised company appoints and registers in the Tied Insurance

Intermediaries Company Register of the company", there shall

be substituted the words "Where an authorised undertaking

appoints and registers in its Tied Insurance Intermediaries

Company Register"; and

(c)

in sub-article (3) thereof

(i) for the words "Tied Insurance Intermediaries

Company Register of an authorised company", there shall

be substituted the words "Tied Insurance Intermediaries

Company Register of an authorised undertaking"; and

(ii) for the words "on behalf of that company.",

there shall be substituted the words "on behalf of such

undertaking.".

(d)

in sub-article (4) thereof

(i) for the words "more than one company

authorised to carry on long term business,", there shall be

substituted the words "more than one undertaking,

authorised to carry on long term business,";

(ii) for the words "carried on by the companies

concerned", there shall be substituted the words "carried on

by the undertakings concerned"; and

(iii)for the words "Tied Insurance Intermediaries

Company Register of one of the companies concerned.",

there shall be substituted the words "Tied Insurance

Intermediaries Company Register of one of the

undertakings concerned.";

(e)

in sub-article (5) thereof

(i) for the words "more than one company

authorised to", there shall be substituted the words "more

than one undertaking authorised to";

(ii) for the words "carried on by the companies

concerned", there shall be substituted the words "carried on

by the undertakings concerned"; and

(iii)for the words "Tied Insurance Intermediaries

Company Register of one of the companies concerned.",

there shall be substituted the words "Tied Insurance

Intermediaries Company Register of one of the

undertakings concerned.";

(f)

for sub-article (6) thereof, there shall be substituted

the following

"(6)No person who is an employee of an authorised

undertaking shall, solely by virtue of his employment by

the undertaking, require registration in the Tied Insurance

Intermediaries Company Register of the undertaking under

this article."; and

(g)

in sub-article (9) thereof

(i) for the words "An authorised company shall",

there shall be substituted the words "An authorised

undertaking shall"; and

(ii) for the words "issued by the company", there

shall be substituted the words "issued by the undertaking".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 88 Amendment of article 38 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Sub-article (3) of article 38 of the principal Act shall be

amended as follows

(a)

in paragraph (a) thereof, for the words "paid to the

company", there shall be substituted the words "paid to the

authorised undertaking"; and

(b) in paragraph (b) thereof, for the words "paid by the

authorised company", there shall be substituted the words "paid

by the authorised undertaking".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 89 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 39 of the principal Act shall be amended as Amendment of

article 39 of the

follows

principal Act.

(a)

in paragraph (a) thereof, for the words "any

authorised company may strike off the Tied Insurance

Intermediaries Company Register of the company", there shall

be substituted the words "any authorised undertaking may strike

off its Tied Insurance Intermediaries Company Register"; and

(b) in paragraph (b) thereof, for the words "Tied

Insurance Intermediaries Company Register of an authorised

company may make an application in writing to the company

concerned requesting the company", there shall be substituted

the words "Tied Insurance Intermediaries Company Register of

an authorised undertaking may make an application in writing

to the undertaking concerned requesting it".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 90 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 40 of the principal Act shall be amended as Amendment of

article 40 of the

follows

principal Act.

(a) in sub-article (1) thereof, for the words "Where an

authorised company elects to strike the name of a person off the

Tied Insurance Intermediaries Company Register of the

company, the company shall forthwith notify", there shall be

substituted the words "Where an authorised undertaking elects

to strike the name of a person off its Tied Insurance

Intermediaries Company Register, such undertaking shall

forthwith notify";

(b)

in sub-article (2) thereof

(i) for the words "Where an authorised company

strikes the name of a person off the Tied Insurance

Intermediaries Company Register of the company", there

shall be substituted the words "Where an authorised

undertaking strikes the name of a person off its Tied

Insurance Intermediaries Company Register"; and

(ii) for the words "the company shall also notify in

writing", there shall be substituted the words "the

undertaking shall also notify in writing";

(c)

in sub-article (3) thereof

(i) for the words "notification from an authorised

company that the company has elected to strike the name of

a person off the Tied Insurance Intermediaries Company

Register of the company,", there shall be substituted the

words "notification from an authorised undertaking that

such undertaking has elected to strike the name of a person

off its Tied Insurance Intermediaries Company Register,";

and

(ii) for paragraph (a) thereof, there shall be

substituted the following

"(a)

if the striking of such name off the

register is on grounds other than those specified in

sub-article (2), as early as reasonably practicable,

confirm in writing to the authorised undertaking

that the name of such person, in so far as it relates

to that undertaking, shall be struck off the Tied

Insurance Intermediaries List as from the date

specified in the undertaking’s notification;";

(d) for paragraph (a) of sub-article (4) thereof, there

shall be substituted the following

"(a) if the name of that person is registered in the

Tied Insurance Intermediaries Company Register of any

other authorised undertaking, the competent authority shall

also forthwith notify in writing that other undertaking and

direct it to strike forthwith the name of that person off the

Tied Insurance Intermediaries Company Register of that

undertaking and give the undertaking the reasons for its

direction;";

(e)

in sub-article (6) thereof, for the words "Where an

authorised company receives in writing an application from a

person registered in the Tied Insurance Intermediaries Company

Register of the company requesting the company to strike the

name of that person off the said register, the company shall

without undue delay strike the name of that person off the said

register", there shall be substituted the words "Where an

authorised undertaking receives in writing an application from a

person registered in the Tied Insurance Intermediaries Company

Register of the undertaking requesting such undertaking to

strike the name of that person off the said register, the

undertaking shall without undue delay strike the name of that

person off the said register";

(f) for sub-article (7) thereof, there shall be substituted

the following

"(7) Where, on an application made to an authorised

undertaking under sub-article (6), the undertaking refuses,

or unduly prolongs the process, to strike the name of a

person off its Tied Insurance Intermediaries Company

Register, the person concerned may refer the matter to the

competent authority and the competent authority shall issue

in writing to the undertaking concerned those directives it

deems necessary to oblige the undertaking to hasten the

process to strike the name of that person off its register.";

and

(g) for sub-article (8) thereof, there shall be substituted

the following

"(8) On notification by the competent authority to

an authorised undertaking that the name of a person

registered in the Tied Insurance Intermediaries Company

Register of the undertaking has been struck off the Tied

Insurance Intermediaries List, the undertaking concerned

shall forthwith surrender to the competent authority the

certificate of enrolment relating to that person, and any

official copies thereof.".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 91 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In the proviso to sub-article (1) of article 41 of the Amendment of

principal Act, for the words "shall inform the company concerned", article

principal Act.

there shall be substituted the words "shall inform the undertaking

concerned".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 92 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In sub-article (1) of article 43 of the principal Act, for the Amendment of

words " "authorised company" ", there shall be substituted the words article

principal Act.

" "authorised undertaking" ".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 93 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In sub-article (2) of article 44A of the principal Act, the Amendment of

words "within the meaning of the Financial Markets Act or on an article

the principal

equivalent market in a non-Member State or non-EEA State" shall be Act.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 94 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In sub-article (3) of article 45 of the principal Act, for the Amendment of

words "meetings held between an authorised company, an insurance article

principal Act.

intermediary, an approved auditor and the competent authority", there

shall be substituted the words "meetings held between an authorised

undertaking, an insurance intermediary, an approved auditor and the

competent authority".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 95 Amendment of article 47 of the deleted. principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Sub-article (3) of article 47 of the principal Act shall be

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 96 Amendment of article 48 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 48 of the principal Act shall be amended as

(a)

for paragraph (d) of sub-article (1) thereof, there

shall be substituted the following

"(d) an

insurance

and

reinsurance

undertaking authorised under the Insurance

Business Act;"; and

(b)

in sub-article (2) thereof

(i) for the words "Any foreign company enrolled or

authorised", there shall be substituted the words "Any

foreign company enrolled or any third country insurance

undertaking or third country reinsurance undertaking

authorised"; and

(ii) for the words "such company shall add", there

shall be substituted the words "such foreign company, third

country insurance undertaking or third country reinsurance

undertaking shall add".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 97 Amendment of article 49 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 49 of the principal Act shall be amended as

(a)

for the words "under this Act and any regulations

made thereunder", there shall be substituted the words "under

this Act and any regulations or any insurance intermediaries

rule made thereunder"; and

(b) in paragraph (e) thereof, for the words "on a

director, an officer, a clerk", there shall be substituted the words

"on a director, an officer, secretary, a clerk".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 98 Amendment of article 50 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 50 of the principal Act shall be amended as

(a)

in sub-article (2) thereof

(i) for the words "any person who, or any company

which, is aggrieved by a decision of the competent

authority -", there shall be substituted the words "an appeal

shall lie to the Financial Services Tribunal with respect to -

";

(ii) in paragraph (a) thereof, for the words "to refuse

to register or to enrol", there shall be substituted the words

"any refusal to register or to enrol";

(iii)in paragraph (b) thereof, for the words "to

impose any condition", there shall be substituted the words

"any condition imposed";

(iv) in paragraph (c) thereof, for the words "to

suspend or strike the name of a person off", there shall be

substituted the words "any suspension or striking off of the

name of a person from";

(v) in paragraph (d) thereof, for the words "to refuse

to restore the name", there shall be substituted the words

"any refusal to restore the name";

(vi) paragraphs (e), (f), (g), (h) and (i) shall be

renumbered as (f), (g), (h), (i) and (k), respectively;

(vii)immediately after paragraph (d) thereof, there

shall be added the following new paragraph (e)

"(e) any one or more measures taken under

article 19;";

(viii) in paragraph (f) thereof, as renumbered, for the

words "to refuse to register", there shall be substituted the

words "any refusal to register";

(ix) in paragraph (g) thereof, as renumbered, for the

words "to strike the name of a person off", there shall be

substituted the words "any striking off of the name of a

person from";

(x) for paragraph (h) thereof, as renumbered, there

shall be substituted the following

"(h) any requirement on an authorised

undertaking to strike the name of a person off the

Tied Insurance Intermediaries Company Register

under article 41;";

(xi) in paragraph (i) thereof, as renumbered, for the

words "to issue any notice or make any order", there shall

be substituted the words "any notice issued or any order

made";

(xii)immediately after paragraph (i) thereof, as

renumbered, there shall be added the following new

paragraph (j)

"(j) any directive given under article

31A of the Insurance Business Act, made

applicable by article 54 of this Act;"; and

(xiii) in paragraph (k) thereof, as renumbered, for

the words "to impose an administrative penalty", there

shall be substituted the words "any administrative penalty

imposed"; and

(b)

sub-articles (3) and (4) thereof shall be deleted.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 99 Amendment of article 52 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Sub-article (1) of article 52 of the principal Act shall be

amended as follows

(a)

in paragraph (a) thereof, for the words "enrolment

under this Act or any regulations made thereunder", there shall

be substituted the words "enrolment under this Act or any

regulations or any insurance intermediaries rule made

thereunder,";

(b) paragraphs (d), (e), (f), (g) and (h) shall be

renumbered as (e), (f), (g), (h) and (i), respectively;

(c)

immediately after paragraph (c) thereof, there shall

be added the following new paragraph (d)

"(d)who is knowingly a party to the carrying out of

insurance intermediaries activities with a fraudulent intent

or for a fraudulent purpose; or"; and

(d) in paragraph (i) thereof, as renumbered, for the

words "or any regulations made thereunder,", there shall be

substituted the words "or any regulations or any insurance

intermediaries rule made thereunder,".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 100 Amendment of article 53 of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Sub-article (1) of article 53 of the principal Act shall be

amended as follows

(a)

in paragraph (a) thereof, for the words

"imprisonment greater than two years;", there shall be

substituted the words "imprisonment greater than four years;";

and

(b)

in paragraph (b) thereof, for the words "or greater

than one hundred and sixteen thousand euro (€116,000);", there

shall be substituted the words "or greater than four hundred and

sixty-six thousand euro (€466,000);".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 101 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 54 of the principal Act shall be amended as Amendment of

article 54 of the

principal Act.

(a)

in sub-article (1) thereof

(i) in sub-paragraph (ii) of paragraph (a) thereof,

for the words "to "authorised company" ", there shall be

substituted the words "to "authorised insurance or

reinsurance undertaking" "; and

(ii) in sub-paragraph (ii) of paragraph (b) thereof,

for the words "to "an authorised company" ", there shall be

substituted the words "to "an authorised insurance

undertaking" "; and

(b) in sub-article (2) thereof, for the words "and

references to "insurance rules" ", there shall be substituted the

words "and references to "Insurance Rules" ".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 102 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

The Third Column of the Schedule to the principal Act, Amendment of

the Schedule to

shall be amended as follows

the principal

Act.

(a)

in paragraph (2) thereof

(i) for the words "appointed by a company

authorised under the Insurance Business Act", there shall

be substituted the words "appointed by an undertaking

authorised under the Insurance Business Act"; and

(ii) for the words "on behalf of the company", there

shall be substituted the words "on behalf of the

undertaking";

(b)

in paragraph (4) thereof

(i) for the words "on behalf of one or more

authorised companies", there shall be substituted the words

"on behalf of one or more authorised undertakings"; and

(ii) for the words "the full responsibility of those

authorised companies", there shall be substituted the words

"the full responsibility of those authorised undertakings".

PART III

AMENDMENT TO THE COMPANIES ACT, CAP. 386

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 103 Amendment to the Companies Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

This Part amends and shall be read and construed as one

with the Companies Act, hereinafter in this Part referred to as "the

principal Act".

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 104 Amendment of article 84A of the principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

In paragraph (a) of sub-article (2) of article 84A of the

principal Act, for the words "and shall include the business of

affiliated insurance as prescribed by regulations issued thereunder,",

there shall be substituted the words "and shall include the business

carried on by a captive insurance undertaking and captive reinsurance

undertaking in terms of the said Act,".

PART IV

AMENDMENT TO THE INCOME TAX ACT, CAP. 123

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 105 Amendment to the Income Tax Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

(1) This Part of this Act amends the Income Tax Act and

it shall be read and construed as one with the Income Tax Act,

hereinafter in this Part referred to as "the principal Act''.

(2) The provisions of this Part shall come into force on 1

January 2016.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 106 Amendment of article 51 of the follows: principal Act. — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Article 51 of the principal Act shall be amended as

(a)

sub-article (2) thereof shall be re-numbered as

paragraph (a) of the said sub-article; and

(b) immediately after paragraph (a), as re-numbered, of

sub-article (2) thereof there shall be added the following new

paragraph

''(b) The benefits of EU Council Directive 2011/96/

EU on the common system of taxation applicable in the

case of parent companies and subsidiaries of different

Member States (as amended) shall not be granted to any

arrangement or a series of arrangements which, having

been put into place for the main purpose or one of the main

purposes of obtaining a tax advantage that defeats the

object or purpose of the said EU Council Directive 2011/

96/EU, are not genuine having regard to all relevant facts

and circumstances.

For the purpose of this paragraph –

(i) an arrangement may comprise more than one

step or part;

(ii) without prejudice to any remaining genuine

steps or parts of any particular arrangement, an

arrangement or a series of arrangements shall be regarded

as not genuine to the extent that they are not put into place

for valid commercial reasons which reflect economic

reality; and

(iii) where a single step or part in an arrangement or

a series of arrangements is, by itself and without regard to

the remainder of the arrangement or series of

arrangements, not genuine, the provisions of this paragraph

shall apply only to such step or part that is not genuine,

without prejudice to the remainder of the arrangement or

series of arrangements that are genuine.

The provisions of this paragraph –

(i) implement EU Council Directive 2015/121 of

27 January 2015 amending Directive 2011/96/EU on the

common system of taxation applicable in the case of parent

companies and subsidiaries of different Member States;

and

(ii) shall not preclude the application of any other

provision in the Income Tax Acts or any rules issued

thereunder concerning the prevention of tax evasion, tax

fraud or abuse.''.

PART V

AMENDMENT TO THE INCOME TAX MANAGEMENT ACT,

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 107 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

This Part of this Act amends the Income Tax Management Amendment to

Act and it shall be read and construed as one with the Income Tax the

Management

Management Act, hereinafter in this Part referred to as "the principal Act.

Malta Government Gazette — Act 2015 33 · Gazzetta tal-Gvern ta’ Malta Nru. 19,503 – 20.11.2015 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto.
Art. 108 — AN ACT to amend various financial services laws, to transpose Directive 2009/138/EC ("the Solvency II Directive"), and to provide for matters ancillary or incidental thereto. Open official source

Immediately after sub-article (4) of article 10A of the Amendment of

article 10A of

principal Act there shall be added the following new sub-article

the principal

Act.

(5) The Minister may make rules for

"Rules for the

collection and

the

collection

and

maintenance

of

maintenance of

information.

information, even where arrangements

between

Malta

and

other

relevant

jurisdictions, or their tax authorities, for the

purposes of exchange of information for tax

purposes, are not in force

Provided that the person that is

obliged to collect and maintain such

information according to such rules shall not

be obliged to provide such information to the

Commissioner before an arrangement

between Malta and the other relevant

jurisdiction, or its tax authorities, for the

purposes of exchange of information for tax

purposes, enters into force.''.

Passed by the House of Representatives at Sitting No 312 of the

26th October, 2015.

A NĠLU F ARRUGIA

Speaker

R AYMOND S CICLUNA

Clerk of the House of Representatives

€12.42

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