ACT No. XXVI of 2018 AN ACT to amend various financial services laws, to transpose Directive (EU) 2016/97 ("Insurance Distribution Directive"), and to provide for matters ancillary or incidental thereto.

I assent.

(L.S.)

MARIE-LOUISE

COLEIRO PRECA

President

10th July, 2018

ACT No. XXVI of 2018

AN ACT to amend various financial services laws, to transpose

Directive (EU) 2016/97 ("Insurance Distribution 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:-

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

Services Laws (Amendment) Act, 2018.

(2) The provisions of this Act shall come into force on such date

as the Minister responsible for the regulation of Financial Services

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

established for different provisions of this Act.

PART I

AMENDMENTS TO THE INSURANCE

INTERMEDIARIES ACT (CAP. 487)

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".

For the Title of the principal Act, there shall be substituted the

following: "INSURANCE DISTRIBUTION ACT".

In the paragraph immediately following the title of the

principal Act, for the words "To regulate the registration and

enrolment of insurance intermediaries and insurance intermediaries

activities." there shall be substituted the words, "To regulate the

registration and enrolment of insurance and reinsurance intermediaries

and the insurance and reinsurance distribution activities.".

The "ARRANGEMENT OF ACT" of the principal Act, shall

be amended as follows

(a) immediately after "Part VIII. Registration and

Enrolment of Tied Insurance Intermediaries" there shall be added

the following new Parts

"Part VIIIA. Registration and Enrolment of Ancillary

Insurance Intermediaries

Part VIIIB. Provisions applicable to Undertakings

Authorised under the Insurance Business Act carrying out

Distribution Activities";

(b) in the new "Part VIIIA. Registration and Enrolment

of Ancillary Insurance Intermediaries", under the heading

"Articles" there shall be inserted the figures "43A-43J";

(c) in the new "Part VIIIB. Provisions applicable to

Undertakings Authorised under the Insurance Business Act

carrying out Distribution Activities", under the heading

"Articles" there shall be inserted the figures "43K-43O"; and

(d) in the "SCHEDULE", for the words "Insurance

Intermediaries and Insurance Intermediaries Activities" there

shall be substituted the words "Insurance and Reinsurance

Distribution Activities".

In article 1 of the principal Act, for the words "the Insurance

Intermediaries Act." there shall be substituted the words "the

Insurance Distribution Act.".

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) for the definition "advertisement" there shall be

substituted the following

" "advertisement", in relation to insurance

distribution activities, means any form or medium of

marketing activity or communication disseminated to

the public by means of all types of media, other than

a prospectus, which promotes the purchase or

procurement of a service or product and which is

addressed by a person registered or enrolled under

this Act, carrying out insurance distribution

activities, to a client or potential client;";

(ii) immediately after the definition "Agents

Register" there shall be added the following new

definitions

"

"ancillary

insurance

intermediaries

activities", in relation to a person registered and

enrolled as an ancillary insurance intermediary,

means the insurance distribution activities listed in

paragraph (5) of the Third Column of the Schedule;

"Ancillary Insurance Intermediaries Company

Register" in relation to an authorised undertaking and

an enrolled insurance broker means the Ancillary

Insurance

Intermediaries

Company

Register

established and maintained by an authorised

undertaking or an enrolled insurance broker under

article 43B(1);

"Ancillary Insurance Intermediaries List"

means the list of ancillary insurance intermediaries

established and maintained under article 43D(1);

"ancillary insurance intermediary" means any

natural or legal person, other than a credit institution

or an investment firm, as defined by points (1) and

(2) of Article 4(1) of Regulation (EU) No. 575/2013

of the European Parliament and of the Council of 26

June 2013 on prudential requirements for credit

institutions and investment firms and amending

Regulation (EU) No. 648/2012, carrying out the

insurance distribution activities listed in paragraph

(5) of the Third Column of the Schedule;";

(iii) immediately after the definition "approved

auditor" there shall be added the following new definitions

" "authorised insurance undertaking" has the

same meaning as is assigned to it by article 2(1) of

the Insurance Business Act;

"authorised reinsurance undertaking" has the

same meaning as is assigned to it by article 2(1) of

the Insurance Business Act;";

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

"insurance intermediaries activities" there shall be

substituted the words "insurance distribution activities or

reinsurance distribution activities";

(v) in the definition "business of insurance

broking", for the words "the activities listed in paragraph

1" there shall be substituted the words, "the activities listed

in paragraph (1)";

(vi) the definition "certificate of enrolment" shall be

amended as follows

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

the Brokers List; and" there shall be substituted the

words "in the Brokers List;";

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

any company, means a certificate issued by the

competent authority under article 37 to the company

enrolling that person evidencing enrolment of that

person in the Tied Insurance Intermediaries List;"

there shall be substituted the words "of any

authorised undertaking, means a certificate issued by

the competent authority under article 37 to the

authorised undertaking enrolling that person

evidencing enrolment of that person in the Tied

Insurance Intermediaries List; and"; and

(cc) immediately after paragraph (d) thereof

there shall be added the following new paragraph (e)

"(e) in relation to a person registered as

an ancillary insurance intermediary in the

Ancillary Insurance Intermediaries Company

Register of any authorised undertaking or any

enrolled insurance broker, means a certificate

issued by the competent authority under article

43E to the authorised undertaking or the

insurance broker enrolling that person

evidencing enrolment of that person in the

Ancillary Insurance Intermediaries List;";

(vii) immediately after the definition "conditions"

there shall be added the following new definition

" "Conduct of Business Rules" means rules

relating to conduct of business issued by the

competent authority under various articles of this Act

and under any regulations made thereunder;";

(viii) 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;";

(ix) the definition "enrolled" shall be amended as

follows

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

"under article 13; and", there shall be substituted the

words "under article 13;";

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

"under article 37," there shall be substituted the

words "under article 37; and"; and

(cc) immediately after paragraph (d) thereof,

there shall be added the following new paragraph (e)

"(e) in relation to a person registered as

an ancillary insurance intermediary, means

enrolled

in

the

Ancillary

Insurance

Intermediaries List under article 43E,";

(x) in the proviso to the definition "foreign

company", for the words "registered under article 3 of

Directive 2002/92/EC of the European Parliament and of

the Council of 9 December 2002 on insurance mediation;"

there shall be substituted the words "registered under

article 3 of the Insurance Distribution Directive;";

(xi) immediately after the definition "insurance

agent" there shall be added the following new definition

" "insurance-based investment product" means

an insurance product which offers a maturity or

surrender value and where that maturity or surrender

value is wholly or partially exposed, directly or

indirectly, to market fluctuations, and does not

include

(a) insurance products falling within

the classes of general business specified in Part

I of the Third Schedule to the Insurance

Business Act;

(b)

insurance contracts falling

within the classes of long-term business

specified in the Second Schedule to the

Insurance Business Act, where the benefits

under the contract are payable only on death or

in respect of incapacity due to injury, sickness

or disability;

(c) pension products which are

recognised as having the primary purpose of

providing the investor with an income on

retirement, and which entitle the investor to

certain benefits;

(d) officially recognised occupational

pension schemes falling under the scope of

Directive 2003/41/EC of the European

Parliament and of the Council of 3 June 2003

on the activities and supervision of institutions

for occupational retirement provision, as

amended from time to time, or of the Solvency II

Directive;

(e) individual pension products for

which a financial contribution from the

employer is required by law and where the

employer or the employee has no choice as to

the pension product or provider;";

(xii) for the definition "insurance intermediaries

activities" there shall be substituted the following

" "insurance distribution activities" means the

activities of advising on, proposing, or carrying out

other work preparatory to the conclusion of contracts

of insurance, of concluding such contracts, or of

assisting in the administration and performance of

such contracts, in particular in the event of a claim,

including the provision of information concerning

one or more contracts of insurance in accordance

with criteria selected by the clients, through a

website or other media and the compilation of an

insurance product ranking list, including price and

product comparison, or a discount on the price of a

contract of insurance, when the client is able to

directly or indirectly conclude a contract of insurance

using a website or other media, and includes the

activities listed in paragraphs (1) to (5) of the Third

Column of the Schedule, the distribution activities

carried out by an authorised insurance undertaking

and any other activities as may be prescribed;

(xiii) immediately after the new definition "insurance

distribution activities" there shall be added the following

new definition

"Insurance Distribution Directive" means

Directive (EU) 2016/97 of the European Parliament

and of the Council of 20 January 2016 on insurance

distribution (recast), as amended from time to time,

and includes any delegated acts and any technical

standards that have been or may be issued

thereunder;";

(xiv) for the definition "insurance intermediaries

rule" there shall be substituted the following

" "Insurance Distribution Rules" means rules in

respect of insurance distribution activities and

reinsurance distribution activities, issued by the

competent authority under various articles of this Act

and under any regulations issued thereunder;";

(xv) for the definition "insurance intermediary"

there shall be substituted the following

" "insurance intermediary" means any natural

or legal person, other than an authorised insurance

undertaking or an authorised reinsurance undertaking

or their employees, and other than an ancillary

insurance intermediary, who, for remuneration, takes

up or pursues insurance distribution activities;

(xvi) in the definition "Minister", for the words

"Minister responsible for finance;" there shall be

substituted the words "Minister responsible for the

regulation of Financial Services;";

(xvii)in the definition "own funds", and wherever the

words "an insurance intermediaries rule", "insurance

intermediaries rule" and "insurance intermediaries rules"

appear in the Act, there shall be substituted the words

"Insurance Distribution Rules";

(xviii) the definition "registered" shall be amended

as follows

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

the Brokers Register; and" there shall be substituted

the words "in the Brokers Register;";

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

any one or more companies," there shall be

substituted the words "of any one or more authorised

undertakings; and"; and

(cc) immediately after paragraph (d) thereof,

there shall be added the following new paragraph (e)

"(e) in relation to a person registered as

an ancillary insurance intermediary under

article 43E, means registered in the Ancillary

Insurance Intermediaries Company Register of

any one or more authorised undertakings or one

enrolled insurance broker,";

(xix) the definition "regulated market", shall be

amended as follows

(aa) paragraph (b) thereof, shall be substituted

with the following;

"(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 point

(21) of Article 4(1) of Directive 2014/65/EU of

the European Parliament and of the Council of

15 May 2014 on markets in financial

instruments and amending Directive 2002/92/

EC and Directive 2011/61/EU (recast), as

amended from time to time; or"; and

(bb) in sub-paragraph (i) of paragraph (c)

thereof, for the words "laid down in Directive 2004/

39/EC; and" there shall be substituted the words "laid

down in Directive 2014/65/EU; and";

(xx) immediately after the definition "regulated

market" there shall be added the following new definitions

" "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;

"reinsurance distribution activities" means the

activities of advising on, proposing, or carrying out

other work preparatory to the conclusion of contracts

of reinsurance, of concluding such contracts, or of

assisting in the administration and performance of

such contracts, in particular in the event of a claim,

including the activities carried out by an authorised

reinsurance undertaking without the intervention of a

reinsurance intermediary, the activities listed in

paragraphs (1) to (3) of the Third Column of the

Schedule, and any other activities as may be

prescribed;

"reinsurance intermediary" means any natural

or legal person, other than an authorised reinsurance

undertaking or its employees, who, for remuneration

takes up or pursues reinsurance distribution

activities;

"remuneration" means any commission, fee,

charge or other payment, including an economic

benefit of any kind or any other financial or non-

financial advantage or incentive offered or given in

respect of insurance distribution activities;"; and

(xxi) for the definition "tied insurance intermediaries

activities" there shall be substituted the following

" "tied insurance intermediaries activities", in

relation to a person registered and enrolled as a tied

insurance intermediary, means the insurance

distribution activities listed in paragraph (4) of the

Third Column of the Schedule, including any person

who carries on such activities in addition to his main

activity;"; 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 the Insurance

Distribution Directive and any other European Union

Directives and Regulations that may be issued and

amended from time to time relating to insurance

distribution activities and reinsurance distribution

activities, and consequently this Act and any regulations,

Insurance Distribution Rules and Conduct of Business

Rules issued thereunder, shall be interpreted and applied

accordingly.".

Article 3 of the principal Act shall be amended as follows

(a)

in sub-article (2) thereof

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

"Directive 2002/92/EC of the European Parliament and of

the Council of 9 December 2002 on insurance mediation;",

there shall be substituted the words, "the Insurance

Distribution Directive;";

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

substituted the following

"(b) the transposition of any requirement or

provision as may arise under a Directive, Regulation

or Decision of the European Union or any other

similar measure relevant for the purposes of this Act.

Any such regulations made under this paragraph and

strictly related to transposition as aforesaid, may

provide that in so far as any of the provisions of the

regulations are inconsistent with the provisions of

this Act or of any other law, the provisions of the

regulations shall prevail, and the provisions of this

Act or of any other law shall, to the extent of the

inconsistency, not apply;";

(iii) in paragraph (e) thereof, for the words

"carrying out insurance intermediaries activities", there

shall be substituted the words, "carrying out insurance

distribution activities or reinsurance distribution

activities"; and

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

substituted the following

"(h) the

administrative

measures

and

administrative penalties in respect of infringements

as may be prescribed, which may be imposed and

recovered by the competent authority without

recourse to a court hearing, and such administrative

penalties shall be due to the competent authority as a

civil debt;";

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

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

"(2A) The regulations made under paragraph (h) of

sub-article (2) may impose

(a) administrative penalties which may not

be greater than a financial penalty of one hundred

and fifty thousand euro (€150,000) for each

infringement or failure to comply, as the case may be,

and, where such infringement or failure to comply

continues, a further penalty not exceeding one

hundred and sixteen euro (€116) for each day during

which the infringement or failure to comply

continues; and in such a case, a penalty imposed

under this paragraph, whether in the form of a fixed

amount, a daily penalty, or both, may, in no case,

exceed one hundred and fifty thousand euro

(€150,000); and

(b) administrative penalties and fines higher

than one hundred and fifty thousand euro (€150,000),

where deemed necessary or appropriate, for any

contravention of or failure of compliance with the

Insurance Distribution Directive or any EU

Regulation issued thereunder, or with any

regulations, Insurance Distribution Rules or Conduct

of Business Rules issued under this Act to transpose

or to give effect to such Directive or Regulation.";

(c) in sub-article (4) thereof, for the words "any of the

provisions of this Act to any insurance intermediary activity"

there shall be substituted the words "any of the provisions of this

Act to any other insurance or reinsurance distribution activity";

(d) in sub-article (6) thereof, for the words "the carrying

out of insurance intermediaries activities, or whether such

insurance intermediaries activities are or are not being carried on

in Malta," there shall be substituted the words "the carrying out

of insurance distribution activities or reinsurance distribution

activities, or whether such insurance distribution activities or

reinsurance distribution activities are or are not being carried out

in or from Malta,".

Article 4 of the principal Act shall be amended as follows

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

the following

"(1) It shall be the duty of the competent authority

to carry out the functions assigned to it by or under this Act

and to ensure that

(a) persons,

companies,

insurance

intermediaries or reinsurance intermediaries,

registered or enrolled in accordance with this Act and

regulations made thereunder, comply with the

provisions of this Act and of any regulations made

thereunder, with Insurance Distribution Rules and

Conduct of Business Rules made and directives

issued by the competent authority in virtue of this

Act and of any regulations made thereunder, and with

the conditions specified in certificates of registration

or enrolment; and

(b) authorised insurance undertakings and

authorised reinsurance undertakings carrying out

insurance distribution activities and reinsurance

distribution activities comply with the provisions of

this Act and of any regulations made thereunder, with

any Insurance Distribution Rules and Conduct of

Business Rules made and directives issued by the

competent authority in virtue of this Act and of any

regulations made thereunder.";

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

be added the following new sub-articles (1A) and (1B)

"(1A) The competent authority shall also carry out

the functions and duties as competent authority for the

purposes of the Insurance Distribution Directive, and the

European Commission shall be informed accordingly.

(1B) The competent authority shall have all the

investigatory powers that are necessary for the exercise of

its functions.";

(c)

sub-article (2) thereof shall be amended as follows

(i) for the words "may make insurance

intermediaries rules as may be required" there shall be

substituted the words "may make Insurance Distribution

Rules and Conduct of Business Rules as may be required";

and

(ii) for the words "may amend or revoke such

insurance intermediaries rules" there shall be substituted

the words "may amend or revoke such Insurance

Distribution Rules or Conduct of Business Rules";

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

the following

"(3) Insurance Distribution Rules shall be binding on

persons registered or enrolled under this Act, on authorised

insurance undertakings and authorised reinsurance

undertakings and others as may be specified therein.

Conduct of Business Rules shall be binding on persons

registered or enrolled under this Act, on authorised

insurance undertakings and others as may be specified

therein.";

(e)

sub-article (4) thereof shall be amended as follows

(i) for the words "Insurance intermediaries rules

made by the competent authority" there shall be substituted

the words "Insurance Distribution Rules and Conduct of

Business Rules made by the competent authority";

(ii) for the words "different categories of insurance

intermediaries; and without prejudice to insurance

intermediaries rules required to be made under this Act"

there shall be substituted the words "different categories of

insurance intermediaries and reinsurance intermediaries; and

without prejudice to Insurance Distribution Rules and

Conduct of Business Rules required to be made under this

Act";

(iii) for the words "by such insurance intermediaries

rules," there shall be substituted the words "by such

Insurance Distribution Rules and Conduct of Business

Rules,";

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

relation to insurance intermediaries;" there shall be

substituted the words "in relation to persons registered or

enrolled under this Act;";

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

relation to insurance intermediaries," there shall be

substituted the words "in relation to persons registered or

enrolled under this Act,";

(vi) in paragraph (c) thereof

(aa) for the words "information which

insurance intermediaries shall disclose" there shall be

substituted the words "information which persons

enrolled under this Act shall disclose"; and

(bb) for the words "making use of insurance

intermediary services;" there shall be substituted the

words "making use of intermediary services;";

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

"between insurance intermediaries and authorised

insurance undertakings or between such intermediaries and

persons seeking or making use of insurance intermediary

services;" there shall be substituted the words "between

persons registered or enrolled under this Act and

authorised insurance undertakings or authorised

reinsurance undertakings, or between such persons and

persons seeking or making use of intermediary services;";

and

(viii) in paragraph (e) thereof, for the words "in

relation to insurance intermediaries activities," there shall

be substituted the words "in relation to insurance

distribution activities,"; and

(f) immediately after sub-article (4) thereof, there shall

be added the following new sub-articles (4A) and (4B)

"(4A) The competent authority may make, amend or

revoke Insurance Distribution Rules and Conduct of

Business Rules, as may be required for the purpose of

implementing any guidelines and recommendations issued

by EIOPA under Article 16 of Regulation (EU) No. 1094/

2010, for the implementation of the Insurance Distribution

Directive.

(4B) The competent authority shall monitor the

market relating to insurance and reinsurance distribution

activities, including the market for ancillary insurance

products which are marketed, distributed or sold in, or

from, Malta.".

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 "to

specified insurance intermediaries." there shall be substituted the

words "to specified insurance and reinsurance intermediaries.";

(b) for the words "and persons carrying on business as

insurance brokers," there shall be substituted the words "and

insurance brokers, carrying out insurance distribution activities,

reinsurance distribution activities or both activities".

Article 6 of the principal Act shall be amended as follows

Amendment of

article 6 of the

principal Act.

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

"enrolment of insurance intermediaries." there shall be

substituted the words "enrolment of insurance and reinsurance

intermediaries.";

(b) in sub-article (1) thereof, for the words "carry on, or

attempt to carry on, in or from Malta, insurance intermediaries

activities" there shall be substituted the words "carry out, or

attempt to carry out, in or from Malta, insurance distribution

activities and reinsurance distribution activities,";

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

or enrolment under this article" there shall be substituted the

words "registration or enrolment under article 13"; and

(d)

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

Directive 2002/92/EC of the European Parliament and of the

Council of 9 December 2002 on insurance mediation" there shall

be substituted the words "pursuant to the Insurance Distribution

Directive".

Article 7 of the principal Act shall be amended as follows

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

of insurance intermediaries." there shall be substituted the words

"Register of insurance and reinsurance intermediaries.";

(b) for the words "registers of persons carrying on the

insurance intermediaries activities" there shall be substituted the

words "registers of persons carrying out the insurance

distribution activities or reinsurance distribution activities"; and

(c) for the words "determined by that rule to be so

registered." there shall be substituted the words "determined by

the said Insurance Distribution Rules to be so registered.".

Article 8 of the principal Act shall be amended as follows

(a)

in sub-article (1) thereof

(i) for the words "if he satisfies the competent

authority that –" there shall be substituted the words "if

such person satisfies the competent authority that the

person –";

(ii)

in paragraph (a) thereof, the word "he" shall be

deleted;

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

fit and proper person to be so registered" there shall be

substituted the words "is fit and proper to be so registered";

and

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

substituted the following

"(c) has appropriate knowledge and ability in

order to complete tasks and perform duties

adequately, in relation to insurance distribution

activities and reinsurance distribution activities and

possesses the qualifications and fulfils or complies

with the requirements determined by Insurance

Distribution Rules made for the purposes of this

article."; and

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

carry out insurance intermediaries activities" there shall be

substituted the words "entitled to carry out insurance distribution

activities and reinsurance distribution activities".

Article 9 of the principal Act shall be amended as follows

Amendment of

article 9 of the

principal Act.

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

on insurance intermediaries activities" there shall be substituted

the words "carrying out insurance and reinsurance distribution

activities.";

(b)

article 9 shall be renumbered as sub-article (1)

thereof;

(c) for sub-article (1) thereof, as renumbered, there shall

be substituted the following

"The competent authority shall establish and

maintain a list of persons carrying out insurance

distribution activities and reinsurance distribution

activities of insurance agents, insurance managers and

insurance brokers, in this Act separately referred to as the

"Agents List", the "Managers List", or the "Brokers List",

containing particulars of all persons which are entitled

under this Act to be enrolled therein and which apply in the

manner determined from time to time by the competent

authority in Insurance Distribution Rules made for the

purposes of this article. The said Lists shall be updated on a

regular basis."; and

(d)

immediately after sub-article (1) thereof, as

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

(2), (3) and (4)

"(2) The Agents List, the Managers List, and the

Brokers List are to specify the names of the registered

individuals within the management of the intermediary

who are responsible for the insurance distribution activities

or reinsurance distribution activities.

(3) In the case of cross-border activities carried out

in terms of the Insurance Distribution Directive, the Agents

List, the Managers List, and the Brokers List shall also

indicate the Member States or the EEA States in which the

intermediary is carrying out insurance distribution

activities or reinsurance distribution activities, and the

competent authority shall communicate that information to

EIOPA, for the purpose of publication on EIOPA’s single

electronic register in terms of Article 3(4) of the Insurance

Distribution Directive.

(4) The competent authority shall have the right to

modify such data stored on EIOPA’s single electronic

register referred to in sub-article (3), and data subjects,

whose personal details are stored on such register and

exchanged, shall have the right to access such stored data

and the right to be appropriately informed.".

Article 10 of the principal Act shall be amended as follows

(a)

in sub-article (1) thereof

(i)

in paragraph (a) thereof

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

"arising directly from insurance intermediaries

activities" there shall be substituted the words

"arising directly from insurance distribution

activities or reinsurance distribution activities";

(bb) immediately after sub-paragraph (ii)

thereof, there shall be added the following new sub-

paragraphs (iiA) and (iiB)

"(iiA) the applicant discloses the identity

of the shareholders, direct or indirect, whether

natural or legal persons, who will have

qualifying holdings in that intermediary and the

amounts of those holdings;

(iiB) the applicant discloses the identity

of persons who have close links with the

applicant;";

(cc) immediately after paragraph (iii) thereof,

there shall be added the following new paragraph

(iiiA)

"(iiiA)

the

applicant

possesses

appropriate knowledge and ability in order to

be able to complete tasks and perform duties

adequately, in relation to insurance distribution

activities

and

reinsurance

distribution

activities, as determined by Insurance

Distribution Rules made for the purposes of

this article;"; and

(dd) in sub-paragraph (v), for the words "such

matters as the competent authority may from time to

time determine;" there shall be substituted the words

"such matters as the competent authority may from

time to time determine by Insurance Distribution

Rules";

(ii)

in paragraph (b) thereof

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

"subarticle (1)(a)(i) and (iii)" there shall be

substituted the words "sub-article (1)(a)(i), (iiA) and

(iii)";

(bb) for sub-paragraph (ii) thereof, there shall

be substituted the following

"(ii) he shall be entitled to be enrolled in

the Agents List, Managers List or the Brokers

List if the applicant satisfies the competent

authority that the individual

(aa) is fit and proper to be so

enrolled and to ensure that the business is

carried on in a sound and prudent

manner;

(bb) has appropriate knowledge

and ability in order to complete tasks and

perform duties adequately in relation to

insurance distribution activities and

reinsurance distribution activities and

possesses the qualifications and fulfils or

complies with the requirements as

determined by the Act and Insurance

Distribution Rules made for the purposes

of this article;

(cc) carries out activities which

are limited to operations arising directly

from insurance distribution activities and

reinsurance distribution activities, and

matters

and

functions

connected

therewith or ancillary thereto, to the

exclusion of all other commercial

business, other than business determined

by Insurance Distribution Rules;

(dd) discloses the identity of

persons who have close links with the

applicant.";

(b)

in sub-article (2) thereof

(i) for the words "Where close links exist", there

shall be substituted the words "Where the holdings or close

links referred to in sub-article (1) exist";

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

grant enrolment if it considers that such close links" there

shall be substituted the words "only grant enrolment if it

considers that such holdings or close links";

(c)

in sub-article (3) thereof

(i) for the words, "to carry on insurance

intermediaries activities" there shall be substituted the

words "to carry out insurance distribution activities or

reinsurance distribution activities"; and

(ii) for the words "signed by a senior officer of an

insurer or an insurance broker," there shall be substituted

the words "signed by a senior officer of an insurer,

reinsurer or an insurance broker,"; and

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

"shall not act for an insurer or an insurance broker," there shall

be substituted the words "shall not act for an insurer, reinsurer or

an insurance broker,".

Article 11 of the principal Act shall be amended as follows

(a) in the paragraph immediately following paragraph (c)

of sub-article (1) thereof, for the words "and the insurance

intermediaries activities are carried on" there shall be substituted

the words "and the insurance distribution activities or

reinsurance distribution activities are carried out";

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

the following

"(2) A person enrolled under article 13 may, with

the approval of the competent authority given in writing,

open a branch or set up or acquire a subsidiary in Malta.";

(c) in sub-article (3) thereof, for the words "if it is

satisfied that the insurance intermediaries activities carried on by

it from the branch are conducted" there shall be substituted the

words "if it is satisfied that the insurance distribution activities or

reinsurance distribution activities carried on by it from the

branch are conducted"; and

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

the following

"(4) Except with the written consent of the

competent authority, no person enrolled under this Part of

the Act may carry out, nor hold itself as carrying out,

insurance distribution activities or reinsurance distribution

activities, open a branch, office or other place of business,

or set up or acquire a subsidiary, in any country outside

Malta.".

Article 12 of the principal Act shall be amended as follows

Amendment of

article 12 of the

principal Act.

(a) in paragraph (a) of sub-article (1) thereof, for the

words "to carry on insurance intermediaries activities;" there

shall be substituted the words "to carry out insurance distribution

activities or reinsurance distribution activities;";

(b)

in sub-article (2) thereof

(i) for the words "carrying on insurance

intermediaries activities as may be prescribed, the

insurance intermediaries activities shall be carried out"

there shall be substituted the words "carrying out insurance

distribution activities or reinsurance distribution activities

as may be prescribed, the insurance distribution activities

or reinsurance distribution activities shall be carried out";

and

(ii)

in paragraph (a) thereof

(aa) for the words "a company carrying on

insurance intermediaries activities -" there shall be

substituted the words "a company carrying out

insurance distribution activities or reinsurance

distribution activities -"; and

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

words "the insurance intermediaries activities are

carried on" there shall be substituted the words "the

insurance distribution activities or reinsurance

distribution activities are carried on"; and

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

company carrying on other insurance intermediaries

activities" there shall be substituted the words "a company

carrying on other insurance distribution activities or

reinsurance distribution activities".

Article 13 of the principal Act shall be amended as follows

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

competent authority to insurance intermediaries." there shall be

substituted the words "by competent authority to insurance and

reinsurance intermediaries.";

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

information required to be submitted under this Act and any

information received" there shall be substituted the words

"information required to be submitted under this Act and any

regulations or Insurance Distribution Rules made thereunder, and

any information received";

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

information required to be submitted under this Act;" there shall

be substituted the words "the information required to be

submitted under this Act and any regulations or Insurance

Distribution Rules made thereunder. The competent authority

shall notify the applicant of its decision, without undue delay;";

and

(d) immediately after sub-article (5) thereof there shall

be added the following new sub-article (6)

"(6) The validity of the registration or enrolment

under this article shall be subject to a regular review by the

competent authority.".

In sub-article (2) of article 14 of the principal Act, for the

words "A certificate of registration or enrolment granted under this

article" there shall be substituted the words "A certificate of

registration or enrolment issued under this article".

Immediately after article 14 of the principal Act, there shall

be added the following new article 14A

" Professional and

14A. An intermediary carrying out insurance

organisational

distribution activities or reinsurance distribution

requirements.

activities and its employees, carrying out insurance or

reinsurance distribution activities, shall comply with

continuing professional training and development

requirements in order to maintain an adequate level of

performance corresponding to the role they perform and

the relative market, as may be determined by means of

Insurance Distribution Rules and, or Conduct of

Business Rules issued for the purposes of this article.".

Sub-article (1) of article 15 of the principal Act shall be Amendment of

article 15 of the

amended as follows

principal Act.

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

the insurance intermediaries activities" there shall be substituted

the words "to carry out the insurance distribution activities or

reinsurance distribution activities";

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

carrying on insurance intermediaries activities" there shall be

substituted the words "company carrying out insurance

distribution activities or reinsurance distribution activities,"; and

(c) in paragraph (d) thereof, for the words "permission to

carry on such activities." there shall be substituted the words

"permission to carry out such activities.".

Article 16 of the principal Act shall be amended as follows

Amendment of

article 16 of the

principal Act.

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

regulations made thereunder or any insurance intermediaries

rule;" there shall be substituted the words "and any regulations,

Insurance Distribution Rules or Conduct of Business Rules made

thereunder;";

(b) in paragraph (b) thereof, for the words "and any

regulations made thereunder, or any insurance intermediaries

rule," there shall be substituted the words "and any regulations,

Insurance Distribution Rules or Conduct of Business Rules made

thereunder,";

(c) in paragraph (j) thereof, for the words "is carrying on

insurance intermediaries activities," there shall be substituted the

words "is carrying out insurance distribution activities or

reinsurance distribution activities,";

(d) in paragraph (m) thereof, for the words "to have

carried on insurance intermediaries activities" there shall be

substituted the words "to have carried on insurance distribution

activities or reinsurance distribution activities";

(e) in paragraph (n) thereof, for the words "as may be

defined by means of an insurance intermediaries rule made under

this Act." there shall be substituted the words "as may be defined

by means of Insurance Distribution Rules made under this Act;

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

be added the following new paragraphs

"(o) the enrolled insurance agent or insurance broker

is not utilising the services of intermediaries as required in

terms of article 44B; or

(p) the registered or enrolled person fails to comply

with the conduct of business requirements in relation to an

insurance-based investment product or in relation to any

insurance product other than an insurance-based investment

product, set out in Conduct of Business Rules; or

(q) the registered or enrolled person ceases to fulfil

any of the requirements laid down in articles 8(1)(b) and (c),

10(1)(a)(iii), (iiiA), (iv) and (v), 10(1)(b)(ii)(aa) and (bb),

14A and 20, and where applicable, any Insurance

Distribution Rules issued under the said articles.".

Article 17 of the principal Act shall be amended as follows

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

period of not less than forty-eight hours and not longer than

fifteen days)," there shall be substituted the words "(being a

period of not less than forty-eight hours and not longer than

thirty days),";

(b) in sub-article (5) thereof, for the words "it may, if it

so elects give publicity to such suspension or striking off in a

manner it deems appropriate." there shall be substituted the

words "the competent authority shall give publicity to such

suspension or striking off, and the provisions of article 53A shall

apply.".

In sub-article (2) of article 20 of the principal Act, for the

words "all proper claims arising out of insurance intermediaries

activities" there shall be substituted the words "all proper claims

arising out of insurance distribution activities or reinsurance

distribution activities".

In sub-article (1) of article 21 of the principal Act, for the Amendment of

words "as respects the insurance intermediaries activities" there shall article

principal Act.

be substituted the words "as respects the insurance distribution

In sub-article (2) of article 24 of the principal Act, for the Amendment of

words "within such period as may be specified in the rule." there shall article

principal Act.

be substituted the words "within such period as may be specified by

Insurance Distribution Rules.".

For article 25 of the principal Act there shall be substituted Amendment of

article 25 of the

the following

principal Act.

" Information to be

25. (1) Subject to the following sub-articles, an

enrolled person shall submit to the competent authority

any information which is necessary for the purposes of

supervision, as may be specified by means of

regulations, Insurance Distribution Rules or Conduct of

Business Rules, which may also specify the period

within which this information is to be submitted.

(2) The information to be submitted to the

competent authority in terms of sub-article (1) shall

include the submission of statements relating to the

business of insurance distribution activities and, or

reinsurance distribution activities, carried on by an

enrolled person in any calendar year. The statements

relating to that business shall be made out in the form,

manner and content as the competent authority may, by

Insurance Distribution Rules made for the purposes of

this article determine; and the date by which such

statements shall be forwarded shall also be established

by Insurance Distribution Rules.

(3) The statements required to be submitted under

sub-article (2) shall be verified in the manner required

by Insurance Distribution Rules, and the competent

authority may at any time direct an enrolled person to

submit to it such statements at such interval and for

such period as it may specify in the Insurance

Distribution Rules.".

Article 26 of the principal Act shall be amended as follows

Amendment of

article 26 of the

principal Act.

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

to carry on insurance intermediaries activities." there shall be

substituted the words "ceasing to carry out insurance and

reinsurance distribution activities."; and

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

in Malta, insurance intermediaries activities" there shall be

substituted the words "to carry out, in or from Malta, insurance

distribution activities or reinsurance distribution activities,"; and

(c) in sub-article (2) thereof, for the words "cease to

carry on such activities." there shall be substituted the words

"cease to carry out such activities.".

Article 28 of the principal Act shall be amended as follows

(a)

in sub-article (1) thereof

(i) for the words "Every company enrolled under

article 13" there shall be substituted the words "Every

person enrolled under article 13"; and

(ii) for the words "of the company examined by

him and on financial statements prepared by the company."

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

income statements of the individual, as applicable,

examined by him and on financial statements or income

statements prepared by the company or individual,

respectively.";

(b)

in sub-article (2) thereof

(i) for the words "If the enrolled company fails",

there shall be substituted the words "If the enrolled person

fails"; and

(ii) for the words "an auditor for that company and

shall fix the remuneration to be paid by that company"

there shall be substituted the words "an auditor for that

person and shall fix the remuneration to be paid by that

person";

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

the following

"(3) The auditor’s report shall include a statement

on compliance by the enrolled person with requirements

specified by means of Insurance Distribution Rules made

for the purposes of this article, which may also specify the

information to be contained in such statement.";

(d)

in sub-article (4) thereof

(i) for the words "Every auditor of an enrolled

company" there shall be substituted the words "Every

auditor of an enrolled person"; and

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

company." there shall be substituted the words "an

appointment from, that enrolled person.";

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

comes to an end, the enrolled company shall," there shall be

substituted the words "an auditor comes to an end, the enrolled

person shall";

(f) in sub-article (8) thereof, for the words "The

competent authority may require an enrolled company to

change" there shall be substituted the words "The competent

authority may require an enrolled person to change";

(g)

in sub-article (9) thereof

(i) for the words "Before requiring an enrolled

company to change" there shall be substituted the words

"Before requiring an enrolled person to change";

(ii) for the words "notify in writing its intention to

the company" there shall be substituted the words "notify

in writing its intention to the enrolled person"; and

(iii) for the words "the reasons why his appointment

with the company should not be terminated." there shall be

substituted the words "the reasons why his appointment with

the enrolled person should not be terminated.";

(h)

in sub-article (12) thereof

(i) for the words "If, in his capacity as auditor of

an enrolled company" there shall be substituted the words

"If, in his capacity as auditor of an enrolled person or

branch in Malta of a foreign company enrolled under

article 13"; and

(ii) for the words "the integrity of the insurance

intermediaries activities carried on in Malta, he shall

immediately inform the competent authority through the

intermediary’s management or, if the circumstances so

warrant, directly to the competent authority." there shall be

substituted the words "the integrity of the insurance

distribution activities and reinsurance distribution

activities carried on in Malta by the enrolled person or

branch in Malta of a foreign company enrolled under

article 13, he shall immediately inform the competent

authority, in the case of a company, through the

intermediary’s management or, if circumstances so

warrant, directly to the competent authority, and in the case

of an individual, directly to the competent authority.";

(i)

in sub-article (13) thereof

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

accounts of the company; or" there shall be substituted the

words "on the accounts of the company or income

statements of the individual; or";

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

company’s ability to continue as a going concern or to

continue carrying on" there shall be substituted the words

"the ability of the company to continue as a going concern

or the ability of the enrolled person or branch in Malta of a

foreign company enrolled under article 13 to continue

carrying out"; and

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

substituted the following

"(c) is a material breach of the provisions of

this Act, regulations or Insurance Distribution Rules

which lay down the conditions governing registration

or enrolment or which specifically govern the

carrying out of insurance distribution activities and

reinsurance distribution activities by an enrolled

person.";

(j)

in sub-article (14) thereof

(i) for the words "An auditor of an enrolled

company shall" there shall be substituted the words "An

auditor of an enrolled person or a branch in Malta of a

foreign company enrolled under article 13 shall"; and

(ii) for the words "the integrity of the insurance

intermediaries activities carried on in Malta, of which he

becomes aware in his capacity as an auditor to an enrolled

company" there shall be substituted the words "the

integrity of the insurance distribution activities and

reinsurance distribution activities carried out in Malta by

the enrolled person or branch in Malta of a foreign

company enrolled under article 13, of which he becomes

aware in his capacity as an auditor to an enrolled person or

branch in Malta of a foreign company enrolled under

article 13"; and

(k) immediately after sub-article (14) thereof, there shall

be added the following new sub-article (15)

"(15) Without prejudice to any provision contained in

this Act, the competent authority may request the auditor to

provide it with such information and documentation

relating to any fact or decision as specified in sub-articles

(12) or (14) concerning the enrolled person or the branch in

Malta of a foreign company enrolled under article 13.".

In sub-article (1) of article 31 of the principal Act, for the Amendment of

words "Subject to the following sub-articles, except with the approval article

principal Act.

of the Minister given generally by order in the Gazette, or with the

approval of the competent authority" there shall be substituted the

words "Subject to the following sub-articles, except with the approval

of the competent authority".

In sub-article (2) of article 33 of the principal Act, for the Amendment of

words "to a tied insurance intermediary, which is registered pursuant to article

principal Act.

Directive 2002/92/EC of the European Parliament and of the Council

of 9 December 2002 on insurance mediation" there shall be substituted

the words "to a person which is registered pursuant to the Insurance

Distribution Directive,".

For sub-article (1) of article 35 of the principal Act, there Amendment of

article 35 of the

shall be substituted the following

principal Act.

"(1) A person shall be entitled to be registered by an

authorised undertaking in the Tied Insurance Intermediaries

Company Register of such undertaking if it is satisfied that such

person

(a) is fit and proper to carry out tied insurance

intermediaries activities; and

(b)

possesses appropriate knowledge and

ability in order to complete tasks and perform duties

adequately, in relation to tied insurance intermediaries

activities, as determined by means of Insurance

Distribution Rules issued for the purposes of this article.".

Immediately after article 35 of the principal Act, there shall

be added the following new article 35A

" Professional and

A tied insurance intermediary carrying out

organisational

tied insurance intermediaries activities shall comply

with continuing professional training and development

requirements in order to maintain an adequate level of

performance corresponding to the role such

intermediary performs, as may be determined by means

of Insurance Distribution Rules and, or Conduct of

Business Rules issued for the purposes of this article.".

34. Article 36 of the principal Act shall be amended as follows

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

under this article to be enrolled therein." there shall be

substituted the words "entitled under this article to be enrolled

therein. The Tied Insurance Intermediaries List shall be updated

on a regular basis."; and

(b) immediately after sub-article (4) thereof, there shall

be added the following new sub-article (5)

"(5) Where the enrolled person is not an individual,

the Tied Insurance Intermediaries List is to specify the

name of the individual who carries out tied insurance

intermediaries activities and who satisfies the requirements

of article 35(1).".

35. Article 37 of the principal Act shall be amended as follows

(a) immediately after paragraph (b) of the first proviso to

sub-article (1) thereof, there shall be added the following new

paragraph (bb)

"(bb) a person enrolled in the Ancillary Insurance

Intermediaries List under article 43E;";

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

be added the following new sub-articles (1A) and (1B)

"(1A) Every authorised undertaking desirous of

appointing, registering and enrolling a person to act on his

or its behalf as a tied insurance intermediary shall disclose

the following information to the competent authority

(a) where the tied insurance intermediary is a

person which is not an individual

(i) the identity of the shareholders,

direct or indirect, whether natural or legal

persons, who will have qualifying holdings in

the tied insurance intermediary and the

amounts of those holdings; and

(ii) the identity of persons who have

close links with the tied insurance

intermediary; and

(b) where the tied insurance intermediary is a

person who is an individual, the identity of persons

who have close links with the tied insurance

intermediary.

(1B) Where the holdings or close links referred to in

sub-article (2) exist between the tied insurance

intermediary and any other person, the competent authority

shall only grant enrolment if it considers that such holdings

or close links do not prevent it from effectively exercising

its supervisory functions.";

(c) immediately after sub-article (6) thereof, there shall

be added the following new sub-article (6A)

"(6A) The competent authority shall determine an

application for enrolment under this article within three

months of the submission of a properly completed

application form together with the requisite documentation

required to be submitted under this Act and any regulations

or Insurance Distribution Rules made thereunder. The

competent authority shall notify the applicant of its

decision, without undue delay; and if it refuses to grant the

enrolment it shall inform the applicant in writing of the

reasons for the refusal

Provided that, the competent authority may

take such measures as it may deem necessary for the

protection of the interest of the public.";

(d)

sub-article (7) thereof shall be amended as follows

(i)

paragraph (b) thereof shall be deleted; and

(ii) paragraph (a) thereof shall be renumbered as

the whole sub-article (7); and

(e)

immediately after sub-article (8) thereof, there shall

be added the following new sub-article (8A)

"(8A) The validity of the enrolment under this article

shall be subject to a regular review by the competent

authority.".

Article 38 of the principal Act shall be amended as follows

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

"Maintenance of separate accounts." there shall be substituted

the words "Protection of clients monies."; and

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

claims arising out of insurance intermediaries activities" there

shall be substituted the words "proper claims arising out of

insurance distribution activities".

In paragraph (b) of article 39 of the principal Act, for the words

"requesting it to strike his name off the said register." there shall be

substituted the words "requesting it to strike his or its name off the said

Sub-article (4) of article 40 of the principal Act, shall be

amended as follows

(a) for the words "the competent authority may give

publicity to" there shall be substituted the words "the competent

authority shall give publicity to"; and

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

the following

"(b) the provisions of article 53A shall apply.".

For sub-article (1) of article 41 of the principal Act there shall

be substituted the following

"(1) Notwithstanding any provision of this Act, the

competent authority may, at any time

(a) on grounds of unfitness and improperness or of

protection of the public interest

(i) refuse to enrol a person in the Tied

Insurance Intermediaries List;

(ii) strike the name of a person off the Tied

Insurance Intermediaries List;

(b)

strike the name of a person off the Tied

Insurance Intermediaries List, where the tied insurance

intermediary

(i) fails to comply with the conduct of

business requirements in relation to an insurance-

based investment product or in relation to any

insurance product other than an insurance-based

investment product, set out in Conduct of Business

Rules; or

(ii) ceases to fulfil any of the requirements

laid down in articles 35(1), 35A and 38, and where

applicable, any Insurance Distribution Rules issued

under the said articles;

(c) strike the name of a person off the Tied

Insurance Intermediaries List, where it comes to the

knowledge of the competent authority that any document

or information provided pursuant to the application for

enrolment, or any information given in connection

therewith, is false, incorrect or misleading in any material

particular

Provided that, in each case, the competent

authority shall inform the undertaking concerned in writing

of the reasons for so doing.".

Article 43 of the principal Act shall be amended as follows

Amendment of

article 43 of the

principal Act.

(a) in sub-article (1) thereof, for the words "shall not

include European insurance undertakings." there shall be

substituted the words "shall not include an authorised

reinsurance undertaking, a reinsurance intermediary, a European

insurance undertaking and a European reinsurance

undertaking."; and

(b)

in sub-article (2) thereof

(i) for the words "In the case of a European

insurance undertaking" there shall be substituted the words

"In the case of a European insurance undertaking or an

insurance intermediary registered under Article 3 of the

Insurance Distribution Directive in a Member State or EEA

State other than Malta,"; and

(ii) for the words "that undertaking shall enrol such

person with the competent authority as may be determined

by an insurance intermediaries rule made for the purposes

of this article and the said rule shall contain" there shall be

substituted the words "that undertaking or intermediary

shall enrol such person with the competent authority as

may be determined by Insurance Distribution Rules made

for the purposes of this article and the said Insurance

Distribution Rules shall contain".

Immediately after Part VIII of the principal Act, there shall be

added the following new Parts VIIIA and VIIIB

"PART VIIIA

REGISTRATION AND ENROLMENT OF

ANCILLARY INSURANCE INTERMEDIARIES

(1) Subject to sub-article (2), no person shall

ancillary insurance

act as an ancillary insurance intermediary and carry out,

or attempt to carry out in Malta ancillary insurance

intermediaries activities, unless such person is

appointed, registered and enrolled in accordance with

the provisions of this Act.

(2) This article shall not apply to an ancillary

insurance intermediary which

(a) is exempted from enrolment under

article 43E of the Act, in terms of regulations

issued under this Act;

(b) is registered pursuant to the Insurance

Distribution Directive, in a Member State or an

EEA State, other than Malta.

(1) Subject to the provisions of article 43J,

Ancillary Insurance

every authorised undertaking and enrolled insurance

broker desirous of appointing a person to act on its

behalf as an ancillary insurance intermediary shall

establish and maintain a register of persons acting as

ancillary insurance intermediaries, in this Act referred

to as the "Ancillary Insurance Intermediaries Company

Register", containing the particulars as the competent

authority may, from time to time, by Insurance

Distribution Rules made for the purposes of this article,

determine, of all persons who are entitled under this Act

to be registered therein.

(2) Subject to the provisions of sub-article (1),

every authorised undertaking and enrolled insurance

b ro k e r s h a l l d e t e r m i n e i t s o w n p r o c e d u r e s f o r

appointing and registering a person as an ancillary

insurance intermediary in the Ancillary Insurance

Intermediaries Company Register.

(1) A person shall be entitled to be registered

by an authorised undertaking or an enrolled insurance

broker in the Ancillary Insurance Intermediaries

Company Register of such undertaking or insurance

broker if it is satisfied that such person

(a) is fit and proper to carry out ancillary

insurance intermediaries activities; and

(b) possesses appropriate knowledge and

ability in order to complete tasks and perform

duties adequately, relating to ancillary insurance

intermediaries activities, as may be determined by

means of Insurance Distribution Rules issued for

the purposes of this article.

(2) A person shall not be entitled to carry out

ancillary insurance intermediaries activities, by virtue

of his registration under article 43E unless and until he

is enrolled by the competent authority in the Ancillary

Insurance Intermediaries List under that article.

(1) The competent authority shall establish

ancillary insurance and maintain a list of persons carrying out ancillary

insurance intermediaries activities in this Act referred

to as the "Ancillary Insurance Intermediaries List",

containing such particulars as the competent authority

may, determine from time to time by Insurance

Distribution Rules made for the purposes of this article

of all persons who are, or which are, entitled under this

article to be enrolled therein. The Ancillary Insurance

Intermediaries List shall be updated on a regular basis.

(2) It shall be the duty of an authorised

undertaking and an enrolled insurance broker to enrol

with the competent authority in the Ancillary Insurance

Intermediaries List any person registered by it as an

ancillary insurance intermediary in the Ancillary

Insurance Intermediaries Company Register established

and maintained by it under article 43E.

(3) On obtaining from the competent authority a

certificate of enrolment under article 43E, an authorised

undertaking or an enrolled insurance broker, as the case

may be, shall furnish the person, in whose name the

certificate of enrolment is made out, with the certificate

or an official copy thereof, issued to the authorised

undertaking or the insurance broker by the competent

authority.

(4) Where a person enrolled as aforesaid carries

out ancillary insurance intermediaries activities from a

place of business or from any other place accessible to

the public, that person shall display in a prominent

position in that place in a part thereof to which the

public has access, the certificate of enrolment or an

official copy thereof issued by the competent authority

under this article.

(5) Where the enrolled person is not an individual,

the Ancillary Insurance Intermediaries List is to specify

the name of the individual who is carrying out ancillary

insurance intermediaries activities and who satisfies the

requirements of article 43C(1).

(1) Subject to the provisions of this Act,

every authorised undertaking and enrolled insurance

ancillary insurance

broker desirous of appointing a person to act on its

behalf as an ancillary insurance intermediary shall,

under this article, appoint and register in the Ancillary

Insurance Intermediaries Company Register of the

authorised undertaking or the insurance broker, as the

case may be, and enrol with the competent authority in

the Ancillary Insurance Intermediaries List, a person to

act on its behalf as an ancillary insurance intermediary

and to carry out ancillary insurance intermediaries

activities, as shall be determined by means of Insurance

Distribution Rules made for the purposes of this article,

and, where a person is not an individual, such person

must itself have an individual who satisfies the

requirements of article 43C(1)

Provided that, an undertaking and an enrolled

insurance broker shall be prohibited from appointing

and registering in its Ancillary Insurance Intermediaries

Company Register a person which is

(a) a person registered in the Agents

Register, Managers Register or Brokers Register

under article 13;

(b)

a person enrolled in the Agents

List, Managers List or Brokers List under that

article;

(c) a person enrolled in the Tied

Insurance Intermediaries List under article 37;

(d)

an undertaking authorised under

the Insurance Business Act to carry on business of

insurance.

(2) Every authorised undertaking or enrolled

insurance broker, as the case may be, desirous of

appointing, registering and enrolling a person to act on

his or its behalf as an ancillary insurance intermediary

shall disclose the following information to the

competent authority

(a) where

the

ancillary

insurance

intermediary is a person which is not an

individual

(i) the identity of the shareholders,

direct or indirect, whether natural or legal

persons, who will have qualifying holdings

in that ancillary insurance intermediary and

the amounts of those holdings; and

(ii) the identity of persons who have

close links with the ancillary insurance

intermediary; and

(b) where

the

ancillary

insurance

intermediary is a person who is an individual, the

identity of persons who have close links with the

ancillary insurance intermediary.

(3) Where the holdings or close links referred to in

sub-article (2) exist between the ancillary insurance

intermediary and any other person, the competent

authority shall only grant enrolment if it considers that

such holdings or close links do not prevent it from

effectively exercising its supervisory functions.

(4) Where an authorised undertaking or an

enrolled insurance broker, as the case may be, appoints

and registers in its Ancillary Insurance Intermediaries

Company Register a person which is not an individual,

and that person carries out ancillary insurance

intermediaries activities from any one or more places of

business, that person shall ascertain that ancillary

insurance intermediaries activities so carried out by it

from each such place of business are carried out only by

an individual who satisfies the requirements of article

43C(1).

(5) Any person, other than a person mentioned in

the proviso to sub-article (1), may seek and obtain

under this article appointment and registration in the

Ancillary Insurance Intermediaries Company Register

of an authorised undertaking or an enrolled insurance

broker to carry out ancillary insurance intermediaries

activities as determined by means of Insurance

Distribution Rules on behalf of such undertaking or

insurance broker.

(6) No person who is an employee of an

authorised undertaking or an enrolled insurance broker

shall, solely by virtue of his employment by the

undertaking or insurance broker, require registration in

the Ancillary Insurance Intermediaries Company

Register of the undertaking or insurance broker under

this article.

(7) The competent authority shall determine an

application for enrolment under this article within three

months of the submission of a properly completed

application form together with the requisite

documentation required to be submitted under this Act

and any regulations or Insurance Distribution Rules

made thereunder. The competent authority shall notify

the applicant of its decision, without undue delay; and

if it refuses to grant the enrolment it shall inform the

applicant in writing of the reasons for the refusal

Provided that, the competent authority may

take such measures as it may deem necessary for the

protection of the interest of the public.

(8) On granting an application for enrolment under

this Act, the competent authority shall issue to the

applicant concerned a certificate of enrolment

evidencing enrolment of the person registered in the

Ancillary Insurance Intermediaries Company Register

of the applicant in the Ancillary Insurance

Intermediaries List.

(9) Subject to the provisions of this Act, the

competent authority may subject enrolment made under

this article to such conditions as it may from time to

time deem fit to impose.

(10) The validity of the enrolment under this article

shall be subject to a regular review by the competent

authority.

(11) An authorised undertaking and an enrolled

insurance broker shall at all times be responsible for

any act or omission of its registered ancillary insurance

intermediaries provided that such act or omission is an

act or omission pertaining to a contract of insurance

issued by the undertaking or insurance broker, or

offered on its behalf through the services of such

ancillary insurance intermediaries. For the purposes of

this sub-article any reference to registered ancillary

insurance intermediaries shall include a reference to

past as well as present registered ancillary insurance

intermediaries.

(1) Without prejudice to sub-article (3),

every ancillary insurance intermediary, shall, in respect

of monies held by him or it in relation to a policy of

insurance, keep such monies held by him or it separate

from his or its own monies and shall, in respect of those

monies maintain separate accounts in accordance with

requirements determined by Insurance Distribution

Rules made for the purposes of this article.

(2) No person shall have or obtain any recourse or

right against monies standing to the credit of the

account referred to in sub-article (1) in respect of a

claim or right against a person acting as an ancillary

insurance intermediary until all proper claims arising

out of insurance distribution activities against those

monies have been satisfied, even in the event of

bankruptcy of the individual or insolvency of the

company, as the case may be.

(3) Notwithstanding the provisions of sub-articles

(1) and (2)

(a) monies received by the ancillary

insurance intermediary from a person in relation

to a contract of insurance shall be treated as

having been paid to the authorised undertaking or

the enrolled insurance broker issuing or offering

the contract, and on whose behalf the ancillary

insurance intermediary carries on ancillary

insurance intermediaries activities; and

(b) monies paid by the authorised

undertaking or the enrolled insurance broker to

the ancillary insurance intermediary, and intended

for the policyholder, shall not be treated as having

been paid to the policyholder until such monies

are actually received by the policyholder

concerned.

Subject to the provisions of article 43H and to

Ancillary Insurance

the terms and conditions of any relevant ancillary

Company Register.

insurance intermediaries appointment at any time and

for any reason whatsoever

(a) any authorised undertaking and

enrolled insurance broker may strike off their

Ancillary Insurance Intermediaries Company

Register the name of any person registered in the

said register;

(b) any person registered in the Ancillary

Insurance Intermediaries Company Register of an

authorised undertaking or an enrolled insurance

broker may make an application in writing to the

undertaking or insurance broker concerned, as the

case may be, requesting it to strike his or its name

off the said register.

(1) Where an authorised undertaking

Ancillary Insurance

or an enrolled insurance broker elects to strike the name

of a person off its Ancillary Insurance Intermediaries

Company Register, such undertaking or insurance

Intermediaries List.

broker shall forthwith notify in writing the person

concerned and the competent authority specifying the

date on which it elects to strike the name of that person

off the register.

(2) Where an authorised undertaking or an

enrolled insurance broker strikes the name of a person

off its Ancillary Insurance Intermediaries Company

Register on grounds of unfitness and improperness or

because the person concerned has acted fraudulently, or

dishonestly, or in such manner as to cease to be

trustworthy, the undertaking or the insurance broker

shall also notify in writing the competent authority the

reasons for so doing.

(3) On receiving a notification from an authorised

undertaking or an enrolled insurance broker that such

undertaking or insurance broker has elected to strike the

name of a person off its Ancillary Insurance

Intermediaries Company Register, the competent

authority shall

(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 or the enrolled insurance broker that

the name of such person, in so far as it relates to

that undertaking or insurance broker, shall be

struck off the Ancillary Insurance Intermediaries

List as from the date specified in the

undertaking’s or insurance broker’s notification;

(b) if the striking of such name off the

register is on grounds specified in sub-article (2),

before striking the name of such person off the

Ancillary

Insurance

Intermediaries

List,

forthwith, give the person concerned notice in

writing setting out the reasons for so doing and

the provisions of article 17(2) and (3) shall

mutatis mutandis apply to a notice given under

this article.

(4) Without prejudice to any action which the

competent authority may deem appropriate under this

Act or any other law, where the competent authority

strikes the name of a person off the Ancillary Insurance

Intermediaries List on the grounds specified in sub-

article (2), the competent authority shall give publicity

to the striking of that name off the Ancillary Insurance

Intermediaries List, and

(a) if the name of that person is registered

in the Ancillary 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 Ancillary Insurance Intermediaries

Company Register of that undertaking and give

the undertaking the reasons for its direction; and

(b) the provisions of article 53A shall

apply.

(5) The competent authority shall have power to

order that all expenses incurred by the publication of a

notice pursuant to this article, or such part thereof as it

may deem appropriate, shall be paid by the person

concerned; and any sum so due shall be recoverable by

the competent authority in the same manner as an

administrative penalty imposed under this Act.

(6) Where an authorised undertaking or an

enrolled insurance broker receives in writing an

application from a person registered in the Ancillary

Insurance Intermediaries Company Register of the

undertaking or insurance broker requesting such

undertaking or insurance broker to strike the name of

that person off the said register, the undertaking or the

insurance broker shall without undue delay strike the

name of that person off the said register and notify in

writing the person concerned and the competent

authority specifying the date on which it elects to strike

the name of that person off the register.

(7) Where, on an application made to an

authorised undertaking or an enrolled insurance broker

under sub-article (6), the undertaking or the insurance

broker, as the case may be, refuses, or unduly prolongs

the process, to strike the name of a person off its

Ancillary 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 or the insurance

broker concerned those directives it deems necessary to

oblige the undertaking or the insurance broker to hasten

the process to strike the name of that person off its

register.

(8) On notification by the competent authority to

an authorised undertaking or an enrolled insurance

broker that the name of a person registered in the

Ancillary Insurance Intermediaries Company Register

of the undertaking or the insurance broker has been

struck off the Ancillary Insurance Intermediaries List,

the undertaking or the insurance broker concerned shall

forthwith surrender to the competent authority the

certificate of enrolment relating to that person, and any

official copies thereof.

(1) Notwithstanding any provision of this

Act, the competent authority may, at any time

(a) on grounds of unfitness and

improperness or of protection of the public

interest

(i) refuse to enrol a person in the

Ancillary Insurance Intermediaries List;

(ii) strike the name of a person off

the Ancillary Insurance Intermediaries List;

(b) strike the name of a person off the

Ancillary Insurance Intermediaries List, where

the ancillary insurance intermediary

(i) ceases to fulfil any of the

requirements laid down in articles 43C(1)

and 43F, and where applicable, any

Insurance Distribution Rules issued under

the said articles; or

(ii) fails to comply with conduct of

business requirements set out in Conduct of

Business Rules;

(c) strike the name of a person off the

Ancillary Insurance Intermediaries List, where it

comes to the knowledge of the competent

authority that any document or information

provided pursuant to the application for

enrolment, or any information given in

connection therewith, is false, incorrect or

misleading in any material particular

Provided that, in each case, the

competent authority shall inform the undertaking

or the insurance broker concerned in writing of

the reasons for so doing.

(2) In each case, the competent authority may take

any other measure as it may deem necessary to

safeguard the interests of insureds, policyholders,

creditors or other interested persons.

(1) Subject to sub-article (2), for the

Application of Part

purposes of this Part of this Act

(a) "authorised undertaking" shall not

include an authorised reinsurance undertaking, a

reinsurance intermediary, a European insurance

undertaking and a European reinsurance

undertaking;

(b) "insurance broker" shall not include

an insurance intermediary registered under

Article 3 of the Insurance Distribution Directive

in a Member State or EEA State other than Malta.

(2) In the case of a European insurance

undertaking or an insurance intermediary registered

under Article 3 of the Insurance Distribution Directive

in a Member State or EEA State other than Malta,

seeking to appoint a person resident in Malta or having

its registered office or head office in Malta to carry out

ancillary insurance intermediaries activities, that

undertaking or intermediary shall enrol such person

with the competent authority as may be determined by

Insurance Distribution Rules made for the purposes of

this article and the said Insurance Distribution Rules

shall contain the particulars, conditions and

requirements for enrolment.

PART VIIIB

PROVISIONS APPLICABLE TO UNDERTAKINGS

AUTHORISED UNDER THE INSURANCE

BUSINESS ACT CARRYING OUT DISTRIBUTION

ACTIVITIES

This Part shall apply to an authorised insurance

undertaking and an authorised reinsurance undertaking

carrying out insurance distribution activities and

reinsurance distribution activities, as applicable, unless

otherwise specified under this Part.

(1) Without prejudice to sub-article (2), an

authorised insurance undertaking, an authorised

reinsurance undertaking, and their employees, carrying

out insurance distribution activities and reinsurance

distribution activities, as applicable, shall not be

required to be enrolled under this Act.

(2) Notwithstanding sub-article (1), an authorised

insurance undertaking and an authorised reinsurance

undertaking carrying out insurance distribution

activities and reinsurance distribution activities, as

applicable, shall, at least once a year, inform the

competent authority of the names of the individuals

within the management of the authorised insurance and

reinsurance undertaking, who are responsible for the

insurance distribution activities or reinsurance

distribution activities of the authorised insurance and

reinsurance undertaking, and the competent authority

may by Insurance Distribution Rules made for the

purposes of this article, determine the form, manner and

content of the information to be forwarded to it and the

date by which such information shall be forwarded to it.

(1) An authorised insurance undertaking, an

authorised reinsurance undertaking, and their

employees, carrying out insurance distribution

activities and reinsurance distribution activities, as

applicable, are required to possess appropriate

knowledge and ability in order to complete their tasks

and perform their duties adequately, as may be

determined by means of Insurance Distribution Rules

issued under this article.

(2) An authorised insurance undertaking and an

authorised reinsurance undertaking and their

employees, carrying out insurance distribution

activities and reinsurance distribution activities, as

applicable, shall comply with continuing professional

training and development requirements in order to

maintain an adequate level of performance

corresponding to the role they perform and the relevant

market, as may be determined by means of Insurance

Distribution Rules and, or Conduct of Business Rules

issued under this article.

An authorised insurance undertaking and an

authorised reinsurance undertaking carrying out

insurance distribution activities and reinsurance

distribution activities, as applicable, shall submit to the

competent authority any information which is necessary

for the purposes of supervision, as may be specified by

means of regulations, Insurance Distribution Rules or

Conduct of Business Rules, which may also specify the

period within which this information is to be submitted.

An authorised insurance undertaking carrying

out insurance distribution activities shall be required to

comply with conduct of business requirements,

including requirements relating to insurance-based

investment products, as may be determined by means of

Conduct of Business Rules issued for the purposes of

this article."

42. Article 44 of the principal Act shall be amended as follows

(a) in sub-article (1) thereof, for the words "and any

regulations made thereunder, or any insurance intermediaries

rule," there shall be substituted the words "and any regulations,

Insurance Distribution Rules and Conduct of Business Rules

made thereunder,";

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

words "shall also be established by that rule." there shall be

substituted the words "shall also be established by the said

Insurance Distribution Rules.";

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

the following

"(3) Without prejudice to the foregoing provisions

of this article

(a) a person enrolled under Part III shall

notify the competent authority on a continuous basis,

without undue delay, with any change or

circumstance which may give rise to the existence of

close links within the meaning of article 10;

(b) a tied insurance intermediary enrolled

under Part VIII shall notify any authorised

undertaking appointing it, on a continuous basis,

without undue delay, with any change in the

information provided in article 37(1A);

(c) an ancillary insurance intermediary

enrolled under Part VIIIA shall notify any authorised

undertaking or any enrolled insurance broker

appointing it, on a continuous basis, without undue

delay, with any change in the information provided in

article 43E(2); and

(d) an authorised undertaking appointing,

registering and enrolling a tied insurance

intermediary or an ancillary insurance intermediary

under Part VIII and Part VIIIA, respectively, and an

enrolled insurance broker appointing, registering and

enrolling an ancillary insurance intermediary under

Part VIIIA, shall notify the competent authority on a

continuous basis, without undue delay, with any

change in the information provided in articles 37(1A)

and 43E(2), respectively, as notified by the tied

insurance intermediary or ancillary insurance

intermediary concerned.".

43. Article 44A of the principal Act shall be amended as follows

Amendment of

article 44A of

the principal

(a) for the marginal note thereto, there shall be

Act.

substituted the words "Participation in a company enrolled under

article 13.";

(b) in sub-article (4) thereof, for the words "shall be

required before any enrolled company may" there shall be

substituted the words "shall be required before any company

enrolled under article 13 may"; and

(c) in sub-article (9) thereof, for the words "enrolled

under this Act to carry out insurance intermediaries activities"

there shall be substituted the words "enrolled under this Act to

carry out insurance distribution activities or reinsurance

distribution activities".

Immediately after article 44A of the principal Act, there shall Addition of

article 44B to

be added the following new article 44B

the principal

Act.

Without prejudice to the requirements of this

Act, every insurance agent and insurance broker

enrolled under this Act shall utilise the services of

intermediaries which are

(a) enrolled under Parts VIII and VIIIA, as

set out in the said Parts; or

(b) registered under Article 3 of the

Insurance Distribution Directive or falling under

Article 1(3) of the Insurance Distribution

Directive.".

Article 45 of the principal Act shall be amended as follows

(a)

in sub-article (1) thereof

(i) immediately after paragraph (b) thereof there

shall be added the following new paragraph (bb)

"(bb) the power to impose, revoke or vary

conditions on the grant of an enrolment pursuant to

the provisions of articles 37(8) and 43E(9);";

(ii) immediately after paragraph (c) thereof, there

shall be added the following new paragraph (cc)

"(cc) the power to strike off the name of an

ancillary insurance intermediary off the Ancillary

Insurance Intermediaries List enrolled under article

43E;";

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

shall be substituted the following

"(b) where so required within the terms of Malta’s

international commitments or the obligations arising out of

the Insurance Distribution Directive, as amended from

time to time, and includes any implementing measures that

have been or may be issued thereunder, and in particular,

the competent authority shall, notwithstanding the

provisions of article 46 of this Act and article 59 of the

Insurance Business Act, as applicable, cooperate and

exchange information on insurance and reinsurance

intermediaries, ancillary insurance intermediaries and

insurance and reinsurance undertakings, with overseas

regulatory authorities, for the purpose of ensuring the

proper application of the Insurance Distribution Directive,

pursuant to Article 13 of the said Directive; or"; and

(c) immediately after sub-article (3) thereof, there shall

be added the following new sub-article (4)

"(4) The competent authority shall inform the

European Commission of any general difficulties which

persons enrolled under this Act encounter in establishing

themselves or carrying out insurance distribution activities

and reinsurance distribution activities in any third

country.".

Article 46 of the principal Act shall be amended as follows

Amendment of

article 46 of the

principal Act.

(a)

in sub-article (2) thereof

(i) for the words "as well as by inspectors, auditors

and experts engaged by the competent authority" there

shall be substituted the words "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 "or of any regulations made

thereunder, or of any insurance intermediaries rule," there

shall be substituted the words "or of any regulations,

Insurance Distribution Rules or Conduct of Business Rules

made thereunder,"; and

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

whom the information relates to be ascertained;" there

shall be substituted the words "to whom the information

relates to be ascertained, without prejudice to cases

covered by criminal law"; and

(b) immediately after sub-article (6) thereof, there shall

be added the following new sub-article (7)

"(7) The competent authority, when processing

personal data for the purposes of the Act and any

regulations, Insurance Distribution Rules and Conduct of

Business Rules issued thereunder, shall do so in

accordance with Regulation (EU) 2016/679 of the

European Parliament and of the Council of 27 April 2016

on the protection of natural persons with regard to the

processing of personal data and on the free movement of

such data, and repealing Directive 95/46/EC (General Data

Protection Regulation), as amended from time to time.".

Immediately after article 46 of the principal Act, there shall Addition of

article 46A to

be added the following new article 46A

the principal

Act.

" Co-operation with

46A. (1) The competent authority shall cooperate

w i t h EI O PA f o r t he pu r pos e s o f t he I ns u r a nc e

Distribution 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.".

Article 47 of the principal Act shall be amended as follows

(a)

sub-article (2) thereof shall be deleted;

(b) sub-article (1) thereof shall be renumbered as the

whole article 47 and for the words "The Agents Register,

Managers Register and Brokers Register and the Agents List,

Managers List, Brokers List and Tied Insurance Intermediaries

List shall be accessible" there shall be substituted the words

"Any Registers or Lists which are required to be maintained by

the competent authority in terms of this Act shall be accessible".

Article 48 of the principal Act shall be amended as follows

(a) immediately following paragraph (c) of sub-article

(1) thereof, there shall be added the following new paragraph

(cc)

"(cc) a person enrolled in the Ancillary Insurance

Intermediaries List under article 43E; or";

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

"qualifications or experience for carrying on insurance

intermediaries activities", there shall be substituted the words,

"qualifications or experience for carrying out insurance

distribution activities and reinsurance distribution activities";

and

(c) in sub-article (4) thereof, for the words "carrying on

of business of insurance or the carrying out of insurance

intermediaries activities" there shall be substituted the words

"carrying on of business of insurance or the carrying out of

insurance distribution activities or reinsurance distribution

activities".

In article 49 of the principal Act, for the words, "and any

regulations or any insurance intermediaries rule", there shall be

substituted the words, "and any regulations or Insurance Distribution

Rules or Conduct of Business Rules".

Article 50 of the principal Act shall be amended as follows

(a)

in sub-article (2) thereof

(i)

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

applicant under article 13 or 41 of this Act;" there shall be

substituted the words "an applicant under article 13, 41 or

43I;";

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

"registration and enrolment under article 13 or 37;" there

shall be substituted the words "registration and enrolment

under article 13, 37 or 43E;";

(iii) immediately after paragraph (h) there shall be

added the following new paragraphs (ha) and (hb)

"(ha) any striking off of the name of a person

from the Ancillary Insurance Intermediaries List

under article 43H(3)(b);

(hb) any requirement on an authorised

undertaking or an enrolled insurance broker to strike

the name of a person off the Ancillary Insurance

Intermediaries Company Register under article 43I;";

(iv) in paragraph (k) thereof, for the words "as may

be prescribed under article 3," there shall be substituted the

words "as may be prescribed under article 3."; and

(v) the paragraph immediately following paragraph

(k) thereof shall be deleted; and

(b) immediately after sub-article (2) thereof there shall

be added the following new sub-article (3)

"(3) The Financial Services Tribunal shall have

exclusive competence to hear appeals on the matters listed

in sub-article (2).".

Article 51 of the principal Act shall be amended as follows

Amendment of

article 51 of the

principal Act.

(a) for the words "to perform a function under this Act

and any regulations made thereunder" there shall be substituted

the words "to perform a function under this Act, and any

regulations, Insurance Distribution Rules or Conduct of Business

Rules made thereunder"; and

(b) for the words "purported discharge of any functions

under this Act and any regulations aforesaid," there shall be

substituted the words "purported discharge of any functions

under this Act and any regulations, Insurance Distribution Rules

or Conduct of Business Rules aforesaid,".

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 or any insurance intermediaries

rule" there shall be substituted the words "enrolment under this

Act or any regulations, Insurance Distribution Rules or Conduct

of Business Rules";

(b) in paragraph (b) thereof, for the words "or of article

29, 30 or 31A of the Insurance Business Act, as applicable in

accordance with article 54 of this Act;" there shall be substituted

the words "as specified in regulations issued under this article;";

(c)

paragraphs (c), (e), (f) and (g) thereof shall be

deleted;

(d) paragraphs (d), (h) and (i) shall be renumbered as

paragraphs (c), (d) and (e), respectively;

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

words "a party to the carrying out of insurance intermediaries

activities" there shall be substituted the words "a party to the

carrying out of insurance distribution activities or reinsurance

distribution activities,"; and

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

words "conferred by this Act or any regulations or any insurance

intermediaries rule" there shall be substituted the words

"conferred by this Act or any regulations, Insurance Distribution

Rules or Conduct of Business Rules".

Sub-article (1) of article 53 of the principal Act shall be

amended as follows

(a) for the words "prescribed by regulations made under

52 –" there shall be substituted the words "prescribed by

regulations made under article 52 –"; and

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

be added the following new paragraph (bb)

"(bb) may

provide

for

both

such

fine

and

imprisonment;".

Immediately after article 53 of the principal Act, there shall Addition of

article 53A to

be added the following new article 53A

the principal

Act.

53A. (1) The competent authority shall publish on

penalties and other

i t s o ff i c i a l w e b s i t e , w i t h o u t u n d u e d e l a y, a n y

administrative penalty or other measure which is

imposed for breaches of the provisions of this Act and

of any regulations, Insurance Distribution Rules or

Conduct of Business Rules issued thereunder. Such

publication shall include information on the type and

nature of the breach and the identity of the natural or

legal person responsible for the breach

Provided that, in cases where an appeal has

been filed by the person on whom such administrative

penalty or other measure has been imposed, the

competent authority shall, without undue delay, publish

on its official website such information and any

subsequent information on the status of the appeal and

the outcome thereof. The competent authority shall also

publish any decision annulling a previous decision to

impose a sanction or other measure which has been

published

Provided further that where the competent

authority has made a public statement in terms of this

sub-article, it shall simultaneously report that fact to

EIOPA.

(2) Notwithstanding sub-article (1), the competent

authority may decide to defer publication, not to

publish, or to publish on an anonymous basis, any

administrative penalty or other measure imposed, in

any of the following circumstances

(a) where the publication of the identity

of legal persons, or the identity or personal data of

natural persons, is considered by the competent

authority to be disproportionate following a case-

by-case

assessment

conducted

on

the

proportionality of the publication of such data;

(b)

where

the

publication

jeopardises the stability of financial markets or an

ongoing investigation.

(3) The competent authority shall, in terms of

Article 36 of the Insurance Distribution Directive

(a) inform EIOPA of all administrative

penalties and other measures imposed, but not

published in accordance with sub-article (2),

including any appeal in relation thereto and the

outcome thereof;

(b) annually provide EIOPA with

aggregated

information

regarding

all

administrative penalties and other measures

imposed in accordance with the Act and any

regulations, Insurance Distribution Rules and

Conduct of Business Rules issued thereunder,

implementing

the

Insurance

Distribution

Directive.".

Article 54 of the principal Act shall be amended as follows

(a)

in sub-article (1) thereof

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

for the words "a reference to "insurance intermediaries

activities";" there shall be substituted the words "a

reference to "insurance distribution activities or

reinsurance distribution activities";";

(ii)

in paragraph (b) thereof

(aa) for the words "enrolled in the Tied

Insurance Intermediaries List as if reference" there

shall be substituted the words "enrolled in the Tied

Insurance Intermediaries List or Ancillary Insurance

Intermediaries List, as if reference";

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

"a reference to "enrolment in the Tied Insurance

Intermediaries List";" there shall be substituted the

words "a reference to "enrolment in the Tied

Insurance Intermediaries List" or "enrolment in the

Ancillary Insurance Intermediaries List", as

applicable;";

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

words "a reference to "a tied insurance

intermediary";" there shall be substituted the words

"a reference to "a tied insurance intermediary" or "an

ancillary insurance intermediary";"; and

(dd) in sub-paragraph (iii) thereof, for the

words "a reference to "tied insurance intermediaries

activities"." there shall be substituted the words "a

reference to "tied insurance intermediaries activities"

or "ancillary insurance intermediaries activities".";

and

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

"Insurance Rules" were references to "insurance intermediaries

rules"." there shall be substituted the words "references to

"Insurance Rules" were references to "Insurance Distribution

Rules".".

Immediately after sub-article (8) of article 55 of the principal Amendment of

article 55 of the

Act, there shall be added the following new sub-article (8A)

principal Act.

"(8A)Any reference to an insurance intermediaries rule

issued by the competent authority in virtue of article 4(4) of the

Insurance Intermediaries Act, in any licence, notice, decision or Cap. 487.

other act made or taken by the competent authority under the

Insurance Intermediaries Act, and any reference in any law to an Cap. 487.

insurance intermediaries rule shall be deemed to be a reference

to Insurance Distribution Rules.".

The Schedule to the principal Act shall be amended as Amendment of

the Schedule to

follows

the principal

Act.

(a) in the heading thereof, for the words "INSURANCE

INTERMEDIARIES AND INSURANCE INTERMEDIARIES

ACTIVITIES" there shall be substituted the words

"INSURANCE AND REINSURANCE DISTRIBUTION

ACTIVITIES";

(b) in the Second Column thereof, entitled "Dependant

Insurance Intermediaries", immediately after the item "Tied

Insurance Intermediary" there shall be added the following new

item

"Ancillary Insurance Intermediary";

(c)

in the Third Column thereof

(i) for the heading "Insurance Intermediaries

Activities" there shall be substituted the words "Insurance

Distribution Activities and Reinsurance Distribution

Activities"; and

(ii) in paragraph 4 thereof, referring to the "Tied

Insurance Intermediary", for the words "Activities of

persons listed in the Second Column of this Schedule who,

carry on insurance intermediaries activities for or on behalf

of" there shall be substituted the words "Activities of

persons listed in the Second Column of this Schedule who,

for remuneration, carry out insurance distribution activities

for or on behalf of"; and

(iii) immediately after paragraph 4 thereof, there

shall be added the following new paragraph 5, referring to

the "Ancillary Insurance Intermediary"

"5. Activities of persons listed in the Second

Column of this Schedule who, for remuneration, take

up or pursue insurance distribution activities on an

ancillary basis, acting under the full responsibility of

an authorised undertaking for the product which

concerns such undertaking, or of an enrolled

insurance broker, provided that all the following

conditions are met

(a) the principal professional activity

of the natural or legal person is other than

insurance distribution activities;

(b) the natural or legal person only

carries out insurance distribution activities in

relation to certain insurance products that are

complementary to a good or service; and

(c) the insurance products concerned

do not cover long-term business of insurance or

liability risks, unless that cover complements

the good or service which the natural or legal

person provides as its principal professional

activity

Provided that, no insurance

commitments towards or on the part of the

public are given as part of these activities.".

PART II

AMENDMENTS TO THE INSURANCE

BUSINESS ACT (CAP. 403)

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".

The second column of the "ARRANGEMENT OF ACT" of Amendment of

Parts and Titles

the principal Act shall be amended as follows

of the principal

Act.

(a) for the words "Title II: Systems of Governance" there

shall be substituted the words "Title II: Governance"; and

(b) for the words "Conduct of Business of Insurance"

there shall be substituted the words "Obligations on

Undertakings".

Sub-article (1) of article 2 of the principal Act shall be Amendment of

article 2 of the

amended as follows

principal Act.

(a) for the definition "advertisement" there shall be

substituted the following

" "advertisement", in relation to the business of

insurance, means any form or medium of marketing

activity or communication disseminated to the public by

means of all types of media, other than a prospectus, which

promotes the purchase or procurement of a service or

product and which is addressed by an authorised insurance

undertaking to a client or potential client;";

(b) immediately after the definition "conditions" there

shall be added the following new definition

" "Conduct of Business Rules" means Rules relating

to conduct of business issued by the competent authority

under various articles of this Act and under any regulations

made thereunder;";

(c) for paragraph (c) of the definition "financial

undertaking", there shall be substituted the following

"(c) an investment firm or a financial institution

within the meaning of point 1 of Article 4(1) of Directive

2014/65/EU; or";

(d) in the definition "insurance agent", and wherever

these words appear in the Act, other than in article 69 thereof, for

the words "Insurance Intermediaries Act" there shall be

substituted the words "Insurance Distribution Act";

(e) immediately after the definition "insurance agent", as

amended, there shall be added the following new definition

" "Insurance Distribution Directive" means Directive

(EU) 2016/97 of the European Parliament and of the

Council of 20 January 2016 on insurance distribution

(recast), as amended from time to time, and includes any

delegated acts and any technical standards that have been

or may be issued thereunder;";

(f) in the Maltese text of the definition "Regola dwar l-

Assigurazzjoni", for the words " "Regola dwar l-Assigurazzjoni"

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

Assigurazzjoni" ";

(g)

in the definition "Minister", for the words

"Minister responsible for finance;" there shall be substituted the

words "Minister responsible for the regulation of Financial

Services;";

(h) in the proviso to the definition "qualifying

shareholding", for the words "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" there

shall be substituted the words "in terms of point (6) of Section A

of Annex 1 to Directive 2014/65/EU of the European Parliament

and of the Council of 15 May 2014 on markets in financial

instruments and amending Directive 2002/92/EC and Directive

2011/61/EU (recast)"; and

(i)

the definition "regulated market" shall be ameded as

follows

(i) for paragraph (b) thereof there shall be

substituted the following

"(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 point (21) of Article

4(1) of Directive 2014/65/EU of the European

Parliament and of the Council of 15 May 2014 on

markets in financial instruments and amending

Directive 2002/92/EC and Directive 2011/61/EU

(recast), as amended from time to time; or"; and

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

for the words "laid down in Directive 2004/39/EC; and"

there shall be substituted the words "laid down Directive

2014/65/EU; and".

Article 3 of the principal Act shall be amended as follows

Amendment of

article 3 of the

principal Act.

(a) for the words "carry out the functions assigned to it

by or under this Act and any regulations or Insurance Rules

made thereunder" there shall be substituted the words "carry out

the functions assigned to it by or under this Act and any

regulations, Insurance Rules or Conduct of Business Rules made

thereunder"; and

(b)

for the words "comply with the provisions of

this Act and of any regulations made thereunder, with any

Insurance Rules made" there shall be substituted the words

"comply with the provisions of this Act and of any regulations

made thereunder, with any Insurance Rules and Conduct of

Business Rules made".

Article 4 of the principal Act shall be amended as follows

Amendment of

article 4 of the

principal Act.

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

competent authority shall, in the exercise of its duties, take into

account" there shall be substituted the words "Without prejudice

to the generality of the foregoing, the competent authority shall,

in the exercise of its duties, take into account";

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

the following

"(4) The competent authority may make Insurance

Rules and Conduct of Business 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 and,

Conduct of Business Rules, and any amendment or

revocation thereof, shall be officially communicated to the

persons concerned.";

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

the following

"(5) The competent authority may make, amend or

revoke, Insurance Rules and Conduct of Business Rules, as

may be required for the purpose of implementing any

guidelines, recommendations issued by EIOPA under

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

implementation of the Solvency II Directive."; and

(d) for sub-article (6) thereof, there shall be substituted the

following

"(6) Insurance Rules shall be binding on authorised

insurance and reinsurance undertakings and others as may be

specified therein. Conduct of Business Rules shall be binding on

authorised insurance undertakings and others as may be specified

therein.".

In sub-article (4) of article 11 of the principal Act, for the

words "to be determined in accordance with regulations made for the

purposes of this Act" there shall be substituted the words "determined

in accordance with Insurance Rules".

In the English text of sub-article (4) of article 18G of the

principal Act, for the words "until the company has ceased to carry on

the business" there shall be substituted the words "until the

undertaking has ceased to carry on the business".

In the heading of Title II of Part IV of the principal Act, for

the words "Systems of Governance" there shall be substituted the word

"Governance".

In article 18H of the principal Act, for the words "compliance

by the undertaking concerned with the Act, regulations, and Insurance

Rules issued thereunder," there shall be substituted the words

"compliance by the undertaking concerned with the Act, regulations,

Insurance Rules and where applicable, Conduct of Business Rules

issued thereunder,".

For sub-article (3) of article 21 of the principal Act, there

shall be substituted the following

"(3) The auditor’s report shall include a statement on

compliance by the enrolled person with requirements specified

by means of Insurance Rules made for the purposes of this

article, which may also specify the information to be contained

in such statement.".

Article 26 of the principal Act shall be amended as follows

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

regulations, or any Insurance Rules made thereunder; or" there

shall be substituted the words "any regulations, Insurance Rules

or Conduct of Business Rules made thereunder; or";

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

Insurance Rule, or" there shall be substituted the words "or any

Insurance Rules or any applicable Conduct of Business Rules,

or"; and

(c) immediately after paragraph (k) thereof, there shall

be added the following new paragraph

"(ka) the authorised insurance undertaking fails to

comply with the conduct of business requirements in

relation to the distribution of an insurance-based investment

product or in relation to the distribution of any insurance

product other than an insurance-based investment product,

set out in Conduct of Business Rules; or".

In sub-article (1) of article 29 of the principal Act, for the Amendment of

words "require any such undertaking or any person who appears to be" article

principal Act.

there shall be substituted the words "require any such undertaking or

any person who is or was carrying out business of insurance, or who

appears to be or have been carrying on business of insurance, or who

appears to be".

In sub-article (10) of article 30 of the principal Act, for the Amendment of

words, "shall include an insurance intermediary, registered or enrolled article

principal Act.

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,"

there shall be substituted the words "shall include persons registered or

enrolled under the Insurance Distribution Act, or registered with an

authority or body in the Member State or EEA State responsible for the

supervision of intermediaries and ancillary insurance intermediaries

acting for the undertaking,".

In article 32 of the principal Act, for the words "as may be Amendment of

specified by means of regulations or Insurance Rules" there shall be article

principal Act.

substituted the words "as may be specified by means of regulations,

Insurance Rules or Conduct of Business Rules".

Articles 32E and 32F of the principal Act shall be deleted.

Deletion of

articles 32E and

32F of the

principal Act.

For sub-paragraph (i) of paragraph (b) of sub-article (6) of Amendment of

article 38A of the principal Act, there shall be substituted the article

the principal

following

Act.

"(i) Directive 2014/65/EU of the European Parliament

and of the Council of 15 May 2014 on markets in financial

instruments and amending Directive 2002/92/EC and Directive

2011/61/EU (recast);".

For paragraph (b) of sub-article (1) of article 41 of the

principal Act, there shall be substituted the following

"(b) in the case of a branch in Malta of an authorised third

country insurance undertaking

(i) where any reorganisation measures are adopted

in relation to the branch, such measures shall be applied in

accordance with regulations made for the purposes of this

article;

(ii) such branch shall dissolve and consequentially

wind up under and in accordance with regulations made for

the purposes of this article.".

In the heading of Part X of the principal Act, for the words

"Conduct of Business of Insurance" there shall be substituted the

words "Obligations on Undertakings".

In sub-article (1) of article 43 of the principal Act, for the

words "and any regulations made thereunder, or any Insurance Rules,"

there shall be substituted the words "and any regulations, Insurance

Rules or Conduct of Business Rules made thereunder,".

In article 46 of the principal Act, for the words "of the

Insurance Intermediaries Act, (in this article referred to as "the Act")

and of any regulations made under this Act or under the Act or of any

Insurance Rules issued in virtue of this Act or any insurance

intermediaries rule issued in virtue of the Act." there shall be

substituted the words "of the Insurance Distribution Act, (in this article

referred to as "the Act") and of any regulations made under this Act or

under the Act, or of any Insurance Rules or Conduct of Business Rules

issued in virtue of this Act, or of any Insurance Distribution Rules or

Conduct of Business Rules issued in virtue of the Act.".

Article 47 of the principal Act, shall be amended as follows

(a) in sub-article (1) thereof, for the words "may by

Insurance Rules made for the purpose of this article" there shall

be substituted the words "may by Conduct of Business Rules

made for the purposes of this article"; and

(b)

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

absence of any such Insurance Rules," there shall be substituted

the words "In the absence of any such Conduct of Business

Rules,".

In sub-article (2) of article 48 of the principal Act, for the

words "may by Insurance Rules made for the purposes of this article"

there shall be substituted the words "may by Conduct of Business

Rules made for the purposes of this article".

Article 48B of the principal Act shall be amended as follows

Amendment of

article 48B of

the principal

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

Act.

"Appointment of insurance intermediaries." there shall be

substituted the words "Appointment of intermediaries or

ancillary insurance intermediaries.";

(b) for the words "shall utilise the services of insurance

intermediaries which are:" there shall be substituted the words

"shall utilise the services of insurance intermediaries,

reinsurance intermediaries, tied insurance intermediaries and

ancillary insurance intermediaries which are:"; and

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

the following

"(b) registered under Article 3 of the Insurance

Distribution Directive, or falling under Article 1(3) of the

Insurance Distribution Directive where applicable; or".

Immediately after article 48C of the principal Act, there shall Addition of

article 48D to

be added the following new article 48D

the principal

Act.

" Application of

48D. An authorised insurance undertaking and an

certain articles of

authorised reinsurance undertaking carrying out

the Insurance

insurance distribution activities and reinsurance

Distribution Act to

insurance and

distribution activities in terms of the Insurance

reinsurance

undertakings.

Distribution Act shall comply with the applicable

provisions of the said Act and of any regulations,

Insurance Distribution Rules and Conduct of Business

Rules issued thereunder.".

Article 58 of the principal Act shall be amended as follows

Amendment of

article 58 of the

principal Act.

(a) in paragraph (i) of sub-article (1) thereof, for the

words "as may be prescribed under article 67," there shall be

substituted the words "as may be prescribed under article 67.";

(b) the paragraph immediately following paragraph (i) of

sub-article (1) thereof, shall be deleted; and

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

be added the following new sub-article (1A)

"(1A) The Financial Services Tribunal shall have

exclusive competence to hear appeals on the matters listed

in sub-article (1).".

For sub-article (2) of article 60 of the principal Act, there

shall be substituted the following

"(2) Without prejudice to Regulation (EU) 2016/679 of

the European Parliament and of the Council of 27 April 2016 on

the protection of natural persons with regard to the processing of

personal data and on the free movement of such data, and

repealing Directive 95/46/EC (General Data Protection

Regulation), as amended from time to time, 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.".

For sub-article (3) of article 64 of the principal Act, there

shall be substituted the following

"(3) The Minister may, after consultation with the

competent authority, make regulations for the supervision of

insurance and reinsurance undertakings in a group ("group

supervision"). Any such regulations may provide for cases of

application, scope and levels of group supervision, provisions

relating to the solvency of insurance groups, measures to

facilitate group supervision including the appointment of the

group supervisor, the verification of equivalence of supervision

of a parent undertaking with its head office in a third country,

which forms part of a group and for a parent undertaking of one

or more insurance or reinsurance undertakings, which is a

mixed-activity insurance holding company.".

In article 66 of the principal Act, for the words "regulations or

Insurance Rules made thereunder, shall not be liable in damages for

anything done or omitted to be done in the discharge or purported

discharge of any functions under this Act, regulations or Insurance

Rules aforesaid," there shall be substituted the words "regulations,

Insurance Rules or Conduct of Business Rules made thereunder, shall

not be liable in damages for anything done or omitted to be done in the

discharge or purported discharge of any functions under this Act,

regulations, Insurance Rules or Conduct of Business Rules aforesaid,".

Article 67 of the principal Act shall be amended as follows

(a) in sub-article (1) thereof, for the words "shall be

guilty of an offence." there shall be substituted the words "shall

be guilty of an offence or infringement as prescribed by

regulations issued in terms of this article."; and

(b)

in sub-article (2) thereof

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

regulations or Insurance Rules made thereunder," there

shall be substituted the words "any regulations, Insurance

Rules or Conduct of Business Rules made thereunder,";

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

regulations made thereunder or any Insurance Rules;" there

shall be substituted the words "any regulations, Insurance

Rules or Conduct of Business Rules made thereunder;";

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

regulations or Insurance Rules made thereunder;" there

shall be substituted the words "or any regulations,

Insurance Rules or Conduct of Business Rules made

thereunder; ";

(iv) paragraph (e) thereof shall be deleted;

(v) paragraph (f) thereof shall be renumbered as

paragraph (e); and

(vi) in sub-paragraph (i) of paragraph (e) thereof, as

renumbered, for the words "of any regulations, or any

Insurance Rules made thereunder," there shall be

substituted the words "of any regulations, Insurance Rules

or Conduct of Business Rules made thereunder,".

PART III

AMENDMENTS TO THE

RETIREMENT PENSIONS ACT (CAP. 514)

This Part amends and shall be read and construed as one with Amendment to

the Retirement Pensions Act, hereinafter in this Part referred to as "the the

Pensions Act.

principal Act".

For sub-paragraph (ii) of paragraph (b) of sub-article (2) of Amendment of

article 3 of the principal Act there shall be substituted the following: article

principal Act.

"(ii) the payment, in the case of an occupational retirement

scheme, is made to the member as may be determined by means of

Pension Rules issued under the Act, in the event that the member

is no longer employed by the employer:".

PART IV

AMENDMENT TO THE BANKING ACT (CAP. 371)

This Part amends and shall be read and construed as one with

the Banking Act, hereinafter in this part referred to as "the principal

Act".

Sub-article (6) of article 34 of the Banking Act shall be

amended as follows

(a) in paragraph (a) thereof immediately after the words

"in a recognised jurisdiction" there shall be added the words "as

well as the credit institution’s holding company or financial

holding company or mixed financial holding company or mixed

activity holding company, where this is necessary for the proper

carrying out of its activities or for the fulfilment of its

obligations or for the carrying out of risk management, audit or

compliance processes of the credit institution or of the group of

companies of which it forms part";

(b) in paragraph (b) thereof the words "or risk

management processes" shall be substituted with the words "or

risk management, audit or compliance processes" and the words

"it forms part in order" shall be substituted with the words "it

forms part or in order".

Passed by the House of Representatives at Sitting No. 137 of the 4th

July, 2018.

ANĠLU FARRUGIA

Speaker

RAYMOND SCICLUNA

Clerk of the House of Representatives

€6.30