European Passport Rights for Insurance Undertakings

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 18,135, 12 ta’ Ottubru, 2007

L.N. 289 of 2007

INSURANCE BUSINESS ACT

(CAP.403)

European Passport Rights for Insurance Undertakings

(Amendment) Regulations, 2007

IN exercise of the powers conferred by article 64 of the Insurance

Business Act, the Prime Minister and Minister of Finance, after

consultation with the Malta Financial Services Authority, has made the

following regulations>-

(1) The title of these regulations is the European Passport Citation and

commencement.

Rights for Insurance Undertakings (Amendment) Regulations, 2007 and

they shall be read and construed as one with the European Passport

Rights for Insurance Undertakings Regulations, 2004, hereinafter L.N. 89 of 2004.

referred to as “the principal regulations”.

(2) These regulations shall come into force on the 15th

October 2007.

Immediately after the words “for Insurance” in the title of the Amends the title

of the principal

principal regulations, there shall be inserted the words “and regulations.

Reinsurance”.

Immediately after the words “for Insurance” in regulation 1 Amends

regulation 1

of the principal regulations, there shall be inserted the words “and of the principal

Reinsurance”.

regulations.

Regulation 2 of the principal regulations shall be amended as Amends

regulation

follows>

2 of the

principal

regulations.

(a) the present regulation shall be renumbered as sub-

regulation (1) thereof< and

(b) in sub-regulation (1) thereof, as renumbered>

(i) immediately after the definition “the Act” there shall

be added the following new definition>

“ “branch” means any permanent presence of an

undertaking in the territory of a Member State or EEA

State, even if that presence does not take the form of a

branch but consists merely of an office managed by the

own staff of the undertaking or by a person who is

independent but has permanent authority to act for the

undertaking as an agency would<”<

(ii) for the definition “competent authority”, there shall

be substituted the following>

“ “competent authority” means the Malta Financial

Services Authority established by article 3 of the Malta

Financial Services Authority Act and appointed under

article 3 of the Act to be the competent authority for the

purposes of the Act<”<

(iii) in the definition “European insurance

undertaking”, for the words “pursuing the activity of direct

insurance within the meaning of article 2 of Directive

2002#83#EC or article 1 of Directive 73#239#EEC which has

received authorisation under article 4 or article 6 respectively”

there shall be substituted the words “pursuing the business of

direct insurance within the meaning of article 2 of Directive

2002#83#EC or article 1 of Directive 73#239#EEC which has

received authorisation in accordance with article 4 or article

6 respectively”<

(iv) immediately after the definition “European

insurance undertaking”, there shall be added the following

new definition>

“ “European reinsurance undertaking” means an

undertaking having its head office in a Member State or

an EEA State, other than Malta, pursuing business

restricted to reinsurance within the meaning of article 2

of Directive 2005#68#EC which has received

authorisation in accordance with article 3 of the

Reinsurance Directive<”<

(v) the definition “European right”, shall be amended

as follows>

(aa) immediately after the words “an insurance

undertaking”, there shall be added the words “or a

reinsurance undertaking”<

(bb) in paragraph (b) thereof, for the words “any

rules or regulations made under the Act, or insurance

directives”, there shall be substituted the words “any

regulations made under the Act, or insurance rules”<

(vi) the definition “foreign authority” shall be amended

as follows>

(aa) in paragraph (a) thereof, immediately after

the words “European insurance undertaking”, there shall

be added the words “or the European reinsurance

undertaking”<

(bb) in paragraph (b) thereof, immediately after

the words “Maltese insurance undertaking”, there shall

be added the words “or a Maltese reinsurance

undertaking”<

(vii) in the definition “home Member State”,

immediately after the words “the insurance undertaking”, there

shall be added the words “or the reinsurance undertaking”<

(viii) in the definition “host Member State”,

immediately after the words “a Maltese insurance

undertaking”, there shall be added the words “or a Maltese

reinsurance undertaking”<

(ix) for the definition “insurance directive”, there shall

be substituted the following>

“ “insurance rule” has the same meaning as is

assigned to it by article 2 of the Act<”<

(x) in the definition “Maltese insurance undertaking”

for the words “other than Malta in exercise of a European

right”, there shall be substituted the words “in exercise of a

European right but excludes an undertaking whose business

is restricted to reinsurance”<

(xi) immediately after the definition “Maltese

insurance undertaking”, there shall be added the following

new definition>

“ “Maltese reinsurance undertaking” means a

company authorised in terms of the Act to carry on

business restricted to reinsurance, whose head office is

in Malta and which is entitled to carry on business in a

Member State or EEA State in exercise of a European

right<”<

(xii) in paragraph (b) of the definition “Maltese rules”,

for the words “and any rules, regulations and insurance

directives”, there shall be substituted the words “any

regulations and insurance rules made thereunder<

(xiii) the definition “Single Market Directive” or

“Directive” shall be amended as follows>

(aa) immediately after the words “First, Second

and Third Non-Life Insurance Directives”, there shall

be added the words “and the Reinsurance Directive”<

(bb) immediately after paragraph (d), there shall

be added the following new paragraph (e)>

“(e) “Reinsurance Directive” means

Directive 2005#68#EC of the European Parliament

and of the Council of 16 November 2005 on

reinsurance and amending Council Directives

73#239#EEC, 92#49#EEC as well as Directives

98#78#EC and 2002#83#EC<”< and

(c) immediately after sub-regulation (1) thereof, as

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

“(2) These regulations shall apply to a European

reinsurance undertaking or a Maltese reinsurance undertaking

in the following manner>

(a) in the case of a European reinsurance

undertaking, the Preliminary, Parts V and VII thereof

shall apply< and

(b) in the case of a Maltese reinsurance

undertaking, the Preliminary, Parts III, VI and VII thereof

shall apply.”.

For sub-paragraph (vii) of paragraph (c) of sub-regulations

(2) of regulation 3 of the principal regulations, there shall be substituted

the following>

“(vii) details of any insurance guarantee scheme, if

applicable, which is intended to protect the branch’s policyholders

in a manner not being less favourable than that prescribed in Part

III of the Protection and Compensation Fund Regulations.”.

L.N. 435 of 2003.

In regulation 7 of the principal regulations, for the words Amends

regulation 7

“provided that it complies with insurance directive 14 of 1999 made of the principal

pursuant to article 48 of the Act, and any other directive adopted by the regulations.

competent authority” there shall be substituted the words “provided

that it complies with an insurance rule made pursuant to article 48 of

the Act, and any other rule adopted by the competent authority”.

Regulation 9 of the principal regulations shall be amended as Amends

regulation 9

follows>

of the principal

regulations.

(a) for paragraph (e) of sub-regulation (2) thereof, for the

words “specified by means of an insurance directive” there shall

be substituted the words “specified by means of an insurance rule”<

and

(b) for paragraph (f) of sub-regulation (4) thereof, for the

words “established by means of an insurance directive” there shall

be substituted the words “established by means of an insurance

rule”.

For paragraph (c) of sub-regulation (1) of regulation (10) of Amends

regulation 10

the principal regulations, for the words “specified in an insurance of the principal

directive” there shall be substituted the words “specified in an insurance regulations.

rule”.

Part III of the principal regulations shall be amended as follows> Renumbering of

Part III of

the principal

(a) Part III entitled “Part III - EUROPEAN INSURANCE

regulations.

UNDERTAKINGS NOT COMPLYING WITH LEGAL

PROVISIONS” shall be renumbered as “Part IV - EUROPEAN

INSURANCE UNDERTAKINGS NOT COMPLYING WITH

LEGAL PROVISIONS”< and

(b) regulation 11 thereof shall be renumbered as regulation

10. Immediately after regulation 10 of the principal regulations, Insertion of

new Part in the

there shall be inserted the following new Part>

principal

regulations.

“PART III - EXERCISE OF PASSPORT RIGHTS BY

MALTESE REINSURANCE UNDERTAKINGS

11. (1) No Maltese reinsurance undertaking authorised under

the Act shall establish a branch or provide services in a Member State

or EEA State in exercise of a European right without the written consent

of the competent authority.

(2) The competent authority may require such Maltese

reinsurance undertaking to provide it with any information it deems

necessary in relation to the proposed activities.”.

11. Regulation 12, as renumbered, of the principal regulations

shall be amended as follows>

(a) in sub-regulation (1) thereof>

(i) in paragraph (a) therein, the words “or any

provisions of the Act or any rules, regulations or insurance

directives made thereunder” shall be deleted<

(ii) in paragraph (c) therein, for the words “or of any

rules or regulations made thereunder or any insurance

directive” there shall be substituted the words “or of any

regulations made thereunder or any insurance rules”<

(b) in sub-regulation (3) thereof, the words “or because those

measures prove inadequate or are not available in Malta,” shall be

deleted< and

(c) in sub-regulation (5) thereof, for the words “shall inform

the Commissioner” there shall be substituted the words “shall

inform the Commission”.

12. Part IV of the principal regulations shall be amended as

(a) Part IV entitled “APPLICABILITY PROVISIONS” shall

be renumbered as “Part VI - APPLICABILITY PROVISIONS”<

and

(b) regulation 12 thereof shall be renumbered as regulation

13. Immediately after regulation 12, as renumbered, of the

principal regulations, there shall be inserted the following new Part>

“PART V - EUROPEAN REINSURANCE UNDER-

TAKINGS CARRYING ON BUSINESS OF REINSURANCE IN

MALTA

13. (1) Subject to sub-regulation (2) of this regulation, a Exercise of passport

rights by European

European reinsurance undertaking authorised in accordance with article reinsurance

3 of the Reinsurance Directive, shall be entitled to carry on business of undertakings.

reinsurance in Malta under the right of establishment or freedom to

provide services in exercise of a European right.

(2) The entitlement to carry on business of reinsurance in

Malta is to be treated as being on conditions or terms equivalent to

those set out in the authorisation issued to a European reinsurance

undertaking by its supervisory authority< and shall be restricted to the

business of reinsurance which the European reinsurance undertaking is

authorised to carry on by the supervisory authority of its home Member

State.

14. (1) Where the competent authority ascertains that a Contravention by

European

European reinsurance undertaking which has established a branch in reinsurance

Malta or provides services in Malta has contravened or is likely to undertakings.

contravene the Maltese rules, it shall, in writing, require the European

reinsurance undertaking to remedy and rectify its position.

(2) If the European reinsurance undertaking concerned fails

to take necessary steps to remedy and rectify its position, the competent

authority shall inform the foreign authority of such failure. The foreign

authority shall, at the earliest opportunity, take all appropriate measures

to ensure that the European reinsurance undertaking concerned rectifies

its position. The nature of those measures shall be communicated to the

competent authority.

(3) If despite the actions taken by the foreign authority, the

European reinsurance undertaking persists in violating the Maltese rules

referred to in sub-regulation (1) of this regulation in force in Malta, the

competent authority may, after informing the foreign authority, take

appropriate measures to prevent or penalise further irregularities,

including, in so far as is strictly necessary, to prevent that European

reinsurance undertaking from continuing to conclude new reinsurance

contracts in Malta.

(4) Any measure adopted pursuant to this regulation shall

be communicated to the European reinsurance undertaking concerned

in writing, together with reasons justifying such measures and shall be

subject to a right of appeal to the Tribunal and the provisions of article

58 of the Act shall apply mutatis mutandis.”.

14. Sub-regulation (1) of regulation 15, as renumbered, of the

principal regulations shall be amended as follows>

(a) immediately after the words “Maltese insurance

undertaking”, there shall be added the words “or a Maltese

reinsurance undertaking”< and

(b) in the proviso thereof, for the words “with all insurance

directives” there shall be substituted the words “with all insurance

rules”.

Part V of the principal regulations shall be amended as

15. follows>

(a) Part V entitled “INTERPRETATION” shall be

renumbered as “Part VII - I NTERPRETATION”< and

(b) regulation 13 thereof shall be renumbered as regulation

16. Regulation 16, as renumbered, of the principal regulations

shall be amended as follows>

(a)

subarticle (2) thereof shall be deleted<

(b) subarticle (1) thereof shall be renumbered as regulation

16< and

(c) for the words “Council Directive 92#49#EEC and

Directive 2002#83#EC of the European Parliament and of the

Council”, there shall be substituted the words “Council Directive

92#49#EEC, Directive 2002#83#EC of the European Parliament and

of the Council and Directive 2005#68#EC of the European

Parliament and of the Council”.

Mitbug[ fl-Istamperija tal-Gvern — Printed at the Government Printing Press

Lm0.16 (€0.37)