Undertakings (Amendment) Regulations, 2007

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 18,164, 18 ta’ Diçembru, 2007

L.N. 421 of 2007

INSURANCE BUSINESS ACT

(CAP. 403)

European Passport Rights for Insurance and Reinsurance

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>-

The title of these regulations is the European Passport Rights Citation.

for Insurance and Reinsurance Undertakings (Amendment) Regulations,

2007 and they shall be read and construed as one with the European

Passport Rights for Insurance and Reinsurance Undertakings

Regulations, 2004, hereinafter referred to as “the principal regulations”. L.N. 89 of 2004.

Regulation 11 of the principal regulations shall be amended Amends regulation

11of the principal

as follows>

regulations.

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

substituted the words “Exercise of passport rights by Maltese

reinsurance undertakings.”< and

(b) immediately after subregulation (2) thereof, there shall

be added the following new subregulations>

“(3) The prudential supervision of a Maltese

reinsurance undertaking shall be the responsibility of the

competent authority whether or not the reinsurance

undertaking establishes a branch or provides services in

another Member State or EEA State, without prejudice to those

provisions of the Reinsurance Directive which give

responsibility to the foreign authority.

(4) In the case of a Maltese reinsurance undertaking

carrying on business of reinsurance in a Member State or an

EEA State in exercise of a European right, where the

competent authority receives from the foreign authority

information that the activities of the Maltese reinsurance

undertaking might affect its financial soundness, the

competent authority shall determine whether the Maltese

reinsurance undertaking is complying with Maltese rules.

(5) For the purposes of subregulations (3) and (4) of

this regulation, the prudential supervision shall include

verification, with respect to the Maltese reinsurance

undertaking’s entire business, of its state of solvency, of the

establishment of technical provisions and of the assets

covering them in accordance with Maltese rules.”.

Immediately after subregulation (2) of regulation 13 of the

principal regulations, there shall be added the following new

subregulations>

“(3) Where the competent authority has reason to consider

that the activities of a European reinsurance undertaking, carrying

on business of reinsurance in exercise of a European right, might

affect its financial soundness, it shall inform the foreign authority.

(4) Where a European reinsurance undertaking carries on

business of reinsurance in Malta through a branch in exercise of a

European right, its supervisory authority may, after having first

informed the competent authority, carry out itself, or through an

intermediary it appoints for that purpose, on-site verification of

the information necessary to ensure the financial supervision of

the undertaking. The competent authority may participate in that

verification.”.

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

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