Regulations, 2008

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 18,318, 7 ta’ Ottubru, 2008

L.N. 253 of 2008

INSURANCE BUSINESS ACT

(CAP. 403)

Insurance Business (Companies Accounts) (Amendment)

Regulations, 2008

IN exercise of the powers conferred by articles 20 and 64 of the

Insurance Business Act, the Minister of Finance, the Economy and

Investment, after consultation with the Malta Financial Services

Authority, has made the following regulations:-

The title of these regulations is the Insurance Business Citation.

(Companies Accounts) (Amendment) Regulations, 2008, and they

shall be read and construed as one with the Insurance Business

(Companies Accounts) Regulations, 2000, hereinafter referred to as L.N. 103 of 2000.

“the principal regulations”.

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a)

in sub-regulation (1) thereof

(i) the second definition “the Authority”

immediately after the definition “authorised company”

shall be deleted;

(ii) immediately after the definition “authorised

company” there shall be inserted the following new

definition

“generally accepted accounting principles and

practice” has the same meaning as is assigned to it by

article 2(4) of the Companies Act;”; and

(b)

in sub-regulation (4) thereof

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

“paragraphs 54A to 54D”, there shall be substituted

“paragraphs 54 to 54D”;

(ii) in paragraph (b) thereof, after the word “

“receivables” ”, there shall be added the words “ “related

party”,”.

Regulation 3 of the principal regulations shall be amended

as follows

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

regulation (1) thereof; and

(b) immediately after sub-regulation (1) as renumbered,

there shall be added the following new sub-regulation (2)

“(2) For the avoidance of doubt, in the event that a

provision of these regulations is in conflict or is not

compatible with International Financial Reporting

Standards, as may be issued from time to time by the

International Accounting Standards Board, or by any other

body succeeding it by whatever name it may be known,

the accounts shall be drawn up in accordance with generally

accepted accounting principles and practice.”.

Regulation 4 of the principal regulations shall be amended

as follows

(a) for the words “of the First Schedule:”, there shall be

substituted the words “of the First Schedule.”;

(b)

the proviso to regulation 4 thereof shall be deleted.

In regulation 8 of the principal regulations, for the words

“and Directive 2003/51/EC of the European Parliament of the

Council of 18 June 2003 amending Directives 78/660/EEC, 83/349/

EEC, 86/635/EEC and 91/674/EEC on the annual and consolidated

accounts of certain types of companies, banks and other financial

institutions and insurance undertakings and shall be interpreted and

applied accordingly.” there shall be substituted the words “Directive

2003/51/EC of the European Parliament of the Council of 18 June

2003 amending Directives 78/660/EEC, 83/349/EEC, 86/635/EEC

and 91/674/EEC on the annual and consolidated accounts of certain

types of companies, banks and other financial institutions and

insurance undertakings and Directive 2006/46/EC of the European

Parliament and of the Council of 14 June 2006 amending Council

Directives 78/660/EEC on the annual accounts of certain types of

companies, 83/349/EEC on consolidated accounts, 86/635/EEC on

the annual accounts and consolidated accounts of banks and other

financial institutions and 91/674/EEC on the annual accounts and

consolidated accounts of insurance undertakings and shall be

interpreted and applied accordingly.”.

Paragraph 54 of the First Schedule to the principal Amends the First

Schedule to the

regulations shall be amended as follows –

principal

regulations.

(a) sub-paragraphs (k), (l), (m), (n), (o), (p), (q), (r), (s),

(t), (u) and (v) thereof, shall be renumbered as sub-paragraphs

(m), (n), (o), (p), (q), (r), (s), (t), (u), (v), (w) and (x)

respectively;

(b) the following new sub-paragraphs (k) and (l) shall

be inserted immediately after sub-paragraph (j) thereof -

“Information about off-balance sheet arrangements

(k) The nature and business purpose of the

company’s arrangements that are not included in the

balance sheet and the financial impact on the company of

those arrangements, provided that the risks or benefits

arising from such arrangements are material and in so far

as the disclosure of such risks or benefits is necessary for

assessing the financial position of the company;

Related party transactions

(l) (i) Particulars may be given of transactions

which the company has entered into with related parties,

and shall be given if such transactions are material and

have not been concluded under normal market conditions;

(ii) The particulars of transactions required to

be disclosed by sub-paragraph (l)(i) shall include-

(aa)

the amount of such transactions;

(bb) the nature of the related party

relationship; and

(cc) other information about the

transactions necessary for an understanding of

the financial position of the company;

(iii) Information about individual transactions

may be aggregated according to their nature, except

where separate information is necessary for an

understanding of the effects of related party

transactions on the financial position of the

company;”;

(c) in sub-paragraph (q)(ii) thereof, as renumbered, for

the words “for the purposes of sub-paragraph (o)(i)”, there shall

be substituted the words “for the purposes of sub-paragraph

(q)(i)”; and

(d) in sub-paragraph (w) thereof, as renumbered, for the

words “referred to in sub-paragraph (s) and (t)”, there shall be

substituted the words “referred to in sub-paragraphs (u) and

The Second Schedule to the principal regulations shall be

amended as follows

(a) for paragraph 9 in Title I thereof, there shall be

substituted the following

“9.

Paragraph (22) of the Schedule shall apply as if –

(a) immediately after sub-paragraph (5) thereof,

there were added the following new sub-paragraphs

“(5A) The nature and business purpose of

any arrangements that are not included in the

consolidated balance sheet and the financial

impact of those arrangements, provided that the

risks or benefits arising from such arrangements

are material and in so far as the disclosure of such

risks or benefits is necessary for assessing the

financial position of the undertakings included

in the consolidation taken as a whole.

(5B) The transactions, save for intra-group

transactions, entered into by the parent

undertaking, or by other undertakings included

in the consolidation, with related parties,

including the amounts of such transactions, the

nature of the related party relationship as well as

other information about the transactions

necessary for an understanding of the financial

position of the undertakings included in the

consolidation taken as a whole, if such

transactions are material and have not been

concluded under normal market conditions.

Information about individual transactions may be

aggregated according to their nature except where

separate information is necessary for an

understanding of the effects of the related party

transactions on the financial position of the

undertakings included in the consolidation taken

as a whole;

(b) in paragraph (9) thereof, reference to “the Third

Schedule to this Act” were a reference to the “First Schedule to

the Regulations”.”; and

(b) for paragraph 6 in Title II thereof, there shall be

substituted the following

“6. The information required by paragraphs 54(m),

(n), (o) and (p) thereof need not be shown.”.

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