and Reinsurance Undertakings in an Insurance Group)

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 19, 109, 12 ta’ Lulju, 2013

L.N. 183 of 2013

INSURANCE BUSINESS ACT

(CAP. 403)

Insurance Business (Supplementary Supervision of Insurance

and Reinsurance Undertakings in an Insurance Group)

(Amendment) Regulations, 2013

IN exercise of the powers conferred by articles 63 and 64 of the

Insurance Business Act, the Minister for Finance, after consultation

with the Malta Financial Services Authority, has made the following

regulations:-

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

Business (Supplementary Supervision of Insurance and Reinsurance scope.

Undertakings in an Insurance Group) (Amendment) Regulations,

2013, and these regulations shall be read and construed as one with

the Insurance Business (Supplementary Supervision of Insurance and S.L. 403.17

Reinsurance Undertakings in an Insurance Group) Regulations,

hereinafter referred to as "the principal regulations".

(2) The object of these regulations is to transpose Article 1 of

Directive 2011/89/EU of the European Parliament and of the Council

of 16 November 2011 amending Directives 98/78/EC, 2002/87/EC,

2006/48/EC and 2009/138/EC as regards the supplementary

supervision of financial entities in a financial conglomerate.

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a)

in the definition "insurance parent undertaking", for

the words "which is either itself an insurance undertaking, a

reinsurance undertaking or an insurance holding company",

there shall be substituted the words "which is either itself an

insurance undertaking, a reinsurance undertaking, an insurance

holding company, or a mixed financial holding company"; and

(b) immediately after the definition "mixed-activity

insurance holding company", there shall be added the following

new definition

" "mixed financial holding company" means a

mixed financial holding company as defined in regulation

2 of the Financial Conglomerates Regulations;".

Regulation 3 of the principal regulations shall be amended Amends

regulation 3 of

as follows

the principal

regulations.

(a)

in paragraph (b) thereof, for the words "is an

insurance holding company, a non-EEA insurer or a non-EEA

pure reinsurer", there shall be substituted the words "is an

insurance holding company, a mixed financial holding

company, a non-EEA insurer or a non-EEA pure reinsurer"; and

(b) in the proviso thereof, for the words "the non-EEA

insurer, non-EEA pure reinsurer, insurance holding company or

mixed activity insurance holding company taken individually",

there shall be substituted the words "the non-EEA insurer, non-

EEA pure reinsurer, insurance holding company, mixed

financial holding company or mixed activity insurance holding

company taken individually".

Immediately after regulation 3 of the principal regulations,

there shall be added the following new regulation

" Level of

3A. (1) Where a mixed financial

application

holding company is subject to equivalent

with regard to

provisions under these regulations and under

mixed

financial

the Financial Conglomerates Regulations, in

holding

companies.

particular in terms of risk-based supervision,

and where the competent authority is

responsible for exercising supplementary

supervision, the competent authority may,

after consulting the other foreign authorities

concerned, apply only the relevant provision

of the Financial Conglomerates Regulations

to that mixed financial holding company.

(2) Where a mixed financial holding

company is subject to equivalent provisions

under the Insurance Groups Directive and

under Directive 2006/48/EC of the European

Parliament and of the Council of 14 June

2006 relating to the taking up and pursuit of

the business of credit institutions (recast), in

particular in terms of risk-based supervision,

and where the competent authority is

responsible for exercising supplementary

supervision, the competent authority may, in

agreement with the consolidating supervisor

in the banking and investment services sector,

apply only the provision of the directive

relating to the most significant sector as

determined in accordance with regulation

3(2), (3) and (4) of the Financial

Conglomerates Regulations.

(3) Where the competent authority is

the authority responsible for exercising

supplementary supervision, it shall inform the

European Banking Authority, established by

Regulation (EU) No 1093/2010 of the

European Parliament and of the Council of 24

November 2010, and the European Insurance

and Occupational Pensions Authority,

established by Regulation (EU) No 1094/2010

of the European Parliament and of the

Council of 24 November 2010, of the

decisions taken in sub-regulations (1) and

(2).".

In sub-regulation (2) of regulation 6 of the principal Amends

regulations, for the words "it results that the solvency of a subsidiary regulation

the principal

insurer whose head office is in Malta or a subsidiary pure reinsurer regulations.

whose head office is in Malta, of the insurance holding company, the

non-EEA insurer", there shall be substituted the words "it results that

the solvency of a subsidiary insurer whose head office is in Malta or a

subsidiary pure reinsurer whose head office is in Malta of the

insurance holding company, mixed financial holding company, the

non-EEA insurer".

€0.18