Insurance Business (Fees) Regulations, 2014

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 19,206, 7 ta’ Frar, 2014

L.N. 53 of 2014

INSURANCE BUSINESS ACT

(CAP 403)

Insurance Business (Fees) Regulations, 2014

IN exercise of the powers conferred by article 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

commencement.

Business (Fees) Regulations 2014.

(2) These regulations shall be deemed to have come into force

on the 1st January 2014, and shall apply to fees falling due on or after

the said date.

(3) Nothing in these regulations shall be deemed to affect

the liability in respect of any fees due under the Insurance

Business (Fees) Regulations, 1999 prior to the coming into force of

these regulations.

(1)

In these regulations, unless the context otherwise Interpretation.

requires

"the Act" means the Insurance Business Act;

"authorisation" means an authorisation issued or held, or to

be issued or held, under the Act to carry on business of insurance or

to carry on business as a reinsurance special purpose vehicle or to act

as an approved auditor;

"Authority" means the Malta Financial Services Authority

established by the Malta Financial Services Authority Act;

"branch" includes -

(a) in the case of a company whose head office is in

Malta carrying on business of insurance, any premises of the

company, other than the company’s principal place of

business, from where the company carries on business of

insurance; and

(b) in the case of a company whose head office is in a

country outside Malta carrying on business of insurance in or

from Malta, any premises of the company in Malta, other than

the company’s principal place of business, from where the

company carries on business of insurance;

"cell" shall have the same meaning as is assigned to it in the

Companies Act (Cell Companies Carrying on Business of

Insurance) Regulations;

"cell company" shall have the same meaning as is assigned to

it in the Companies Act (Cell Companies Carrying on Business of

Insurance) Regulations;

"European insurance undertaking" shall have the same meaning

as is assigned to it in the European Passport Rights for Insurance

Undertakings Regulations;

"gross premiums" means premiums after deduction of

discounts, refunds and rebates of premium but before deduction of

premiums for reinsurance ceded and before deduction of

commissions payable by the company;

"gross premiums receivable" means -

(a) in the case of a company whose head office is in

Malta, carrying on business of insurance, the gross amount of

premiums receivable in respect of its aggregate business of

insurance;

(b) in the case of a company whose head office is in a

country outside Malta, carrying on business of insurance in

Malta through a branch or insurance agent, or both a branch

and insurance agent, the gross amount of premiums receivable

in respect of the aggregate business of insurance carried on in

Malta by the branch or insurance agent or both the branch and

insurance agent;

(c) in the case of a company holding a permit issued

under article 39 of the Act servicing solely and exclusively its

long term business carried on in or from Malta, the gross

amount of premiums receivable in respect of its aggregate

business serviced by the company in Malta in accordance with

that permit,

in each case, required to be included in the statements required to

be forwarded under article 32 of the Act in relation to the calendar

year to which the statements relate;

"incorporated cell" shall have the same meaning as is assigned

to it in the Companies Act (Incorporated Cell Companies Carrying S.L. 386.13

on Business of Insurance) Regulations;

"incorporated cell company" shall have the same meaning as

is assigned to it in the Companies Act (Incorporated Cell S.L. 386.13

Companies Carrying on Business of Insurance) Regulations;

"non-cellular company” shall have the same meaning as is

assigned to it in the Companies Act (Incorporated Cell Companies S.L. 386.13

Carrying on Business of Insurance) Regulations;

"permit" means a permit issued or held, or to be issued or

held, pursuant to or under any provision of the Act;

"reinsurance special purpose vehicle" shall have the same

meaning as is assigned to it in the Reinsurance Special Purpose S.L. 403.19

Vehicles Regulations;

"to service" in relation to unexpired policies, includes the

run-off of such policies;

"the specified date" shall be construed in accordance with

article 40 of the Act,

and words and expressions used in these regulations which are also

used in the Act but which are not defined herein shall have the same

meaning as in the Act.

(2) In these regulations, unless explicitly excluded, business

of insurance includes business of reinsurance thereof.

Any person, other than a Mutual Association -

Payment of

application fees.

(a) applying for an authorisation in respect of a matter

of a description specified in the First Column of Group A or

Group B or Group D of Part I of the Schedule; or

(b) applying for a permit in respect of a matter of a

description specified in the First Column of Group C of Part I

of the Schedule; or

(c) applying for approval in respect of a matter of a

description specified in the First Column of Group E of Part I

of the Schedule,

shall upon submission of the application, irrespective of whether the

application is eventually accepted or not, pay to the Authority the fee

relating to the matter of the description to which the application

relates specified in the Second Column of the respective Group of

that Part of the Schedule subject, where applicable, to the payment of

the minimum fee relating to the matter of that description specified in

the Third Column of that respective Group

Provided that, where a person is already authorised to carry

on business of insurance and such person applies for the authorisation

of additional classes of business in the same business as already

authorised, the applicable fee shall be that relating to the matter of the

description to which the application relates as specified in the Second

Column of Part I of the Schedule, and the minimum fee shall not

apply in such case.

Any person, other than a Mutual Association, who, on the

31st December of each year, holds an authorisation or permit in

respect of a matter of a description specified in Part II of the Schedule

shall, during the month of January of the following year, pay to the

Authority the annual supervisory or permit fee, as the case may be, in

respect of a matter of that description held by the person

concerned specified in the Second Column of Part II of the

Schedule

Provided that, the first annual supervisory fee shall be

due immediately once an authorisation or permit is granted. The

first annual supervisory fee payable shall be proportionate to the

period remaining between the date of granting of the authorisation

or permit and the end of that calendar year.

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

company carrying on business of insurance which, in

accordance with article 32 of the Act, is required to submit

business of insurance statements, shall, upon submission of the

business of insurance statements, pay to the Authority the

annual supervisory fee established in Part III of the Schedule on

the basis of the gross premiums receivable declared in the

business of insurance statements

Provided that, the first annual supervisory fee shall be due

immediately once an authorisation is granted and shall be equal to a

proportion of the minimum fee relating to the matter of that

description specified in the Third Column of Part I of the Schedule.

The first annual supervisory fee due shall be proportionate to the

period remaining between the date of the granting of the authorisation

and the date established for the submission of the business of

insurance statements in accordance with article 32 of the Act.

(2) This regulation does not apply -

(a) in the case of a company carrying on business of

affiliated insurance;

(b) in the case of a company whose business is

servicing solely and exclusively general business; or

(c) in the case of a company whose business is

servicing solely and exclusively long term business where the

gross premiums receivable by the company in respect of that

business for the calendar year to which the statements

forwarded relate fall below the amount of and including

twenty-five thousand euro (€25,000).

(3) For the purposes of this regulation and Part III of the

Schedule, servicing, in relation to general business, is deemed to be

effected on the first day immediately following the date of the first

anniversary of the specified date shown in the permit to which the

business serviced, or being serviced, relates.

Any Mutual Association applying for a permit to carry on Fees payable by

Mutual

business of insurance in Malta shall pay to the Authority -

Associations.

(a) upon submission of the application, irrespective of

whether the application is eventually accepted or not, the fee

relating to the matter of the description to which the application

relates specified in the Second Column of Group C of Part I of

the Schedule; and

(b) thereafter, during the month of January of each year,

the annual permit fee relating to the matter of description in the

Second Column of Part II of the Schedule

Provided that, the first annual permit fee shall be due

immediately once the permit is granted. The first annual permit fee

payable shall be proportionate to the period remaining between the

date of the granting of the permit and the end of that calendar year.

There shall be paid to the Authority by any European Fees payable by

insurance undertaking establishing a branch in Malta under regulation European

insurance

3 of the European Passport Rights for Insurance and Reinsurance undertakings.

Undertakings Regulations, the annual supervisory fee specified in

Part IV of the Schedule. Such annual supervisory fee shall be paid

during the month of June of each year and shall be calculated on the

gross premiums receivable attributable to the business of insurance

carried on in Malta through the establishment of a branch during the

last calendar year

Provided that, the first annual supervisory fee shall be due

immediately upon the establishment of a branch in Malta. The first

annual supervisory fee payable shall be equal to a proportion of the

minimum fee established in Part IV of the Schedule. The fee payable

shall be proportionate to the period remaining between the date of the

establishment of the branch and the end of the following June.

(1) Where an application is made by a company which

will, when formed or constituted, be authorised or, when converted, is

a company authorised under article 7 of the Act, or where an

application is submitted by the cell company for the creation of a new

cell to carry on business of insurance pursuant to the Companies Act

(Cell Companies Carrying on Business of Insurance) Regulations, the

applicant shall pay to the Authority -

(a) upon submission of the application to carry on

business of insurance as a cell company, irrespective of whether

the application is eventually accepted or refused, the fee relating

to the matter of the description to which the application relates

specified in the Second Column of the respective Group of Part

I of the Schedule;

(b) upon submission of the application for the creation

of a cell, irrespective of whether the application is eventually

accepted or refused, the fee relating to the matter of the

description to which the application relates specified in the

Second Column of the respective Group of Part I of the

Schedule.

(2) When the business of insurance statements are forwarded

by the cell company under article 32 of the Act, there shall be paid by

the said cell company to the Authority the annual supervisory fee in

the following manner

(a) if the cell company does not issue insurance

contracts from the non-cellular section of the cell company, the

fee specified in the Second Column of Part II of the Schedule

and, in addition, where such company carries on business of

insurance through its cells, for each cell

(i) where the cell carries on business of

insurance, other than business of affiliated insurance, the

fee specified in the Second Column of Part III of the

Schedule;

(ii) where the cell carries on exclusively business

of affiliated insurance, fee specified in the Second Column

of Part II of the Schedule; and

(b) if the cell company issues insurance contracts from

the non-cellular section of the cell company, the fee specified in

the Second Column of Part III of the Schedule, and in addition,

where such company carries on business of insurance through

its cells, for each cell

(i) where the cell carries on business of

insurance, other than business of affiliated insurance, the

fee specified in the Second Column of Part III of the

Schedule;

(ii) where the cell carries on exclusively

business of affiliated insurance, fee specified in the

Second Column of Part II of the Schedule

Provided that, in each case, the first annual supervisory fee

as set out in this sub-regulation shall be due immediately once an

authorisation is granted and shall be equal to a proportion of the fee

established under the Second Column of Part II of the Schedule, or

the minimum fee under Part III of the Schedule, as the case may be.

The first annual supervisory fee due shall be proportionate to the

period remaining between the date of the granting of the authorisation

and the date established for the submission of the business of

insurance statements.

(3) For the purposes of sub-regulation (2), "business of

affiliated insurance" shall have the same meaning as is assigned to it

by regulation 15 of the Companies Act (Cell Companies Carrying on S.L. 386.10

Business of Insurance) Regulations.

(1) Where, pursuant to the Companies Act Fees payable by

(Incorporated Cell Companies Carrying on Business of Insurance) incorporated

cell companies

and

Regulations an application is made by -

incorporated

cells.

(a) a company which shall be, when formed or S.L. 386.13

constituted, authorised or, when transformed, authorised to

carry on business of insurance as an incorporated cell

company or an incorporated cell in terms of article 7 of the

Act; or

(b) an incorporated cell company having no cells or an

incorporated cell which shall be, when transformed, a non-

cellular company authorised to carry on business of insurance,

the applicant shall pay to the Authority the fees applicable in terms

of regulation 3.

(2) Where, pursuant to the Companies Act (Incorporated S.L. 386.13

Cell Companies Carrying on Business of Insurance) Regulations,

an application is made by an incorporated cell company having

no incorporated cells which shall be, when transformed, authorised

as a cell company, the company shall pay to the Authority the fees

specified in regulation 3.

(3) When business of insurance statements are forwarded

under article 32 of the Act by an incorporated cell company and an

incorporated cell, the incorporated cell company and incorporated

cell shall pay the Authority the fees determined in regulation 5.

None of the fees established as due in terms of these

regulations shall be refundable. Nor shall they be prorated, other than

the first annual supervisory fee, as established in regulations 4, 5, 7

and 8, and the first annual permit fee established in regulation 6.

The Insurance Business (Fees) Regulations, 1999 are

hereby revoked, without prejudice to anything done, or omitted to be

done prior to the coming into force of these regulations.

1999.

1999. SCHEDULE

(Regulations 3 to 9)

Application, Permit and Annual Supervisory Fees

Part I

Application and Permit Fees

First Column

Second Column

Third Column

Fees

Minimum Fee

€

€

Group A

Application for authorisation to carry on -

1. Business of insurance only/ business

of reinsurance only/ business of

insurance and reinsurance

(a) Long term business

500 per class

5,000

(b) General business

300 per class

3,500

2. Business of affiliated insurance or

affiliated reinsurance

5,000

3. Business of reinsurance in the

classes already authorised for

business of insurance or business of

insurance in the classes already

authorised

for

business

of

reinsurance

(a) Long term business

250 per class

2,500

(b) General business

150 per class

1,750

Group B

Application for authorisation to act as an

approved auditor -

(a) Individual

(b) Partnership

Group C

Application for Permits to -

1. Open a branch in Malta

2. Cease to carry on and subsequently to

service -

(a) Business of insurance only/

business of reinsurance only/

business of insurance and

reinsurance

(i) Long term business

400 per Class

(ii) General business

150 per Class

(b) Business of affiliated insurance

of affiliated reinsurance

2,500

3. Carry on business of insurance in

Malta by a Mutual Association

1,000

Group D

Application for authorisation to -

1. Carry on business of insurance as a

cell company

6,500

2. Create of a new cell to carry on

business of insurance

2,500

3. Carry on business as a reinsurance

1,000

special purpose vehicle

per contract

4. Assume additional risk transfer

arrangements by an authorised

1,000

reinsurance special purpose vehicle

per contract

Group E

Approval of a scheme to transfer general

0.02% of Gross

business

Premium of the

last financial year

Part II

Annual Supervisory and Annual Permit Fees

First Column

1. Annual supervisory fee for authorisation to carry on

business of affiliated insurance or reinsurance

2. Annual supervisory fee for Cell companies that do not

issue insurance contracts from the non-cellular section of

the cell company

3. Annual supervisory fee for Cells carrying on exclusively

business of affiliated insurance

4. Annual supervisory fee for Reinsurance Special Purpose

Vehicles

5. Annual supervisory fee to continue to act as an approved

auditor

(a) Individual

(b) Partnership

6. Permit fees to service

(a) General business

(b)

Business of affiliated insurance or affiliated

reinsurance

2,000

(c) Business of reinsurance (solely and exclusively)

2,000

7. Permit fees to maintain a branch in Malta

8. Permit fees for a Mutual Association to continue to carry

on business of insurance in Malta

1,500

Part III

Annual Supervisory fees for companies required to submit

Insurance Business Statements

First Column

Second Column

Gross Premium Receivable

Up to and including €1 million

3,250

(minimum fee)

Over €1 million up to and including €2.5 million

7,500

Over €2.5 million up to and including €3.5 million

8,500

Over €3.5 million up to and including €5 million

10,000

Over €5 million up to and including €7.5 million

14,000

Over €7.5 million up to and including €12 million

16,250

Over €12 million up to and including €25 million

19,500

Over €25 million up to and including €35 million

26,000

Over €35 million up to and including €50 million

29,000

Over €50 million up to and including €70 million

31,500

Over €70 million up to and including €100 million

36,500

Over €100 million up to and including €150 million

43,000

In excess of €150 million

50,000

Part IV

Annual Supervisory fees for European Insurance Undertakings

First Column

Second Column

Gross Premium Receivable

Up to and including €2.5million

6,000

(minimum fee)

Over €2.5 million up to and including €3.5 million

7,000

Over €3.5 million up to and including €5 million

8,250

Over €5 million up to and including €7.5 million

11,500

Over €7.5 million up to and including €12 million

13,000

Over €12 million up to and including €25 million

17,000

In excess of €25 million

25,000

€0.54