Insurance Intermediaries (Fees) Regulations, 2014

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

L.N. 54 of 2014

INSURANCE INTERMEDIARIES ACT

(CAP. 487)

Insurance Intermediaries (Fees) Regulations, 2014

IN exercise of the powers conferred by article 3 of the Insurance

Intermediaries Act, the Minister for Finance, acting on the advice of

the Malta Financial Services Authority, has made the following

regulations:-

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

commencement.

Intermediaries (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 Intermediaries L.N. 256 of

2006. (Fees) Regulations 2006 prior to the coming into force of these

regulations.

In these regulations, unless the context otherwise requires - Interpretation.

"Act" means the Insurance Intermediaries Act;

"the Authority" means the Malta Financial Services Authority

established by the Malta Financial Services Authority Act

"branch", in the case of a company enrolled in the Agents List,

Managers List or Brokers List, includes any premises of the company

in Malta, other than the company’s principal place of business, from

where the company carries out insurance intermediaries activities;

"business premises", in relation to tied insurance intermediaries

activities, means any premises from where a person enrolled in the

Tied Insurance Intermediaries List carries out tied insurance

intermediaries activities other than its principal place of business;

"cell" and "cell company" shall have the same meaning as is

assigned to them in the Companies Act (Cell Companies Carrying on S.L. 386.10

Business of Insurance) Regulations;

"European insurance intermediary" shall have the same meaning

as is assigned to it in the European Passport Rights for Insurance S.L. 403.18

Intermediaries Regulations;

"gross commissions receivable" means -

(a)

in the case of a person resident in Malta or having its

registered office or head office in Malta enrolled in the Agents

List or Brokers List, the gross amount of commissions

receivable in respect of its aggregate insurance intermediaries

activities;

(b) in the case of a company, which is a foreign

company, enrolled in the Agents List or Brokers List, the gross

amount of commissions receivable in respect of its aggregate

insurance intermediaries activities carried on in or from Malta,

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

forwarded under article 25 of the Act in relation to the calendar year

to which the statements relate;

"the Tribunal" means the Financial Services Tribunal referred to

in article 21 of the Malta Financial Services Authority 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.

(1) Subject to the provisions of sub-regulations (2) and

(3), any person applying for registration in the Agents Register,

Managers Register or Brokers Register, or enrolment in the Agents

List, Managers List or Brokers List or the Tied Insurance

Intermediaries List, or restoration of a name to the Agents Register,

Managers Register or Brokers Register or Agents List, Managers List,

the Brokers List or Tied Insurance Intermediaries List, or registration

of an underwriting agreement, or a permit of a kind, in each case,

specified in the first column 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 kind of registration, or enrolment, or restoration or permit to

which the application relates as specified in the Second Column of

Part I of the Schedule.

(2) Where at the time of submitting an application a person is

enrolled in the Agents List or Managers List and is applying in

relation to an appointment, the applicant shall pay to the Authority

upon submission of the application, irrespective of whether the

application is eventually accepted or not, the fee relating to the kind

of appointment to which the application relates as specified in the

Second Column of Part I of the Schedule.

(3) Where a restoration of a name to the Agents Register,

Managers Register or Brokers Register or Agents List, Managers List,

Brokers List or the Tied Insurance Intermediaries List is made by

order of the Tribunal, the fee payable in respect of that restoration

shall not apply.

Any person who, on the 31st December of each year, holds Payment of

a permit of a kind specified in Part II of the Schedule, or whose name, annual

supervisory fee

on that date, appears in the Agents Register, Managers Register or for

enrolment and

Brokers Register or the Managers List or the Tied Insurance permit.

Intermediaries List, shall, during the month of January of the

following year, pay to the Authority the fee relating to the annual

supervisory fee for the kind of permit held by the person, or the

registration or enrolment of the person, specified in Part II of the

Schedule

Provided that, the first annual supervisory fee shall be due

immediately once a permit, registration or enrolment, as the case may

be, is granted. The first annual supervisory fee payable shall be equal

to a proportion of the fee established in the Second Column of Part II

of the Schedule. The fee payable shall be proportionate to the period

remaining between the date of the granting of the permit, registration

or enrolment, as the case may be, and the end of that calendar year.

When business of insurance intermediaries statements are Payment of

forwarded under article 25 of the Act, an enrolled person shall pay to submission

business of

the Authority the fee specified in the Second Column of Part III of the insurance

intermediaries

Schedule, according to the amount of its gross commissions statements fees.

receivable for the latest calendar year reported

Provided that, the first annual supervisory fee shall be due

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

proportion of the minimum fee established in the Second Column of

Part III of the Schedule. The first annual supervisory fee payable shall

be proportionate to the period remaining between the date of granting

of the enrolment and the date established for the submission of the

business of insurance intermediaries statements.

(1) Where an application is submitted by a company to Fees payable by

carry out insurance intermediaries activities, which will, when cell companies.

formed or constituted, be enrolled or, when converted, is a company

enrolled in the Managers List or Brokers List in terms of article 13 of

the Act, or where an application is submitted for the creation of a new

cell pursuant to the Companies Act (Cell Companies Carrying on S.L. 386.10

Business of Insurance) Regulations, the applicant 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 kind of enrolment, to which the application relates specified in the

Second Column of Part I of the Schedule.

(2) In the case of a person enrolled in the Brokers List, when

the business of insurance intermediaries statements are forwarded by

the cell company under article 25 of the Act, there shall be paid by the

said cell company to the Authority the fee specified in the Second

Column of Part III of the Schedule according to the amount of the

gross commissions receivable by the cell company, including

commissions receivable by the cells.

(3) In the case of a person enrolled in the Managers List,

during the month of January of the following year, the insurance

manager shall pay to the Authority the fee relating to the annual

supervisory fee for the kind of enrolment of the person, specified in

Part II of the Schedule

Provided that, the first annual supervisory fee shall be due

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

proportion of the fee established in the Second Column of Part II of

the Schedule. The first annual supervisory fee payable shall be

proportionate to the period remaining between the date of enrolment

and the end of that calendar year.

There shall be paid to the Authority by any European

insurance intermediary establishing a branch in Malta under

regulation 3 of the European Passport Rights for Insurance

Intermediaries Regulations an annual supervisory fee as specified in

Part II of the Schedule

Provided that the first annual supervisory fee shall be due

immediately once a branch is established and shall be equal to a

proportion of the fee established in the Second Column of Part II 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 that calendar year. Thereafter, the annual supervisory fee shall

b

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, 6

and 7.

The Insurance Intermediaries (Fees) Regulations, 2006 are

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

done prior to the coming into force of these regulations.

2006.

2006. SCHEDULE

(Regulations 3, 4, 5, 6 and 7)

Registration, Enrolment, Permit and Annual Supervisory Fees

Part I

Registration, Enrolment and Permit Application Fees

First Column

1. Registration of a person in the Agents Register,

Managers Register or Brokers Register

2. Enrolment of a person in the Agents List, or Brokers

List

3. Enrolment in the Agents List in additional long term or

general business classes for the same insurer

4. Enrolment of a person in the Managers List

5. Enrolment of a person in the Tied Insurance

Intermediaries List

(a) in the case of a person who is an individual, if

the enrolment is to carry out tied insurance

intermediaries activities -

(i) in the class or classes of long term business

or the class or classes, or group or groups

of classes of general business

(ii) in the class or classes of long term business

and the class or classes, or group or groups

of classes of general business

(iii) in additional class or classes of long term

business

(iv) in additional class or classes, or group or

groups of classes of general business

(v) in class or classes of long term business in

addition to class or classes, or group or

groups of classes of general business in

respect of which the individual is already

enrolled

(vi) in class or classes, or group or groups of

classes of general business in addition to

class or classes of long term business in

respect of which the individual is already

enrolled

(b)

in the case of a person who is not an individual,

if the enrolment is to carry out tied insurance

intermediaries activities

(i) in the class or classes of long term business

or the classes or classes, or group or groups

of classes of general business

(ii) in the class or classes of long term business

and the class or classes, or group or groups

of classes of general business

(iii) in additional class or classes of long term

business

(iv) in additional class or classes, or group or

groups of classes of general business

(v) in class or classes of long term business in

addition to class or classes, or group or

groups of classes of general business

(vi) in class or classes, or group or groups of

classes of general business in addition to

class or classes of long term business

6. Restoration of a name -

(a) in the Agents Register, Managers Brokers

Register

(b) in the Agents List, Managers List Brokers List

(c) in the Tied Insurance Intermediaries List

7. Permit -

(a) to open a branch

(b) to cease to carry out insurance intermediaries

activities,

other

than

tied

insurance

intermediaries activities

(c) to carry out any insurance intermediary activity

prescribed by any regulation made under the Act

unless the fees payable in respect of that activity

are not otherwise prescribed by that regulation

8. Registration of an underwriting agreement

9. Appointment of a person enrolled in the Agents List

Appointment of a person enrolled in the Managers List

Cell company - enrolment in the Managers List or

Brokers List

Creation of a new cell within a cell company enrolled

in the Managers List or Brokers List

Part II

Annual Supervisory fees of registration, enrolment and permit

First Column

Annual supervisory fee of -

(a) registration of a person in the Agents Register,

Managers Register or Brokers Register

(b) enrolment of a person in the Managers List

(other than a cell company)

(c) enrolment of a cell company in the Managers

List

(d) in respect of each cell created

(e) enrolment of a person in the Tied Insurance

Intermediaries List

(i) in the case of a tied insurance intermediary

who is an individual if the enrolment is to

carry out tied insurance intermediaries

activities -

(aa) in the class or classes of long term

business or the class or classes, or

group or groups of classes of general

business

(bb) in the class or classes of long term

business and the class or classes, or

group or groups of classes of general

business

(ii) in the case of a tied insurance intermediary

who is not an individual if the enrolment is

to carry out tied insurance intermediaries

activities -

(aa) in the class or classes of long term

business or the class or classes, or

group or groups of classes of general

business

(bb) in the class or classes of long term

business and the class or classes, or

group or groups of classes of general

business

(f) permit

(i) to maintain a branch

(ii)

to run-off insurance intermediaries

activities, other than tied insurance

intermediaries activities

1,500

(iii) to carry out any insurance intermediary

activity prescribed by any regulation made

under the Act unless the fees payable in

respect of that activity are not otherwise

prescribed by that regulation

(g)

registration of underwriting agreements

(h)

Branch in Malta by any European insurance

intermediary

300 per branch

Part III

Annual supervisory fees for persons required to submit

insurance intermediaries statements

First Column

Second Column

Gross commissions receivable

Fee

€

€

Up to and including €250,000

2,000

(minimum fee)

Over €250,000 up to and including €750,000

3,000

Over €750,000 up to and including €1 million

4,000

Over €1 million

7,000

€0.36