Affiliated Insurance) (Amendment) Regulations, 2015

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 19,509, 10 ta’ Diċembru, 2015

L.N. 395 of 2015

INSURANCE BUSINESS ACT

(CAP. 403)

Insurance Business (Companies Carrying on Business of

Affiliated Insurance) (Amendment) Regulations, 2015

IN exercise of the powers conferred by article 64(6) 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 (Companies Carrying on Business of Affiliated Insurance) commencement.

(Amendment) Regulations, 2015, and these regulations shall be read

and construed as one with the Insurance Business (Companies

Carrying on Business of Affiliated Insurance) Regulations,

hereinafter referred to as ''the principal regulations''.

(2) These regulations shall come into force on the 1st January

2016.

For the title of the principal regulations there shall be Amends the title

substituted the following: ''INSURANCE BUSINESS (CAPTIVE of

regulations.

INSURANCE UNDERTAKINGS AND CAPTIVE REINSURANCE

UNDERTAKINGS) REGULATIONS''.

In regulation 1 of the principal regulations, for the words Amends

''the Insurance Business (Companies Carrying on Business of regulation

the principal

Affiliated Insurance) Regulations'', there shall be substituted the regulations.

words ''the Insurance Business (Captive Insurance Undertakings and

Captive Reinsurance Undertakings) Regulations''.

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

(a) for the definition ''affiliated insurance company''

there shall be substituted the following

'' ''captive insurance undertaking'' means an

authorised insurance undertaking, owned either by a

financial undertaking, other than an insurance or

reinsurance undertaking or a group of insurance or

reinsurance undertakings within the meaning of article 2 of

the Act, or by a non-financial undertaking, the purpose of

which is to provide insurance cover exclusively for the

risks of the undertaking or undertakings to which it

belongs or of an undertaking or undertakings of the group

of which it is a member;'';

(b) for the definition ''affiliated reinsurance company''

there shall be substituted the following

'' ''captive reinsurance undertaking'' means an

authorised reinsurance undertaking, owned either by a

financial undertaking, other than an insurance or

reinsurance undertaking or a group of insurance or

reinsurance undertakings within the meaning of article 2 of

the Act, or by a non-financial undertaking, the purpose of

which is to provide reinsurance cover exclusively for the

risks of the undertaking or undertakings to which it

belongs or of an undertaking or undertakings of the group

of which it is a member;'';

(c)

for the definition ''the Authority'' there shall be

substituted the following

'' ''the competent authority'' means the

Malta

Financial

Services

Authority

established by the Malta Financial Services

Authority Act;'';

(d) the definition ''business of affiliated insurance'' shall

be deleted;

(e)

immediately after the definition ''the competent

authority'', there shall be added the following new definition

'' ''financial undertaking'' means any of the

following entities

(a)

a credit institution, a financial

institution or an ancillary banking services

undertaking within the meaning of sub-paragraphs

(1), (17) and (22) of paragraph (1) of Article 3 of

Directive 2013/36/EU respectively;

(b)

an insurance undertaking, or a

reinsurance undertaking or an insurance holding

company within the meaning of Article 212(1)(f) of

the Solvency II Directive;

(c)

an investment firm or a financial

institution within the meaning of Article 4(1)(1) of

Directive 2004/39/EC; or

(d)

a mixed financial holding company

within the meaning of Article 2(15) of Directive

2002/87/EC;'';

(f)

in the definition ''insurance rule'', for the words ''

''insurance rule'' '', there shall be the words '' ''Insurance Rules''

and for the words ''insurance rule'', wherever they appear in the

principal regulations, there shall be substituted the words ''Insurance

For regulation 3 of the principal regulations, there shall be Substitutes

regulation 3 of

substituted the following

the principal

regulations.

'' Power of the

3. For the better carrying out of the

competent

provisions of these regulations, the competent

authority to

authority may issue Insurance Rules which

issue Insurance

Rules.

may contain such incidental, supplementary

and consequential provisions as appear to the

competent authority to be expedient for the

purposes of these regulations.''.

Regulation 4 of the principal regulations shall be amended Amends

regulation 4 of

as follows

the principal

regulations.

(a)

for sub-regulation (1) thereof, there shall be

substituted the following

''(1) The Act and any regulations and Insurance

Rules made thereunder shall apply to a captive insurance

undertaking and a captive reinsurance undertaking, in the

same manner and to the same extent, unless specified

otherwise, as they apply to an authorised insurance

undertaking or an authorised reinsurance undertaking

whose head office is in Malta, subject to the following

provisions of this regulation.'';

(b) in sub-regulation (2) thereof, for the words ''Article

7(7) of the Act'', there shall be substituted the words ''Article

7(9) of the Act'';

(c)

in sub-regulation (3) thereof, for the words ''an

affiliated insurance company or an affiliated reinsurance

company may, with the approval of the Authority'', there shall

be substituted the words ''a captive insurance undertaking or a

captive reinsurance undertaking may, with the approval of the

competent authority'';

(d) for sub-regulation (4) thereof, there shall be

substituted the following

''(4) Article 20(1)(b) of the Act shall not apply.'';

(e)

in sub-regulation (5) thereof

(i) for the words ''Subject to article 37 of the Act,

where it is proposed'', there shall be substituted the words

''Where it is proposed'';

(ii)

for the words ''companies carrying on

business of affiliated insurance'', there shall be substituted

the words ''captive insurance undertakings or captive

reinsurance undertakings'';

(iii) paragraph (a) thereof shall be amended as

follows

(aa) in sub-paragraph (ii) thereof, for the

words ''for this purpose by the Authority'', there

shall be substituted the words ''for this purpose by

the competent authority'';

(bb) for sub-paragraph (iii) thereof, there

shall be substituted the following

''(iii) paragraph (c) thereof shall not

apply;'';

(iv) for sub-paragraph (ii) of paragraph (b)

thereof, there shall be substituted the following

''(ii) paragraph (d)(i) thereof shall not apply,

unless otherwise determined by the Financial

Services Tribunal.'';

(f)

sub-regulation (9) thereof shall be renumbered as

sub-regulation (10);

(g) immediately after sub-regulation (8) thereof, there

shall be added the following new sub-regulation

''(9) Article 48A of the Act shall not apply.''; and

(h) in sub-regulation (10) thereof, as renumbered, for

the words ''an affiliated insurance company or an affiliated

reinsurance company.'', there shall be substituted the words ''a

captive insurance undertaking or a captive reinsurance

undertaking.''.

B

€0.27