Insurance Business (Fees) (Amendment) Regulations, 2015

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

L.N. 397 of 2015

INSURANCE BUSINESS ACT

(CAP. 403)

Insurance Business (Fees) (Amendment) Regulations, 2015

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

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

Business (Fees) (Amendment) Regulations, 2015, and these commencement.

regulations shall be read and construed as one with the Insurance S.L. 403.04

Business (Fees) Regulations, hereinafter referred to as ''the principal

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

2016.

Sub-regulation (1) of regulation 2 of the principal Amends

regulation 2 of

regulations shall be amended as follows

the principal

regulations.

(a)

the definition ''Authority'' shall be deleted;

(b) for the definition ''branch'', there shall be substituted

the following

'' ''branch'' includes -

(a) in the case of an undertaking whose

head office is in Malta carrying on business of

insurance, any premises of the undertaking, other

than the undertaking’s principal place of business,

from where the undertaking carries on business of

insurance; and

(b) in the case of a third country insurance

undertaking or a third country reinsurance

undertaking carrying on business of insurance in or

from Malta, any premises of the undertaking in

Malta, other than the undertaking’s principal place

of business, from where the undertaking carries on

business of insurance;'';

(c)

immediately after the definition ''cell company'',

there shall be added the following new definition

'' ''competent authority'' means the Malta

Financial Services Authority established by

the Malta Financial Services Authority Act;'';

(d) in the definition ''gross premiums'', for the words

''commissions payable by the company;'', there shall be

substituted the words ''commissions payable by the

undertaking;''; and

(e)

for the definition ''gross premiums receivable'', there

shall be substituted the following

'' ''gross premiums written'' means -

(a) in the case of an undertaking whose

head office is in Malta, carrying on business of

insurance, the gross amount of premiums written in

respect of its aggregate business of insurance;

(b) in the case of a third country insurance

undertaking or a third country reinsurance

undertaking, carrying on business of insurance in

Malta through a branch, the gross amount of

premiums written in respect of the aggregate

business of insurance carried on in Malta by the

branch;

(c) in the case of an undertaking 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 written in respect of its aggregate

business serviced by that undertaking in Malta in

accordance with that permit, and

in each case, required to be included in the annual

information to be submitted in accordance with Insurance

Rules issued pursuant to article 32 of the Act;''.

Regulation 3 of the principal regulations shall be amended

(a)

for the words ''Any person, other than a Mutual

Association'', there shall be substituted the words ''Any person'';

(b) for the word ''Authority'', and wherever it appears

throughout the principal regulations, there shall be substituted

the words ''competent authority''.

In regulation 4 of the principal regulations, for the words Amends

''Any person, other than a Mutual Association,'', there shall be regulation

the principal

substituted the words ''Any person''.

regulations.

Regulation 5 of the principal regulations shall be amended Amends

regulation 5 of

the principal

regulations.

(a)

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

substituted the following

''(1) Subject to the provisions of sub-regulations

(2) and (4), an authorised insurance undertaking and an

authorised reinsurance undertaking carrying on business of

insurance which is required to submit annual quantitative

templates in accordance with Insurance Rules issued

pursuant to article 32 of the Act, shall, upon submission of

the annual quantitative templates, pay to the competent

authority the annual supervisory fee established in Part III

of the Schedule on the basis of the gross premiums written

declared in the annual quantitative templates

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 annual quantitative templates in

accordance with Insurance Rules issued pursuant to

article 32 of the Act.'';

(b)

in sub-regulation (2) thereof

(i) for paragraph (a) thereof, there shall be

substituted the following

''(a) in the case of a captive insurance

undertaking or captive reinsurance undertaking;'';

(ii) for paragraph (b) thereof, there shall be

substituted the following

''(b) in the case of an undertaking whose

business is servicing solely and exclusively general

business.'';

(iii) paragraph (c) thereof shall be deleted; and

(c)

immediately after sub-regulation (3) thereof, there

shall be added the following new sub-regulation

''(4) In the case of an undertaking whose business

is servicing solely and exclusively long term business

(a)

where the gross premiums written by

the undertaking in respect of that business for the

previous calendar year falls below the amount of

and including twenty-five thousand euro (€25,000),

these regulations do not apply;

(b) where the gross premiums written by

the undertaking in respect of that business for the

previous calendar year exceed the amount of

twenty-five thousand euro (€25,000), the fees

under Part III of the Schedule shall apply.''.

Regulation 6 of the principal regulations shall be deleted.

In regulation 7 of the principal regulations, for the words

''shall be calculated on the gross premiums receivable attributable'',

there shall be substituted the words ''shall be calculated on the gross

premiums written attributable''.

Regulation 8 of the principal regulations shall be amended

(a)

in sub-regulation (1) thereof, for the words ''when

converted, is a company authorised under article 7 of the Act,'',

there shall be substituted the words ''when converted, is an

insurance or reinsurance undertaking authorised under article 7

of the Act,'';

(b)

in sub-regulation (2) thereof

(i) for the words ''When the business of

insurance statements are forwarded by the cell company

under article 32 of the Act,'', there shall be substituted the

words ''When the annual quantitative templates are

forwarded by the cell company in accordance with

Insurance Rules issued under article 32 of the Act,''; and

(ii) in the proviso thereto, for the words ''the date

established for the submission of the business of insurance

statements.'', there shall be substituted the words ''the date

established for the submission of the annual quantitative

templates.'';

In sub-regulation (3) of regulation 9 of the principal Amends

regulations, for the words ''When business of insurance statements are regulation

the principal

forwarded under article 32 of the Act'', there shall be substituted the regulations.

words ''When annual quantitative templates are forwarded in

accordance with Insurance Rules issued under article 32 of the Act''.

The Schedule to the principal regulations shall be amended Amends the

Schedule to the

as follows

principal

regulations.

(a)

in the First Column of Part I thereof

(i) in paragraph (2) of Group A thereof, for the

words ''Business of affiliated insurance or affiliated

reinsurance'', there shall be substituted the ''Business

carried on by a captive insurance undertaking and captive

reinsurance undertaking'';

(ii) in paragraph (b) of Group B thereof, for the

word ''Partnership'', there shall be substituted the words

''Audit firm'';

(iii) in Group C thereof

(aa) in sub-paragraph (b) of paragraph (2)

thereof, for the words ''Business of affiliated

insurance or affiliated reinsurance'', there shall be

substituted the words ''Business carried on by a

captive insurance undertaking and captive

reinsurance undertaking'';

(bb) paragraph (3) thereof shall be deleted;

(b)

in the First Column of Part II thereof

(i) in paragraph (1) thereof, for the words ''carry

on business of affiliated insurance or reinsurance'', there

shall be substituted the words ''carry on business by a

captive insurance undertaking and captive reinsurance

undertaking'';

(ii) in paragraph (5)(b) thereof, for the word

''Partnership'', there shall be substituted the words ''Audit

firm'';

(iii) in sub-paragraph (b) of paragraph (6) thereof,

for the words ''Business of affiliated insurance or affiliated

reinsurance'', there shall be substituted the words

''Business carried on by a captive insurance undertaking

and captive reinsurance undertaking'';

(iv) paragraph (8) thereof shall be deleted;

(c)

in Part III thereof

(i) for the heading ''Annual Supervisory fees for

companies required to submit Insurance Business

Statements'', there shall be substituted the words ''Annual

Supervisory fees for undertakings required to submit

annual quantitative templates'';

(ii) for the sub-heading ''Gross Premium

Receivable'' in the First Column thereof, there shall be

substituted the words ''Gross Premium Written''; and

(d) for the sub-heading ''Gross Premium Receivable'' in

Part IV thereof, there shall be substituted the words ''Gross

Premium Written''.

€0.27