Undertakings Regulations, 2015

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

L.N. 399 of 2015

INSURANCE BUSINESS ACT

(CAP. 403)

European Passport Rights for Insurance and Reinsurance

Undertakings 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

regulations:-

PRELIMINARY

(1) The title of these regulations is the European Citation, scope

Passport Rights for Insurance and Reinsurance Undertakings and

commencement.

Regulations, 2015.

(2) The purpose of these regulations is to implement Articles

13 (in part), 30(3), 33, 39(6) (in part), 144(2), 145(1), (2)(a) to (d), (3)

and (4), 146, 147, 148, 149, 150(1) and (2), 155(1) to (4) and (6) to

(9), 156, 158 and 189 of the Solvency II Directive and shall be

interpreted and applied accordingly.

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

2016.

(1) In these regulations, unless the context otherwise Interpretation.

requires -

''the Act'' means the Insurance Business Act;

"branch" means an agency or branch of an insurance or

reinsurance undertaking which is located in the territory of a Member

State or EEA State, other than the home Member State, and includes

any permanent presence of an undertaking in the territory of a

Member State or EEA State, even if that presence does not take the

form of a branch but consists merely of an office managed by the own

staff of the undertaking or by a person who is independent but has

permanent authority to act for the undertaking as an agency would;

"Commission" means the Commission of the European Union;

"competent authority" means the Malta Financial Services

Authority established by the Malta Financial Services Authority Act; Cap. 330.

"EEA State" means a State which is a contracting party to the

agreement on the European Economic Area signed at Oporto on 2

May, 1992 as amended by the Protocol signed at Brussels on the 17th

March, 1993 and as amended from time to time;

"European insurance undertaking" means an undertaking having

its head office in a Member State or an EEA State, other than Malta,

pursuing the activity of direct insurance within the meaning of Article

2 of the Solvency II Directive which has received authorisation in

accordance with Article 14 of the Solvency II Directive;

"European reinsurance undertaking" means an undertaking

having its head office in a Member State or an EEA State, other than

Malta, pursuing business restricted to reinsurance within the meaning

of Article 2 of the Solvency II Directive which has received

authorisation in accordance with Article 14 of the Solvency II

Directive;

"European regulatory authority" means the supervisory

authority or supervisory authorities as defined in Article 13(10) of the

Solvency II Directive, designated by a Member State or EEA State,

other than Malta, empowered by law or regulation to supervise

European insurance undertakings or European reinsurance

undertakings;

"European right" means the entitlement of an insurance or

reinsurance undertaking to establish a branch, or provide services, in

a Member State or an EEA State other than that in which it has its

head office -

(a) in accordance with the Treaty as applied in a

Member State or an EEA State;

(b) subject to the requirements of the Solvency II

Directive and subject to any regulations made under the Act, or

Insurance Rules issued by the competent authority pursuant to

the Act, implementing such requirements;

"home Member State" means any of the following

(a) for general business of insurance, the Member State

or EEA State in which the head office of the insurance

undertaking covering the risk is situated; or

(b) for long term business, the Member State or EEA

State in which the head office of the insurance undertaking

covering the commitment is situated; or

(c)

for reinsurance, the Member State or EEA State in

which the head office of the reinsurance undertaking is situated.

"host Member State" means the Member State or EEA State,

other than Malta, in which a Maltese insurance undertaking or a

Maltese reinsurance undertaking exercises or proposes to exercise a

European right; for long term and general business of insurance, the

Member State of the provision of services means, respectively, the

Member State or EEA State of the commitment or the Member State

or EEA State in which the risk is situated, where that commitment or

risk is covered by a Maltese insurance undertaking or a branch of the

undertaking situated in another Member State or EEA State;

"Insurance Rules" has the same meaning as is assigned to it by

article 2 of the Act;

"Maltese insurance undertaking" means an undertaking

authorised in terms of the Act, whose head office is in Malta and

which is entitled to carry on business of insurance in a Member State

or EEA State, in exercise of a European right but excludes an

undertaking whose business is restricted to reinsurance;

"Maltese reinsurance undertaking" means an undertaking

authorised in terms of the Act to carry on business restricted to

reinsurance, whose head office is in Malta and which is entitled to

carry on business in a Member State or EEA State in exercise of a

European right;

"Maltese rules" means rules -

(a)

made pursuant to the Solvency II Directive; and

(b) which are the responsibility of the competent

authority (as to implementation, enforcement and compliance)

and subject to the provisions of the Act and any regulations and

Insurance Rules made thereunder;

"Member State" means a Member State of the European Union;

"Ordinance" means the Motor Vehicle Insurance (Third-Party Cap. 104.

Risks) Ordinance, or any enactment replacing that law, and any

regulations made thereunder;

"risk situated in a Member State or EEA State" means

(a) the Member State or EEA State in which the

property is situated, where the insurance relates either to

buildings or to buildings and their contents, in so far as the

contents are covered by the same insurance policy;

(b) the Member State or EEA State of registration where

the insurance relates to vehicles of any type;

(c)

the Member State or EEA State where the

policyholder took out the policy in the case of policies of a

duration of four months or less, covering travel or holiday risks,

whatever the class concerned; or

(d) in all cases not explicitly covered by paragraphs (a),

(b), and (c), the Member State or EEA State in which either of

the following is situated

(i)

the habitual residence of the policyholder; or

(ii) if the policyholder is a legal person, that

policyholder’s establishment to which the contract relates;

"Solvency II Directive" means Directive 2009/138/EC of the

European Parliament and of the Council of 25 November 2009 on the

taking-up and pursuit of the business of Insurance and Reinsurance

(Solvency II) (recast) as amended from time to time and includes any

delegated acts and any technical standards that have been or may be

issued thereunder;

"Treaty" means Treaty of Rome signed in 1957, establishing the

European Economic Community and as subsequently amended;

"Tribunal" means the Financial Services Tribunal referred to in

article 57 of the Act.

(2) 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 assigned to them as in the Act.

(3) These regulations shall apply to a European reinsurance

undertaking or a Maltese reinsurance undertaking in the following

manner

(a)

in the case of a European reinsurance undertaking,

the Preliminary and Part III and VI thereof shall apply; and

(b) in the case of a Maltese reinsurance undertaking, the

Preliminary and Part IV thereof shall apply.

PART I

Exercise of Passport Rights by European Insurance Undertakings

(1) A European insurance undertaking which is seeking Exercise of

to establish a branch in Malta in exercise of a European right shall passport

by European

satisfy the establishment conditions specified in sub-regulation (2) insurance

undertakings -

and shall be exempt from the Act in accordance with the provisions of establishment.

article 6 of the said Act.

(2) The establishment conditions for the purposes of this

regulation are that -

(a) the European insurance undertaking has given to its

European regulatory authority a notice containing the requisite

details in terms of Article 145 of the Solvency II Directive;

(b) the competent authority has received from the

European regulatory authority of such European insurance

undertaking a consent notice in accordance with paragraph (c)

stating that it has given its consent to the insurance undertaking

to establish a branch in Malta; and

(c)

the consent notice shall include

(i) a scheme of operations setting out, inter alia,

the types of business envisaged and the structural

organisation of the branch;

(ii) the address in Malta from where documents

may be obtained and to which they may be delivered, and

such address shall be the one to which all communications

to the general representative are to be sent;

(iii) the name of the general representative who

must possess sufficient powers to bind the insurance

undertaking in relation to third parties, and to represent it

or them in relations with the competent authority and

courts in Malta;

(iv) a certificate issued by the European

regulatory authority of the European insurance undertaking

attesting that such undertaking covers the Solvency Capital

Requirement and the Minimum Capital Requirement

calculated in accordance with Articles 100 and 129 of the

Solvency II Directive;

(v)

confirmation that such European insurance

undertaking is authorised to carry on the business of

insurance which it proposes to carry on in Malta; and

(vi) details of any insurance guarantee scheme, if

applicable, which is intended to protect the branch’s

policyholders in a manner not being less favourable than

that prescribed in Part III of the Protection and

Compensation Fund Regulations.

(3) The European insurance undertaking shall inform the

competent authority of any change in the details of an insurance

guarantee scheme referred to in sub-regulation (2).

(4) Before the branch of a European insurance undertaking

commences business, the competent authority shall, within two

months of receiving the information referred to in sub-regulation (2),

inform the European regulatory authority concerned of the applicable

provisions under which, in the interest of the general good, that

business shall be carried on in Malta

Provided that a European insurance undertaking may

establish the branch and commence business as from the date upon

which the European regulatory authority concerned has received the

applicable provisions, or, if no applicable provisions are received, on

the expiry of the period referred to in this sub-regulation.

(5) In the event of a change in any of the particulars

communicated in accordance with sub-regulation (2)(c)(i), (ii) and

(iii), the European insurance undertaking shall give written notice of

the change to its European regulatory authority and to the competent

authority at least one month before implementing the change so that

the authorities concerned may fulfil their obligations under Article

146 of the Solvency II Directive.

(6) For the purpose of this regulation, "applicable provisions"

means the Maltese rules in accordance with which the European

insurance undertaking is required to comply when carrying on the

class or classes of long term business or class or classes or part

classes of general business, identified in the consent notice, through a

branch in Malta.

(1) A European insurance undertaking which is seeking

to provide services in Malta in exercise of a European right shall

satisfy the service conditions specified in sub-regulation (2) and shall

be exempt from the Act in accordance with the provisions of article 6

of the said Act.

(2) The service conditions for the purposes of this regulation

are that -

(a)

the European insurance undertaking has given its

European regulatory authority a notice of intention to provide

services in Malta with the requisite details in terms of Article

147 of the Solvency II Directive;

(b) the competent authority has received a notice of

such intention from the European regulatory authority of the

European insurance undertaking containing the following

information and documentation

(i) a certificate attesting that the European

insurance undertaking covers the Solvency Capital

Requirement and the Minimum Capital Requirement

calculated in accordance with Articles 100 and 129 of the

Solvency II Directive;

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

class or classes or part classes of general business which

the European insurance undertaking has been authorised to

offer;

(iii) the nature of the risks which the undertaking

proposes to cover or the commitments which it proposes to

undertake in Malta.

(3) When the competent authority has received such a notice

from the European regulatory authority of the European insurance

undertaking and has been informed of the intention of the European

insurance undertaking to provide services in Malta, it shall, where

appropriate, notify the European insurance undertaking and the

European regulatory authority of the applicable provisions, if any.

(4) The European insurance undertaking may commence to

provide services in Malta as from the date on which it is informed that

the notice of intention referred to in sub-regulation (2)(b) has been

given to the competent authority.

(5) In the event of a change in the nature of the risks or

commitments it proposes to cover in Malta, the European insurance

undertaking shall give written notice of that change to its European

regulatory authority before implementing such change. Before such

changes are implemented, the competent authority shall be informed

of such changes by the European regulatory authority concerned.

(6) For the purposes of this regulation, "applicable provisions"

means the Maltese rules in accordance with which the European

insurance undertaking is required to comply when providing services

in Malta in the class or classes of long term business or class or

classes or part classes of general business, identified in the notice

provided by its European regulatory authority.

(1) Any European insurance undertaking intending to

carry on business of insurance in Malta in exercise of a European

right, covering a risk relating to class 10 of Part 1 of the Third

Schedule to the Act, other than carrier’s liability, shall be required to

provide the competent authority with the information contained in

Insurance Rules issued for the purposes of these regulations.

(2) Where a European insurance undertaking, through an

establishment situated in a Member State or EEA State, other than

Malta, intends to cover a risk situated in Malta in class 10 of Part 1 of

the Third Schedule to the Act, other than carrier’s liability, the

competent authority shall require that undertaking to become a

member of and participate in the financing of the Motor Insurers’

Bureau in Malta and the Protection and Compensation Fund for the

purposes of Part IV of the Protection and Compensation Fund

Regulations.

(3) The financial contribution referred to in sub-regulation (2)

shall only be made in relation to risks under class 10 of Part 1 of the

Third Schedule to the Act, other than carrier’s liability, covered by

way of provision of services.

(4) The financial contribution shall be calculated on the same

basis as for European insurance undertakings covering the risks

referred to in sub-regulation (2), through an establishment situated in

Malta. This calculation shall be made by reference to the European

insurance undertaking’s premium income from that class in Malta.

6. A European insurance undertaking pursuing activities in

Malta in exercise of a European right shall not be prohibited from

advertising its services through all available means of communication

in Malta provided that it complies with Insurance Rules issued by the

competent authority in the interest of the general good.

7. (1) Where a European insurance undertaking carries on

business of insurance in Malta through a branch in exercise of a

European right, its European regulatory authority may, after having

first informed the competent authority, carry out itself or through an

intermediary it appoints for that purpose, on-site verification of the

information necessary to ensure the financial supervision of the

undertaking. The competent authority may participate in that

verification.

(2) Where the competent authority is unable to exercise its

right to participate in accordance with sub-regulation (1), it may refer

the matter to EIOPA and request its assistance in accordance with

Article 19 of Regulation (EU) No 1094/2010.

(3) Where the competent authority has reason to consider that

the activities of a European insurance undertaking, carrying on

business of insurance in exercise of a European right in Malta, might

affect financial soundness of the European insurance undertaking, it

shall inform the European regulatory authority of that undertaking.

PART II

Exercise of Passport Rights by Maltese Insurance Undertakings

8. (1) A Maltese insurance undertaking may exercise a Exercise of

European right to establish a branch if it satisfies the requirements set passport

by Maltese

out in the following provisions of this regulation.

insurance

undertakings -

establishment.

(2) Pursuant to article 10(3) of the Act, a Maltese insurance

undertaking intending to establish a branch in exercise of a European

right shall give the competent authority a notice of intention which

shall contain -

(a)

the Member State or EEA State within the territory

of which the insurance undertaking proposes to establish a

branch;

(b) a scheme of operations setting out, inter alia, the

types of business envisaged and the structural organisation of

the branch;

(c)

the address of the proposed branch from where

documents may be obtained and to which they may be

delivered, and such address shall be the one to which all

communications to the general representative are to be sent;

(d) the name of the branch’s general representative who

must possess sufficient powers to bind the insurance

undertaking in relation to third parties and to represent it in

relations with the authorities and courts of the host Member

State; and

(e)

such other information as may be specified by

means of Insurance Rules.

(3) Without prejudice to sub-regulations (5), (6) and (7), the

competent authority shall give a consent notice within the meaning of

sub-regulation (4) to the European regulatory authority concerned

within three months of receiving a complete notice of intention.

(4) The consent notice shall -

(a) be given in accordance with the Solvency II

Directive;

(b) attest that the Maltese insurance undertaking covers

the Solvency Capital Requirement and the Minimum Capital

Requirement calculated in accordance with articles 15 and 17 of

the Act;

(c)

confirm that the Maltese insurance undertaking is

authorised to carry on the classes of business of insurance which

the branch proposes to carry on;

(d) contain the information stated in the notice of

intention of the Maltese insurance undertaking; and

(e)

include such other information

as

may

be

established by means of Insurance Rules.

(5) (a)

Unless the competent authority has reason to doubt

the adequacy of the system of governance, or the financial situation of

the Maltese insurance undertaking or the fit and proper requirements

in accordance with Article 42 of the Solvency II Directive of the

general representative, taking into account the business planned, it

shall, within three months of receiving the information referred in

sub-regulation (2)(b), (c) and (d), communicate that information to

the European regulatory authority of the branch and shall inform the

undertaking concerned accordingly.

(b) Where the competent authority refuses to

communicate the information referred to in sub-regulation (2) to the

European regulatory authority of the branch, it shall give the reasons

for its refusal to the undertaking concerned within three months of

receiving all the information in question. The refusal or failure to act

in the period stipulated shall be subject to a right of appeal to the

Tribunal and the provisions of article 58 of the Act shall apply mutatis

mutandis.

(6) On receiving a communication from the European

regulatory authority of the branch, or if no communication is received

by the competent authority from that European regulatory authority

within two months of communicating the notice referred to in sub-

regulation (3), the Maltese insurance undertaking may establish the

branch and commence business in that Member State or EEA State.

(7) Any communication relating to the applicable provisions

under which that business must be carried on in the host Member

State shall be communicated to the undertaking concerned.

(8) In the event of a change in any of the particulars

communicated in accordance with sub-regulation (2)(b), (c) and (d)

the Maltese insurance undertaking shall give written notice of the

change to the competent authority and to the European regulatory

authority of the branch at least one month before implementing the

change.

(9) For the purposes of this regulation -

"applicable provisions" means the host state rules with which

the Maltese insurance undertaking is required to comply when

conducting business through the proposed branch in the host Member

State concerned;

"host state rules" means rules made by the European regulatory

authority concerned in accordance with the Solvency II Directive.

9. (1) A Maltese insurance undertaking which intends to Exercise of

provide services for the first time in one or more Member States or passport

by Maltese

EEA States in exercise of a European right shall first provide a notice insurance

undertakings -

of intention to the competent authority indicating

services.

(a) the nature of the commitments it proposes to cover,

or the risks which it proposes to undertake;

(b) the Member State or EEA State in which it intends

to operate; and

(c)

such other information as may be specified in

Insurance Rules.

(2) The competent authority shall, within one month of

receiving the notice of intention give a consent notice to the European

regulatory authority concerned containing -

(a) a certificate attesting that the Maltese insurance

undertaking covers the Solvency Capital Requirement and the

Minimum Capital Requirement calculated in accordance with

articles 15 and 17 of the Act;

(b) the class or classes of long term business or class or

classes or part classes of general business which the insurance

undertaking has been authorised to carry on; and

(c)

the nature of the risks which the insurance

undertaking proposes to undertake or commitments it proposes

to cover in the host Member State.

(3) When the competent authority sends the information

contained under sub-regulation (2), it shall give written notice to the

Maltese insurance undertaking concerned. The Maltese insurance

undertaking may, after having received such written notice, start to

provide the services in question in the host Member State

Provided that, where appropriate, the European regulatory

authority concerned communicates to the competent authority, any

conditions with which, in the interest of the general good, the

undertaking is required to comply with in the host Member State, the

competent authority shall, on receipt of such information, inform the

Maltese insurance undertaking accordingly.

(4) Where the competent authority does not provide a consent

notice within the period indicated in sub-regulation (2) it shall give

written notice to the Maltese insurance undertaking of -

(a)

its refusal to give a consent notice; and

(b)

its reasons for that refusal

Provided that, such notice is subject to a right of appeal to

the Tribunal and the provisions of article 58 of the Act shall apply

mutatis mutandis.

(5) In the event of a change in any of the particulars provided

by the Maltese insurance undertaking in the notice of intention, the

Maltese insurance undertaking shall give written notice of that

change to the competent authority and the procedure provided for in

this regulation shall apply accordingly.

PART III

European Reinsurance Undertakings Carrying On Business

of Reinsurance in Malta

10. (1) Subject to sub-regulation (2), a European

reinsurance undertaking authorised in accordance with Article 14 of

the Solvency II Directive, shall be entitled to carry on business of

reinsurance in Malta under the right of establishment or freedom to

provide services in exercise of a European right.

(2) The entitlement to carry on business of reinsurance in

Malta is to be treated as being on conditions or terms equivalent to

those set out in the authorisation issued to a European reinsurance

undertaking by its European regulatory authority; and shall be

restricted to the business of reinsurance which the European

reinsurance undertaking is authorised to carry on by its European

regulatory authority.

(3) Where the competent authority has reason to consider that

the activities of a European reinsurance undertaking, carrying on

business of reinsurance in exercise of a European right in Malta,

might affect the financial soundness of the European reinsurance

undertaking, it shall inform the European regulatory authority of that

undertaking.

(4) Where a European reinsurance undertaking carries on

business of reinsurance in Malta through a branch in exercise of

European right, its European regulatory authority may, after having

first informed the competent authority, carry out itself, or through an

intermediary it appoints for that purpose, on-site verification of the

information necessary to ensure the financial supervision of the

undertaking. The competent authority may participate in that

verification.

(5) Where the competent authority is unable to exercise its

right to participate in accordance with sub-regulation (4), it may refer

the matter to EIOPA and request its assistance in accordance with

Article 19 of Regulation (EU) No 1094/2010.

(1) Where the competent authority ascertains that a Contravention

European reinsurance undertaking which has established a branch in by

reinsurance

Malta or provides services in Malta has contravened or is likely to undertakings.

contravene the Maltese rules, it shall, in writing, require the European

reinsurance undertaking to remedy that irregular situation. At the

same time, the competent authority shall refer those findings to the

European regulatory authority of that undertaking.

(2) If despite the measures taken by the European regulatory

authority, or because such measures prove inadequate, the European

reinsurance undertaking persists in violating the Maltese rules

referred to in sub-regulation (1) in force in Malta, the competent

authority may, after informing the European regulatory authority, take

appropriate measures to prevent or penalise further irregularities,

including, in so far as is strictly necessary, to prevent that European

reinsurance undertaking from continuing to conclude new reinsurance

contracts in Malta. In addition, the competent authority may refer the

matter to EIOPA and request its assistance in accordance with Article

19 of Regulation (EU) 1094/2010.

(3) Without prejudice to the requirement contained in

regulation 12(2)(c) for the purposes of this regulation, the competent

authority may require a European reinsurance undertaking which

carries on business of insurance in Malta pursuant to these regulations

to appoint a person on whom to serve the legal documents necessary

for such measures.

(4) Any measure adopted pursuant to this regulation,

involving sanctions or restrictions on the conduct of the business of

reinsurance, shall be communicated to the European reinsurance

undertaking concerned in writing, together with reasons justifying

such measures.

PART IV

Exercise of Passport Rights by Maltese Reinsurance Undertakings

(1) No Maltese reinsurance undertaking authorised

under the Act shall establish a branch in a Member State or EEA State

in exercise of a European right without the written consent of the

competent authority.

(2) Pursuant to article 10(3) of the Act, a Maltese reinsurance

undertaking intending to establish a branch in exercise of a European

right shall give the competent authority the following information -

(a) the Member State or EEA State within the territory

of which the undertaking proposed to establish a branch;

(b) the address of the proposed branch from where the

documents may be obtained and to which they may be delivered

and such address shall be the one to which all communications

to the general representative are to be sent;

(c)

the name of the branch’s general representative who

must possess sufficient powers to bind the undertaking in

relation to third parties and represent it in relation authorities

and courts of the host Member State;

(d) the type of reinsurance activity, according to Article

15(5) of the Solvency II Directive into which the planned

business falls; and

(e)

such other information as may be specified by

means of Insurance Rules.

(3) The competent authority shall forward the information

referred to in sub-regulation (2) to the European regulatory authority

of the branch within one month of receiving such information from

the Maltese reinsurance undertaking.

(4) In the event of a change in any of the information

communicated in accordance with sub-regulation (2), the Maltese

reinsurance undertaking shall inform the competent authority. The

competent authority shall inform the European regulatory authority of

the branch of such change, as soon as possible and in any event no

later than one month after having received the information from the

Maltese insurance undertaking.

PART V

European Insurance Undertakings Not Complying

with Legal Provisions

(1) Where the competent authority ascertains that a Contravention

European insurance undertaking which has established a branch in by

insurance

Malta or provides services in Malta -

undertakings.

(a)

has contravened or is likely to contravene the

Maltese rules;

(b) in purported compliance with any such provisions,

has furnished it with false, inaccurate or misleading

information; or

(c)

has failed to comply with any condition, limitation,

requirement, directive or order made or given under any of the

provisions of the Act, or of any regulations made thereunder or

any Insurance Rules,

it shall, in writing, require the insurance undertaking concerned to

remedy such irregularity.

(2) If the European insurance undertaking concerned fails to

take necessary steps to remedy that irregular situation, the competent

authority shall inform the European regulatory authority of the

European insurance undertaking of such failure, and request the

European regulatory authority, at the earliest opportunity, to take all

appropriate measures to ensure that the European insurance

undertaking concerned remedies that irregular situation. The nature of

those measures shall be communicated to the competent authority.

(3) If, despite the measures taken by the European regulatory

authority, or because those measures prove to be inadequate or are

insufficient, the European insurance undertaking persists in violating

the legal or regulatory provisions referred to in sub-regulation (1) in

force in Malta, the competent authority may, after informing the

European regulatory authority, take appropriate measures to prevent

or penalise further irregularities, including, in so far as is strictly

necessary, to prevent that insurance undertaking from continuing to

conclude new insurance contracts in Malta. In addition, the competent

authority, may refer the matter to EIOPA and request its assistance in

accordance with Article 19 of Regulation (EU) No. 1094/2010.

(4) Without prejudice to the requirement contained in

regulation 8(2)(d), for the purposes of this regulation, the competent

authority may require the European insurance undertaking which

carries on business of insurance in Malta, pursuant to these

regulations, to appoint a person on whom to serve the legal

documents necessary for such measures.

(5) Without prejudice to sub-regulations (1), (2) and (3), the

competent authority may take appropriate emergency measures to

prevent or sanction irregularities within its territories, including the

possibility of preventing a European insurance undertaking from

continuing to conclude new insurance contracts in Malta.

(6) Any measure adopted pursuant to this regulation involving

restrictions on the conduct of insurance business shall be

communicated to the European insurance undertaking concerned in

writing, together with reasons justifying such measures.

(7) A European insurance undertaking shall submit to the

competent authority at its request, all documents requested of it for

the purposes of this regulation to the extent that a Maltese insurance

undertaking is required to do so in terms of Maltese law.

(8) If a European insurance undertaking which is in breach of

any provisions of these regulations has an establishment or possesses

property of any description in Malta, the competent authority may, in

accordance with national law, impose an administrative penalty

pursuant to article 67 of the Act.

(9) Where the competent authority is informed by a European

regulatory authority of the withdrawal of the authorisation of a

European insurance undertaking carrying on business of insurance in

Malta in the exercise of a European right, it shall take appropriate

measures to prevent the undertaking concerned from concluding new

insurance contracts in Malta under either the right of establishment or

the freedom to provide services. The competent authority shall, in

conjunction with those authorities, take all necessary measures to

safeguard the interests of insured persons, policyholders, creditors

and other interested persons and shall restrict, in particular, the free

disposal of assets of the undertaking pursuant to Article 144(2) of the

Solvency II Directive and may make or issue public statements or

notices in relation to these measures.

PART VI

General Provisions

The competent authority may impose an administrative Sanctions.

penalty pursuant to article 67 of the Act on any insurance and

reinsurance undertaking which acts in contravention of the provisions

of these regulations.

In the case of a proposed transfer of portfolio, which may Publicity

include or includes risks situated in Malta or commitments where requirements

transfers of

Malta is the country of commitment, of a European insurance portfolio.

undertaking carrying on activities in Malta in exercise of a European

right, requesting the approval of the competent authority in terms of

Article 39 of the Solvency II Directive, the competent authority may,

in the interest of policyholders, insured persons and any other person

having rights or obligations arising out of the contracts transferred,

require such measures, as may be necessary, to be taken, which may

include the publication of a notice in two local daily newspapers or a

notice to be sent to every policyholder affected by the transfer.

The competent authority shall inform the Commission and Information to

EIOPA of the number and types of cases which led to refusals under Commission

and EIOPA.

regulation 8(5)(b) and regulation 9(4) or in which measures have been

taken in terms of regulation 13(3) and (5).

(1) For the better carrying out of these regulations, the Insurance Rules.

competent authority may, from time to time, issue Insurance Rules.

(2) Such 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.

(1) The European Passport Rights for Insurance and Revocation of

Reinsurance Undertakings Regulations, 2004, hereinafter referred to the

Passport Rights

as "the revoked regulations", are hereby revoked.

for Insurance

and Reinsurance

Undertakings

(2) Nothing in these regulations shall be deemed to affect Regulations,

2004, and

anything done, or omitted to be done under the revoked regulations savings.

L.N. 89 of 2004.

prior to the coming into force of these regulations.

B

€0.81