Insurance Intermediaries (Fees) (Amendment) Regulations, 2018

Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 20,028, 20 ta’ Lulju, 2018

L.N. 240 of 2018

INSURANCE DISTRIBUTION ACT

(CAP. 487)

Insurance Intermediaries (Fees) (Amendment) Regulations, 2018

IN EXERCISE of the powers conferred by article 3 of the

Insurance Distribution Act, the Minister responsible for the regulation

of Financial Services, after consultation with the Malta Financial

Services Authority, has made the following regulations:-

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

Intermediaries (Fees)(Amendment) Regulations, 2018 and they shall commencement.

be read and construed as one with the Insurance Intermediaries (Fees) S.L.487.03.

Regulations, hereinafter referred to as "the principal regulations".

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

2018.

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

substituted the following: "INSURANCE DISTRIBUTION (FEES) title

principal

REGULATIONS".

regulations.

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

"the Insurance Intermediaries (Fees) Regulations", there shall be regulation

the principal

substituted the words, "the Insurance Distribution (Fees) Regulations". regulations.

Regulation 2 of the principal regulations shall be amended Amends

regulation 2 of

as follows

the principal

regulations.

Cap 487.

(a) regulation 2 shall be renumbered as sub-regulation

(1);

(b) sub-regulation (1) thereof, as renumbered, shall be

amended as follows

(i) for the definition "Act", there shall be

substituted the following

" "the Act" means the Insurance Distribution

Act;";

(ii) the definition "the Authority" shall be deleted;

(iii) in the definition "branch", for the words, "from

where the company carries out insurance intermediaries

activities;", there shall be substituted the words, "from

where the company carries out insurance distribution

activities or reinsurance distribution activities;";

(iv) for the definition "business premises" there

shall be substituted the following

" "business premises", in relation to tied

insurance intermediaries activities or ancillary

insurance intermediaries activities, means any

premises from where a person enrolled in the Tied

Insurance Intermediaries List or the Ancillary

Insurance Intermediaries List carries out tied

insurance intermediaries activities or ancillary

insurance intermediaries activities, other than its

principal place of business;";

(v) immediately after the definition " "cell" and

"cell company" ", there shall be added the following new

definition

" "the competent authority" means the Malta

Financial Services Authority established by the Malta

Financial Services Authority Act;";

(vi) for the definition "European insurance

intermediary", there shall be substituted the following

" "European intermediary"

shall have the same meaning as is

assigned to it in the European

Passport Rights for Intermediaries

Regulations, 2018;";

(vii) the definition "gross commissions receivable"

shall be amended as follows

(aa) in paragraph (a) thereof, for the words,

"its aggregate insurance intermediaries activities;",

there shall be substituted the words, "its aggregate

insurance distribution activities or reinsurance

distribution activities;"; and

(bb) in paragraph (b) thereof, for the words,

"its aggregate insurance intermediaries activities",

there shall be substituted the words, "its aggregate

insurance distribution activities or reinsurance

distribution activities;";

(viii) immediately after the definition "gross

commissions receivable", there shall be added the

following new definition

" "the Schedule" means a Schedule to these

regulations;";

(ix) for the definition "the Tribunal", there shall be

substituted the following

" "the Tribunal" has the same meaning as is

assigned to it by article 2 of the Act;"; and

(x) the paragraph immediately following the

definition "the Tribunal" shall be re-numbered as a new

sub-regulation (2); and

(c) in the new sub-regulation (2) thereof, as re-

numbered

(i) for the words, "and words and", there shall be

substituted the words, "(2) Words and"; and

(ii) for the words "same meaning as in the Act",

there shall be substituted the words, "same meaning

assigned to them in the Act".

Regulation 3 of the principal regulations shall be amended Amends

regulation 3 of

as follows

the principal

regulations.

(a)

in sub-regulation (1) thereof

(i) for the words, "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,", there shall be substituted the words,

"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, the Tied Insurance Intermediaries List or the Ancillary

Insurance Intermediaries List,";

(ii) for the words, "restoration of a name to the

Agents Register, Managers Register or Brokers Register or

Agents List, Managers List, the Brokers List or the Tied

Insurance Intermediaries List," there shall be substituted

the words, "restoration of a name to the Agents Register,

Managers Register or Brokers Register or the Agents List,

Managers List or Brokers List,";

(iii) for the words, "pay to the Authority", there

shall be substituted the words, "pay to the competent

authority";

(b) in sub-regulation (2) thereof, for the words, "shall pay

to the Authority"; there shall be substituted the words, "pay to

the competent authority"; and

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

"restoration of a name to the Agents Register, Managers Register

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

List or the Tied Insurance Intermediaries List," there shall be

substituted the words, "restoration of a name to the Agents

Register, Managers Register or Brokers Register or the Agents

List, Managers List or Brokers List,".

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

"appears in the Agents Register, Managers Register or Brokers

Register or the Managers List, or the Tied Insurance Intermediaries

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

the Authority", there shall be substituted the words, "appears in the

Agents Register, Managers Register or Brokers Register or the

Managers List, the Tied Insurance Intermediaries List or the Ancillary

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

the following year, pay to the competent authority".

Regulation 5 of the principal regulations shall be amended

as follows

(a) in the marginal note thereto, for the words,

"submission of business of insurance intermediaries statements

fees.", there shall be substituted the words, "submission of

statements of business of insurance or reinsurance distribution

activities fees.";

(b) for the words, "When business of insurance

intermediaries statements are forwarded under article 25 of the

Act,", there shall be substituted the words, "When the statements

relating to the business of insurance distribution activities and, or

reinsurance distribution activities are forwarded to the competent

authority, in accordance with article 25 of the Act,";

(c)

for the words, "pay to the Authority", there shall be

substituted the words, "pay to the competent authority"; and

(d) in the proviso thereof, for the words, "for the

submission of the business of insurance intermediaries

statements.", there shall be substituted the words, "for the

submission of the statements relating to the business of insurance

distribution activities and, or reinsurance distribution activities.".

Regulation 6 of the principal regulations shall be amended Amends

regulation 6 of

as follows

the principal

regulations.

(a)

in sub-regulation (1) thereof

(i) for the words, "to carry out insurance

intermediaries activities, which will,", there shall be

substituted the words, "to carry out insurance distribution

activities or reinsurance distribution activities, which

will,"; and

(ii) for the words, "pay to the Authority the fee",

there shall be substituted the words, "pay to the competent

authority the fee";

(b)

in sub-regulation (2) thereof

(i) for the words, "when the business of insurance

intermediaries statements are forwarded by the cell

company under article 25 of the Act,", there shall be

substituted the words, "when the statements relating to the

business of insurance distribution activities and, or

reinsurance distribution activities are forwarded by the cell

company in accordance with article 25 of the Act,"; and

(ii) for the words, "to the Authority the fee

specified", there shall be substituted the words, "to the

competent authority the fee specified"; and

(c) in sub-regulation (3) thereof, for the words, "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:", there shall be substituted the words, "to the

competent authority the fee relating to the annual supervisory fee

for the kind of enrolment of the person, specified in the Second

Column of Part II of the Schedule:".

Regulation 7 of the principal regulations shall be amended Amends

regulation 7 of

as follows

the principal

regulations.

(a) in the marginal note thereto, for the words, "Fees

payable by European insurance intermediaries.", there shall be

substituted the words, "Fees payable by European

intermediaries.";

(b) for the words, "paid to the Authority by any European

insurance intermediary establishing a branch", there shall be

substituted the words, "paid to the competent authority by any

European intermediary establishing a branch";

(c) for the words, "the European Passport Rights for

Insurance Intermediaries Regulations", there shall be substituted

the words, "the European Passport Rights for Intermediaries

2018. Regulations, 2018"; and

(d) for the words, "specified in Part II of the Schedule:",

there shall be substituted the words, "specified in the Second

Column of Part II of the Schedule:".

The registration, enrolment and permit application fees

which are to be paid to the competent authority as specified in Part I of

the Schedule shall be amended as follows

(a) items 6, 7, 8, 9, 10, 11 and 12 thereof shall be

renumbered as items 7, 8, 9, 10, 11, 12 and 13;

(b) immediately following item 5 thereof, there shall be

added the following new item 6

"6.Enrolment of a person in the Ancillary

Insurance Intermediaries List

(a) in the case of a person 300

who is an individual

(b) in the case of a person 300 and

who is not an individual

300 in

respect of

every

business

premises";

(c)

in item 7 thereof, as renumbered

(i) in sub-paragraph (a) thereof, for the words,

"Managers Brokers Register", there shall be substituted the

words, "Managers Register, Brokers Register";

(ii) in sub-paragraph (b) thereof, for the words,

"Managers List Brokers List", there shall be substituted the

words, "Managers List, Brokers List"; and

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

(d)

in paragraph 8 thereof, as renumbered

(i) in sub-paragraph (b) thereof, for the words, "to

carry out insurance intermediaries activities, other than tied

insurance intermediaries activities", there shall be

substituted the words, "to carry out insurance distribution

activities or reinsurance distribution activities, other than

tied insurance intermediaries activities and ancillary

insurance intermediary activities"; and

(ii) in sub-paragraph (c) thereof, for the words,

"any insurance intermediary activity", there shall be

substituted the words, "any insurance distribution activity

or reinsurance distribution activity".

The annual supervisory fees of registration, enrolment and Amends Part II

permit which are to be paid to the competent authority as specified in of

to the

Part II of the Schedule shall be amended as follows

regulations.

(a)

item 13 thereof shall be renumbered as item 14;

(b) in paragraph (d) of item 14 thereof, as renumbered,

for the words, "in respect of each cell created", there shall be

substituted the words, "each cell created";

(c) paragraphs (f), (g) and (h) of item 14 thereof, shall be

renumbered as paragraphs (g), (h) and (i);

(d) immediately following paragraph (e)(ii)(bb) of item

14 thereof, there shall be added the following new paragraph (f)

"(f) enrolment of a person in the Ancil-

lary Insurance Intermediaries List

(i) in the case of a person 300

who is an individual

(ii) in the case of a person 300 and

who is not an individual

300 in

respect of

every

business

premises";

(e)

in paragraph (g) of item 14 thereof, as renumbered

(i) in sub-paragraph (ii) thereof, for the words,

"insurance intermediaries activities, other than tied

insurance intermediaries activities", there shall be

substituted the words, "insurance distribution activities,

other than tied insurance intermediaries activities and

ancillary insurance intermediary activities"; and

(ii) in sub-paragraph (iii) thereof, for the words,

"insurance intermediary activity", there shall be substituted

the words, "insurance distribution activity or reinsurance

distribution activity"; and

(f) in paragraph (i) of item 14 thereof, as renumbered, for

the words, "by any European insurance intermediary", there shall

be substituted the words, "by any European intermediary".

€0.36