Insurance Business (Penalties for Offences and Infringements)

L.N. 241 of 2018

INSURANCE BUSINESS ACT

(CAP. 403)

Insurance Business (Penalties for Offences and Infringements)

(Amendment) Regulations, 2018

IN EXERCISE of the powers conferred by articles 64 and 67 of

the Insurance Business 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

Business (Penalties for Offences and Infringements) (Amendment) commencement.

Regulations, 2018, and they shall be read and construed as one with

the Insurance Business (Penalties for Offences and Infringements) S.L. 403.06.

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

These regulations shall come into force on the 1 st October

(2)

2018.

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

regulations, for the words, "the corresponding amount specified in the regulation

the principal

second column thereof and the corresponding amount", there shall be regulations.

substituted the words, "the corresponding amount specified in the

second column thereof and, where the competent authority deems

necessary, the corresponding amount".

The penalties which are enforceable by prosecution in the Amends the

Courts of Malta specified in the Second Column of the Third Schedule Third

to the principal

to the principal regulations shall be amended as follows

regulations.

(a) in article 67(2)(a) referred to in the First Column

thereof, for the words, "pursuant to any provisions of this Act or

any regulations or Insurance Rules made thereunder", there shall

be substituted the words, "pursuant to any provisions of this Act

or any regulations, Insurance Rules or Conduct of Business

Rules made thereunder";

(b) in article 67(2)(b) referred to in the First Column

thereof, for the words, "any regulations made thereunder or any

Insurance Rules", there shall be substituted the words, "any

regulations, Insurance Rules or Conduct of Business Rules made

thereunder";

(c) in article 67(2)(c) referred to in the First Column

thereof, for the words, "conferred by the Act or any regulations

or Insurance Rules made thereunder", there shall be substituted

the words, "conferred by the Act or any regulations, Insurance

Rules or Conduct of Business Rules made thereunder"; and

(d) in article 67(2)(f) referred to in the First Column

thereof, for the words, "with any provision of the Act or of any

regulations, or any Insurance Rules made thereunder,", there

shall be substituted the words, "with any provision of the Act or

of any regulations, Insurance Rules or Conduct of Business

Rules made thereunder,".

The administrative penalties which may be imposed and

recoverable by the competent authority without recourse to a court

hearing as specified in the Second Column of the Fourth Schedule to

the principal regulations shall be amended as follows

(a) in article 11(4) referred to in the First Column

thereof, for the words, "an amount of eligible own funds in

accordance with regulations", there shall be substituted the

words, "an amount of eligible own funds in accordance with

Insurance Rules";

(b) in article 18H referred to in the First Column thereof,

for the words, "compliance by the authorised undertaking with

the Act, regulations and Insurance Rules issued thereunder",

there shall be substituted the words, "compliance by the

authorised undertaking with the Act, regulations, Insurance

Rules and Conduct of Business Rules issued thereunder";

(c) in article 43(1) referred to in the First Column

thereof, for the words, "or required to be provided, by or under

the Act", there shall be substituted the words, "or required to be

provided, by or under the Act and any regulations, Insurance

Rules or Conduct of Business Rules made thereunder";

(d) in article 47(1) referred to in the First Column

thereof, for the words, "in a language as may be determined by

Insurance Rules made for the purpose" there shall be substituted

the words, "in a language as may be determined by Conduct of

Business Rules made for the purpose";

(e) in article 48B referred to in the First Column thereof,

for the words, "of insurance intermediaries enrolled under the

Insurance Intermediaries Act or registered under Article 3 of

Directive 2002/92/EC or registered or regulated to", there shall

be substituted the words, "of insurance intermediaries,

reinsurance intermediaries, tied insurance intermediaries and

ancillary insurance intermediaries enrolled under the Insurance

Distribution Act or registered under Article 3 of the Insurance

Distribution Directive or registered or regulated to";

(f) immediately after the words "48B" in the First

Column thereof and the corresponding words in the Second and

Third Columns thereof, there shall be inserted the following new

penalty

First Column

Second Column

Third Column

Penalty

Article

Infringement

Level

"48D

Failure of an authorised insurance undertaking

1 to 3";

and an authorised reinsurance undertaking

carrying out insurance distribution activities

and reinsurance distribution activities in terms

of the Insurance Distribution Act to comply

with the appropriate provisions of the said

Act, any regulations, Insurance Distribution

Rules and Conduct of Business Rules made

thereunder.";

(g) article 67(2)(e) referred to in the First Column thereof

and the corresponding words in the Second and Third Columns

thereof shall be deleted; and

(h) for the paragraph immediately following the words

"67(2)(e)" in the First Column thereof, and its corresponding

words in the Second and Third Column, as deleted, there shall be

substituted the following

Third Column

Penalty Level

"Any other infringement against any

1 to 3".

other provisions of the Act or any

regulations, Insurance Rules or Conduct

of Business Rules made thereunder, and

failure of a person to comply with any

condition, limitation, or requirement, or

to satisfy any directive or order made or

given under the Act or any regulations,

Insurance Rules or Conduct of Business

Rules, and not specifically provided for

in this Schedule.

".

€0.36