Insurance Distribution Act (Fees) Regulations, 2024

Suppliment tal-Gazzetta tal-Gvern ta’ Malta, Nru. 21,366, 24 ta’ Diċembru, 2024

L.N. 369 of 2024

INSURANCE DISTRIBUTION ACT

(CAP. 487)

Insurance Distribution Act (Fees) Regulations, 2024

IN EXERCISE of the powers conferred by article 3 of the

Insurance Distribution Act, the Minister responsible for the regulation

of financial services, acting on the advice of the Malta Financial

Services Authority, has made the following regulations:-

(1)

The title of these regulations is the Insurance Citation,

commencement

Distribution Act (Fees) Regulations, 2024.

and

applicability.

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

2025. (3) These regulations shall apply to fees falling due on, or

after the said date.

(regulations 3, 5 and 6)

Application Fee

Fees falling

Fees falling

Fees falling

Fees falling

Fees falling

due in 2027

due in 2028

due in 2029

due in 2025

due in 2026

(€)

(€)

(€)

(€)

and thereafter

(€)

Registration of

natural persons in

the Agents

Register, the

Managers

Register or the

Brokers Register

Enrolment of

persons, other

than cell

companies, in the

Agents List, the

Managers List or

the Brokers List

5,000

7,500

10,000

10,000

10,000

Enrolment of cell

companies in the

Managers List or

the Brokers List

(a) cell company

4,000

6,000

8,000

8,000

8,000

(b) cell

2,000

2,500

3,000

3,000

3,000

Establishment of

a branch

1,400

1,400

1,400

Enrolment in the

Tied Insurance

Intermediaries

List

(a) natural person

1,000

1,000

1,000

(b) legal person

(i) fixed

application fee

1,000

1,000

1,000

(ii) variable

application fee

1,000

1,000

1,000

Enrolment in the

Ancillary

Insurance

Intermediaries

List

(a) natural person

(b) legal person

(i) fixed

application fee

1,000

1,000

1,000

(ii) variable

application fee

1,000

1,000

1,000

Ancillary Fees

Fees falling

Fees falling

Fees falling

Fees falling

Fees falling

due in 2025

due in 2026

due in 2027

due in 2028

due in 2029

(€)

(€)

(€)

(€)

and thereafter

(€)

New appointment

(a) Persons

enrolled in the

Agents List

1,000

1,500

1,500

1,500

(b) Persons

enrolled in the

Managers List

1,100

1,100

1,100

Underwriting

agreement

Application

Registration

Name restoration

(a) in the Agents

Registers, the

Managers Register

or the Brokers

Register

1,000

1,000

1,000

(b) in the Agents

List, the Managers

List or the Brokers

List

2,000

2,500

4,000

4,000

4,000

(1)

In these regulations, unless the context otherwise Interpretation.

requires

"Act" means the Insurance Distribution Act;

"cell" shall have the same meaning as assigned to it in the

Companies Act (Cell Companies Carrying on Business of S.L. 386.10.

Insurance) Regulations;

"cell company" shall have the same meaning as assigned to

it in the Companies Act (Cell Companies Carrying on Business S.L. 386.10.

of Insurance) Regulations;

"European intermediary" shall have the same meaning as

assigned to it in the European Passport Rights for Intermediaries S.L. 487.07.

Regulations;

"European regulatory authority" shall have the same

meaning as assigned to it in the European Passport Rights for S.L. 487.07.

Intermediaries Regulations;

"gross commission" means

(a) in the case of a person that resides in Malta or

has its registered office or head office in Malta and is

enrolled in the Agents List or Brokers List, the gross

amount of commissions receivable in respect of their

aggregate insurance distribution activities and, or

reinsurance distribution activities, as applicable, as noted

in the insurance intermediaries statement submitted to the

competent authority for the preceding year;

(b) in the case of a foreign company enrolled in

the Agents List or Brokers List, the gross amount of

commissions receivable in respect of its aggregate

insurance distribution activities and, or reinsurance

distribution activities, as applicable, carried on in or from

Malta, as noted in the insurance intermediaries statement

submitted to the competent authority for the preceding

year; and

(c) in the case of a cell created by a cell company

that is enrolled in the Brokers List, the gross amount of

commissions receivable in respect of its aggregate

insurance distribution activities and, or reinsurance

distribution activities, as applicable, carried on in or from

Malta, as noted in the insurance intermediaries statement

submitted by the said cell company to the competent

authority for the preceding year;

"home Member State" shall have the same meaning as

assigned to it in the European Passport Rights for Intermediaries

Regulations.

(2) Words and expressions used in these regulations which are

also used in the Act or the Companies Act, but which are not herein

defined, shall have the same meaning as in the respective Acts, as

applicable.

(regulations 4, 7 and 8)

Annual Supervisory Fee

Fees falling

Fees falling

Fees falling

Fees falling

Fees falling

due in 2025

due in 2026

due in 2027

due in 2028

due in 2029

(€)

(€)

(€)

(€)

and thereafter

(€)

Natural persons

registered in the

Agents Register,

the Managers

Register or the

Brokers Register

Persons enrolled

in the Managers

List

(a) person other

than a cell

company

(i) fixed

supervisory fee

(ii) variable

supervisory fee

1,000

1,200

1,400

1,500

(b) cell company

(i) fixed

supervisory fee

2,200

2,400

2,600

2,800

3,000

(ii) variable

supervisory fee

1,000

1,200

1,400

1,500

(c) cell

1,800

2,000

2,200

2,400

2,500

Branch of a local

company

1,400

1,400

1,400

Persons enrolled

in the Tied

Insurance

Intermediaries

List

(a) natural person

(i) long term

business or general

business

(ii) long-term and

general business

(b) legal person

(i) long term

business or general

business

- fixed supervisory

fee

- variable

supervisory fee

(ii) long-term and

general business

- fixed supervisory

fee

- variable

supervisory fee

Persons enrolled

in the Ancillary

Insurance

Intermediaries

List

(a) natural person

(b) legal person

(i) fixed fee

(ii) variable fee

European

intermediary

1,000

1,000

1,000

Fees falling

Fees falling

Fees falling

Fees falling

Fees falling

due in 2025

due in 2026

due in 2027

due in 2028

due in 2029

(€)

(€)

(€)

(€)

and thereafter

(€)

Persons and cells

enrolled in the

Agents List or the

Brokers List

Minimum fee

3,000

3,500

4,000

4,500

5,000

Gross

commission

Up to €250,000

3,000

3,500

4,000

4,500

5,000

Over €250,000 up

to €750,000

4,000

5,000

6,000

6,500

7,000

Over €750,000

up to €1 million

5,000

6,000

7,000

7,500

8,000

Over €1 million

9,000

11,000

13,000

15,000

17,000

€0.63

(1)

A natural person who intends to act as an

intermediary and carry out, or attempt to carry out, insurance and, or

reinsurance distribution activities in or from Malta shall, upon

submission of an application to the competent authority for

registration in accordance with article 13 of the Act, pay to the

competent authority an application fee as established in the First

Schedule, as applicable, with respect to such application.

(2) A person that intends to act as an intermediary and carry

out, or attempt to carry out, insurance and, or reinsurance distribution

activities in or from Malta shall, upon submission of an application to

the competent authority for enrolment in accordance with article 13

of the Act, pay to the competent authority an application fee as

established in the First Schedule, as applicable, with respect to such

application.

(3) Without prejudice to the provisions of sub-regulation (2), a

company that is to be formed or constituted as, or converted into a

cell company in accordance with regulation 6 of the Companies Act S.L. 386.10.

(Cell Companies Carrying on Business of Insurance) Regulations and

enrolled in the Managers List or the Brokers List in accordance with

article 13 of the Act shall, upon submission of an application to the

competent authority for approval and enrolment, pay to the competent

authority an application fee as established in the First Schedule, as

applicable, with respect to such application.

(4) A cell company enrolled in the Managers List or the

Brokers List under article 13 of the Act that intends to create a new

cell in accordance with regulation 8 of the Companies Act (Cell S.L. 386.10.

Companies Carrying on Business of Insurance) Regulations shall,

upon submission of an application to the competent authority for

approval, pay to the competent authority an application fee as

established in the First Schedule, as applicable, with respect to

every such cell.

(5) A local company enrolled under article 13 of the Act that

intends to establish a branch in Malta in accordance with article 11(2)

of the said Act shall, upon submission of an application to the

competent authority for approval, pay the competent authority an

application fee as established in the First Schedule, as applicable,

with respect to every such branch.

(1)

A natural person registered under article 13 of the Supervisory fees

Act shall, subject to the provisions of sub-regulation (2), pay to the in

insurance

competent authority an annual supervisory fee as established in the agents,

managers and

Second Schedule, as applicable

brokers.

Provided that the first annual supervisory fee due in

accordance with this sub-regulation shall be prorated according to the

period remaining between the date when a natural person is registered

under article 13 of the Act and the end of the calendar year in which

such registration took place.

(2) The first annual supervisory fee due in accordance with

sub-regulation (1) shall be paid to the competent authority on the date

when a natural person is registered under article 13 of the Act, and

every annual supervisory fee following the first supervisory fee

which is due in accordance with the said sub-regulation shall be paid

to the competent authority on the 31st January of each calendar year.

(3) A person enrolled in the Agents List or the Brokers List

shall, subject to the provisions of sub-regulation (6), pay to the

competent authority an annual supervisory fee as established in the

Second Schedule, as applicable

Provided that, in any case, the annual supervisory fee shall

not be less than the minimum annual supervisory fee established in

the Second Schedule, as applicable.

(4) Without prejudice to the provisions of sub-regulation (3), a

cell company that has been enrolled in the Brokers List shall, subject

to the provisions of sub-regulation (6), pay to the competent authority

an annual supervisory fee as established in the Second Schedule, as

applicable

Provided that where such a cell company has created one

(1) or more cells in accordance with regulation 8 of the Companies

Act (Cell Companies Carrying on Business of Insurance)

Regulations, it shall also pay to the competent authority an annual

supervisory fee as established in the Second Schedule, as applicable,

with respect to every such cell

Provided further that, in any case, the annual supervisory

fee shall not be less than the minimum annual supervisory fee

established in the Second Schedule, as applicable.

(5) Notwithstanding the provisions of sub-regulations (3) and

(4), the first annual supervisory fee due to the competent authority in

accordance with the said sub-regulations shall be the aggregate of the

following

(a)

the minimum fee established in the Second

Schedule, as applicable, prorated according to the period

remaining between the date when a person or a cell as referred

to in sub-regulation (3) or (4), as applicable, is enrolled under

article 13 of the Act or created in accordance with regulation 8

of the Companies Act (Cell Companies Carrying on Business of

Insurance) Regulations, as applicable, and the end of the

calendar year in which such enrolment or creation took place;

and

(b)

the minimum fee established in the Second

Schedule, as applicable, prorated according to the period

between the start of the following calendar year and the date

when the next supervisory fee is due in accordance with sub-

regulation (6).

(6) The first annual supervisory fee due in accordance with

sub-regulation (5) shall be paid to the competent authority on the date

when a person or a cell as referred to in sub-regulation (3) or (4), as

applicable, is enrolled under article 13 of the Act or created in

accordance with regulation 8 of the Companies Act (Cell Companies

Carrying on Business of Insurance) Regulations, as applicable, and

every annual supervisory fee following the first annual supervisory

fee which is due in accordance with sub-regulation (3) or (4), as

applicable, shall be paid to the competent authority one (1) month

from the date of submission of the insurance intermediaries

statements as established by law.

(7) Any person, including a cell company, enrolled in the

Managers List shall, subject to the provisions of sub-regulation (9),

pay to the competent authority an annual supervisory fee which shall

be the aggregate of the following

(a)

the fixed supervisory fee established in the Second

Schedule, as applicable; and

(b)

the variable supervisory fee established in the

Second Schedule, as applicable, with respect to every

appointment taken on by such person

Provided that where such a cell company as referred to in

this sub-regulation has created one (1) or more cells in accordance

with regulation 8 of the Companies Act (Cell Companies Carrying on S.L. 386.10.

Business of Insurance) Regulations, it shall also pay to the competent

authority an annual supervisory fee as established in the Second

Schedule, as applicable, with respect to every such cell.

(8) Notwithstanding the provisions of sub-regulation (7), the

first annual supervisory fee due in accordance with the said sub-

regulation shall be prorated according to the period remaining

between the date when a person or a cell as referred to in the said sub-

regulation is enrolled under article 13 of the Act or created in

accordance with regulation 8 of the Companies Act (Cell Companies S.L. 386.10.

Carrying on Business of Insurance) Regulations, as applicable, and

the end of the calendar year in which such enrolment or creation took

place.

(9) The first annual supervisory fee due in accordance with

sub-regulation (8) shall be paid to the competent authority on the date

when a person or a cell as referred to in sub-regulation (7) is enrolled

under article 13 of the Act or created in accordance with regulation 8

of the Companies Act (Cell Companies Carrying on Business of S.L. 386.10.

Insurance) Regulations, as applicable, and every annual supervisory

fee following the first supervisory fee which is due in accordance

with the provisions of sub-regulation (7) shall be paid to the

competent authority on the 31st January of each calendar year.

(10) A local company enrolled under article 13 of the Act that

has established a branch in Malta in accordance with article 11 of the

said Act shall, subject to the provisions of sub-regulation (11), pay to

the competent authority an annual supervisory fee as established in

the Second Schedule, as applicable, with respect to every such

branch.

(11) The annual supervisory fee due in accordance with he

provisions of sub-regulation (10) shall be paid to the competent

authority on the date when a person is granted approval in accordance

with article 11 of the Act to establish a branch in Malta and annually

thereafter on the date when such approval was granted.

(1)

Any person enrolled in the Agents List or the

Managers List under article 13 of the Act that intends to take on a

new appointment with an insurer, reinsurer or an insurance broker, as

applicable, shall, upon submission of an application to the competent

authority to modify its enrolment accordingly, pay the competent

authority an application fee as established in the First Schedule, as

applicable, with respect to such application.

(2) Where a person as referred to in sub-regulation (1), that

has been appointed by an insurer, reinsurer or an insurance broker to

carry on any one (1) or more classes under the business of

insurance and, or reinsurance, intends to carry on any one (1) or

more additional classes under the business of insurance and, or

reinsurance on behalf of the same insurer, reinsurer or an insurance,

as applicable, the said person shall, upon submission of an

application to the competent authority to modify its enrolment

accordingly, pay to the competent authority the application fee

established in sub-regulation (1), as applicable, which application

fee shall be reduced by twenty-five per cent (25%).

(3) Where a person as referred to in sub-regulation (1), that

has been appointed by an insurer, reinsurer or an insurance broker to

carry on any one (1) or more classes under the business of

insurance and, or reinsurance, intends to stop carrying on any one

(1) or more such classes under the business of insurance and, or

reinsurance on behalf of the same insurer, reinsurer or an insurance,

as applicable, the said person shall, upon submission of an

application to the competent authority to modify its enrolment

accordingly, pay to the competent authority a modification fee of

one thousand euro (€1,000).

(4) Any person enrolled in the Brokers List under article 13 of

the Act that intends to make or enter into an underwriting agreement

in accordance with article 32 of the Act shall, upon submission of an

application to the competent authority for registration, pay the

competent authority an application fee as established in the First

Schedule, as applicable, with respect to such application.

(5) A person as referred to in sub-regulation (4) that has made

or entered into an underwriting agreement in accordance with the

provisions of article 32 of the Act, which agreement provides that it

shall be subject to an annual review, shall also pay the competent

authority, on the first anniversary of the registration of the said

agreement in accordance with the said article and annually thereafter

on the date of such anniversary for as long as the same agreement

remains in force, an annual registration fee as established in the First

Schedule, as applicable.

(6) A person that intends to have their name restored on the

Agents Register, the Managers Register, the Brokers Register, the

Agents List, the Managers List or the Brokers List, as applicable, in

accordance with article 18(1)(b) of the Act shall, upon submission of

an application to the competent authority in accordance with article

18(2) of the said Act, pay to the competent authority an application

fee as established in the First Schedule, as applicable, with respect to

such application.

(1)

Where an authorised undertaking intends to Application and

appoint a person to act as a tied insurance intermediary on its behalf, modification

fees in relation

such person shall, upon submission of an application to the competent to

intermediaries

authority for their enrolment in accordance with article 37 of the Act, and ancillary

pay to the competent authority an application fee as established in the insurance

intermediaries.

First Schedule, as applicable, with respect to such application

Provided that where such person is a legal person, the

application fee due in accordance with this sub-regulation shall be the

following

(a)

the fixed application fee established in the First

Schedule, as applicable; and

(b)

where applicable, the variable application fee

established in the First Schedule, as applicable, with respect to

every branch established by such legal person.

(2) Where a tied insurance intermediary enrolled to act as such

on behalf of an authorised undertaking in accordance with article 37

of the Act intends to carry on any one (1) or more additional classes

under the business of insurance on behalf of the same undertaking,

the said intermediary shall, upon submission of an application to the

competent authority to modify their enrolment accordingly, pay to the

competent authority the application fee established in sub-regulation

(1), as applicable, which application fee shall be reduced by twenty-

five per cent (25%).

(3) Where an authorised undertaking or an enrolled insurance

broker intends to appoint a person to act as an ancillary insurance

intermediary on its behalf, such person shall, upon submission of an

application to the competent authority for their enrolment in

accordance with article 43E of the Act, pay to the competent authority

an application fee as established in the First Schedule, as applicable,

with respect to such application

Provided that where such person is a legal person, the

application fee due in accordance with this sub-regulation shall be the

following

(a)

the fixed application fee established in the First

Schedule, as applicable; and

(b)

where applicable, the variable application fee

established in the First Schedule, as applicable, with respect to

every branch established by such legal person.

(4) Where an ancillary insurance intermediary enrolled to act

as such on behalf of an authorised undertaking or an enrolled

insurance broker in accordance with article 43E of the Act intends to

carry on any one (1) or more additional classes under the business of

insurance on behalf of the same undertaking or broker, as applicable,

the said intermediary shall, upon submission of an application to the

competent authority to modify their enrolment accordingly, pay to the

competent authority the application fee referred to in sub-regulation

(3), as applicable, which application fee shall be reduced by twenty-

five per cent (25%).

(5) Where a tied insurance intermediary or an ancillary

insurance intermediary enrolled under the Act to act as such on behalf

of an authorised undertaking or an enrolled insurance broker, as

applicable, intends to stop carrying out any one (1) or more such

classes of the business of insurance which it carries on behalf of the

same undertaking or broker, the said intermediary shall, upon the

submission of a request to the competent authority to modify their

enrolment accordingly, pay to the competent authority a modification

fee of two hundred and fifty euro (€250).

(1)

A person enrolled in accordance with article 37 of

the Act to act as a tied insurance intermediary shall, subject to the

provisions of sub-regulation (3), pay to the competent authority an

annual supervisory fee as established in the Second Schedule, as

applicable, which annual supervisory fee shall vary depending on

whether such person carries on long term business of insurance or

general business of insurance, or both such types of business of

insurance

Provided that where such person is a legal person, the

annual supervisory fee due in accordance with this sub-regulation

shall be the following

(a)

the fixed supervisory fee established in the Second

Schedule, as applicable; and

(b)

where applicable, the variable supervisory fee

established in the Second Schedule, as applicable, with respect

to every branch established by such legal person

Provided further that the first annual supervisory fee due in

accordance with this sub-regulation shall be prorated according to the

period remaining between the date when a tied insurance

intermediary is enrolled under the Act and the end of the calendar

year in which such enrolment took place.

(2) A person enrolled in accordance with article 43E of the

Act to act as an ancillary insurance intermediary shall, subject to the

provisions of sub-regulation (3), pay to the competent authority an

annual supervisory fee as established in the Second Schedule, as

applicable

Provided that where such person is a legal person, the

annual supervisory fee due in accordance with this sub-regulation

shall be the following

(a)

the fixed supervisory fee established in the Second

Schedule, as applicable; and

(b)

where applicable, the variable supervisory fee

established in the Second Schedule, as applicable, with respect

to every branch established by such legal person

Provided further that the first annual supervisory fee due in

accordance with this sub-regulation shall be prorated according to the

period remaining between the date when an ancillary insurance

intermediary is enrolled under the Act and the end of the calendar

year in which such enrolment took place.

(3) The first annual supervisory fee due in accordance with

sub-regulations (1) and (2) shall be paid to the competent authority on

the date when a tied insurance intermediary or an ancillary insurance

intermediary, as applicable, is enrolled under the relevant provisions

of the Act, and every annual supervisory fee following the first

supervisory fee which is due in accordance with the said sub-

regulation shall be paid to the competent authority on the 31st

January of each calendar year.

(1)

A European intermediary that intends to establish a

branch in Malta in accordance with regulation 3 of the European

Passport Rights for Intermediaries Regulations shall, upon being

notified by the European regulatory authority of its home Member

State in accordance with Article 6(2) of the Insurance Distribution

Directive, as transposed in national law, pay the competent authority

a notification fee of one thousand euro (€1,000).

(2) A European intermediary that has established a branch in

Malta in accordance with regulation 3 of the European Passport

Rights for Intermediaries Regulations shall, subject to the provisions

of sub-regulation (3), pay to the competent authority an annual

supervisory fee as established in the Second Schedule, as applicable.

(3) The first annual supervisory fee due in accordance with the

provisions of sub-regulation (2) shall be paid to the competent

authority on the date when the branch of the European intermediary is

established and commences distribution activities in Malta in

accordance with the regulation 3(5) of the European Passport Rights

for Intermediaries Regulations and annually thereafter on the date

when such branch was established and commenced distribution

activities in Malta in accordance with the said provision.

(1)

The fees established and due in terms of these

regulations shall not be refundable.

(2) Without prejudice to the provisions of regulation 4(1), (5)

and (8) and regulation 7(1) and (2), the fees established and due in

terms of these regulations shall not be prorated.

The Insurance Distribution (Fees) Regulations are

hereby repealed without prejudice to anything done or omitted to

be done thereunder.

These regulations shall not be deemed to affect the liability

in respect of any fees due under the Insurance Distribution (Fees)

Regulations, prior to the coming into force of these regulations.