EUROPEAN PASSPORT RIGHTS FOR INSURANCE AND REINSURANCE UNDERTAKINGS REGULATIONS

SUBSIDIARY LEGISLATION 403.14

EUROPEAN PASSPORT RIGHTS FOR INSURANCE

AND REINSURANCE UNDERTAKINGS

REGULATIONS

1st January, 2016 *

LEGAL NOTICE 399 of 2015, as amended by Legal Notice 279 of 2021.

PRELIMINARY

(1) The title of these regulations is the European Passport

Rights for Insurance and Reinsurance Undertakings Regulations.

(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), 152a(2), (3) and (4),

152b, 155(1) to (4) and (6) to (9), 156, 158 and 189 of the Solvency

II Directive and shall be interpreted and applied accordingly.

(1)

In these regulations, unless the context otherwise

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;

"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

*see regulation 1(3) of these Regulations, as originally promulgated.

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 undert aking" 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

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 tak in g-up and p ursu it of t he bu si ness of I nsurance 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

EUROPEAN PASSPORT RIGHTS FOR INSURANCE

AND REINSURANCE UNDERTAKINGS

(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 to

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

satisfy the establishment 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 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

t h e c o m p e t e n t a u th o r i t y wi t h t h e i n f o r m a t i o n c o n t a i n e d i n

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.

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.

(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

(1) A Maltese insurance undertaking may exercise a

European right to establish a branch if it satisfies the requirements

set out in the following provisions of this regulation.

(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

EUROPEAN PASSPORT RIGHTS FOR INSURANCE

AND REINSURANCE UNDERTAKINGS

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

o f su b- r e gu l a t i on ( 4 ) t o t h e Eu r o pe a n re g ul a t o r y a ut h o r it y

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, ta king in to a cco un t t he bu si nes s

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

Mal tese insuran ce u ndertaking is required to com ply wh en

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.

(1) A Maltese insurance undertaking which intends to

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

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

notice of intention to the competent authority indicating

(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

(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

European reinsurance undertaking which has established a branch

in Malta or provides services in Malta has contravened or is likely

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

European reinsuran ce 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

a u th o r i ty, o r b e c a u s e s uc h m e a s u r e s p r o ve i n a d e q u a t e , t h e

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 t his r egulation, 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

s a n c t i o n s or r e s tr i c ti o n s on t he c o n du c t o f th e b u s i n e s s o f

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

European insurance undertaking which has established a branch in

Malta or provides services in Malta -

(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

re gu l a t io n 8 ( 2) (d ), f o r t he p u rp o s e s o f t hi s r e g ul a t io n , t h e

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, i n accordance with n ational 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 V bis

Notifications and Collaboration Platforms - Maltese Insurance and

Maltese Reinsurance Undertakings

(1)Where the competent authority identifies deteriorating

financial conditions or other emerging risks posed by a Maltese

insurance undertaking or a Maltese reinsurance undertaking

carrying out activities in exercise of a European right and which

may have a cross-border effect, the competent authority shall,

without prejudice to any of its powers under these regulations or

any other law, also notify

(a)

EIOPA; and

(b)

the relevant European regulatory authority

Provided that the competent authority shall ensure that

such notification shall be sufficiently detailed to allow for a proper

assessment.

(2) Where no bilateral solution can be found between the

c o m p e t e n t a u t h o r i t y an d t h e r e l e v a n t E u r o p e a n r e g u l a t o r y

authority, the competent authority may refer the matter to EIOPA

and request its assistance.

(1)Without prejudice to any of its powers under these

regulations or any other law and to the right of the competent

authority to set up a collaboration platform with other relevant

European regulatory authorities where they jointly so agree, the

competent authority may request EIOPA to set up and coordinate a

collaboration platform to strengthen the exchange of information

and to enhance collaboration between the relevant European

regulatory authorities including the competent authority. The

competent authority may request to set up the said collaboration

platform where a Maltese insurance undertaking or Maltese

reinsurance undertaking carries out activities in exercise of a

European right and where

(a)

such activities are of relevance with respect to

another host Member State's market;

(b)

a notification by the competent authority of

deteriorating financial conditions or other emerging risks has

been made under regulation 13A(1); or

(c)

the matter has been referred to EIOPA by the

competent authority under regulation 13A(2) or by a relevant

European regulatory authority in terms of Article 152a(2) of the

Solvency II Directive.

(2) Without prejudice to Article 35 of Regulation (EU) No

1094/2010, at the request of EIOPA, the competent authority shall

provide to EIOPA all the necessary information in a timely manner

to allow for the proper functioning of the collaboration platform.

PART V ter

Notifications and Collaboration Platforms - European Insurance and

European Reinsurance Undertakings

(1)Without prejudice to any of its powers under these

regulations or under any other law, where the competent authority

has serious and reasoned concerns with regard to consumer

protection being posed by a European insurance undertaking or a

European reinsurance undertaking carrying out activities in Malta

in exercise of a European right, it may notify the European

regulatory authority of such European insurance undertaking or of

such European reinsurance undertaking, as the case may be

Provided that the competent authority shall ensure that such

notification shall be sufficiently detailed to allow for a proper

assessment.

(2) Where no bilateral solution can be found between the

competent authority and the relevant European regulatory authority

in receipt of the notification made under sub-regulation (1), the

competent authority may refer the matter to EIOPA and request its

assistance.

(1)Without prejudice to any of its powers under these

regulations or any other law and to the right of the competent

authority to set up a collaboration platform with other relevant

European regulatory authorities where they jointly so agree, the

competent authority may request EIOPA to set up and coordinate a

collaboration platform to strengthen the exchange of information

and to enhance collaboration between the relevant European

regulatory authorities including the competent authority. The said

collaboration platform may be set up, where a European insurance

undertaking or a European reinsurance undertaking carries out

activities in exercise of a European right in Malta, and where

(a)

such activities are of relevance to the market in

Malta;

(b)

a notification by the European regulatory

authority of deteriorating financial conditions or other emerging

risks has been made under Article 152a(2) of the Solvency II

Directive; or

(c)

the matter has been referred to EIOPA by the

competent authority under article 13C(2) or by the relevant

European regulatory authority in terms of Article 152a(2) of the

Solvency II Directive.

(2) Without prejudice to Article 35 of Regulation (EU) No 1094/

2010, at the request of EIOPA, the competent authority shall provide to

EIOPA all the necessary information in a timely manner to allow for

the proper functioning of the collaboration platform.

PART VI

General Provisions

The competent authority may impose an administrative

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

include or includes risks situated in Malta or commitments where

Malta is the country of commitment, of a European insurance

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

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

under 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

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.