INSURANCE BUSINESS (COMMISSION DELEGATED REGULATION ON SOLVENCY II) REGULATIONS

INSURANCE BUSINESS (COMMISSION

DELEGATED REGULATION ON SOLVENCY II)

SUBSIDIARY LEGISLATION 403.21

INSURANCE BUSINESS (COMMISSION

DELEGATED REGULATION ON SOLVENCY II)

REGULATIONS

1st January, 2016 *

LEGAL NOTICE 400 of 2015.

(1) The title of these regulations is the Insurance Business

(Commission Delegated Regulation on Solvency II) Regulations.

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

relevant provisions of the EU Regulation.

(1) In these regulations, unless the context otherwise

requires

"the Act" is the Insurance Business Act;

"competent authority" means the Malta Financial Services

Authority established by the Malta Financial Services Authority

Act;

"EU Regulation" means the Commission Delegated Regulation

(EU) 2015/35 of 10 October 2014 supplementing Directive 2009/

138/EC of the European Parliament and of the Council on the

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

(Solvency II);

"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 Directive 2014/51/EU of the European Parliament and

of the Council of 16 April 2014 amending Directives 2003/71/EC

and 2009/138/EC and Regulations (EC) No 1060/2009, (EU) No

1094/2010 and (EU) No 1095/2010 in respect of the powers of the

European Supervisory Authority (European Insurance and

Occupational Pensions Authority) and the European Supervisory

Authority (European Securities and Markets Authority) ("Omnibus

II");

"Financial Services Tribunal" means the tribunal established in

terms of article 21 of the Malta Financial Services Authority 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 is in the Act.

The Malta Financial Services Authority, established by the

Malta Financial Services Authority Act, shall be the designated

competent authority in Malta for the purposes of implementing the

relevant provisions of the EU Regulation, and any reference in

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

INSURANCE BUSINESS (COMMISSION

DELEGATED REGULATION ON SOLVENCY II)

these regulations to the competent authority shall be read and

construed accordingly.

The competent authority shall exercise all functions,

obligations and powers and shall satisfy all the requirements

imposed on supervisory authorities, by the EU Regulation.

The provisions of the EU Regulation shall apply to

authorised insurance undertakings and authorised reinsurance

undertakings, including captive insurance undertakings and captive

reinsurance undertakings, to reinsurance special purpose vehicles

authorised under the Reinsurance Special Purpose Vehicles

Regulations, and to insurance undertakings and reinsurance

undertakings which are included within the scope of group

supervision.

For the better carrying out of the provisions of the EU

Regulation and of these regulations, the competent authority may,

from time to time, issue and publish Insurance Rules which will be

binding on all the persons referred to in regulation 5. Such

Insurance Rules may lay down additional requirements and

conditions and any other matters as the competent authority may

consider appropriate including

(a) the operation of the EU Regulation or of these

regulations;

(b) any matter relating to the functions, obligations and

powers of the competent authority under the EU

Regulation; and

(c) any other matter arising in connection with the EU

Regulation or these regulations.

Where any of the persons referred to in regulation 5

contravenes or fails to comply with any provisions of the EU

Regulation, these regulations and any Insurance Rules issued

thereunder, the competent authority may, by notice in writing and

without recourse to a court hearing, impose on such undertaking an

administrative penalty not exceeding one hundred and fifty

thousand euro (€150,000).

A right of appeal to the Financial Services Tribunal shall

lie from a decision of the competent authority to impose a penalty

in terms of regulation 7 and the provisions of article 21 of the Malta

Financial Services Authority Act shall apply mutatis mutandis.