(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 8.

(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 (

1. a)the Member State or EEA State within the territory of which the insurance undertaking proposes to establish a branch; (
2. b)a scheme of operations setting out, inter alia, the types Exercise of passport rights by Maltese insurance undertakings establishment. 8 [ S.L.403.14 EUROPEAN PASSPORT RIGHTS FOR INSURANCE AND REINSURANCE UNDERTAKINGS of business envisaged and the structural organisation of the branch; (
3. 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; (
4. 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 (
5. 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 (

1. a)be given in accordance with the Solvency II Directive; (
2. 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; (
3. 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; (
4. d)contain the information stated in the notice of intention of the Maltese insurance undertaking; and (
5. 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), (

1. c)and (d), communicate that information to the European regulatory authority of the branch and shall inform the undertaking concerned accordingly. (
2. b)Where the competent authority refuses to communicate the information referred to in subregulation

(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 EUROPEAN PASSPORT RIGHTS FOR INSURANCE AND REINSURANCE UNDERTAKINGS [ S.L.403.14 9 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), (

1. c)and (
2. 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. 9.

(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: (

1. a)the nature of the commitments it proposes to cover, or the risks which it proposes to undertake; (
2. b)the Member State or EEA State in which it intends to operate; and (
3. 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 (

1. 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; (
2. 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 (
3. c)the nature of the risks which the insurance undertaking Exercise of passport rights by Maltese insurance undertakings services. 10 [ S.L.403.14 EUROPEAN PASSPORT RIGHTS FOR INSURANCE AND REINSURANCE UNDERTAKINGS 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 (

1. a)its refusal to give a consent notice; and (
2. 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 Exercise of passport rights by European reinsurance undertakings. European Reinsurance Undertakings Carrying On Business of Reinsurance in Malta 10.

(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. EUROPEAN PASSPORT RIGHTS FOR INSURANCE AND REINSURANCE UNDERTAKINGS [ S.L.403.14 11

(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

(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

(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 Contravention by European reinsurance undertakings. 12 [ S.L.403.14 Exercise of passport rights by Maltese reinsurance undertakings establishment. EUROPEAN PASSPORT RIGHTS FOR INSURANCE AND REINSURANCE UNDERTAKINGS 12.

(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 (

1. a)the Member State or EEA State within the territory of which the undertaking proposed to establish a branch; (
2. 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; (
3. 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; (
4. 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 Contravention by European insurance undertakings. European Insurance Undertakings Not Complying with Legal Provisions 13.

(1)Where the competent authority ascertains that a European insurance undertaking which has established a branch in Malta or provides services in Malta (

1. a)has contravened or is likely to contravene the Maltese rules; (
2. b)in purported compliance with any such provisions, has furnished it with false, inaccurate or misleading information; or (
3. c)has failed to comply with any condition, limitation, requirement, directive or order made or given under EUROPEAN PASSPORT RIGHTS FOR INSURANCE AND REINSURANCE UNDERTAKINGS [ S.L.403.14 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 subregulation

(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

(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 13 14 [ S.L.403.14 EUROPEAN PASSPORT RIGHTS FOR INSURANCE AND REINSURANCE UNDERTAKINGS 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. Added by: L.N. 279 of 2021. PART V bis Notifications and Collaboration Platforms - Maltese Insurance and Maltese Reinsurance Undertakings Notification to EIOPA and the relevant European regulatory authority. 13A.

(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. Collaboration platforms.

(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. 13B.

(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; EUROPEAN PASSPORT RIGHTS FOR INSURANCE AND REINSURANCE UNDERTAKINGS [ S.L.403.14 15 (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 13C.

(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: Notification to 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 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. 13D.

(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 Collaboration platforms. 16 [ S.L.403.14 EUROPEAN PASSPORT RIGHTS FOR INSURANCE AND REINSURANCE UNDERTAKINGS 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 Sanctions. General Provisions

1. 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. Publicity requirements for transfers of portfolio.
2. 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. Information to Commission and EIOPA.
3. 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). Insurance Rules. 17.

(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.