EUROPEAN PASSPORT RIGHTS FOR INTERMEDIARIES [ S.L.487.07 1 SUBSIDIARY LEGISLATION 487.07 EUROPEAN PASSPORT RIGHTS FOR INTERMEDIARIES REGULATIONS 1st October, 2018 LEGAL NOTICE 238 of 2018. PRELIMINARY
Article 19of Regulation (EU) No 1094/2010.
(4)Notwithstanding sub-regulations
(2)and
(3), the competent authority may take appropriate and non-discriminatory measures to prevent or penalise irregularities committed in Malta, in the cases where immediate action is strictly necessary to protect the interests of insureds and policyholders, in Malta, where equivalent measures of the European regulatory authority are inadequate or insufficient. In such cases, the competent authority may also prevent that European intermediary concerned from continuing to carry out distribution activities in Malta and, or new distribution activities in EUROPEAN PASSPORT RIGHTS FOR INTERMEDIARIES [ S.L.487.07 15 Malta.
(5)Any measures adopted by the competent authority pursuant to this regulation shall be communicated to the European intermediary concerned in writing, together with reasons justifying such measures. The competent authority shall inform the European regulatory authority concerned, EIOPA and the Commission of such measures, without undue delay.
(6)Where a European insurance intermediary 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, in accordance with national law, impose an administrative penalty pursuant to article 52 of the Act.
(7)Where the competent authority is informed by the European regulatory authority of the removal from the register of the registration of a European intermediary carrying out activities of insurance distribution or reinsurance distribution in Malta, in exercise of a European right, it shall take appropriate measures to prevent the intermediary concerned from continuing to carry out insurance distribution or reinsurance distribution in Malta, under either the right of establishment or the freedom to provide services, and may make or issue public statements or notices in relation to these measures.
(8)A prohibition under this regulation may be: (
- a)absolute; or (
- b)limited, that is, imposed for a specified event or until specified conditions are complied with, and any period, event or conditions specified in the case of a limited prohibition may be varied by the competent authority and any such notice shall take effect on such date as is specified in the notice. 13.
(1)Where the competent authority has reason to consider that a European intermediary which provides services in Malta has contravened any obligation arising from the provisions of the Act, or of any regulations, Insurance Distribution Rules or Conduct of Business Rules issued thereunder, transposing any obligation set out in the Insurance Distribution Directive, it shall communicate its considerations to the European regulatory authority concerned. The European regulatory authority shall, where applicable and at the earliest opportunity, take all appropriate measures to remedy the situation and ensure that the European intermediary concerned rectifies its position. The appropriate measures taken shall be communicated to the competent authority.
(2)Where, despite the measures taken by the European regulatory authority, or because those measures prove inadequate or Contravention by European intermediaries – services. 16 [ S.L.487.07 EUROPEAN PASSPORT RIGHTS FOR INTERMEDIARIES insufficient, the European intermediary persists in violating the legal or regulatory provisions referred to in sub-regulation
(1)in force in Malta, and in acting in a manner that is clearly detrimental to the interests of insureds and policyholders, in Malta, on a large scale, or to the orderly functioning of insurance and reinsurance markets, the competent authority may, after informing the European regulatory authority concerned, take appropriate measures to prevent or penalise further irregularities, including, in so far as is strictly necessary, to prevent that European intermediary concerned from continuing to carry out distribution activities in Malta and, or new distribution activities in Malta. In addition, the competent authority may refer the matter to EIOPA and request
Article 19of Regulation (EU) 1094/2010.
(3)Notwithstanding sub-regulations
(1)and
(2), the competent authority may take appropriate measures to prevent or penalise irregularities committed in Malta, in the cases where immediate action is necessary to protect the interests of insureds and policyholders. In such cases, the competent authority may prevent that European intermediary concerned from continuing to carry out distribution activities in Malta and, or new distribution activities in Malta.
(4)Any measures adopted by the competent authority pursuant to this regulation shall be communicated to the European intermediary concerned in writing, together with reasons justifying such measures. The competent authority shall inform the European regulatory authority concerned, EIOPA and the Commission of such measures, without undue delay. Powers of the competent authority in relation to applicable provisions. 14.
(1)The competent authority may take appropriate and non-discriminatory measures, in so far as strictly necessary, to prevent or penalise irregularities committed in Malta by a European intermediary, which are contrary to applicable provisions protecting the general good. In such situations, the competent authority may prevent that European intermediary from continuing to carry out distribution activities in Malta and, or new distribution activities in Malta.
(2)For the purposes of sub-regulation
(1), "applicable provisions" means the Maltese rules with which, in the interest of the general good, the European intermediary is required to comply when carrying out distribution activities, as identified in the consent notice, through a branch in Malta or when providing services in Malta.
(3)The competent authority may take appropriate measures to prevent a European insurance intermediary or a European ancillary insurance intermediary from carrying out distribution activities within Malta, under the freedom to provide services or, where applicable, the freedom of establishment, where: EUROPEAN PASSPORT RIGHTS FOR INTERMEDIARIES [ S.L.487.07 17 (
- a)the relevant activities are entirely or principally directed towards Malta with the sole purpose of avoiding the legal provisions which would be applicable if that European insurance intermediary or European ancillary insurance intermediary, had its residence or registered office in Malta; and (
- b)where its activities seriously endanger the proper functioning of Maltese insurance and reinsurance markets with respect to the interests of insureds and policyholders.
(4)In the case referred to in sub-regulation
(3), the competent authority may, after informing the European regulatory authority concerned, take in respect of that European insurance intermediary or European ancillary insurance intermediary, all the appropriate measures needed in order to protect the interests of insureds and policyholders, in Malta. In addition, the competent authority may refer the matter to EIOPA and request
Article 19
of Regulation (EU) No 1094/2010, and in such a case, EIOPA may act in the event of a disagreement between the competent authority and the European regulatory concerned. PART IV MALTESE INTERMEDIARIES NOT COMPLYING WITH LEGAL PROVISIONS 15.
(1)Where, pursuant to Article 8
(2)of the Insurance Distribution Directive, a European regulatory authority of a host Member State communicates to the competent authority its findings relating to a branch of a Maltese intermediary carrying out distribution activities in the host Member State, which is considered by it to be in breach of any obligation set out in the Insurance Distribution Directive, the competent authority shall assess the information received and, where applicable and at the earliest opportunity, take appropriate measures to remedy the situation and ensure that the Maltese intermediary concerned rectifies its position. The competent authority shall inform that European regulatory authority of any such measures taken. Contravention by Maltese insurance intermediaries – establishment.
(2)Where the European regulatory authority of the host Member State, after informing the competent authority, takes appropriate measures, pursuant to Article 8
(3)of the Insurance Distribution Directive, to prevent further irregularities, the competent authority may refer the matter to EIOPA and request
Article 19of Regulation (EU) No. 1094/2010. 16.
(1)Where, pursuant to Article 5
(1)of the Insurance Distribution Directive, a European regulatory authority of a host Member State communicates to the competent authority its findings relating to a Maltese intermediary providing services in the host Member State, which is considered to be in breach of any obligation set out in the Insurance Distribution Directive, the competent authority Contravention by Maltese insurance intermediaries – services. 18 EUROPEAN PASSPORT RIGHTS FOR INTERMEDIARIES [ S.L.487.07 shall assess the information received and, where applicable and at the earliest opportunity, take appropriate measures to remedy the situation and ensure that the Maltese intermediary concerned rectifies its position. The competent authority shall inform that European regulatory authority of any such measures taken.
(2)Where the European regulatory authority of the host Member State, after informing the competent authority, takes appropriate measures, pursuant to Article 5
(1)of the Insurance Distribution Directive, to prevent further irregularities, the competent authority may refer the matter to EIOPA and request
Article 19of Regulation (EU) No 1094/2010.
Powers of the competent authority to refer to EIOPA – in relation to applicable provisions. 17. In the case of a Maltese insurance intermediary and a Maltese ancillary insurance intermediary, where the competent authority is informed by the European regulatory authority of the host Member State where the branch of a Maltese intermediary is established, or where the Maltese intermediary is providing services, of the appropriate measures to be taken in relation to such intermediary, pursuant to Article 9 of the Insurance Distribution Directive, in order to protect the rights of consumers in that host Member State or EEA State, the competent authority may refer the matter to EIOPA and request
Article 19
of Regulation (EU) No 1094/ 2010, and in such a case, EIOPA may act in the event of a disagreement between the competent authority and the European regulatory concerned. PART V MISCELLANEOUS Register. 18.
(1)The Lists established and maintained by the competent authority in terms of articles 9, 36 and 43D of the Act shall indicate each Member State or EEA State in which the Maltese intermediary: (a) has established a branch; or (b) is providing services.
(2)The competent authority shall communicate the information referred to in sub-regulation
(1)to EIOPA for the purpose of publication on EIOPA’s single electronic register, in terms of Article 3
(4)of the Insurance Distribution Directive. Exchange of information.
- The competent authority shall cooperate and exchange information with European regulatory authorities of host Member States, for the purposes of supervision of the distribution activities of Maltese intermediaries and European intermediaries. In particular, where the competent authority strikes off the name of a Maltese intermediary which ceases to fulfil the requirements laid down in Article 10 of the Insurance Distribution Directive, from the relevant EUROPEAN PASSPORT RIGHTS FOR INTERMEDIARIES [ S.L.487.07 Register or List, it shall, where applicable, inform the host Member State accordingly.
- Where a person falling within the scope of these regulations, fails to comply with any provisions of the said regulations or of any Insurance Distribution Rules and, or Conduct of Business Rules issued thereunder, the competent authority may, by notice in writing and without recourse to any court hearing, impose on such person an administrative penalty or any administrative measure in accordance with the Insurance Distribution (Penalties and other Measures) Regulations. Administrative Penalties, other administrative measures. 21.
(1)For the better carrying out of these regulations, the competent authority may, from time to time, issue Insurance Distribution Rules and, or Conduct of Business Rules. Rules.
(2)Such Insurance Distribution Rules and, or Conduct of Business Rules may contain such incidental, supplementary and consequential provisions as appear to the competent authority to be expedient for the purposes of these regulations. S.L. 487.08. 19