Chapter 487

In short

This law, called the Insurance Distribution Act, regulates the registration and enrolment of various types of insurance and reinsurance intermediaries, as well as their distribution activities.

What it regulates

The registration and enrolment process for insurance agents, managers, and brokers.
Powers of intervention concerning enrolled persons.
Obligations of enrolled persons.
Registration and enrolment of tied insurance intermediaries and ancillary insurance intermediaries.

Who it concerns

Individuals and companies acting as insurance and reinsurance intermediaries.
Authorised insurance and reinsurance undertakings.

Key points

The Act establishes registers and lists for different types of intermediaries, such as the Agents Register, Brokers Register, Agents List, and Brokers List.
It defines various terms related to insurance distribution, including "advertisement," "ancillary insurance intermediaries activities," and "certificate of enrolment."
The Malta Financial Services Authority (MFSA) is the "competent authority" for this Act.
The Act outlines specific "Conduct of Business Rules" to be issued by the competent authority.

Legal text

INSURANCE DISTRIBUTION CHAPTER 487 INSURANCE DISTRIBUTION ACT Substituted by: XXVI.2018.3 To regulate the registration and enrolment of insurance and reinsurance intermediaries and the insurance and reinsurance distribution activities. 1st September, 2006 ACT XII of 2006, as amended by Act XX of 2007; Legal Notice 427 of 2007; Acts XVII of 2009 and X of 2011; Legal Notice 451 of 2013; and Acts XXXIII of 2015, XXVI of 2018, V of 2020 and Act XLVI of

Arrangement of Act Part I Part II Part III Part IV Part V Part VI Part VII Part VIII Part VIIIA Part VIIIB Part IX Preliminary Regulatory Powers Registration or Enrolment of Insurance Agents, Insurance Managers and Insurance Brokers Powers of Intervention in relation to Persons enrolled under Part III Obligations of Persons enrolled under Part III Financial Year and Auditors Provisions applicable to Intermediaries carrying on business as Insurance Brokers R e g i s t r a t i o n a n d E n r o l m e n t o f Ti e d I n s u r a n c e Intermediaries Registration and Enrolment of Ancillary Insurance Intermediaries Provisions applicable to Undertakings Authorised under the Insurance Business Act carrying out Distribution Activities General Provisions SCHEDULE Insurance and Reinsurance Distribution Activities Articles 1-2 3-4 5 - 14 15 - 19 20 - 26 27 - 29 30 - 32 33 - 43 43A-43J 43K-43O 44 - 55 INSURANCE DISTRIBUTION PART I Short title. Amended by: XXVI.2018.
PRELIMINARY The short title of this Act is the Insurance Distribution Act. Interpretation and scope. Amended by: X. 2011.91; XXXIII. 2015.79; XXVI. 2018.
2.

(1)In this Act, unless the context otherwise requires - "advertisement", in relation to insurance distribution activities, means any form or medium of marketing activity or communication disseminated to the public by means of all types of media, other than a prospectus, which promotes the purchase or procurement of a service or product and which is addressed by a person registered or enrolled under this Act, carrying out insurance distribution activities, to a client or potential client; "Agents List" means the list of persons acting as insurance agents established and maintained under article 9; "Agents Register" means the insurance agents register established and maintained under article 7; "ancillary insurance intermediaries activities", in relation to a person registered and enrolled as an ancillary insurance intermediary, means the insurance distribution activities listed in paragraph

(5)of the Third Column of the Schedule; "Ancillary Insurance Intermediaries Company Register" in relation to an authorised undertaking and an enrolled insurance broker means the Ancillary Insurance Intermediaries Company Register established and maintained by an authorised undertaking or an enrolled insurance broker under article 43B

(1); "Ancillary Insurance Intermediaries List" means the list of ancillary insurance intermediaries established and maintained under article 43D

(1); "ancillary insurance intermediary" means any natural or legal person, other than a credit institution or an investment firm, as defined by points

(1)and

(2)of Article 4

(1)of Regulation (EU) No. 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No. 648/2012, carrying out the insurance distribution activities listed in paragraph

(5)of the Third Column of the Schedule; "approved auditor" and "auditor" have the meaning assigned to them by article 28

(10); "authorised insurance undertaking" has the same meaning as is assigned to it by article 2

(1)of the Insurance Business Act; "authorised reinsurance undertaking" has the same meaning as is assigned to it by article 2

(1)of the Insurance Business Act; "authorised undertaking" means an authorised insurance undertaking or an authorised reinsurance undertaking which has received authorisation pursuant to article 7 of the Insurance Business Act or any person deemed authorised under the said Act, to carry on business of insurance and includes a company enrolled under this Act to act as an insurance agent of the undertaking, as INSURANCE DISTRIBUTION well as a European insurance undertaking or a European reinsurance undertaking having its head office in a Member State or an EEA State establishing a branch or providing services in Malta in exercise of a European right; "binding authority agreement" means an agreement between a m e m b e r o f L l o y d ’s o r a p e r s o n a c t i n g o n i t s b e h a l f a n d a coverholder under which the coverholder may, in accordance with the terms thereof, accept risks or commitments on behalf of that member of Lloyd’s; "body corporate" means an entity having a legal personality distinct from that of its members and also includes a foreign corporation; "branch" means premises of the company, other than its head office, from which insurance distribution activities or reinsurance distribution activities are carried out; "Brokers List" means the list of persons carrying on business as insurance brokers established and maintained under article 9; "Brokers Register" means the insurance brokers register established and maintained under article 7; "business of insurance" has the same meaning as is assigned to it by article 2

(1)of the Insurance Business Act; "business of insurance broking", in relation to a registered insurance broker or an enrolled insurance broker, means the activities listed in paragraph

(1)of the Third Column of the Schedule; "cell" has the same meaning as is assigned to it by the Companies Act; "cell company" has the same meaning as is assigned to it by the Companies Act; "certificate of enrolment" (

a)in relation to a person acting as an insurance agent, means a certificate issued by the competent authority under article 14 to the person evidencing enrolment of that person in the Agents List; and (
b)in relation to a person acting as an insurance manager, means a certificate issued by the competent authority under article 14 of this Act to the person evidencing enrolment of that person in the Managers List; (
c)in relation to a person carrying on business as insurance broker, means a certificate issued by the competent authority under article 14 to the person evidencing enrolment of that person in the Brokers List; (
d)in relation to a person registered as a tied insurance intermediary in the Tied Insurance Intermediaries Company Register of any authorised undertaking, means a certificate issued by the competent authority under article 37 to the authorised undertaking enrolling that person evidencing enrolment of that person in the Tied INSURANCE DISTRIBUTION Insurance Intermediaries List; and; (
e)in relation to a person registered as an ancillary insurance intermediary in the Ancillary Insurance Intermediaries Company Register of any authorised undertaking or any enrolled insurance broker, means a certificate issued by the competent authority under article 43E to the authorised undertaking or the insurance broker enrolling that person evidencing enrolment of that person in the Ancillary Insurance Intermediaries List; "certificate of registration" (
a)in relation to an individual registered as an insurance agent, means a certificate issued by the competent authority under article 14 of this Act to that individual evidencing registration of that individual in the Agents Register; (
b)in relation to an individual registered as an insurance manager, means a certificate issued by the competent authority under article 14 to that individual evidencing registration of that individual in the Managers Register; and (
c)in relation to an individual registered as an insurance broker, means a certificate issued by the competent authority under article 14 to that individual evidencing registration of that individual in the Brokers Register; "class" (
a)in relation to long term business, means any of the classes specified in the Second Schedule to the Insurance Business Act; and (
b)in relation to general business, means any of the classes specified in Part I of the Third Schedule to the Insurance Business Act; "close links" means a situation in which two or more natural or legal persons are linked by control or participation, or a situation in which two or more natural or legal persons are permanently linked to one and the same person by a control relationship; "commitment" and "country of the commitment" have the same meanings as are assigned to them by article 2

(1)of the Insurance Business Act; "company" includes a local company and a foreign company; "competent authority" means the Malta Financial Services Authority established by the Malta Financial Services Authority Act; "conditions" includes obligations and restrictions; "Conduct of Business Rules" means rules relating to conduct of business issued by the competent authority under various articles of this Act and under any regulations made thereunder; "contract of insurance" and "contract" have the same meanings as are assigned to them by article 2

(1)of the Insurance Business Act; INSURANCE DISTRIBUTION "control" means the relationship between a parent undertaking and a subsidiary undertaking, as set out in Article 22 of Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/ 660/EEC and 83/349/EEC, or a similar relationship between any natural or legal person and an undertaking; "controller", in relation to a body corporate, is a person who, alone or together with others, exercises the power to determine the financial and operating policies of the body corporate; "coverholder" means a person authorised under a binding authority agreement to accept or to issue documents related to contracts of insurance evidencing the acceptance of risks or commitments on behalf of a member of Lloyd’s granting such authority pursuant to such agreement; "director", in relation to a company, includes an individual occupying the position of a director of the company, by whatever name he may be called, empowered to carry out substantially the same functions in relation to the direction of the company as those carried out by a director and, in respect of a foreign company, includes a member of a local board, an agent and the person designated as the representative of that company for the purpose of article 12

(1)(b)(ii); "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; "EIOPA" means the European Insurance and Occupational Pensions Authority established in terms of Article 1 of Regulation (EU) No. 1094/2010; "enrolled" (

a)in relation to a person acting as an insurance agent, means enrolled in the Agents List under article 13; (
b)in relation to a person acting as an insurance manager, means enrolled in the Managers List under article 13; (
c)in relation to a person carrying on business as insurance broker, means enrolled in the Brokers List under article 13; (
d)in relation to a person registered as a tied insurance intermediary, means enrolled in the Tied Insurance Intermediaries List under article 37; and (
e)in relation to a person registered as an ancillary insurance intermediary, means enrolled in the Ancillary Insurance Intermediaries List under article 43E, and, in each case, "enrolment" shall be construed accordingly; "European insurance undertaking" means an undertaking having INSURANCE DISTRIBUTION 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 meaning of Article 2 of the Solvency II Directive which has received authorisation in accordance with Article 14 of the Solvency II Directive; "financial year" shall be construed in accordance with article 27

(4); "foreign company" means a company or a partnership en commandite or similar or equivalent body corporate, the capital of which is divided into shares, registered, incorporated or constituted outside Malta under the laws of any country provided that such company or partnership en commandite has complied with the provisions of any law which may from time to time be in force in Malta relating thereto; Provided that, unless otherwise specified, the term "foreign company" shall not include a European insurance intermediary registered under article 3 of the Insurance Distribution Directive; "functions" includes responsibilities, powers and duties; "group" and "group of classes", in relation to general business, means any group of classes or part classes specified in Part II of the Third Schedule to the Insurance Business Act; "insurance agent" means a person carrying out activities listed in paragraph

(2)of the Third Column of the Schedule; and in relation to Lloyd’s, means a person enrolled as such under article 13 appointed by or on behalf of a member of Lloyd’s to be its coverholder in Malta in respect of business of insurance with authority to enter into contracts of insurance on behalf of that member under the terms of a binding authority agreement; "insurance-based investment product" means an insurance product which offers a maturity or surrender value and where that maturity or surrender value is wholly or partially exposed, directly or indirectly, to market fluctuations, and does not include: (

a)insurance products falling within the classes of general business specified in Part I of the Third Schedule to the Insurance Business Act; (
b)insurance contracts falling within the classes of longterm business specified in the Second Schedule to the Insurance Business Act, where the benefits under the contract are payable only on death or in respect of incapacity due to injury, sickness or disability; (
c)pension products which are recognised as having the primary purpose of providing the investor with an income on retirement, and which entitle the investor to certain benefits; INSURANCE DISTRIBUTION (
d)officially recognised occupational pension schemes falling under the scope of Directive 2003/41/EC of the European Parliament and of the Council of 3 June 2003 on the activities and supervision of institutions for occupational retirement provision, as amended from time to time, or of the Solvency II Directive; (
e)individual pension products for which a financial contribution from the employer is required by law and where the employer or the employee has no choice as to the pension product or provider; "insurance broker" means a person carrying on business of insurance broking; "insurance distribution activities" means the activities of advising on, proposing, or carrying out other work preparatory to the conclusion of contracts of insurance, of concluding such contracts, or of assisting in the administration and performance of such contracts, in particular in the event of a claim, including the provision of information concerning one or more contracts of insurance in accordance with criteria selected by the clients, through a website or other media and the compilation of an insurance product ranking list, including price and product comparison, or a discount on the price of a contract of insurance, when the client is able to directly or indirectly conclude a contract of insurance using a website or other media, and includes the activities listed in paragraphs

(1)to

(5)of the Third Column of the Schedule, the distribution activities carried out by an authorised insurance undertaking and any other activities as may be prescribed; "Insurance Distribution Directive" means Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (recast), as amended from time to time, and includes any delegated acts and any technical standards that have been or may be issued thereunder; "Insurance Distribution Rules" means rules in respect of insurance distribution activities and reinsurance distribution activities, issued by the competent authority under various articles of this Act and under any regulations issued thereunder; "insurance intermediary" means any natural or legal person, other than an authorised insurance undertaking or an authorised reinsurance undertaking or their employees, and other than an ancillary insurance intermediary, who, for remuneration, takes up or pursues insurance distribution activities; "insurance manager" means a person carrying out activities listed in paragraph

(3)of the Third Column of the Schedule; "insurer" has the same meaning as assigned to it by article 2

(1)of the Insurance Business Act; "local company" means a limited liability company formed and registered under the Companies Act and includes, subject to subarticle

(2), a partnership en commandite, the capital of which is divided into shares, formed and registered under the said Act; INSURANCE DISTRIBUTION "Malta’s international commitments" has the same meaning as assigned to it by article 2

(1)of the Insurance Business Act; "Managers List" means the list of persons acting as insurance managers established and maintained under article 9; "Managers Register" means the insurance managers register established and maintained under article 7; "Member State" means a Member State of the European Communities; "Minister" means the Minister responsible for the regulation of Financial Services; "money laundering" has the same meaning as is assigned to it by the Prevention of Money Laundering Act; "officer", in relation to a company, includes a director, partner, manager or company secretary or any person effectively acting in such capacity whether formally appointed or not; "own funds" shall be construed in accordance with Insurance Distribution Rules made for the purpose of this Act to determine the amounts and components which make up the enrolled person’s own funds; "participation" means the ownership, direct or by way of control, of 20% or more of the voting rights or capital of an undertaking; "prescribed" means prescribed by regulations under this Act; "qualifying shareholding" means a direct or indirect holding in a company which represents ten per centum or more of the share capital issued by such company or of the voting rights attaching to such share capital or which makes it possible to exercise a significant influence over the management of the company, and "qualifying shareholder" shall be construed accordingly; "registered" (

a)in relation to a person registered as an insurance agent under article 13, means registered in the Agents Register; (
b)in relation to a person registered as an insurance manager under article 13, means registered in the Managers Register; (
c)in relation to a person registered as an insurance broker under article 13, means registered in the Brokers Register; (
d)in relation to a person registered as a tied insurance intermediary under article 37, means registered in the Tied Insurance Intermediaries Company Register of any one or more authorised undertakings; and (
e)in relation to a person registered as an ancillary insurance intermediary under article 43E, means registered in the Ancillary Insurance Intermediaries Company Register of any one or more authorised undertakings or one enrolled insurance broker, INSURANCE DISTRIBUTION and, in each case, "registration" shall be construed accordingly; "regulated market" means either of the following: (
a)in the case of a market situated in Malta, a market authorised in terms of the Financial Markets Act ; (
b)in the case of a market situated in a Member State or an EEA State, other than Malta, a regulated market as defined in point

(21)of Article 4

(1)of Directive 2014/65/ EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/ EU (recast), as amended from time to time; or (

c)in the case of a market situated in a non-Member State or non-EEA State, a financial market which fulfils the following conditions: (
i)it is recognised by the competent authority and fulfils requirements comparable to those laid down in Directive 2014/65/EU; and (
ii)the financial instruments dealt in on that market are of a quality comparable to that of the instruments dealt in on the regulated market or markets in Malta; "Regulation (EU) No. 1094/2010" refers to Regulation (EU) No. 1094/2010 of the European Parliament and of the Council of 24 November 2010 establishing a European Supervisory Authority (European Insurance and Occupational Pensions Authority), amending Decision No. 716/2009/EC and repealing Commission Decision 2009/79/EC; "reinsurance distribution activities" means the activities of advising on, proposing, or carrying out other work preparatory to the conclusion of contracts of reinsurance, of concluding such contracts, or of assisting in the administration and performance of such contracts, in particular in the event of a claim, including the activities carried out by an authorised reinsurance undertaking without the intervention of a reinsurance intermediary, the activities listed in paragraphs

(1)to

(3)of the Third Column of the Schedule, and any other activities as may be prescribed; "reinsurance intermediary" means any natural or legal person, other than an authorised reinsurance undertaking or its employees, who, for remuneration takes up or pursues reinsurance distribution activities; "remuneration" means any commission, fee, charge or other payment, including an economic benefit of any kind or any other financial or non-financial advantage or incentive offered or given in respect of insurance distribution activities;"; and "representative" shall be construed in accordance with article 12 of the Insurance Business Act; "risk situated in Malta" has the same meaning as is assigned to it by article 2

(1)of the Insurance Business Act; "Schedule" means the Schedule to this Act; INSURANCE DISTRIBUTION " Solvency II Directive" means Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance 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; "third country insurance undertaking" means an undertaking, other than a European insurance undertaking, which would require authorisation as an authorised insurance undertaking pursuant to article 7 of the Insurance Business Act, as if its head office were situated in Malta; "third country reinsurance undertaking" means an undertaking, other than a European reinsurance undertaking, which would require authorisation as an authorised reinsurance undertaking in accordance with article 7 of the Insurance Business Act, as if its head office were situated in Malta; "tied insurance intermediaries activities", in relation to a person registered and enrolled as a tied insurance intermediary, means the insurance distribution activities listed in paragraph

(4)of the Third Column of the Schedule, including any person who carries on such activities in addition to his main activity; "Tied Insurance Intermediaries Company Register" in relation to an authorised undertaking means the Tied Insurance Intermediaries Company Register established and maintained by an authorised undertaking under article 34

(1); "Tied Insurance Intermediaries List" means the list of tied insurance intermediaries established and maintained under article 36

(1); "tied insurance intermediary" means a person carrying on tied insurance intermediaries activities; "Tribunal" means the Financial Services Tribunal referred to in article 21 of the Malta Financial Services Authority Act.

(2)The objective of this Act is, in part, to transpose and implement the provisions of the Insurance Distribution Directive and any other European Union Directives and Regulations that may be issued and amended from time to time relating to insurance distribution activities and reinsurance distribution activities, and consequently this Act and any regulations, Insurance Distribution Rules and Conduct of Business Rules issued thereunder, shall be interpreted and applied accordingly.

(3)The provisions of this Act shall apply to a partnership en commandite or to a similar or equivalent body corporate subject to such modifications as the competent authority may, from time to time, make in any provision thereof, which modifications shall not materially detract from the main object of the provisions so modified.

(4)In this Act and in any regulations made thereunder, if there is any conflict between the English and the Maltese texts, the English text shall prevail. INSURANCE DISTRIBUTION PART II REGULATORY POWERS 3.

(1)The competent authority shall carry out its functions under this Act and, in particular, shall ensure compliance with the provisions of this Act.

(2)The Minister may, after consultation with the competent authority, make regulations as may be required for carrying into effect any of the provisions of this Act and without prejudice to the generality of the foregoing, the Minister may, by such regulations, in particular, make provisions in respect of any one or more of the following matters: (

a)the implementation of the Insurance Distribution Directive; (
b)the transposition of any requirement or provision as may arise under a Directive, Regulation or Decision of the European Union or any other similar measure relevant for the purposes of this Act. Any such regulations made under this paragraph and strictly related to transposition as aforesaid, may provide that in so far as any of the provisions of the regulations are inconsistent with the provisions of this Act or of any other law, the provisions of the regulations shall prevail, and the provisions of this Act or of any other law shall, to the extent of the inconsistency, not apply; (
c)the amendment or revocation of the Schedule; (
d)the payment by any person, body or cell created by a cell company, as the case may be, of any fees, duties and such other charges payable to the competent authority in respect of any matter provided for, by or under the Act, or any regulations made under this article; (
e)the registration or enrolment of persons, other than persons registered or enrolled by virtue of this Act, carrying out insurance distribution activities or reinsurance distribution activities or providing services ancillary to business of insurance as may be prescribed; (
f)any matter relating to or connected with any provision contained in the Schedule; (
g)any matter that may or is to be prescribed under any provision of this Act; (
h)the administrative measures and administrative penalties in respect of infringements as may be prescribed, which may be imposed and recovered by the competent authority without recourse to a court hearing, and such administrative penalties shall be due to the competent authority as a civil debt; (
i)the penalties or other punishments to which persons contravening or failing to comply with any provision of any regulation made under this Act shall become Powers of the Minister. Amended by: XX. 2007.142; L.N. 427 of 2007; X. 2011.92. XXVI.2018.8; V.2020.55. INSURANCE DISTRIBUTION liable, being penalties of not less than two hundred and thirty euro (€230) and not exceeding one hundred and fifty thousand euro (€150,000), in respect of any offence and in respect of a continuing offence of a further penalty not exceeding two hundred and thirty euro (€230) for each day during which the offence continues; (
j)any matter incidental to or connected with any of the above; (
k)any matter relating to the establishment, co-ordination, amalgamation and otherwise of compensation schemes. (2A) The regulations made under paragraph (
h)of sub-article

(2)may impose: (

a)administrative penalties which may not be greater than a financial penalty of one hundred and fifty thousand euro (€150,000) for each infringement or failure to comply, as the case may be, and, where such infringement or failure to comply continues, a further penalty not exceeding one hundred and sixteen euro (€116) for each day during which the infringement or failure to comply continues;and (
b)administrative penalties and fines higher than one hundred and fifty thousand euro (€150,000), where deemed necessary or appropriate, for any contravention of or failure of compliance with the Insurance Distribution Directive or any EU Regulation issued thereunder, or with any regulations, Insurance Distribution Rules or Conduct of Business Rules issued under this Act to transpose or to give effect to such Directive or Regulation.

(3)The Minister may, after consulting the competent authority, make regulations exempting any person from all or any of the provisions of this Act or any regulations made thereunder, subject to such conditions or requirements including the requirement of other forms of registration or enrolment and notification procedures as may be prescribed.

(4)The Minister may also by regulations under this article, after consultation with the competent authority, extend and make applicable any of the provisions of this Act to any other insurance or reinsurance distribution activity as may be prescribed which in his opinion ought, in the public interest, to be regulated by such provisions.

(5)Regulations made under this article may make such exemptions, conditions or modifications as may be specified therein in respect of different cases, circumstances or purposes and may give the competent authority such power of adaptation of the regulations as may be specified therein.

(6)In the event of a doubt as to whether an activity constitutes the carrying out of insurance distribution activities or reinsurance distribution activities, or whether such insurance distribution activities INSURANCE DISTRIBUTION or reinsurance distribution activities are or are not being carried out in or from Malta, the matter shall be conclusively determined by the competent authority.

(7)The exercise of any of the powers assigned under this article shall be subject to any obligations or restrictions arising from Malta’s international commitments.

(8)Regulations made under this Act and any amendment or revocation of such regulations, may be published in the English language only. 4.

(1)It shall be the duty of the competent authority to carry out the functions assigned to it by or under this Act and to ensure that: (

a)persons, companies, insurance intermediaries or reinsurance intermediaries, registered or enrolled in accordance with this Act and regulations made thereunder, comply with the provisions of this Act and of any regulations made thereunder, with Insurance Distribution Rules and Conduct of Business Rules made and directives issued by the competent authority in virtue of this Act and of any regulations made thereunder, and with the conditions specified in certificates of registration or enrolment; and (
b)authorised insurance undertakings and authorised reinsurance undertakings carrying out insurance distribution activities and reinsurance distribution activities comply with the provisions of this Act and of any regulations made thereunder, with any Insurance Distribution Rules and Conduct of Business Rules made and directives issued by the competent authority in virtue of this Act and of any regulations made thereunder. (1A) The competent authority shall also carry out the functions and duties as competent authority for the purposes of the Insurance Distribution Directive, and the European Commission shall be informed accordingly. (1B) The competent authority shall have all the investigatory powers that are necessary for the exercise of its functions.

(2)The competent authority may make Insurance Distribution Rules and Conduct of Business Rules as may be required for carrying into effect any of the provisions of this Act and of any regulations made thereunder. The competent authority may amend or revoke such Insurance Distribution Rules or Conduct of Business Rules and any amendment or revocation thereof shall be officially communicated to the persons concerned.

(3)Insurance Distribution Rules shall be binding on persons registered or enrolled under this Act, on authorised insurance undertakings and authorised reinsurance undertakings and others as may be specified therein. Conduct of Business Rules shall be binding on persons registered or enrolled under this Act, on authorised insurance undertakings and others as may be specified therein. Powers and duties of the competent authority. Amended by: XXXIII. 2015.80. XXVI. 2018.9. INSURANCE DISTRIBUTION

(4)Insurance Distribution Rules and Conduct of Business Rules made by the competent authority in virtue of this Act may provide for different regulatory requirements to be applicable to different categories of insurance intermediaries and reinsurance intermediaries; and without prejudice to Insurance Distribution Rules and Conduct of Business Rules required to be made under this Act and to the generality of the foregoing, the competent authority may, by such Insurance Distribution Rules and Conduct of Business Rules, in particular (

a)determine, in relation to persons registered or enrolled under this Act, what constitutes fitness and properness; (
b)determine, in relation to persons registered or enrolled under this Act, the criteria of sound and prudent management; (
c)determine the information which persons enrolled under this Act shall disclose to persons seeking or making use of intermediary services; (
d)determine the codes of conduct which may regulate any aspect of dealings between persons registered or enrolled under this Act and authorised insurance undertakings or authorised reinsurance undertakings, or between such persons and persons seeking or making use of intermediary services; (
e)determine, in relation to insurance distribution activities, the issuing of advertisements and the undertaking of any other promotional activities. (4A) The competent authority may make, amend or revoke Insurance Distribution Rules and Conduct of Business Rules, as may be required for the purpose of implementing any guidelines and recommendations issued by EIOPA under Article 16 of Regulation (EU) No. 1094/2010, for the implementation of the Insurance Distribution Directive. (4B) The competent authority shall monitor the market relating to insurance and reinsurance distribution activities, including the market for ancillary insurance products which are marketed, distributed or sold in, or from, Malta. INSURANCE DISTRIBUTION PART III REGISTRATION OR ENROLMENT OF INSURANCE AGENTS, INSURANCE MANAGERS AND INSURANCE BROKERS 5. This Part of the Act applies to persons acting as insurance agents, insurance managers and insurance brokers, carrying out insurance distribution activities, reinsurance distribution activities or both activities hereinafter referred to as "the intermediary". 6.

(1)Subject to sub-article

(3), no person shall act as an intermediary and carry out, or attempt to carry out, in or from Malta, insurance distribution activities and reinsurance distribution activities, unless such person is registered or enrolled under article 13.

(2)The competent authority shall not grant registration or enrolment under article 13 to a person nor shall the competent authority permit such person to be registered or enrolled thereunder or to remain so registered or enrolled, unless it is satisfied that such person fulfils or complies with the requirements set out in this Part of the Act. Application of this Part to specified insurance and reinsurance intermediaries. Amended by: XXVI.2018.10. Registration or enrolment of insurance and reinsurance intermediaries. Amended by: XXVI.2018.11.

(3)This article shall not apply to a person, which is registered pursuant to the Insurance Distribution Directive in a Member State or EEA State, other than Malta. 7. The competent authority shall establish and maintain registers of persons carrying out the insurance distribution activities or reinsurance distribution activities of insurance agents, insurance managers and insurance brokers, in this Act separately referred to as the "Agents Register", the "Managers Register" or the "Brokers Register", containing such particulars as the competent authority may determine from time to time, by Insurance Distribution Rules made for the purposes of this article, of all persons which are entitled under this Act to be registered therein and to apply in the manner determined by the said Insurance Distribution Rules to be so registered. 8.

(1)A person shall be entitled to be registered in the "Agents Register", the "Managers Register" or the "Brokers Register" if such person satisfies the competent authority that the person (

a)is an individual; (
b)is fit and proper to be so registered and to ensure the company’s sound and prudent management; (
c)has appropriate knowledge and ability in order to complete tasks and perform duties adequately, in relation to insurance distribution activities and reinsurance distribution activities and possesses the qualifications and fulfils or complies with the requirements determined by Insurance Distribution Rules made for the purposes of this article.

(2)A person shall not be entitled to carry out insurance distribution activities and reinsurance distribution activities by virtue of his registration under this article unless he is a director or an Register of insurance and reinsurance intermediaries. Amended by: XXVI.2018.

Qualifications for registration. Amended by: XXVI.2018.
INSURANCE DISTRIBUTION employee of a company enrolled under article
List of persons carrying out insurance and reinsurance distribution activities. Amended by: XXVI.2018.
9.

(1)The competent authority shall establish and maintain a list of persons carrying out insurance distribution activities and reinsurance distribution activities of insurance agents, insurance managers and insurance brokers, in this Act separately referred to as the "Agents List", the "Managers List", or the "Brokers List", containing particulars of all persons which are entitled under this Act to be enrolled therein and which apply in the manner determined from time to time by the competent authority in Insurance Distribution Rules made for the purposes of this article. The said Lists shall be updated on a regular basis.

(2)The Agents List, the Managers List, and the Brokers List are to specify the names of the registered individuals within the management of the intermediary who are responsible for the insurance distribution activities or reinsurance distribution activities.

(3)In the case of cross-border activities carried out in terms of the Insurance Distribution Directive, the Agents List, the Managers List, and the Brokers List shall also indicate the Member States or the EEA States in which the intermediary is carrying out insurance distribution activities or reinsurance distribution activities, and the competent authority shall communicate that information to EIOPA, for the purpose of publication on EIOPA’s single electronic register in terms of Article 3

(4)of the Insurance Distribution Directive. General requirements for enrolment. Amended by: XX. 2007.143; L.N. 427 of 2007; XXXIII. 2015.81; XXVI. 2018.15.

(4)The competent authority shall have the right to modify such data stored on EIOPA’s single electronic register referred to in subarticle

(3), and data subjects, whose personal details are stored on such register and exchanged, shall have the right to access such stored data and the right to be appropriately informed. 10.

(1)Subject to paragraph (b), the intermediary shall be entitled to be enrolled in the Agents List, Managers List or the Brokers List if, it satisfies the competent authority that: (

a)in the case of an applicant which is a company: (
i)the applicant’s objects are limited to operations arising directly from insurance distribution activities or reinsurance distribution activities listed in paragraphs

(1),

(2)and

(3)of the Third Column of the Schedule, as applicable, and to matters or functions connected therewith or ancillary thereto, to the exclusion of all other commercial business, other than business determined by Insurance Distribution Rules made for the purposes of this article; (

ii)the applicant discloses to the satisfaction of the competent authority such information as the competent authority has requested of it in relation to persons who will, upon its enrolment, have any proprietary, financial or other interest in, or in connection with, the applicant; (iiA) the applicant discloses the identity of the INSURANCE DISTRIBUTION shareholders, direct or indirect, whether natural or legal persons, who will have qualifying holdings in that intermediary and the amounts of those holdings; (iiB) the applicant discloses the identity of persons who have close links with the applicant; (iii) all qualifying shareholders, controllers, directors and all persons who will effectively manage the affairs or carry out the operations appropriate to the application are fit and proper persons to ensure its sound and prudent management; (iiiA) the applicant possesses appropriate knowledge and ability in order to be able to complete tasks and perform duties adequately, in relation to insurance distribution activities and reinsurance distribution activities, as determined by Insurance Distribution Rules made for the purposes of this article; (
iv)the applicant’s own funds, whether in euro or in other currencies acceptable to the competent authority are at all times not less than such amount appropriate for the kind of business to be carried on by it as may be determined by Insurance Distribution Rules made for the purposes under this Act and such own funds shall at all times be unencumbered; (
v)the applicant has at all times in its favour a policy of professional indemnity insurance or some other comparable guarantee, in each case acceptable to the competent authority, indemnifying it or any person employed by it or otherwise acting for it, to such amount, in such manner and in respect of such matters as the competent authority may from time to time determine by Insurance Distribution Rules; (
vi)the applicant submits to the satisfaction of the competent authority a scheme of operations appropriate to the application which shall include the particulars or proof as may be determined by Insurance Distribution Rules; (
b)in the case of an applicant who is an individual: (
i)sub-article

(1)(a)(i), (iiA) and (iii) shall not apply; and (ii) he shall be entitled to be enrolled in the Agents List, Managers List or the Brokers List if the applicant satisfies the competent authority that the individual: (aa)is fit and proper to be so enrolled and to ensure that the business is carried on in a sound and prudent manner; (bb)has appropriate knowledge and ability in INSURANCE DISTRIBUTION order to complete tasks and perform duties adequately in relation to insurance distribution activities and reinsurance distribution activities and possesses the qualifications and fulfils or complies with the requirements as determined by the Act and Insurance Distribution Rules made for the purposes of this article; (cc)carries out activities which are limited to operations arising directly from insurance distribution activities and reinsurance distribution activities, and matters and functions connected therewith or ancillary thereto, to the exclusion of all other commercial business, other than business determined by Insurance Distribution Rules; (dd)discloses the identity of persons who have close links with the applicant.

(2)Where the holdings or close links referred to in sub-article

(1)exist between the intermediary and any other person, the competent authority shall: (

a)only grant enrolment if it considers that such holdings or close links do not prevent it from effectively exercising its supervisory functions; and (
b)refuse to grant enrolment if it considers that the laws, regulations or administrative provisions of any country, other than Malta, governing any person with whom the intermediary has close links, or their enforcement, prevent it from effectively exercising its supervisory functions.

(3)Where the application is for enrolment to carry out insurance distribution activities or reinsurance distribution activities as an insurance agent or insurance manager, the applicant is required to produce proof to the satisfaction of the competent authority that such person holds an appointment in writing signed by a senior officer of an insurer, reinsurer or an insurance broker, as the case may be, for which the applicant desires to act designating the applicant to act in the name and on behalf of the company, or solely on behalf of the company, in the capacity specified in the appointment and in respect of matters and under the conditions specified in that appointment: Provided that, where an application is for enrolment to act as an insurance manager, the appointment referred in this paragraph shall not constitute a prerequisite condition for granting enrolment in that behalf provided that the enrolled insurance manager shall not act for an insurer, reinsurer or an insurance broker, as the case may be, unless and until it produces proof to the satisfaction of the competent authority that it holds an appointment in writing from the company concerned to act on its behalf. INSURANCE DISTRIBUTION 11.

(1)In the case of an applicant which is a local company, such company shall be entitled to be enrolled in the: (

a)Agents List if, in addition to the requirements of article 10, the competent authority is satisfied that any one or more of the company’s directors are registered in the Agents Register; (
b)Managers List if, in addition to the requirements of article 10, the competent authority is satisfied that any one or more of the company’s directors are registered in the Managers Register; (
c)Brokers List if, in addition to the requirements of article 10, the competent authority is satisfied that any one or more of the company’s directors are registered in the Brokers Register, Specific qualifications for enrolment in the case of local companies. Amended by: XX. 2007.144; XXVI.2018.16. and the insurance distribution activities or reinsurance distribution activities are carried out under the management of a registered person.

(2)A person enrolled under article 13 may, with the approval of the competent authority given in writing, open a branch or set up or acquire a subsidiary in Malta.

(3)The competent authority may permit a person enrolled as aforesaid to open a branch in Malta if it is satisfied that the insurance distribution activities or reinsurance distribution activities carried on by it from the branch are conducted by a registered person.

(4)Except with the written consent of the competent authority, no person enrolled under this Part of the Act may carry out, nor hold itself as carrying out, insurance distribution activities or reinsurance distribution activities, open a branch, office or other place of business, or set up or acquire a subsidiary, in any country outside Malta. 12.

(1)In the case of an applicant which is a foreign company, such company shall be entitled to be enrolled in the Agents List, Managers List or Brokers List if, in addition to the requirements of article 10, the competent authority is satisfied that (

a)the company is registered or permitted in the country where its head office is situated to carry out insurance distribution activities or reinsurance distribution activities; (
b)the company has in Malta at all times (
i)a branch; and (
ii)a representative: Provided that, a company carrying on business as an insurance broker restricted to contracts of insurance relating to risks situated outside of Malta or commitments where Malta is not the country of commitment may, either in lieu of or in addition to opening a branch in Malta, appoint an insurance manager enrolled under the Act to manage such business; and as long as the insurance manager holds such appointment, the business of insurance broking Specific requirements for enrolment in the case of foreign companies. Amended by: XX. 2007.145; XXVI. 2018.17. INSURANCE DISTRIBUTION shall be under the management of a registered insurance broker.

(2)In relation to a branch of a foreign company carrying out insurance distribution activities or reinsurance distribution activities as may be prescribed, the insurance distribution activities or reinsurance distribution activities shall be carried out from such branch by an individual who satisfies the following requirements: (

a)in the case of a company carrying out insurance distribution activities or reinsurance distribution activities (
i)the individual is registered in the Agents Register, Managers Register or Brokers Register; (
ii)the individual is a director of the company or has authority to act for the company and the insurance distribution activities or reinsurance distribution activities are carried on under his management; (iii) the individual is not an approved auditor, or a partner or an employee of an approved auditor of the company; (
b)in the case of a company carrying on other insurance distribution activities or reinsurance distribution activities as may be prescribed, provisions as may be prescribed. Grant of registration or enrolment by competent authority to insurance and reinsurance intermediaries. Amended by: XXVI.2018.18. 13.

(1)An application for registration or enrolment under this article shall be made in such form and manner as the competent authority may from time to time determine.

(2)The competent authority shall have the power to require an applicant to provide such information as it may deem necessary for the purpose of determining an application for registration or enrolment under this article.

(3)The competent authority may grant registration or enrolment under this article only if it is satisfied on the basis of information required to be submitted under this Act and any regulations or Insurance Distribution Rules made thereunder, and any information received by it, that registration or enrolment ought to be granted.

(4)Subject to the provisions of this Act, the competent authority may subject registration or enrolment made under this article to such conditions as it may from time to time deem fit to impose.

(5)The competent authority shall determine an application for registration or enrolment under this article within three months of receiving the information required to be submitted under this Act and any regulations or Insurance Distribution Rules made thereunder. The competent authority shall notify the applicant of its decision, without undue delay; and if it refuses to grant the registration or enrolment it shall inform the applicant in writing of the reasons for the INSURANCE DISTRIBUTION refusal: Provided that, in each case the competent authority may take such measures as it may deem necessary for the protection of the interest of the public.

(6)The validity of the registration or enrolment under this article shall be subject to a regular review by the competent authority. 14.

(1)On granting registration or enrolment under article 13, the competent authority shall issue to the applicant concerned a certificate of registration or enrolment in the form and manner as it deems appropriate evidencing (

a)in the case of an application for registration, registration of the applicant in the Agents Register, Managers Register, or Brokers Register, as the case may be; (
b)in the case of an application for enrolment, enrolment of the applicant in the Agents List, Managers List or Brokers List, as the case may be. Certificate of registration or enrolment of intermediaries. Amended by: XXIV.2018.19.

(2)A certificate of registration or enrolment issued under this article or an official copy thereof shall be prominently displayed by the intermediary concerned at his, or its place or places of business, in a part thereof to which the public has access.

(3)The competent authority may by means of Insurance Distribution Rules made for the purposes of this article, determine the details to be included in the certificate of registration or enrolment. 14A. An intermediary carrying out insurance distribution activities or reinsurance distribution activities and its employees, carrying out insurance or reinsurance distribution activities, shall comply with continuing professional training and development requirements in order to maintain an adequate level of performance corresponding to the role they perform and the relative market, as may be determined by means of Insurance Distribution Rules and, or Conduct of Business Rules issued for the purposes of this article. Professional and organisational requirements. Added by: XXIV.2018.20. PART IV POWERS OF INTERVENTION IN RELATION TO PERSONS ENROLLED UNDER PART III 15.

(1)An intermediary registered or enrolled under this Act shall automatically be struck off the register or list, if (

a)the intermediary does not commence to carry out the insurance distribution activities or reinsurance distribution activities pursuant to the enrolment within twelve months of it being granted, or within such other period as may be specified in the enrolment; or (
b)the intermediary is declared bankrupt or goes into liquidation or makes a composition with creditors of the intermediary or is otherwise dissolved; or Automatic striking off of registration or enrolment of intermediaries. Amended by: XX. 2007.146; XXVI.2018.21. INSURANCE DISTRIBUTION (
c)the intermediary has ceased to operate as a result of a merger with another company carrying out insurance distribution activities or reinsurance distribution activities, or for any other reason whatsoever; or (
d)in the case of a foreign company enrolled in terms of article 13, the overseas regulatory authority in the country of registration or where the head office is situated withdraws the registration or permission to carry out such activities.

(2)Sub-article

(1)(

a)shall not apply to a person enrolled to act as an insurance manager. Power of the competent authority to suspend or strike the name off the register or list. Amended by: XX. 2007.147; XXVI. 2018.22. 16. Without prejudice to anything contained in any other provision of this Act, the competent authority may at any time suspend registration or enrolment or strike off the name of a registered or enrolled person from the Agents Register, Managers Register or Brokers Register, or the Agents List, Managers List or Brokers List if (
a)any document or information accompanying an application for registration or enrolment, or any information given in connection therewith, is false, incorrect or misleading in any material particular, or the registered or enrolled person has concealed, or conceals from, or fails to notify to the competent authority any document or information or change therein which was the duty of the intermediary to reveal or to notify under this Act and any regulations, Insurance Distribution Rules or Conduct of Business Rules made thereunder; (
b)it considers that the registered or enrolled person does not fulfil the requirements of, or has contravened, any of the provisions of this Act and and any regulations, Insurance Distribution Rules or Conduct of Business Rules made thereunder, or has failed to satisfy or comply with any condition to which he or it, or the registration or the enrolment, is subject by virtue of or under this Act; or (
c)it considers that the registered or enrolled person is unfit to retain his or its name in the Agents Register, Managers Register, Brokers Register or the Agents List, Managers List or Brokers List; or (
d)the enrolled company is no longer managed in a sound and prudent manner to retain its name in the Agents List, Managers List or Brokers List; or (
e)it receives a written request so to do by the registered or enrolled person; or (
f)the enrolled person no longer possesses the required own funds as applicable; or (
g)the enrolled person fails to pay the annual continuance of registration or enrolment fee when due; or (
h)the registered person does not hold a directorship in, or INSURANCE DISTRIBUTION is no longer employed with, the enrolled company; or (
i)the enrolled company ceases to have on its board of directors any one person who is a registered person; or (
j)it considers that, by reason of the manner in which the registered or enrolled person is carrying out insurance distribution activities or reinsurance distribution activities, or for any other valid reason, the interest of the insurance industry or of the public is threatened; or (
k)the registered individual or the enrolled person has misappropriated or converted to his or to its own use or illegally withheld monies held, or required to be held, by him or by it in a fiduciary capacity; or (
l)the registered or enrolled person is convicted by any court of law of any criminal offence, unless it is an offence which, owing to its trivial nature or the circumstances under which it was committed, does not render it or him unfit to have his name in the Agents Register, Managers Register or Brokers Register or the Agents List, Managers List or Brokers List; or (
m)the registered or enrolled person is considered by the competent authority to have carried on insurance distribution activities or reinsurance distribution activities in an unprofessional manner; or (
n)the competent authority is prevented from exercising its supervisory functions effectively because of the existence of close links as may be defined by means of Insurance Distribution Rules made under this Act; (
o)the enrolled insurance agent or insurance broker is not utilising the services of intermediaries as required in terms of article 44B; or (
p)the registered or enrolled person fails to comply with the conduct of business requirements in relation to an insurance-based investment product or in relation to any insurance product other than an insurance-based investment product, set out in Conduct of Business Rules; or (
q)the registered or enrolled person ceases to fulfil any of the requirements laid down in articles 8

(1)(b) and (c), 10

(1)(a)(iii), (iiiA), (iv) and (v), 10

(1)(b)(ii)(aa) and (bb), 14A and 20, and where applicable, any Insurance Distribution Rules issued under the said articles. 17.

(1)Subject to the following provisions of this article, where the competent authority intends to suspend a registration or enrolment or strike the name of a registered or enrolled person off the Agents Register, Managers Register or Brokers Register, or the Agents List, Managers List or Brokers List, it shall give the person concerned notice in writing setting out the reasons for its intention to do so. Notification of intention of suspension or striking a name off the register or list. Amended by: XXVI.2018.23. INSURANCE DISTRIBUTION

(2)Every notice given under sub-article

(1)shall state that the person concerned may, within such reasonable period after the service thereof as may be stated in the notice (being a period of not less than forty-eight hours and not longer than thirty days), make representations in writing to the competent authority giving reasons why the registration or enrolment should not be suspended or the name of the person struck off the Agents Register, Managers Register or Brokers Register, or the Agents List, Managers List or Brokers List, as applicable, and the competent authority shall consider any representations so made before arriving at a final decision.

(3)The competent authority shall notify in writing its final decision to the person concerned.

(4)On notification by the competent authority to a person that his or its name has been suspended or has been struck off the Agents Register, Managers Register or Brokers Register or the Agents List, Managers List or Brokers List, the intermediary shall forthwith surrender to the competent authority the certificate of registration or enrolment, and any official copies thereof; and in each case, the competent authority may take such other measure as it may deem necessary to safeguard the interests of insureds, policyholders, creditors or other interested persons.

(5)Where the competent authority has suspended the registration or enrolment or struck off the name of a person from the Agents Register, Managers Register or Brokers Register or the Agents List, Managers List or Brokers List on any of the grounds specified in article 16 of this Act, the competent authority shall give publicity to such suspension or striking off, and the provisions of article 53A shall apply.

(6)The competent authority shall have power to order that all expenses, incurred by it in relation to such publicity, or such part thereof, as it deems appropriate, shall be paid by the person concerned; and any sum so due shall be recoverable by the competent authority in the same manner as an administrative penalty imposed under this Act. Restoration of a name struck off the register or list. 18.

(1)Where the name of a person has been struck off the Agents Register, Managers Register or Brokers Register or the Agents List, Managers List or Brokers List, in pursuance of a decision under article 16, the name of that person shall not again be entered in the register or list unless (a) otherwise ordered by the Tribunal; or (b) in the absence of such order, the competent authority, on an application made to it in that behalf, otherwise decides.

(2)The competent authority shall determine an application for restoration of a name of a person to the Agents Register, Managers Register, or Brokers Register or the name of an enrolled person to the Agents List, Managers List or Brokers List under this article within three months of receiving the information required to be submitted under this Act as if the application were an application INSURANCE DISTRIBUTION made under article 13; and if it refuses to restore a name of an individual or of a company to the register or list, it shall inform the applicant in writing of the reasons for the refusal.

(3)Sub-article

(2)shall not apply where the restoration of a name of a person to the Agents Register, Managers Register, and Brokers Register or the Agents List, Managers List or Brokers List is made by an order of the Tribunal. 19.

(1)Without prejudice to the powers conferred to the competent authority under article 16, the competent authority may, where it is satisfied that sufficient serious circumstances exist, proceed to take one or more of the following measures: (

a)require the intermediary forthwith to take such steps as the competent authority may consider necessary to rectify or remedy the circumstances; (
b)appoint a person to advise the intermediary in the proper conduct of its business; (
c)appoint a person to take charge of the assets of the intermediary, or any portion of them, for the purposes of safeguarding the interests of insureds, policyholders, creditors or other interested persons and, in the case of a local company, shareholders of the company; (
d)appoint a person to assume control of the business of the intermediary, either to carry on that business or to carry out such other function or functions in respect of such business, or part thereof, including to take the necessary action for the intermediary to be dissolved and wound up, as the competent authority may direct; (
e)issue an order for the dissolution and winding up of the enrolled company or, in the case of a foreign company, for the winding up of its business in Malta; (
f)appoint a competent person to act as liquidator for the purpose of winding up the affairs of the enrolled company; (
g)fix the remuneration to be paid by the intermediary to any person appointed under this article; (
h)require the intermediary to submit a financial recovery plan if it considers that the interest of insureds, policyholders, creditors or other interested persons are likely to be prejudiced owing to a deterioration in the financial position of the intermediary; (
i)require a registered or enrolled person to remove the word "insurance" as part of his or its description or title and not make use of such word on any letter paper, in any notice or advertisement, or in any another similar manner; (
j)do such other act or require the doing of such other thing as it may deem appropriate in the circumstances, and having proceeded in any one or more of the manners aforesaid, Power of the competent authority to protect the public interest. Amended by: V.2020.56. INSURANCE DISTRIBUTION the competent authority may further proceed in any one or more of such manners, whether in addition thereto or in substitution thereof.

(2)Where a person is appointed by the competent authority (a) under sub-article

(1)(b), it shall be the duty of the intermediary to act in accordance with the advice given by such person unless and until the competent authority, on representations made to it, directs otherwise; (b) under sub-article

(1)(c), the intermediary shall deliver to such person all the assets of which he is placed in charge, and all the powers, functions and duties of the intermediary in respect of those assets, and in relation to a company, whether exercisable by the company in general meeting, or by the directors, or by any other person, including the legal and judicial representation of the intermediary, shall be exercisable by and vest in the person appointed under the said sub-article to the exclusion of any other person; (c) under sub-article

(1)(d), the intermediary shall submit the business to the control of such person and shall provide him with such facilities as he may require the intermediary to provide him to carry on that business or to carry out the functions assigned to him under the said sub-article; and all the powers, functions and duties of the intermediary, and in relation to a company whether exercisable by the intermediary in general meeting, or by the directors, or by any other person, including for the purposes of the dissolution and winding up of the intermediary as well as the legal and judicial representation of the intermediary in all matters, shall be exercisable by and vest in him to the exclusion of any other person; (d) under sub-article

(1)(f), such person shall be the liquidator of the intermediary for all purposes of law to the exclusion of any other person: Provided that the competent person shall not take any decision for the purpose of the dissolution and winding up of the intermediary, unless the competent authority issues a directive to that effect in terms of article 31A of the Insurance Business Act, made applicable by article 54 of the Act, and any such directive may contain such instructions, requirements and conditions as the competent authority may consider necessary, including with regard to the mode of winding up. INSURANCE DISTRIBUTION (2A) Without prejudice to the powers of the competent authority in terms of sub-article

(1), the competent authority may also make an application to the court for the dissolution and winding up by the court of an intermediary, where it appears to the competent authority that an intermediary should be dissolved and wound up by the court for the reason set out in article 214

(2)(b)(iii) of the Companies Act, and where the court accedes to the application, the relevant provisions of the Companies Act in relation to the dissolution and winding up by the court and any other applicable provisions of any other law shall apply.

(3)In the case of a foreign company, the branches and offices in Malta of that company shall, if the competent authority so directs and to the extent it so directs be deemed to constitute a separate company.

(4)Any measure adopted in terms of sub-article

(1)shall remain in force notwithstanding that an intermediary ceases to be enrolled for whatever reason, unless the competent authority otherwise directs. PART V OBLIGATIONS OF PERSONS ENROLLED UNDER PART III 20.

(1)Every person enrolled under article 13 shall keep monies held by him or it in a fiduciary capacity separate from his or its own monies and shall, in respect of those monies, maintain separate accounts in accordance with requirements determined by Insurance Distribution Rules made for the purposes of this article. Monies held in a fiduciary capacity. Amended by: XXVI.2018.24.

(2)No person shall have or obtain any recourse or right against monies standing to the credit of the account referred to in subarticle

(1)in respect of a claim or right against an enrolled person until all proper claims arising out of insurance distribution activities or reinsurance distribution activities against those monies have been satisfied, even in the event of bankruptcy of the individual or insolvency of the company, as the case may be. 21.

(1)Without prejudice to article 20, every person enrolled under article 13 shall effect a fidelity bond in a specified form, as respects the insurance distribution activities carried on by the intermediary concerned, in such circumstances, to such value, in such manner and under such conditions as may be determined by Insurance Distribution Rules made for the purposes of this article.

(2)The bond referred to in sub-article

(1)shall provide that in the event of the inability or failure of the enrolled person to meet his or its financial obligations in relation to any sums of money received by him or it from, or on behalf of, his or its clients, a sum of money will become available to a person nominated or approved by the competent authority, to be applied for the benefit of any client of the enrolled person who has incurred loss or liability because of the inability or failure of the enrolled person to meet such financial obligations. Fidelity bonds required of insurance intermediaries. Amended by: XXVI.2018.

Exemptions applicable to insurance managers. Notification of persons registered in the register. Submission of audited financial statements and income statements. Amended by: XXVI.2018.26 INSURANCE DISTRIBUTION
The provisions of articles 20 and 21 shall not apply to a person enrolled as an insurance manager for so long as such person holds no appointment from any insurer or an insurance broker for so acting.
Every enrolled company shall, not later than the end of January of each year, notify in writing the competent authority in such manner as the competent authority may require, the name and the other particulars as it may also require, of every director and employee of the company who are registered in the Agents Register, Managers Register or Brokers Register; and during the following twelve months, the company shall give notice in writing to the competent authority of any change that may, from time to time, occur among such directors and employees and such notice shall be given within such period as may be specified by Insurance Distribution Rules. 24.

(1)Every enrolled company shall, not later than four months from the date of closing of its financial year, or at any other time as may exceptionally be authorised in writing by the competent authority, forward to the competent authority a copy of its audited financial statements drawn up (

a)in the case of a local company, in accordance with the provisions of the Companies Act; and (
b)in the case of a foreign company, in accordance with the provisions of the laws of the country where the registered office or head office of the company is situated governing the financial statements of such companies.

(2)Every enrolled person who is an individual shall provide income statements drawn up in a manner as determined by Insurance Distribution Rules made for the purposes of this article and such statements shall be forwarded to the competent authority within such period as may be specified by Insurance Distribution Rules. Information to be provided for supervisory purposes. Substituted by: XXVI.2018.27. 25.

(1)Subject to the following sub-articles, an enrolled person shall submit to the competent authority any information which is necessary for the purposes of supervision, as may be specified by means of regulations, Insurance Distribution Rules or Conduct of Business Rules, which may also specify the period within which this information is to be submitted.

(2)The information to be submitted to the competent authority in terms of sub-article

(1)shall include the submission of statements relating to the business of insurance distribution activities and, or reinsurance distribution activities, carried on by an enrolled person in any calendar year. The statements relating to that business shall be made out in the form, manner and content as the competent authority may, by Insurance Distribution Rules made for the purposes of this article determine; and the date by which such statements shall be forwarded shall also be established by Insurance Distribution Rules. INSURANCE DISTRIBUTION

(3)The statements required to be submitted under sub-article

(2)shall be verified in the manner required by Insurance Distribution Rules, and the competent authority may at any time direct an enrolled person to submit to it such statements at such interval and for such period as it may specify in the Insurance Distribution Rules. 26.

(1)An enrolled person shall not cease to carry out, in or from Malta, insurance distribution activities or reinsurance distribution activities, except with the permission of the competent authority given in writing on an application made to it in that behalf in such manner as it may require, and in compliance with such conditions as it may deem proper to impose.

(2)The application for ceasing shall be submitted to the competent authority not later than three months before the date on which the enrolled person intends cease to carry out such activities. Enrolled persons ceasing to carry out insurance and reinsurance distribution activities. Amended by: XX. 2007.148; XXVI. 2018.28. PART VI FINANCIAL YEAR AND AUDITORS 27.

(1)A company enrolled under article 13 which is a local company shall, not later than three months from the date of a company’s enrolment, notify in writing the competent authority of the financial year and, failing such notice, the financial year of the enrolled company shall terminate on the thirty-first day of December of each year. Financial year of insurance intermediaries.

(2)No enrolled company as aforesaid shall alter its financial year unless and until the competent authority has given its approval in writing on an application made to it in that behalf.

(3)Every foreign company applying for enrolment under article 13 shall, on application, notify in writing the competent authority of its financial year; and after enrolment under that article, where a foreign company alters its financial year, it shall forthwith inform in writing the competent authority of such change.

(4)For the purposes of this Act "financial year" (

a)in relation to an enrolled company which is a local company, means an accounting period as is construed in accordance with articles 164 to 166 of the Companies Act; (
b)in relation to an enrolled company which is a foreign company, means an accounting period as is construed in accordance with the provisions of the laws of the country where the registered office or the head office of the company is situated governing the accounting period of such companies. 28.

(1)Every person enrolled under article 13 shall each year appoint an approved auditor as auditor to the company whose duty shall be to report on the financial statements of the company or the income statements of the individual, as applicable, examined by him and on financial statements or income statements prepared by the company or individual, respectively.

(2)If the enrolled person fails to appoint an auditor as required Appointment, duties and termination of appointment of auditors. Amended by: XXVI.2018.29. INSURANCE DISTRIBUTION by sub-article

(1)or at any time fails to fill any vacancy in the office of an auditor, the competent authority shall have the power to appoint an auditor for that person and shall fix the remuneration to be paid by that person to such auditor.

(3)The auditor’s report shall include a statement on compliance by the enrolled person with requirements specified by means of Insurance Distribution Rules made for the purposes of this article, which may also specify the information to be contained in such statement.

(4)Every auditor of an enrolled person shall have the right to demand such information or explanation as he deems necessary in the performance of his duties from any officer or employee of, or any person under an appointment from, that enrolled person.

(5)An auditor shall immediately give notice in writing to the competent authority if (

a)he resigns; (
b)he does not seek to be re-appointed; or (
c)he decides to qualify the audit report, and, in the situations mentioned in paragraphs (
a)and (b), the auditor shall specify the reasons for so doing.

(6)An enrolled company shall give notice in writing to the competent authority immediately it receives notice of a resolution intended to be put before the company’s annual general meeting to appoint as an auditor a person other than the retiring auditor or otherwise providing expressly that the retiring auditor shall not be reappointed.

(7)Where, for any reason whatever, the appointment of an auditor comes to an end, the enrolled person shall not later than fourteen days from the termination of such appointment, give notice in writing to the competent authority stating reasons for such termination.

(8)The competent authority may require an enrolled person to change its appointed auditor where, in the competent authority’s opinion, such auditor is considered unfit for this appointment, at any time during his term of office.

(9)Before requiring an enrolled person to change the appointed auditor in the circumstances mentioned in sub-article

(8), the competent authority shall notify in writing its intention to the enrolled person and the auditor concerned stating reasons for requiring such change and giving the auditor the opportunity to submit, in writing, within fourteen days from the date of serving of such notice, the reasons why his appointment with the enrolled person should not be terminated.

(10)For the purposes of this Act, an approved auditor shall be a person who is qualified to be an auditor in accordance with the Companies Act and holds the authorisation of the competent authority to act as auditor issued to him under the Insurance Business Act.

(11)Notwithstanding anything contained in the foregoing sub- INSURANCE DISTRIBUTION articles, the competent authority may, in the case of a foreign company, approve such alternative arrangements as it thinks reasonable and which do not materially detract from the main objects of this article, and where such arrangements have been carried out, the provisions of this article shall not apply to the extent that they are replaced by such arrangements.

(12)If, in his capacity as auditor of an enrolled person or branch in Malta of a foreign company enrolled under article 13 or due to a direct request by the competent authority under this Act, an auditor becomes aware of any matter which relates to and may have a serious adverse effect upon the stability and soundness of the company or the integrity of the insurance distribution activities and reinsurance distribution activities carried on in Malta by the enrolled person or branch in Malta of a foreign company enrolled under article 13, he shall immediately inform the competent authority, in the case of a c o m p a n y, t h r o u g h t h e i n t e r m e d i a r y ’s m a n a g e m e n t o r, i f circumstances so warrant, directly to the competent authority, and in the case of an individual, directly to the competent authority.

(13)For the purposes of sub-article

(12), any matter which relates to and may have a serious adverse effect is any matter that: (

a)is likely to lead to a serious qualification or refusal of the auditor’s report on the accounts of the company or income statements of the individual; or (
b)gravely impairs the ability of the company to continue as a going concern or the ability of the enrolled person or branch in Malta of a foreign company enrolled under article 13 to continue carrying out the activities in respect of which it is enrolled; or (
c)is a material breach of the provisions of this Act, regulations or Insurance Distribution Rules which lay down the conditions governing registration or enrolment or which specifically govern the carrying out of insurance distribution activities and reinsurance distribution activities by an enrolled person.

(14)An auditor of an enrolled person or a branch in Malta of a foreign company enrolled under article 13 shall likewise have a duty to report to the competent authority any facts and decisions which relate to or have a serious adverse effect upon the stability and s o u n d n e s s o f t h e c o m p a n y o r the integrity of the insurance distribution activities and reinsurance distribution activities carried out in Malta by the enrolled person or branch in Malta of a foreign company enrolled under article 13, of which he becomes aware in his capacity as an auditor to an enrolled person or branch in Malta of a foreign company enrolled under article 13 having close links within the meaning of article 10.

(15)Without prejudice to any provision contained in this Act, the competent authority may request the auditor to provide it with such information and documentation relating to any fact or decision as specified in sub-articles

(12)or

(14)concerning the enrolled person or the branch in Malta of a foreign company enrolled under article 13. Communication by auditors etc. with the competent authority. INSURANCE DISTRIBUTION 29. No duty, including the duty of professional secrecy, to which (

a)an auditor of a company enrolled under article 13 may be subject, shall be regarded as contravened by reason of his communicating in good faith to the competent authority, whether or not in response to a request from it, any information or opinion on a matter of which the auditor has become aware in his capacity as auditor and which is relevant to any functions of the competent authority under the provisions of this Act or is required to be communicated by virtue of this Act; (
b)a person appointed to make a report under any provision of this Act may be subject, shall be regarded as contravened by reason of his communicating in good faith to the competent authority, whether or not in response to a request made by it, on any matter which relates to the business or affairs of an enrolled company in relation to which a report is made. PART VII Appointment of insurance managers by enrolled insurance brokers. Amended by: XX. 2007.149. Contracts of insurance relating to risks situated in Malta or to commitments where Malta is the country of the commitment. Amended by: XXXIII. 2015.82; XXVI.2018.30. PROVISIONS APPLICABLE TO INTERMEDIARIES CARRYING ON BUSINESS AS INSURANCE BROKERS 30. A local company enrolled under article 13 and carrying on business as an insurance broker, restricted to contracts of insurance relating to risks situated outside of Malta or commitments where Malta is not the country of commitment, may appoint an insurance manager enrolled under the Act to manage such business; and so long as the insurance manager holds such appointment, the business of insurance broking shall be under the management of a registered insurance broker. 31.

(1)Subject to the following sub-articles, except with the approval of the competent authority given specifically in writing, a contract of insurance relating to a risk situated in Malta or to a commitment where Malta is the country of the commitment negotiated, arranged or procured by an insurance broker on behalf of an insured person or a person to be insured shall be taken out with an authorised undertaking.

(2)The provisions of this article shall not apply to (

a)business of reinsurance; (
b)large risks as defined in Article 13 of the Solvency II Directive. Underwriting agreements. Amended by: XXXIII. 2015.83. 32.

(1)Subject to the following sub-articles, any person enrolled in the Brokers List under article 13 may make or enter into any underwriting agreement with any authorised undertaking.

(2)No person enrolled as aforesaid shall make or enter into any underwriting agreement unless, with respect to that underwriting agreement, the person complies with or satisfies such requirements as the competent authority may by Insurance Distribution Rules made for the purpose of this article determine.

(3)Any person enrolled as aforesaid shall register with the INSURANCE DISTRIBUTION competent authority any underwriting agreement made or entered into under this article in the form and manner as the competent authority may by Insurance Distribution Rules determine.

(4)No business of insurance shall be accepted under an underwriting agreement unless the underwriting agreement has been duly registered as aforesaid.

(5)The competent authority shall determine an application for registration of an underwriting agreement under this article within one month of receiving the information required to be submitted under the Insurance Distribution Rules; and if it refuses to register the agreement it shall inform the applicant in writing of the reasons for the refusal.

(6)Subject to the provisions of this Act, the competent authority may subject registration of any underwriting agreement made under this article to such conditions as it may from time to time deem fit to impose.

(7)For the purposes of this article "underwriting agreement", in relation to business of insurance, means an agreement between an authorised undertaking and a person enrolled in the Brokers List u n d e r a r t i c l e 1 3 u n d e r w h i c h t h e e n r o l l e d p e r s o n m a y, i n accordance with the terms thereof, accept risks on behalf of the authorised undertaking; and, in this context, any other arrangement, by whatever name it may be called, whose objects and purposes are similar to an underwriting agreement, for the purposes of this article, is deemed to be an underwriting agreement. PART VIII REGISTRATION AND ENROLMENT OF TIED INSURANCE INTERMEDIARIES 33.

(1)Subject to sub-article

(2), no person shall act as a tied insurance intermediary and carry out, or attempt to carry out in Malta tied insurance intermediaries activities unless such person is appointed, registered and enrolled in accordance with the provisions of this Act.

(2)This article shall not apply to a person which is registered pursuant to the Insurance Distribution Directive, in a Member State or an EEA State, other than Malta. 34.

(1)Subject to article 43, every authorised undertaking desirous of appointing a person to act on its behalf as a tied insurance intermediary shall establish and maintain a register of persons acting as tied insurance intermediaries, in this Act referred to as the "Tied Insurance Intermediaries Company Register", containing the particulars as the competent authority may, from time to time, by Insurance Distribution Rules made for the purposes of this article, determine, of all persons who are entitled under this Act to be registered therein. Restriction on persons for carrying out tied insurance intermediaries activities. Amended by: XXVI.2018.31. Tied Insurance Intermediaries Company Registers. Amended by: XXXIII. 2015.84. INSURANCE DISTRIBUTION

(2)Subject to the provisions of sub-article

(1), every authorised undertaking shall determine its own procedures for appointing and registering a person as a tied insurance intermediary in the Tied Insurance Intermediaries Company Register. Qualifications for registration. Amended by: XXXIII. 2015.85; XXVI.2018.32. 35.

(1)A person shall be entitled to be registered by an authorised undertaking in the Tied Insurance Intermediaries Company Register of such undertaking if it is satisfied that such person: (

a)is fit and proper to carry out tied insurance intermediaries activities; and (
b)possesses appropriate knowledge and ability in order to complete tasks and perform duties adequately, in relation to tied insurance intermediaries activities, as determined by means of Insurance Distribution Rules issued for the purposes of this article.

(2)A person shall not be entitled to carry out tied insurance intermediaries activities, by virtue of his registration under article 37 unless and until he is enrolled by the competent authority in the Tied Insurance Intermediaries List under that article. Professional and organisational requirements. Added by: XXVI.2018.

List of persons carrying out tied insurance intermediaries activities. Amended by: XXXIII. 2015.86; XXVI.2018.
35A. A tied insurance intermediary carrying out tied insurance intermediaries activities shall comply with continuing professional training and development requirements in order to maintain an adequate level of performance corresponding to the role such intermediary performs, as may be determined by means of Insurance Distribution Rules and, or Conduct of Business Rules issued for the purposes of this article. 36.

(1)The competent authority shall establish and maintain a list of persons carrying out tied insurance intermediaries activities in this Act referred to as the "Tied Insurance Intermediaries List", containing such particulars as the competent authority may, determine from time to time by Insurance Distribution Rules made for the purposes of this article of all persons who are, or which are, entitled under this article to be enrolled therein. The Tied Insurance Intermediaries List shall be updated on a regular basis.

(2)It shall be the duty of an authorised undertaking to enrol with the competent authority in the Tied Insurance Intermediaries List any person registered by it as a tied insurance intermediary in the Tied Insurance Intermediaries Company Register established and maintained by it under article 37.

(3)On obtaining from the competent authority a certificate of enrolment under article 37, an authorised undertaking shall furnish the person, in whose name the certificate of enrolment is made out, with the certificate or an official copy thereof, issued to the authorised undertaking by the competent authority.

(4)Where a person enrolled as aforesaid carries out tied insurance intermediaries activities from a place of business or from any other place accessible to the public, that person shall display in a prominent position in that place in a part thereof to which the public has access, the certificate of enrolment or an official copy INSURANCE DISTRIBUTION thereof issued by the competent authority under this article.

(5)Where the enrolled person is not an individual, the Tied Insurance Intermediaries List is to specify the name of the individual who carries out tied insurance intermediaries activities and who satisfies the requirements of article 35

(1). 37.

(1)Subject to the provisions of this Act, every authorised undertaking desirous of appointing a person to act on its behalf as a tied insurance intermediary shall, under this article, appoint and register in the Tied Insurance Intermediaries Company Register of the authorised undertaking and enrol with the competent authority in the Tied Insurance Intermediaries List, any one or more persons to act on its behalf as tied insurance intermediaries and to carry out tied insurance intermediaries activities in the class or classes of long term business or the group or groups of classes of general business specified in their respective appointments and, where a person is not an individual, such person must itself have an individual who satisfies the requirements of article 35

(1): Appointment, registration and enrolment of tied insurance intermediaries. Amended by: XX. 2007.150; XXXIII. 2015.87; XXVI. 2018.35. Provided that, an undertaking is prohibited from appointing and registering in its Tied Insurance Intermediaries Company Register a person which is (

a)a person registered in the Agents Register, Managers Register or Brokers Register under article 13; (
b)a person enrolled in the Agents List, Managers List or Brokers List under that article; (
bb)a person enrolled in the Ancillary Insurance Intermediaries List under article 43E; (
c)an undertaking authorised under the Insurance Business Act to carry on business of insurance: Provided further that an undertaking is prohibited from appointing any person acting on its behalf as a tied insurance intermediary to carry out any tied insurance intermediaries activities within any class or group of classes of business of insurance as the competent authority may, from time to time, by Insurance Distribution Rules made for the purposes of this article determine to be a class or group of classes of business within which no tied insurance intermediaries activities shall be carried out. (1A) Every authorised undertaking desirous of appointing, registering and enrolling a person to act on his or its behalf as a tied insurance intermediary shall disclose the following information to the competent authority: (
a)where the tied insurance intermediary is a person which is not an individual: (
i)the identity of the shareholders, direct or indirect, whether natural or legal persons, who will have qualifying holdings in the tied insurance intermediary and the amounts of those holdings; and (
ii)the identity of persons who have close links with the tied insurance intermediary; and INSURANCE DISTRIBUTION (
b)where the tied insurance intermediary is a person who is an individual, the identity of persons who have close links with the tied insurance intermediary. (1B) Where the holdings or close links referred to in sub-article

(2)exist between the tied insurance intermediary and any other person, the competent authority shall only grant enrolment if it considers that such holdings or close links do not prevent it from effectively exercising its supervisory functions.

(2)Where an authorised undertaking appoints and registers in its Tied Insurance Intermediaries Company Register a person which is not an individual, and that person carries out tied insurance intermediaries activities from any one or more places of business, that person shall ascertain that tied insurance intermediaries activities so carried out by it from each such place of business are carried out only by an individual who satisfies the requirements of article 35

(1).

(3)Subject to sub-articles

(4)and

(5), any person, other than a person mentioned in the first proviso to sub-article

(1), may seek and obtain under this article appointment and registration in a Tied Insurance Intermediaries Company Register of an authorised undertaking to carry out tied insurance intermediaries activities on behalf of such undertaking.

(4)Where a person desires to seek appointment and registration in the Tied Insurance Intermediaries Company Register of more than one undertaking, authorised to carry on long term business, and where any class of long term business carried on by the undertakings concerned is of the same kind, such person shall, in respect of that class of business, seek and obtain appointment and registration to carry out tied insurance intermediaries activities relating to that kind of class of business only in the Tied Insurance Intermediaries Company Register of one of the undertakings concerned.

(5)Where a person desires to seek appointment and registration in the Tied Insurance Intermediaries Company Register of more than one undertaking authorised to carry on general business, and where any class, or any group of classes, of general business carried on by the undertakings concerned is of the same kind, such person shall, in respect of that class, or that group of classes of business, seek and obtain appointment and registration to carry out tied insurance intermediaries activities relating to that class, or that group of classes of business only in the Tied Insurance Intermediaries Company Register of one of the undertakings concerned.

(6)No person who is an employee of an authorised undertaking shall, solely by virtue of his employment by the undertaking, require registration in the Tied Insurance Intermediaries Company Register of the undertaking under this article. (6A) The competent authority shall determine an application for enrolment under this article within three months of the submission of a properly completed application form together with the requisite documentation required to be submitted under this Act INSURANCE DISTRIBUTION and any regulations or Insurance Distribution Rules made thereunder. The competent authority shall notify the applicant of its decision, without undue delay; and if it refuses to grant the enrolment it shall inform the applicant in writing of the reasons for the refusal: Provided that, the competent authority may take such measures as it may deem necessary for the protection of the interest of the public.

(7)On granting an application for enrolment under this article, the competent authority shall issue to the applicant concerned a certificate of enrolment evidencing enrolment of the person registered in the Tied Insurance Intermediaries Company Register of the applicant in the Tied Insurance Intermediaries List.

(8)Subject to the provisions of this Act, the competent authority may subject enrolment made under this article to such conditions as it may from time to time deem fit to impose. (8A) The validity of the enrolment under this article shall be subject to a regular review by the competent authority.

(9)An authorised undertaking shall at all times be responsible for any act or omission of its registered tied insurance intermediaries provided that such act or omission is an act or omission pertaining to a contract of insurance issued by the undertaking or offered on its behalf through the services of such tied insurance intermediaries. For the purposes of this sub-article any reference to registered tied insurance intermediaries shall include a reference to past as well as present registered tied insurance intermediaries. 38.

(1)Without prejudice to sub-article

(3), every tied insurance intermediary, shall, in respect of monies held by him or it in relation to a policy of insurance, keep such monies held by him or it separate from his or its own monies and shall, in respect of those monies maintain separate accounts in accordance with requirements determined by Insurance Distribution Rules made for the purposes of this article.

(2)No person shall have or obtain any recourse or right against monies standing to the credit of the account referred to in subarticle

(1)in respect of a claim or right against a person acting as a tied insurance intermediary until all proper claims arising out of insurance distribution activities against those monies have been satisfied, even in the event of bankruptcy of the individual or insolvency of the company, as the case may be.

(3)Notwithstanding the provisions of sub-articles

(1)and

(2): (

a)monies received by the tied insurance intermediary from a person in relation to a contract of insurance shall be treated as having been paid to the authorised undertaking issuing or offering the contract, and on whose behalf the tied insurance intermediary carries on tied insurance intermediaries activities; and (
b)monies paid by the authorised undertaking to the tied Protection of clients monies. Amended by: XXXIII. 2015.88; XXVI. 2018.36. Striking name off Tied Insurance Intermediaries Company Register. Amended by: XXXIII. 2015.89; XXVI.2018.37. Striking name off Tied Insurance Intermediaries Company Register or the Tied Insurance Intermediaries List. Amended by: XXXIII. 2015.90; XXVI.2018.38. INSURANCE DISTRIBUTION insurance intermediary, and intended for the policyholder, shall not be treated as having been paid to the policyholder until such monies are actually received by the policyholder concerned. 39. Subject to the provisions of article 40 and to the terms and conditions of any relevant tied insurance intermediaries appointment at any time and for any reason whatsoever (
a)any authorised undertaking may strike off its Tied Insurance Intermediaries Company Register the name of any person registered in the said register; (
b)any person registered in the Tied Insurance Intermediaries Company Register of an authorised undertaking may make an application in writing to the undertaking concerned requesting it to strike his or its name off the said register. 40.

(1)Where an authorised undertaking elects to strike the name of a person off its Tied Insurance Intermediaries Company Register, such undertaking shall forthwith notify in writing the person concerned and the competent authority specifying the date on which it elects to strike the name of that person off the register.

(2)Where an authorised undertaking strikes the name of a person off its Tied Insurance Intermediaries Company Register on grounds of unfitness and improperness or because the person concerned has acted fraudulently, or dishonestly, or in such manner as to cease to be trustworthy, the undertaking shall also notify in writing the competent authority the reasons for so doing.

(3)On receiving a notification from an authorised undertaking that such undertaking has elected to strike the name of a person off its Tied Insurance Intermediaries Company Register, the competent authority shall (a) if the striking of such name off the register is on grounds other than those specified in sub-article

(2), as early as reasonably practicable, confirm in writing to the authorised undertaking that the name of such person, in so far as it relates to that undertaking, shall be struck off the Tied Insurance Intermediaries List as from the date specified in the undertaking’s notification; (b) if the striking of such name off the register is on grounds specified in sub-article

(2), before striking the name of such person off the Tied Insurance Intermediaries List, forthwith, give the person concerned notice in writing setting out the reasons for so doing and the provisions of article 17

(2)and

(3)shall mutatis mutandis apply to a notice given under this article.

(4)Without prejudice to any action which the competent authority may deem appropriate under this Act or any other law, where the competent authority strikes the name of a person off the Tied Insurance Intermediaries List on the grounds specified in subarticle

(2), the competent authority shall give publicity to the striking INSURANCE DISTRIBUTION of that name off the Tied Insurance Intermediaries List and (

a)if the name of that person is registered in the Tied Insurance Intermediaries Company Register of any other authorised undertaking, the competent authority shall also forthwith notify in writing that other undertaking and direct it to strike forthwith the name of that person off the Tied Insurance Intermediaries Company Register of that undertaking and give the undertaking the reasons for its direction; (
b)the provisions of article 53A shall apply.

(5)The competent authority shall have power to order that all expenses incurred by the publication of a notice pursuant to this article, or such part thereof as it may deem appropriate, shall be paid by the person concerned; and any sum so due shall be recoverable by the competent authority in the same manner as an administrative penalty imposed under this Act.

(6)Where an authorised undertaking receives in writing an application from a person registered in the Tied Insurance Intermediaries Company Register of the undertaking requesting such undertaking to strike the name of that person off the said register, the undertaking shall without undue delay strike the name of that person off the said register and notify in writing the person concerned and the competent authority specifying the date on which it elects to strike the name of that person off the register.

(7)Where, on an application made to an authorised undertaking under sub-article

(6), the undertaking refuses, or unduly prolongs the process, to strike the name of a person off its Tied Insurance Intermediaries Company Register, the person concerned may refer the matter to the competent authority and the competent authority shall issue in writing to the undertaking concerned those directives it deems necessary to oblige the undertaking to hasten the process to strike the name of that person off its register.

(8)On notification by the competent authority to an authorised undertaking that the name of a person registered in the Tied Insurance Intermediaries Company Register of the undertaking has been struck off the Tied Insurance Intermediaries List, the undertaking concerned shall forthwith surrender to the competent authority the certificate of enrolment relating to that person, and any official copies thereof. 41.

(1)Notwithstanding any provision of this Act, the competent authority may, at any time: (

a)on grounds of unfitness and improperness or of protection of the public interest: (
i)refuse to enrol a person in the Tied Insurance Intermediaries List; (
ii)strike the name of a person off the Tied Insurance Intermediaries List; (
b)strike the name of a person off the Tied Insurance Protection of the public or other interest. Amended by: XXXIII. 2015.91; XXVI.2018.39. INSURANCE DISTRIBUTION Intermediaries List, where the tied insurance intermediary: (
i)fails to comply with the conduct of business requirements in relation to an insurance-based investment product or in relation to any insurance product other than an insurance-based investment product, set out in Conduct of Business Rules; or (
ii)ceases to fulfil any of the requirements laid down in articles 35

(1), 35A and 38, and where applicable, any Insurance Distribution Rules issued under the said articles; (c) strike the name of a person off the Tied Insurance Intermediaries List, where it comes to the knowledge of the competent authority that any document or information provided pursuant to the application for enrolment, or any information given in connection therewith, is false, incorrect or misleading in any material particular: Provided that, in each case, the competent authority shall inform the undertaking concerned in writing of the reasons for so doing.

(2)In each case the competent authority may take any other measure as it may deem necessary to safeguard the interests of insured, policyholders, creditors or other interested persons. Restoration of a name struck off the Tied Insurance Intermediaries List. Application of Part VIII of the Act and European insurance undertakings. Amended by: XXXIII. 2015.92; XXVI. 2018.40. 42. (Deleted by XXVII. 2009.38). 43.

(1)Subject to sub-article

(2), for the purposes of this Part of this Act, "authorised undertaking" shall not include an authorised reinsurance undertaking, a reinsurance intermediary, a European insurance undertaking and a European reinsurance undertaking.

(2)In the case of a European insurance undertaking or an insurance intermediary registered under Article 3 of the Insurance Distribution Directive in a Member State or EEA State other than Malta, seeking to appoint a person resident in Malta or having its registered office or head office in Malta to carry out tied insurance intermediaries activities, that undertaking or intermediary shall enrol such person with the competent authority as may be determined by Insurance Distribution Rules made for the purposes of this article and the said Insurance Distribution Rules shall contain the particulars, conditions and requirements for enrolment. PART VIIIA REGISTRATION AND ENROLMENT OF ANCILLARY INSURANCE INTERMEDIARIES INSURANCE DISTRIBUTION 43A.

(1)Subject to sub-article

(2), no person shall act as an ancillary insurance intermediary and carry out, or attempt to carry out in Malta ancillary insurance intermediaries activities, unless such person is appointed, registered and enrolled in accordance with the provisions of this Act. Registration of ancillary insurance intermediaries. Added by: XXVI.2018.41.

(2)This article shall not apply to an ancillary insurance intermediary which: (

a)is exempted from enrolment under article 43E of the Act, in terms of regulations issued under this Act; (
b)is registered pursuant to the Insurance Distribution Directive, in a Member State or an EEA State, other than Malta. 43B.

(1)Subject to the provisions of article 43J, every authorised undertaking and enrolled insurance broker desirous of appointing a person to act on its behalf as an ancillary insurance intermediary shall establish and maintain a register of persons acting as ancillary insurance intermediaries, in this Act referred to as the "Ancillary Insurance Intermediaries Company Register", containing the particulars as the competent authority may, from time to time, by Insurance Distribution Rules made for the purposes of this article, determine, of all persons who are entitled under this Act to be registered therein. Ancillary Insurance Intermediaries Company Registers.

(2)Subject to the provisions of sub-article

(1), every authorised undertaking and enrolled insurance broker shall determine its own procedures for appointing and registering a person as an ancillary insurance intermediary in the Ancillary Insurance Intermediaries Company Register. 43C.

(1)A person shall be entitled to be registered by an authorised undertaking or an enrolled insurance broker in the Ancillary Insurance Intermediaries Company Register of such undertaking or insurance broker if it is satisfied that such person: (

a)is fit and proper to carry out ancillary insurance intermediaries activities; and (
b)possesses appropriate knowledge and ability in order to complete tasks and perform duties adequately, relating to ancillary insurance intermediaries activities, as may be determined by means of Insurance Distribution Rules issued for the purposes of this article.

(2)A person shall not be entitled to carry out ancillary insurance intermediaries activities, by virtue of his registration under article 43E unless and until he is enrolled by the competent authority in the Ancillary Insurance Intermediaries List under that article. Qualifications for Registration. List of persons carrying out ancillary insurance intermediaries activities. INSURANCE DISTRIBUTION 43D.

(1)The competent authority shall establish and maintain a list of persons carrying out ancillary insurance intermediaries activities in this Act referred to as the "Ancillary Insurance Intermediaries List", containing such particulars as the competent authority may, determine from time to time by Insurance Distribution Rules made for the purposes of this article of all persons who are, or which are, entitled under this article to be enrolled therein. The Ancillary Insurance Intermediaries List shall be updated on a regular basis.

(2)It shall be the duty of an authorised undertaking and an enrolled insurance broker to enrol with the competent authority in the Ancillary Insurance Intermediaries List any person registered by it as an ancillary insurance intermediary in the Ancillary Insurance Intermediaries Company Register established and maintained by it under article 43E.

(3)On obtaining from the competent authority a certificate of enrolment under article 43E, an authorised undertaking or an enrolled insurance broker, as the case may be, shall furnish the person, in whose name the certificate of enrolment is made out, with the certificate or an official copy thereof, issued to the authorised undertaking or the insurance broker by the competent authority.

(4)Where a person enrolled as aforesaid carries out ancillary insurance intermediaries activities from a place of business or from any other place accessible to the public, that person shall display in a prominent position in that place in a part thereof to which the public has access, the certificate of enrolment or an official copy thereof issued by the competent authority under this article.

(5)Where the enrolled person is not an individual, the Ancillary Insurance Intermediaries List is to specify the name of the individual who is carrying out ancillary insurance intermediaries activities and who satisfies the requirements of article 43C

(1). Appointment, registration and enrolment of ancillary insurance intermediaries. 43E.

(1)Subject to the provisions of this Act, every authorised undertaking and enrolled insurance broker desirous of appointing a person to act on its behalf as an ancillary insurance intermediary shall, under this article, appoint and register in the Ancillary Insurance Intermediaries Company Register of the authorised undertaking or the insurance broker, as the case may be, and enrol with the competent authority in the Ancillary Insurance Intermediaries List, a person to act on its behalf as an ancillary insurance intermediary and to carry out ancillary insurance intermediaries activities, as shall be determined by means of Insurance Distribution Rules made for the purposes of this article, and, where a person is not an individual, such person must itself have an individual who satisfies the requirements of article 43C

(1): Provided that, an undertaking and an enrolled insurance INSURANCE DISTRIBUTION broker shall be prohibited from appointing and registering in its Ancillary Insurance Intermediaries Company Register a person which is: (

a)a person registered in the Agents Register, Managers Register or Brokers Register under article 13; (
b)a person enrolled in the Agents List, Managers List or Brokers List under that article; (
c)a person enrolled in Intermediaries List under article 37; the Tied Insurance (
d)an undertaking authorised under the Insurance Business Act to carry on business of insurance.

(2)Every authorised undertaking or enrolled insurance broker, as the case may be, desirous of appointing, registering and enrolling a person to act on his or its behalf as an ancillary insurance intermediary shall disclose the following information to the competent authority: (

a)where the ancillary insurance intermediary is a person which is not an individual: (
i)the identity of the shareholders, direct or indirect, whether natural or legal persons, who will have qualifying holdings in that ancillary insurance intermediary and the amounts of those holdings; and links with the ancillary insurance intermediary; and (
b)where the ancillary insurance intermediary is a person who is an individual, the identity of persons who have close links with the ancillary insurance intermediary.

(3)Where the holdings or close links referred to in sub-article

(2)exist between the ancillary insurance intermediary and any other person, the competent authority shall only grant enrolment if it considers that such holdings or close links do not prevent it from effectively exercising its supervisory functions.

(4)Where an authorised undertaking or an enrolled insurance broker, as the case may be, appoints and registers in its Ancillary Insurance Intermediaries Company Register a person which is not an individual, and that person carries out a ncillary insurance intermediaries activities from any one or more places of business, that person shall ascertain that ancillary insurance intermediaries activities so carried out by it from each such place of business are carried out only by an individual who satisfies the requirements of article 43C

(1).

(5)Any person, other than a person mentioned in the proviso to INSURANCE DISTRIBUTION sub-article

(1), may seek and obtain under this article appointment and registration in the Ancillary Insurance Intermediaries Company Register of an authorised undertaking or an enrolled insurance broker to carry out ancillary insurance intermediaries activities as determined by means of Insurance Distribution Rules on behalf of such undertaking or insurance broker.

(6)No person who is an employee of an authorised undertaking or an enrolled insurance broker shall, solely by virtue of his employment by the undertaking or insurance broker, require registration in the Ancillary Insurance Intermediaries Company Register of the undertaking or insurance broker under this article.

(7)The competent authority shall determine an application for enrolment under this article within three months of the submission of a properly completed application form together with the requisite documentation required to be submitted under this Act and any regulations or Insurance Distribution Rules made thereunder. The competent authority shall notify the applicant of its decision, without undue delay; and if it refuses to grant the enrolment it shall inform the applicant in writing of the reasons for the refusal: Provided that, the competent authority may take such measures as it may deem necessary for the protection of the interest of the public.

(8)On granting an application for enrolment under this Act, the competent authority shall issue to the applicant concerned a certificate of enrolment evidencing enrolment of the person registered in the Ancillary Insurance Intermediaries Company Register of the applicant in the Ancillary Insurance Intermediaries List.

(9)Subject to the provisions of this Act, the competent authority may subject enrolment made under this article to such conditions as it may from time to time deem fit to impose.

(10)The validity of the enrolment under this article shall be subject to a regular review by the competent authority.

(11)An authorised undertaking and an enrolled insurance broker shall at all times be responsible for any act or omission of its registered ancillary insurance intermediaries provided that such act or omission is an act or omission pertaining to a contract of insurance issued by the undertaking or insurance broker, or offered on its behalf through the services of such ancillary insurance intermediaries. For the purposes of this sub-article any reference to registered ancillary insurance intermediaries shall include a reference to past as well as present registered ancillary insurance intermediaries. Protection of clients monies. 43F.

(1)Without prejudice to sub-article

(3), every ancillary insurance intermediary, shall, in respect of monies held by him or it in INSURANCE DISTRIBUTION relation to a policy of insurance, keep such monies held by him or it separate from his or its own monies and shall, in respect of those monies maintain separate accounts in accordance with requirements determined by Insurance Distribution Rules made for the purposes of this article.

(2)No person shall have or obtain any recourse or right against monies standing to the credit of the account referred to in sub-article

(1)in respect of

AI explanation based on the official legal text. Indicative, not a substitute for legal advice.