(1)in respect of a claim or right against a person acting as an ancillary 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.
\n
(3)Notwithstanding the provisions of sub-articles (1) and (2): (a) monies received by the ancillary insurance intermediary from a person in relation to a contract of insurance shall be treated as having been paid to the authorised undertaking or the enrolled insurance broker issuing or offering the contract, and on whose behalf the ancillary insurance intermediary carries on ancillary insurance intermediaries activities; and (b) monies paid by the authorised undertaking or the enrolled insurance broker to the ancillary 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.
\n
Art. 43G
\n
43G. Subject to the provisions of article 43H and to the terms and conditions of any relevant ancillary insurance intermediaries appointment at any time and for any reason whatsoever: (a) any authorised undertaking and enrolled insurance broker may strike off their Ancillary Insurance Intermediaries Company Register the name of any person registered in the said register; (b) any person registered in the Ancillary Insurance Intermediaries Company Register of an authorised undertaking or an enrolled insurance broker may make an application in writing to the undertaking or insurance broker concerned, as the case may be, requesting it to strike his or its name off the said register.
\n
Striking name off Ancillary Insurance Intermediaries Company Register.
\n
Striking name off Ancillary Insurance Intermediaries Company Register or the Ancillary Insurance Intermediaries List.
\n
INSURANCE DISTRIBUTION
\n
Art. 43H
\n
Where an authorised undertaking or an enrolled insurance broker elects to strike the name of a person off its Ancillary Insurance Intermediaries Company Register, such undertaking or insurance broker 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.
\n
(2)Where an authorised undertaking or an enrolled insurance broker strikes the name of a person off its Ancillary 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 or the insurance broker shall also notify in writing the competent authority the reasons for so doing.
\n
(3)On receiving a notification from an authorised undertaking or an enrolled insurance broker that such undertaking or insurance broker has elected to strike the name of a person off its Ancillary 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 or the enrolled insurance broker that the name of such person, in so far as it relates to that undertaking or insurance broker, shall be struck off the Ancillary Insurance Intermediaries List as from the date specified in the undertaking’s or insurance broker’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 Ancillary 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.
\n
(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 Ancillary Insurance Intermediaries List on the grounds specified in sub-article
\n
(2), the competent authority shall give publicity to the striking of that name off the Ancillary Insurance Intermediaries List, and: (a) if the name of that person is registered in the Ancillary 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 Ancillary Insurance Intermediaries Company Register of that undertaking INSURANCE DISTRIBUTION and give the undertaking the reasons for its direction; and (b) the provisions of article 53A shall apply.
\n
(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.
\n
(6)Where an authorised undertaking or an enrolled insurance broker receives in writing an application from a person registered in the Ancillary Insurance Intermediaries Company Register of the undertaking or insurance broker requesting such undertaking or insurance broker to strike the name of that person off the said register, the undertaking or the insurance broker 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.
\n
(7)Where, on an application made to an authorised undertaking or an enrolled insurance broker under sub-article (6), the undertaking or the insurance broker, as the case may be, refuses, or unduly prolongs the process, to strike the name of a person off its Ancillary 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 or the insurance broker concerned those directives it deems necessary to oblige the undertaking or the insurance broker to hasten the process to strike the name of that person off its register.
\n
(8)On notification by the competent authority to an authorised undertaking or an enrolled insurance broker that the name of a person registered in the Ancillary Insurance Intermediaries Company Register of the undertaking or the insurance broker has been struck off the Ancillary Insurance Intermediaries List, the undertaking or the insurance broker concerned shall forthwith surrender to the competent authority the certificate of enrolment relating to that person, and any official copies thereof.
\n
Art. 43I
\n
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 Ancillary Insurance Intermediaries List; (ii) strike the name of a person off the Protection of the public or other interest.
\n
INSURANCE DISTRIBUTION Ancillary Insurance Intermediaries List; (b) strike the name of a person off the Ancillary Insurance Intermediaries List, where the ancillary insurance intermediary: (i) ceases to fulfil any of the requirements laid down in articles 43C(1) and 43F, and where applicable, any Insurance Distribution Rules issued under the said articles; or (ii) fails to comply with conduct of business requirements set out in Conduct of Business Rules; (c) strike the name of a person off the Ancillary 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:
\n
Provided that, in each case, the competent authority shall inform the undertaking or the insurance broker concerned in writing of the reasons for so doing.
\n
(2)In each case, the competent authority may take any other measure as it may deem necessary to safeguard the interests of insureds, policyholders, creditors or other interested persons.
\n
Application of Part VIIIA of the Act.
\n
Art. 43J
\n
of this Act:
\n
Subject to sub-article (2), for the purposes of this Part (a) \"authorised undertaking\" shall not include an authorised reinsurance undertaking, a reinsurance intermediary, a European insurance undertaking and a European reinsurance undertaking; (b) \"insurance broker\" shall not include an insurance intermediary registered under Article 3 of the Insurance Distribution Directive in a Member State or EEA State other than Malta.
\n
(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 ancillary 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.
\n
INSURANCE DISTRIBUTION PART VIIIB PROVISIONS APPLICABLE TO UNDERTAKINGS AUTHORISED UNDER THE INSURANCE BUSINESS ACT CARRYING OUT DISTRIBUTION ACTIVITIES
\n
Art. 43K
\n
43K. This Part shall apply to an authorised insurance undertaking and an authorised reinsurance undertaking carrying out insurance distribution activities and reinsurance distribution activities, as applicable, unless otherwise specified under this Part.
\n
Insurance and Reinsurance Distribution Activities.
\n
Art. 43L
\n
Without prejudice to sub-article (2), an authorised insurance undertaking, an authorised reinsurance undertaking, and their employees, carrying out insurance distribution activities and reinsurance distribution activities, as applicable, shall not be required to be enrolled under this Act.
\n
Exemption from enrolment under this Act.
\n
(2)Notwithstanding sub-article (1), an authorised insurance undertaking and an authorised reinsurance undertaking carrying out insurance distribution activities and reinsurance distribution activities, as applicable, shall, at least once a year, inform the competent authority of the names of the individuals within the management of the authorised insurance and reinsurance undertaking, who are responsible for the insurance distribution activities or reinsurance distribution activities of the authorised insurance and reinsurance undertaking, and the competent authority may by Insurance Distribution Rules made for the purposes of this article, determine the form, manner and content of the information to be forwarded to it and the date by which such information shall be forwarded to it.
\n
Art. 43M
\n
An authorised insurance undertaking, an authorised reinsurance undertaking, and their employees, carrying out insurance distribution activities and reinsurance distribution activities, as applicable, are required to possess appropriate knowledge and ability in order to complete their tasks and perform their duties adequately, as may be determined by means of Insurance Distribution Rules issued under this article.
\n
Professional and organisational requirements.
\n
(2)An authorised insurance undertaking and an authorised reinsurance undertaking and their employees, carrying out insurance distribution activities and reinsurance distribution activities, as applicable, 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 relevant market, as may be determined by means of Insurance Distribution Rules and, or Conduct of Business Rules issued under this article.
\n
Art. 43N
\n
43N. An authorised insurance undertaking and an authorised reinsurance undertaking carrying out insurance distribution activities and reinsurance distribution activities, as applicable, shall submit to the competent authority any information which is necessary for the purposes of supervision, as may be specified by means of regulations, Information to be provided for supervisory purposes.
\n
INSURANCE DISTRIBUTION Insurance Distribution Rules or Conduct of Business Rules, which may also specify the period within which this information is to be submitted.
\n
Conduct of business provisions.
\n
Art. 43O
\n
43O. An authorised insurance undertaking carrying out insurance distribution activities shall be required to comply with conduct of business requirements, including requirements relating to insurancebased investment products, as may be determined by means of Conduct of Business Rules issued for the purposes of this article.
\n
PART IX
\n
Changes in documentation.
\n
Amended by:
\n
XXVII. 2009.39;
\n
XXVI.2018.42.
\n
GENERAL PROVISIONS
\n
Art. 44
\n
44.(1) Every person registered or enrolled under this Act, shall notify in writing the competent authority of any material changes in the documentation provided or required to be provided by or under this Act and any regulations, Insurance Distribution Rules and Conduct of Business Rules made thereunder, as soon as the registered or enrolled person becomes aware of such changes.
\n
(2)Without prejudice to article 44A, a person enrolled as a local company under this Act shall (a) before making any addition or alteration to the memorandum or articles of association or other instrument constituting the company, submit in writing to the competent authority particulars of the proposed addition or alteration for its prior consent; and no such addition or alteration shall be made or shall be registered, or shall take effect, whether it is registered or not, unless and until the competent authority has signified its consent in writing; and (b) inform the competent authority of the names of the persons holding a qualifying shareholding in the company and the percentage of such holdings; and the competent authority may, by Insurance Distribution Rules made for the purposes of this article, determine the form, manner and content of the information to be forwarded to it and the date by which such information shall be forwarded shall also be established by the said Insurance Distribution Rules.
\n
(3)(3)Without prejudice to the foregoing provisions of this article: (a) a person enrolled under Part III shall notify the competent authority on a continuous basis, without undue delay, with any change or circumstance which may give rise to the existence of close links within the meaning of article 10; (b) a tied insurance intermediary enrolled under Part VIII shall notify any authorised undertaking appointing it, on a continuous basis, without undue delay, with any change in the information provided in article 37(1A); (c) an ancillary insurance intermediary enrolled under INSURANCE DISTRIBUTION Part VIIIA shall notify any authorised undertaking or any enrolled insurance broker appointing it, on a continuous basis, without undue delay, with any change in the information provided in article 43E(2); and (d) an authorised undertaking appointing, registering and enrolling a tied insurance intermediary or an ancillary insurance intermediary under Part VIII and Part VIIIA, respectively, and an enrolled insurance broker appointing, registering and enrolling an ancillary insurance intermediary under Part VIIIA, shall notify the competent authority on a continuous basis, without undue delay, with any change in the information provided in articles 37(1A) and 43E(2), respectively, as notified by the tied insurance intermediary or ancillary insurance intermediary concerned.
\n
Art. 44A
\n
44A. (1) Notwithstanding anything contained in any other law, the prior written consent of the competent authority shall be required before any person may lawfully: (a) acquire, directly or indirectly, a qualifying shareholding in a company enrolled under article 13 (hereinafter referred to in this Act as the \"enrolled company\"); (b) increase, directly or indirectly, an existing holding which is not a qualifying shareholding so as to cause it to become a qualifying shareholding in an enrolled company; (c) further increase, directly or indirectly, a qualifying shareholding so as to cause it to equal or exceed, twenty per centum or thirty per centum or fifty per centum or to cause the enrolled company to become that person’s subsidiary; (d) reduce, directly or indirectly, a qualifying shareholding so as to cause it to fall below fifty per centum or thirty per centum or twenty per centum or to cause the enrolled company to cease to be that person’s subsidiary; (e) reduce, directly or indirectly, a qualifying shareholding so as to cause it to cease to be a qualifying shareholding; or (f) divest itself, directly or indirectly, of a qualifying shareholding.
\n
(2)Sub-article (1) shall apply irrespective of whether or not any of the relevant shares are shares listed on any regulated market.
\n
(3)It shall be the duty of an enrolled company and of the directors thereof to notify the competent authority forthwith upon becoming aware that any person intends to take any of the actions set out in sub-article (1).
\n
(4)Notwithstanding anything contained in any other law, the written consent of the competent authority shall be required before Participation in a company enrolled under article 13.
\n
Added by:
\n
XVII. 2009.40.
\n
Amended by:
\n
XXXIII. 2015.93.
\n
XXVI.2018.43.
\n
INSURANCE DISTRIBUTION any company enrolled under article 13 may lawfully (a) merge with any other company, whether enrolled under this Act or not; (b) undergo any reconstruction or division; or (c) increase or reduce its nominal or issued share capital or effect any material change in voting rights.
\n
(5)It shall be the duty of all directors and qualifying shareholders of an enrolled company to notify the competent authority forthwith upon becoming aware that the company intends to take any of the actions set out in sub-article (4).
\n
(6)For the purpose of this article, the competent authority may issue Insurance Distribution Rules determining the form in which notification in terms of sub-article (1) and sub-article (4) shall take place and the information required to be furnished with such notification; and the competent authority shall, upon a notification by a person intending to take any action set out in sub-article (1)(a) to (c), determine whether such person is a fit and proper person before giving its consent.
\n
(7)Within three months of receipt of such notification or receipt of such information as the competent authority may lawfully require, whichever be the later, the competent authority shall issue a notice (a) granting unconditional consent to the taking of the action; (b) granting consent to the taking of the action subject to such conditions as the competent authority may deem appropriate; or (c) refusing consent to the taking of the action, and if it refuses to grant consent, it shall inform the person or the enrolled company concerned in writing of the reason for such refusal.
\n
(8)If any person or any enrolled company takes or intends to take any action set out in sub-article (1) or (4) without the prior written consent of the competent authority, the competent authority shall, without prejudice to any other penalty which may be imposed under this Act, have the power to make an order: (a) restraining the person or company from taking, or continuing with, such action; (b) declaring such action to be void and of no effect; (c) requiring the person or company to take such steps as may be necessary to restore the position existing immediately before such action was taken; (d) restraining the person or company from exercising any rights which such action would, if lawful, have conferred upon them, including the right to receive any payment or to exercise any voting rights attaching to the shares acquired; (e) restraining the person or company from taking any INSURANCE DISTRIBUTION similar action or any other action within the categories set out in sub-articles (1) and (4).
\n
(9)In the case of a foreign company enrolled under this Act to carry out insurance distribution activities or reinsurance distribution activities in or from Malta, the provisions of this article shall apply only to the extent of requiring such company to give to the competent authority, not later than thirty days from such change or occurrence, as the case may be, the information therein referred to.
\n
(10)Without prejudice to any other provision of this Act, where the influence exercised by any person holding a qualifying shareholding is, or is likely to, operate against the sound and prudent management of an enrolled company, the competent authority may exercise any of its powers under this Act, including the power to issue directives as it may deem reasonable in the circumstances.
\n
Art. 44B
\n
44B. Without prejudice to the requirements of this Act, every insurance agent and insurance broker enrolled under this Act shall utilise the services of intermediaries which are:
\n
Appointment of intermediaries.
\n
Added by:
\n
XXVI.2018.44. (a) enrolled under Parts VIII and VIIIA, as set out in the said Parts; or (b) registered under Article 3 of the Insurance Distribution Directive or falling under Article 1(3) of the Insurance Distribution Directive.
\n
Art. 45
\n
45.(1) The competent authority may exercise the following powers at the request of or for the purposes of assisting an overseas regulatory authority (a) the power to impose, revoke or vary conditions on the grant of a registration or enrolment pursuant to the provisions of article 13(4); (b) the power to suspend or strike off the name of a registered person from the Agents Register, Managers Register or Brokers Register or of an enrolled person from the Agents List, Managers List or Brokers List under article 16; (bb) the power to impose, revoke or vary conditions on the grant of an enrolment pursuant to the provisions of articles 37(8) and 43E(9); (c) the power to strike off the name of a tied insurance intermediary off the Tied Insurance Intermediaries List enrolled under article 41; (cc) the power to strike off the name of an ancillary insurance intermediary off the Ancillary Insurance Intermediaries List enrolled under article 43E; (d) the power to take any action under articles 29, 30, 31 or 31A of the Insurance Business Act, as applicable in accordance with article 54 of this Act; (e) the power to communicate to the overseas regulatory Co-operation in supervisory duties and sharing of information.
\n
Amended by:
\n
XX. 2007.151;
\n
XXXIII. 2015.94;
\n
XXVI. 2018.45 INSURANCE DISTRIBUTION authority information in its possession, whether such information is the result of any of the above powers or otherwise.
\n
(2)The competent authority shall exercise powers by virtue of this article: (a) where the assistance is requested by the overseas regulatory authority for the purposes of the exercise of one or more of its regulatory functions; or (b) where so required within the terms of Malta’s international commitments or the obligations arising out of the Insurance Distribution Directive, as amended from time to time, and includes any implementing measures that have been or may be issued thereunder, and in particular, the competent authority shall, notwithstanding the provisions of article 46 of this Act and article 59 of the Insurance Business Act, as applicable, cooperate and exchange information on insurance and reinsurance intermediaries, ancillary insurance intermediaries and insurance and reinsurance undertakings, with overseas regulatory authorities, for the purpose of ensuring the proper application of the Insurance Distribution Directive, pursuant to Article 13 of the said Directive; or (c) where so required within the terms of undertakings assumed in bilateral or multilateral agreements for the exchange of information and other forms of collaboration with overseas regulatory authorities including a request under a memorandum of understanding concluded with the competent authority.
\n
(3)There shall be meetings held between an authorised undertaking, an insurance intermediary, an approved auditor and the competent authority on a bilateral or a multilateral basis as circumstances may warrant. Such meetings may be called by any of the parties and shall in each case be chaired by the competent authority.
\n
(4)The competent authority shall inform the European Commission of any general difficulties which persons enrolled under this Act encounter in establishing themselves or carrying out insurance distribution activities and reinsurance distribution activities in any third country.
\n
Confidentiality.
\n
Amended by:
\n
XX. 2007.152;
\n
X. 2011.93;
\n
XXVI.2018.46;
\n
XLVI.2021.67.
\n
Art. 46
\n
46.(1) Nothing in this Act shall authorise the competent authority to enquire or cause an enquiry to be made in relation to an enrolled person into the affairs of any individual client of the enrolled person except for the purpose of ensuring compliance with any of the provisions of this Act or any other Act.
\n
(2)Information obtained by the competent authority or by its officers, employees or agents, including former officers, employees or agents, as well as by inspectors, auditors and experts acting on behalf of the competent authority for the purposes of, or pursuant to, any of the provisions of this Act, or of any regulations, Insurance Distribution Rules or Conduct of Business Rules made thereunder, or INSURANCE DISTRIBUTION in the discharge of any functions under any of the said provisions, shall be treated as confidential and protected by the duty of professional secrecy, and shall not be disclosed to any other person, except in the following cases: (a) where the information is disclosed with a view to the institution of, or otherwise for the purposes of, criminal proceedings or of any proceedings by the competent authority before any court under this Act; (b) where the information is disclosed with a view to enabling or assisting the competent authority in the performance or discharge of any of its functions under this Act; (c) where the information has been made available to the public by virtue of being disclosed in any circumstances in which, or for any purpose for which, disclosure is not precluded by this article; (d) where a summary or collection of information is prepared or supplied in such a way as not to enable the identity of any person to whom the information relates to be ascertained, without prejudice to cases covered by criminal law; (e) where the information is disclosed to an auditor where such disclosure would assist the auditor in the exercise of his functions under article 28; (f) where the information is provided to the Central Bank of Malta in the exercise of its functions in terms of law; (g) where the information is provided to such other local or overseas regulatory, judicial or enforcement authorities where such disclosure is required or requested for the pursuance of serious regulatory concerns or the detection, prevention or prosecution of criminal offences; (h) where the information is disclosed in civil or commercial proceedings in relation to the bankruptcy or compulsory winding up of an insurance intermediary provided such information does not concern third parties involved in attempts to rescue such insurance intermediary, and to such overseas bodies responsible for the liquidation and bankruptcy of a person holding an authorisation or an equivalent licence from an overseas regulatory authority.
\n
(3)Subject to the provisions of article 45, information obtained from an overseas regulatory authority may only be disclosed to another person, to another overseas regulatory authority or to any other third party with the prior approval of the authority which had provided the information.
\n
(4)No person, including past and present officers or agents of an enrolled person, shall disclose any information relating to the affairs of an enrolled person or of a client of the enrolled person concerned which he has acquired in the performance of his duties INSURANCE DISTRIBUTION or the exercise of his functions under this Act except (a) when authorised to do so under any of the provisions of this Act; (b) for the purpose of the performance of his duties or the exercise of his functions; (c) when lawfully required to do so by any court or under a provision of any law.
\n
(5)In this article, the expression \"agents\", in relation to an enrolled person, means and includes the bankers and the auditor of the enrolled person.
\n
(6)When an officer or an employee of an enrolled company, or a person registered or enrolled, or an officer or an employee of such person, has reason to believe that an activity or proposed activity could involve money laundering, he shall act in compliance with the reporting and other obligations set out in the regulations made under article 12 of the Prevention of Money Laundering Act and any procedures and guidance issued thereunder, and such disclosure shall not constitute a breach of confidentiality.
\n
(7)The competent authority, when processing personal data for the purposes of the Act and any regulations, Insurance Distribution Rules and Conduct of Business Rules issued thereunder, shall do so in accordance with Regulation (EU) 2016/679 of the European Parliament and of the Council of 27 April 2016 on the protection of natural persons with regard to the processing of personal data and on the free movement of such data, and repealing Directive 95/46/EC (General Data Protection Regulation), as amended from time to time.
\n
Co-operation with EIOPA.
\n
Added by:
\n
XXVI.2018.47.
\n
Art. 46A
\n
46A. (1) The competent authority shall cooperate with EIOPA for the purposes of the Insurance Distribution Directive, in accordance with Regulation (EU) No. 1094/2010.
\n
(2)The competent authority shall provide EIOPA with all information necessary to carry out its duties in accordance with Regulation (EU) No. 1094/2010.
\n
Access to the public of the registers and the lists.
\n
Amended by:
\n
XXXIII. 2015.95;
\n
XXVI.2018.48.
\n
Art. 47
\n
47.Any Registers or Lists which are required to be maintained by the competent authority in terms of this Act shall be accessible to the public, free of charge, at the offices of the competent authority at all times during the normal working hours of the competent authority.
\n
Use of the word \"insurance\".
\n
Amended by:
\n
XX. 2007.153;
\n
XXXIII. 2015.96;
\n
XXVI.2018.49.
\n
Art. 48
\n
48.(1) Subject to the following provisions of this article, save with the written permission of the competent authority, no person other than (a) a person registered in the Agents Register, Managers Register or Brokers Register under article 13; or (b) a person enrolled in the Agents List, Managers List or Brokers List under that article; or (c) a person enrolled in the Tied Insurance Intermediaries INSURANCE DISTRIBUTION List under article 37; or (cc) a person enrolled in the Ancillary Insurance Intermediaries List under article 43E; or (d) an insurance and reinsurance undertaking authorised under the Insurance Business Act; or (e) a person who holds insurance qualifications of an institute of repute recognised for such purpose by the competent authority; or (f) an institute of repute which provides instruction in insurance business studies and is recognised as such by the competent authority; or (g) a person prescribed by regulations under this Act, shall use the word \"insurance\" as part of his or its description or title or make any such use on any letter paper, in any notice or advertisement, or in any other similar manner.
\n
(2)Any foreign company enrolled or any third country insurance undertaking or third country reinsurance undertaking authorised as aforesaid may use the name used in its country of registration, incorporation or constitution save that, where there is a risk that the use of such name may be misleading, such foreign company, third country insurance undertaking or third country reinsurance undertaking shall add such explanatory particulars to its name as the competent authority shall direct.
\n
(3)The competent authority may, by Insurance Distribution Rules made for the purpose of this article, determine the qualifications or experience for carrying out insurance distribution activities and reinsurance distribution activities which are required of persons, other than persons referred to in the foregoing sub-articles of this article, who, on application to the competent authority, may be permitted under this article to use the word \"insurance\" as part of their description or title.
\n
(4)For the purposes of this article, the expression \"insurance\" includes reinsurance, assurance and reassurance and any of their derivatives or other words as may indicate or purport to indicate the carrying on of business of insurance or the carrying out of insurance distribution activities or reinsurance distribution activities or the carrying on of such business or the carrying out of such activities in any language in the description or title under which a person is carrying on such business or carrying out such activities.
\n
Art. 49
\n
49.A notice or other document to be given or served under this Act and any regulations or Insurance Distribution Rules or Conduct of Business Rules made thereunder shall be deemed to have been duly given or served on a person if (a) it has been delivered to him; or (b) it has been left at the address furnished by him to the competent authority, or at his last known address; or (c) it has been sent to him by post or by telefax at any of the aforesaid addresses; or Service of notices, etc.
\n
Amended by:
\n
XXXIII. 2015.97;
\n
XXVI.2018.50.
\n
INSURANCE DISTRIBUTION (d) in the case of a commercial partnership registered in Malta, it has been delivered, sent by post or by telefax, or left at the registered office, or at the last known registered office, of that commercial partnership; or (e) in the case of any other body of persons, whether corporate or unincorporate, it has been given or served in any of the manners aforesaid to or on a director, an officer, secretary, a clerk or the representative of that body.
\n
Appeals.
\n
Amended by:
\n
XVII. 2009.41;
\n
XXXIII. 2015.98;
\n
XXVI.2018.51.
\n
Art. 50
\n
50.(1)(a) For the purposes of any appeal made to the Tribunal under this Act, the provisions of the proviso to article 57(1) of the Insurance Business Act shall apply. (b) For the purposes of any such appeal, the provisions of article 21 of the Malta Financial Services Authority Act shall also apply.
\n
(2)Subject to the provisions of this article, an appeal shall lie to the Financial Services Tribunal with respect to (a) any refusal to register or to enrol an applicant under article 13, 41 or 43I; (b) any condition imposed on, or subsequent to, registration and enrolment under article 13, 37 or 43E; (c) any suspension or striking off of the name of a person from the Agents Register, Managers Register or Brokers Register or the name of an enrolled person off the Agents List, Managers List or Brokers List under article 16; (d) any refusal to restore the 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 article 18(2); (e) any one or more measures taken under article 19; (f) any refusal to register an underwriting agreement under article 32; (g) any striking off of the name of a person from the Tied Insurance Intermediaries List under article 40(3)(b); (h) any requirement on an authorised undertaking to strike the name of a person off the Tied Insurance Intermediaries Company Register under article 41; (ha) any striking off of the name of a person from the Ancillary Insurance Intermediaries List under article 43H(3)(b); (hb) any requirement on an authorised undertaking or an enrolled insurance broker to strike the name of a person off the Ancillary Insurance Intermediaries Company Register under article 43I; (i) any notice issued or any order made under article 44A;
\n
INSURANCE DISTRIBUTION (j) any directive given under article 31A of the Insurance Business Act, made applicable by article 54 of this Act; (k) any administrative penalty imposed in respect of infringements as may be prescribed under article 3.
\n
(3)The Financial Services Tribunal shall have exclusive competence to hear appeals on the matters listed in sub-article (2).
\n
Art. 51
\n
Deleted by Act V.2020.57.
\n
Art. 52
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52.(1) Any person (a) who for the purpose of obtaining the registration or enrolment unde3.3.r this Act or any regulations, Insurance Distribution Rules or Conduct of Business Rules made thereunder, furnishes information or makes a statement or a declaration which the person knows to be inaccurate, false or misleading in any material particular, or recklessly furnishes information or makes a statement or a declaration which is inaccurate, false or misleading in any material particular; or (b) who contravenes or fails to comply with any of the provisions of this Act as specified in regulations issued under this article; (c) who is knowingly a party to the carrying out of insurance distribution activities or reinsurance distribution activities, with a fraudulent intent or for a fraudulent purpose; or (d) who without any reasonable excuse alters, suppresses, conceals, destroys or refuses to produce any document which is lawfully required to be produced by any person under this Act and any regulations made thereunder; or (e) who intentionally obstructs a person exercising rights conferred by this Act or any regulations, Insurance Distribution Rules or Conduct of Business Rules made thereunder, shall be guilty of an offence.
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(2)Any person who is knowingly a party to, or procures or aids and abets the commission of any offence under sub-article (1) shall be guilty of an offence and shall be liable to the same penalties as the principal offender.
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(3)The Minister shall make regulations under this article prescribing penalties for offences against this Act, and such regulations may prescribe (a) penalties which are enforceable by prosecution in the courts of Malta; (b) different penalties for contraventions of different Exclusion of liability.
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Amended by:
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XXVI.2018.52.
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Offences.
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Amended by:
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XVII. 2009.42;
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XXXIII. 2015.99;
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XXVI.2018.53.
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INSURANCE DISTRIBUTION provisions of this Act; (c) penalties calculated in accordance with the duration of the commission of the offence, Penalties.
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Amended by:
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L.N. 427 of 2007;
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X. 2011.94;
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XXXIII. 2015.100;
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XXVI.2018.54. unless such penalties are otherwise imposed under article 3.
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Art. 53
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53.(1) The penalties prescribed by regulations made under article 52 – (a) in the case of imprisonment, shall not provide for a sentence of imprisonment greater than four years; (b) in the case of a fine imposed after a prosecution in the courts of Malta, shall not provide for a fine (multa) of less than two hundred thirty euro (€230) or greater than four hundred and sixty-six thousand euro (€466,000); (bb) may provide for both such fine and imprisonment; (c) in the case of a continuing offence, shall not provide for a fine (multa) of less than one hundred and sixteen euro (€116) or greater than two hundred thirty euro (€230) for each day during which the offence continues.
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(2)No proceedings for an offence under this Act or any regulations made thereunder other than an infringement to which article 3(2)(h) applies, shall be commenced without the consent of the Attorney General.
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(3)The provisions of this Act shall not affect any criminal proceedings that may be competent under any other law.
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Publication of penalties and other measures.
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Added by:
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XXVI.2018.55.
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Art. 53A
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The competent authority shall publish on its official website, without undue delay, any administrative penalty or other measure which is imposed for breaches of the provisions of this Act and of any regulations, Insurance Distribution Rules or Conduct of Business Rules issued thereunder. Such publication shall include information on the type and nature of the breach and the identity of the natural or legal person responsible for the breach:
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Provided that, in cases where an appeal has been filed by the person on whom such administrative penalty or other measure has been imposed, the competent authority shall, without undue delay, publish on its official website such information and any subsequent information on the status of the appeal and the outcome thereof. The competent authority shall also publish any decision annulling a previous decision to impose a sanction or other measure which has been published:
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Provided further that where the competent authority has made a public statement in terms of this sub-article, it shall simultaneously report that fact to EIOPA.
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(2)Notwithstanding sub-article (1), the competent authority may decide to defer publication, not to publish, or to publish on an anonymous basis, any administrative penalty or other measure imposed, in any of the following circumstances:
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INSURANCE DISTRIBUTION (a) where the publication of the identity of legal persons, or the identity or personal data of natural persons, is considered by the competent authority to be disproportionate following a case-by-case assessment conducted on the proportionality of the publication of such data; (b) where the publication jeopardises the stability of financial markets or an ongoing investigation.
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(3)The competent authority shall, in terms of Article 36 of the Insurance Distribution Directive: (a) inform EIOPA of all administrative penalties and other measures imposed, but not published in accordance with sub-article (2), including any appeal in relation thereto and the outcome thereof; (b) annually provide EIOPA with aggregated information regarding all administrative penalties and other measures imposed in accordance with the Act and any regulations, Insurance Distribution Rules and Conduct of Business Rules issued thereunder, implementing the Insurance Distribution Directive.
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Art. 54
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54.(1) Subject to the provisions of sub-article (2) (a) the provisions of articles 29 to 31A of the Insurance Business Act (hereinafter in this article referred to as \"the Act\") shall apply to an enrolled person, as if reference in such provisions (i) to \"authorisation\" were a reference to \"enrolment in the Agents List, Managers List or Brokers List\"; (ii) to \"authorised insurance or reinsurance undertaking\" were a reference to an \"enrolled person\"; (iii) to \"business of insurance\" were a reference to \"insurance distribution activities or reinsurance distribution activities\"; (b) articles 29 to 31A of the Act shall apply to a person enrolled in the Tied Insurance Intermediaries List or Ancillary Insurance Intermediaries List, as if reference in such provisions (i) to \"authorisation\" were a reference to \"enrolment in the Tied Insurance Intermediaries List\" or \"enrolment in the Ancillary Insurance Intermediaries List\", as applicable\"; (ii) to \"an authorised insurance undertaking\" were a reference to \"a reference to \"a tied insurance intermediary\" or \"an ancillary insurance Application of certain articles of the Insurance Business Act to insurance intermediaries.
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Amended by:
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XVII. 2009.43;
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XXXIII. 2015.101;
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XXVI.2018.56.
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INSURANCE DISTRIBUTION intermediary\"; (iii) to \"business of insurance\" were a reference to \"tied insurance intermediaries activities\" or \"ancillary insurance intermediaries activities\".
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(2)Sub-article (1) shall apply to an enrolled person as if reference in the relevant provisions of the Act to \"the competent authority\" were a reference to \"the competent authority\" under this Act, and \"references to \"Insurance Rules\" were references to \"Insurance Distribution Rules\".
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Savings.
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Art. 55
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55.(1) Every licence issued or other action whatever taken or commenced under the Insurance Business Act, in so far as insurance agents and insurance managers are concerned, or under the Insurance Brokers and Other Intermediaries Act * , shall continue in force and to be valid as if such licence were issued or as if such other action were taken or commenced under this Act.
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(2)Any person or company licensed under the Insurance Business Act to act as an insurance agent or as an insurance manager within the meaning of that Act or licensed under the Insurance Brokers and Other Intermediaries Act* to act as an insurance broker or insurance sub-agent within the meaning of that latter Act shall, not later than the appointed date, conform with the provisions of this Act or otherwise cease to act as an insurance intermediary, and shall until the appointed date or until it conforms with the provisions of this Act, whichever is earlier, continue to be governed by the provisions of the Insurance Business Act or the Insurance Brokers and Other Intermediaries Act † , as the case may be. For the purpose of this sub-article \"appointed date\" means a day being six months after the date of the coming into force of this Act.
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(3)Where a company ceases to act as an insurance agent, insurance manager or insurance broker on the grounds that such company did not, on the appointed date, conform with the provisions of this Act, that company shall be deemed to have made an application to the competent authority under article 26 on the appointed date to cease to carry on insurance intermediaries activities on that date and to have been given permission by the competent authority under that article on the appointed date to cease to carry on such business on that date and to run-off that business as from that date. The competent authority may impose such conditions with regard to the run-off of that business as it may deem proper.
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(4)Where a person concerned ceases to act as a registered insurance broker on the grounds that such person did not, on the appointed date, conform with the provisions of this Act (a) that person shall be deemed to have made a request to the competent authority under article 16(e) on the appointed date requesting the competent authority to strike his name off the said register on that date; (b) the competent authority shall be deemed to have struck *Repealed by this Act. †Repealed by this Act.
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INSURANCE DISTRIBUTION the name of that person off the Brokers Register on that date, and, also on that date, notified that person that his name has been struck off the Brokers Register; and the person, following the appointed date, shall forthwith surrender to the competent authority the certificate of registration, and any official copies thereof.
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(5)Where a person ceases to act as an insurance sub-agent on the grounds that such person did not, on the appointed date, conform with the provisions of this Act (a) that person shall be deemed to have made an application to the authorised company, in whose Tied Insurance Intermediaries Company Register of the company his name is registered, under article 39(b), on the appointed date, requesting the company to strike his name off the said register on that date; (b) the authorised company concerned shall be deemed to have struck the name of that person off the Tied Insurance Intermediaries Register of the company on that date, and, also on that date, notified that person and the competent authority accordingly, under article 40(6); (c) the competent authority shall be deemed to have struck the name of that person off the Tied Insurance Intermediaries List on that date, and, also on that date, notified the company concerned accordingly, under article 40(3)(a); and the authorised company concerned shall forthwith, following the appointed date, surrender to the competent authority the certificate of enrolment relating to that person and any official copies thereof.
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(6)Without prejudice to the provisions of article 12 of the Interpretation Act (a) all regulations, insurance directives, insurance intermediaries directives, orders and other instruments which were kept into force by, or made under, the Insurance Business Act, in so far as insurance agents and insurance managers are concerned, and the Insurance Brokers and Other Intermediaries Act*; and (b) any agreements and arrangements which were made in virtue of the Insurance Business Act, in so far as insurance agents and insurance managers are concerned, and the Insurance Brokers and Other Intermediaries Act*, or made in virtue of any regulation, insurance directive, insurance intermediaries directive, order and other instrument, shall, if and as in force immediately before the commencement of this article, be deemed to have been made under or in virtue of this Act and shall continue in force and may be amended, altered, *Repealed by this Act.
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Added by:
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XXVI.2018.57.
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INSURANCE DISTRIBUTION repealed or otherwise dealt with accordingly.
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(7)All references in any enactment and in any instrument or other document issued pursuant to the Insurance Business Act, in so far as insurance agents and insurance managers are concerned, or to the Insurance Brokers and Other Intermediaries Act*, or to any provision thereof, shall, in so far as applicable, be read and construed as a reference to this Act or to the corresponding provision thereof.
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(8)Any reference to an insurance intermediaries directive issued by the competent authority in virtue of article 4(3) of the Insurance Brokers and Other Intermediaries Act* in any licence, notice, decision or other act made or taken by the competent authority before the coming into force of the provisions of this Act, and any reference in any law to an insurance intermediaries directive shall be deemed to be a reference to Insurance Distribution Rules. (8A) Any reference to Insurance Distribution Rules issued by the competent authority in virtue of article 4(4) of the Insurance Intermediaries Act, in any licence, notice, decision or other act made or taken by the competent authority under the Insurance Intermediaries Act, and any reference in any law to Insurance Distribution Rules shall be deemed to be a reference to Insurance Distribution Rules.
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(9)For the purpose of this article, \"licence\" includes authority or authorisation, permit, approval, registration, enrolment and appointment, and the word \"licensed\" shall be construed accordingly.
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INSURANCE DISTRIBUTION Amended by:
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XX. 2007.154;
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L.N. 451 of 2013;
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XXXIII.2015.10;
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XXVI.2018.58.
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SCHEDULE (Article 2) INSURANCE AND REINSURANCE DISTRIBUTION ACTIVITIES For the purposes of paragraph 1 of the Third Column of this Schedule, \"risk\" means and includes a risk situated in Malta or a risk situated outside Malta; and \"risk situated outside Malta\", in relation to a contract of insurance, has the same meaning as is assigned to it by sub-article (1) of article 2 of the Insurance Business Act.
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First Column Second Third Column Column Independent Dependent Insurance Distribution Activities and Reinsurance Insurance Insurance Distribution Activities Intermediaries Intermediaries Insurance 1.
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Professional activities of persons listed in the Broker First Column of this Schedule who, acting with complete freedom as to their choice of lawful i n s u r e r s , b r i n g t o g e t h e r, w i t h a v i e w t o t h e insurance or reinsurance of risks or commitments, persons seeking insurance or reinsurance and insurers or reinsurers, carry out work preparatory to the conclusion of contracts of insurance or reinsurance and, where appropriate, assist in the administration and performance of such contracts, in particular in the event of a claim;
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Insurance 2.
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Professional activities of persons listed in the Agent Second Column of this Schedule who are appointed by an undertaking authorised under the Insurance Business Act and, or by a European insurance undertaking to be its agent in respect of business of insurance with authority to enter into contracts of insurance on behalf of the undertaking under the terms of the appointment;
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Insurance 3.
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Professional activities of persons listed in the Manager Second Column of this Schedule which consist of accepting an appointment from: (a) an insurer or reinsurer to manage any part of its business, or to exercise managerial functions therein, or to be responsible for maintaining accounts or other records of such insurer or reinsurer and in this context, “management” includes authority to enter into contracts of insurance on behalf of the insurer or reinsurer under the terms of the appointment;
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First Column Second Column Independent Dependent Insurance Insurance Intermediaries Intermediaries INSURANCE DISTRIBUTION Third Column Insurance Distribution Activities and Reinsurance Distribution Activities (b) an insurance broker enrolled under this Act, restricted to contracts of insurance relating to risks situated outside of Malta or commitments where Malta is not the country of commitment, to manage any part of its business, or to exercise managerial functions therein, or to be responsible for maintaining accounts or other records for the broker; and (c) a reinsurance special purpose vehicle authorised in accordance with any regulations that may be made under the Insurance Business Act (Cap. 403), to manage any part of its business, or to exercise managerial functions in relation thereto.
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Tied Insurance 4.
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Activities of persons listed in the Second Intermediary Column of this Schedule who, for remuneration, carry out insurance distribution activities for or on behalf of one or more authorised undertakings in the case of insurance products which are not in competition, acting under the full responsibility of those authorised undertakings for the products which concern them respectively and who may collect premiums or amounts intended for the policyholder, provided that no insurance commitments towards or on the part of the public are given as part of these activities.
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Ancillary 5.
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Activities of persons listed in the Second Insurance Column of this Schedule who, for remuneration, Intermediary take up or pursue insurance distribution activities on an ancillary basis, acting under the full responsibility of an authorised undertaking for the product which concerns such undertaking, or of an enrolled insurance broker, provided that all the following conditions are met: (a) the principal professional activity of the natural or legal person is other than insurance distribution activities; (b) the natural or legal person only carries out insurance distribution activities in relation to certain insurance products that are complementary to a good or service; and INSURANCE DISTRIBUTION First Column Second Column Independent Dependent Insurance Insurance Intermediaries Intermediaries Third Column Insurance Distribution Activities and Reinsurance Distribution Activities (c) the insurance products concerned do not cover long-term business of insurance or liability risks, unless that cover complements the good or service which the natural or legal person provides as its principal professional activity:
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Provided that, no insurance commitments towards or on the part of the public are given as part of these activities.