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Maltese Laws |
INSURANCE INTERMEDIARIES ACT
To regulate the registration and enrolment of insurance intermediaries and insurance intermediaries activities.
1st October, 2006
ACT XII of 2006, as amended by Act XX of 2007; Legal Notice 427 of 2007; and Acts XVII
of 2009 and X of 2011.
Arrangement of Act
Articles
Part I Preliminary 1 - 2
Part II Regulatory Powers 3 - 4
Part III R e g i s t r a t i o n o r E n r o lme n t of Insurance Agents,
Insurance Managers and Insurance Brokers 5 - 14
Part IV Powers of Intervention in relation to Persons enrolled
under Part III 15 - 19
Part V Obligations of Persons enrolled under Part III 20 - 26
Part VI Financial Year and Auditors 27 - 29
Part VII Provisions applicable to Intermediaries carrying on
business as Insurance Brokers 30 - 32
Part VIII Registratio n and Enrolment of T i ed Insurance
Intermediaries
33 - 43
Part IX General Provisions 44 - 55
SCHEDULE
Insurance Intermediaries and Insurance Intermediaries Activities
PART I
PRELIMINARY
Short title. 1. The short title of this Act is the Insurance Intermediaries
Act.
Interpretation and scope.
Amended by: X. 2011.91.
Cap. 403.
Cap. 403.
"ad v e rti s emen t", in r e lat i o n t o in sur a nce in term edi a ri es activities, means any form of advertising,
whether done verbally or in writing and, without prejudice to the generality of the foregoing, includes advertising in a publication,
the display of notices, signs, labels or showcards, by means of letters, circulars, prospectuses, catalogues, price list s or other
documents, by an exhibit i on of pict ures or pho tograp hic o r cinematog r aphic films, by way of sound broadcasting or television,
by the distribution of recordings or i n any other mann er , and re f e re nc es t o th e is su e of a n advertisement shall be
construed accordingly;
"A gent s Li st" m eans t h e l i st of perso n s acti ng as insu rance agents established and maintained under article
9;
"A gen t s Register" m eans the in sur a nce ag ent s r e gi st er established and maintained under article 7;
"approved auditor" and "auditor" have the meaning assigned to them by article 28(10);
"a uthoris e d company" means a co mp any au th or ised o r an y person deemed authorised, under the Insurance B us iness
Act, to carry on business of insurance and includes a company enrolled under this Act to act as an insurance agent of the company, as
well as a European insurance 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 er of Lloy d’s or a p e rson acti ng on its behal f
an 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;
"branch" means premises of the company, other than its head office, from which insurance intermediaries activities are carried
out;
"Brokers List" means the list of persons carrying on business as insurance brokers established and maintained under article
9;
"Brokers R e gister" mea n s the insura nc e broke r s 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;
"bu s in ess of insurance brok ing", in relati on to a registered insurance broker or an enrolled insurance b r o k er,
means t h e activit ies listed in paragraph 1 o f the Third Column of the Schedule;
"cell" has the same meanin g 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; and
(d) in relation to a person registered as a tied insurance intermediary in the Tied Insurance Intermediaries Company Register
of any company, means a certificate issued by the competent authority under article 37 to the company enrolling that
person evidencing enrolment of that person in the Tied 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;
Cap. 386. Cap. 386.
"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;
"commitment" and "country of the commitment" have the same meanings as are assigned to them by article 2(1) of
the Insurance
Cap. 403.
Cap. 403. Cap. 403.
Cap. 330.
Cap. 403.
Business Act;
"company" includes a local company and a foreign company;
"competent aut hori t y" m e a n s t h e M a l t a F i n a n c i a l S e r v i c e s
Authority established by the Malta Financial Services Authority Act;
"conditions" includes obligations and restrictions;
"contract of insurance" and "contract" have the same meanings as are assigned to them by article 2(1) of the
Insurance Business Act;
"co n t r ol ", in r e l a tio n to a b o d y co rp orate, is the po wer t o determi n e the fin a n c ial an d op er at
in g p o l i cies o f the bod y corporate;
"controller", in relation to a body corporate, is a person who, al one o r to gether w ith ot her s , ex ercises cont rol
of t h e bo dy corporate;
"coverholder" means a person authorised under a binding authority agreement to accept or to issue do cuments related to
contrac t s of ins u ra nce e v idenc i ng the ac cepta nce of ris k s or commi tmen t s on beh a lf of a memb er o f Lloy d’s
g r ant i n g such authority pursuant to such agreement;
"director", in relation to a co mpany, 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 resp ect of a foreign company, includes a member of a loca l board, a n 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;
"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; and
(d) in relation to a person registered as a tied insurance intermediary, means enrolled in the Tied Insurance Intermediaries
List under article 37, and, in each case, "enrolment" shall be construed accordingly;
"European insurance undertaking" means an undertaking having its hea d office in a Member St a t e or an EE A St ate, other
than Malta, pursuing the activity of direct insurance within the meaning of article 1 of First Council Directive 73/239/EEC of 24 July 1973 on the coo r dination of laws, re gulations and administrative
provisions relating to the taking-up and pursuit of direct insurance other than life assurance or article 2 of Directive 2002/83/EC of the Eu ropean Parliamen t and of the Cou n cil o f 5 Nov e m b er 2002 concerning life assurance, which has received authorisation
under article 6 and article 4 of the said Directives respectively;
"financial year" shall be constr ued in accordance with article
27(4);
"foreig n com p any" 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 com p any o r part nership en commandite h a s com p lied wi th th e 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 Eu ropean insurance intermediary
registered under article 3 of Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation;
"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 t o Ll oy d’s, mean s a pers on en ro lled as such under article 13 app o in ted b y o r on b e hal f of a me mb er
of Ll oy d’s to be it s coverhol der in Malt a in respec t of business of insurance with autho r ity to enter into contracts of
insurance on behalf of that member under the terms of a binding authority agreement;
"insurance broker" means a person carrying on business of insurance broking;
"insurance manager" means a person carrying out activities listed in paragraph (3) of the Third Column of the Schedule;
"insurance intermediary" means any natural or legal person who, t a kes u p or pu rsues insurance intermediaries activi
ties, an d includes a person providing services ancillary to other business of insurance as may be prescribed;
"in s ur ance i n te rm ed iar i es act iv iti es" me ans the act iv it ies of introducing, proposing or carrying out other
work preparatory to the conclusion of contracts of insurance, or of concluding such contracts, or of assisting in the administration
and performance of such contracts, in particular in the event of a claim and includes the activities listed in paragraphs 1 to 4
of the Third Column of the Schedule and any other activities as may be prescribed;
" i ns urance intermediaries rule" means a rule in respect of i n surance in termediaries act i vi ties which sh al l b
e bin d in g o n insurance intermediaries and others as may be specified therein, issued by the competent authority in virtue of
article 4(2);
Cap. 403.
Cap. 403. Cap. 386.
Cap. 403.
Cap. 373.
"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 unde r the Co mpan ies 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;
"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;
"Manag ers Register" means the in su rance m a nagers reg i ster established and maintained under article 7;
" M e m be r S t ate" me ans a Me mb er S t a t e of the Europe an
Communities;
"Minister" means the Minister responsible for finance;
"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 an insurance intermediaries rule made for the purpose of this Act to determine
the amounts and components which make up the enrolled person’s own funds;
"prescribed" means prescribed by regulations under this Act;
"qualifying shareholding" means a direct or indirect holding in a company wh ich represents ten p er centum or more of
the share capital issued by such company or of the voting rights attaching to such share capita l or which ma kes it possible to
exerc i se 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; and
(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 companies,
and, in each case, "registration" shall be construed accordingly;
"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;
"tied insurance intermediary" means a person carrying on tied insurance intermediaries activities;
"tied insurance intermediaries activities", in relation to a person registered as a tied insurance intermediary, means activities
listed in paragraph 4 of the Third Column of the Schedule and any person who carries on insurance intermediaries activities, in addition
to his principal professional activity, shall also be considered as a tied insurance intermediary acting under the responsibility
of an authorised company for the products offered on its behalf if the in surance is complem e ntary to the goods supplied or services
provided in relation to his principal professional activity, whether or not the person collects premiums or amounts intended for
the policyholder concerned;
"Ti e d In su rance In term ediari es List" m eans the list of ti ed insurance intermediaries established and maintained
under article
36(1);
"Tied Insurance Intermediaries Company Register" in relation to an authorised company means the Tied Insurance Intermediaries
Company Register established and maintained by a company under article 34(1);
"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 implement the provisions of Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation, and any othe r Directiv e of the European
Parliame nt and of the Council that may be issued from time to time on the regulation of insurance intermediaries which 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 fro m the m a in object of the pr ovisions so modified.
(4) In this Act and in any regulations made thereunder, if there i s any co nfl i ct between the En gl ish and the M a ltes e
texts, the English text shall prevail.
Cap. 403. Cap. 403.
Cap. 330.
Powers of the Minister. Amended by: XX. 2007.142;
L.N. 427 of 2007; X. 2011.92.
PART II
REGULATORY POWERS
(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 Directive 2002/92/EC of the
European Parliament and of the Council of 9
December 2002 on insurance mediation;
(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;
(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 intermediaries 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 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; administrative penalties shall be due to the competent authority as
a civil debt:
Provided that, an administrative penalty 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:
Provided further that a penalty imposed under this article, whether in the form of a fixed amount, a daily
penalty, or both, may, in no case, exceed one hundred and fifty thousand euro (€150,000);
(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 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.
(3) The Minister may, after consulting the competent authority, mak e reg u lat i ons exemp tin g an y p e rson from all or any
of th e 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 insurance intermediary 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 ex em ptio ns, cond itions or mo difi cati ons as m a y be
specifi ed 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 intermediaries activities, or whether
such insurance intermediaries activities are or are not being carried on in 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.
Powers and duties of the competent authority.
made thereunder and with the conditions specified in certificates of registration or enrolment.
(2) The competent authority may make insurance intermediaries rules as may be required for carrying into
effect any of t h e pr ovisi ons o f th is A c t an d o f any regul at ions mad e thereunder. The competent authority may amend or
revoke such insurance intermediaries rules.
(3) Insurance intermediaries rules and any amendment or revocation thereof shall be officially communicated to the persons
or companies concerned and be open to public inspection at the offices of the competent authority at all times during the normal
working hours of the competent authority.
(4) Insurance intermediaries 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 without prejudice to insurance intermediaries
rules required to be made under this Act and to the generality of the foregoin g , t h e competent aut hority may, by such insurance
intermediaries rules, in particular -
(a) determine, in relation to insurance intermediaries, what constitutes fitness and properness;
(b) determine, in relation to insurance intermediaries, the criteria of sound and prudent management;
(c) determine the information which insurance intermediaries shall disclose to persons seeking or making
use of insurance intermediary services;
(d) determine the codes of conduct which may regulate any aspect of dealings between insurance intermediaries
and insurance companies or between such intermediaries and persons seeking or making use of insurance intermediary services;
(e) determine, in relation to insurance intermediaries activities, the issuing of advertisements and the undertaking
of any other promotional activities.
Application of this Part to specified insurance intermediaries.
Registration or enrolment of insurance intermediaries.
PART III
REGISTRATION OR ENROLMENT OF INSURANCE AGENTS, INSURANCE MANAGERS AND INSURANCE BROKERS
(2) The competent authority shall not grant registration or enrolment under this article 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.
(3) This article shall not apply to a person, which is registered pursuant to Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation in a Member State or EEA State, other than
Malta.
(a) he is an individual;
(b) he is a fit and proper person to be so registered and to ensure the company’s sound and prudent management;
(c) he possesses the qualifications and fulfils or complies with the requirements determined by an insurance intermediaries
rule made for the purposes of this article.
(2) A person shall not be entitled to carry out insurance intermediaries activities by virtue of his registration under
this article unless he is a director or an employee of a company enrolled under article 13.
Register of insurance intermediaries.
Qualifications for registration.
10. (1) Subject to paragraph (b), the intermediary shall be entitled to be enr olled 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 intermediaries 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
List of persons carrying on insurance intermediaries activities.
General requirements for enrolment. Amended by:
XX. 2007.143; L.N. 427 of 2007.
commercial business, other than business determined by an insurance intermediaries rule 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;
(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;
(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 an insurance intermediaries rule 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;
(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 an insurance intermediaries rule;
(b) in the case of an applicant who is an individual:
(i) subarticle (1)(a)(i) 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 he satisfies the competent
authority that -
(aa) he is a fit and proper person to be so enrolled and to ensure that the business is carried on in a sound and prudent
manner;
(bb) he possesses the qualifications and fulfils or complies with the requirements determined by the Act or an
insurance intermediaries rule made for the purposes of this article;
(cc) his activities are limited to operations arising directly from insurance
intermediaries activities and matters and functions connected therewith or ancillary thereto, to the exclusion of all
other commercial business other than business determined by an insurance intermediaries rule.
(2) Where close links exist between the intermediary and any other person, the competent authority shall:
(a) only grant enrolment if it considers that such 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) The competent authority may, from time to time, by means of an insurance intermediaries rule issued under this Act define the
circumstances in which close links are to be regarded as existing between the intermediary and any other person.
(4) Where the application is for enrolment to carry on in suran ce i n termediaries 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 or an insurance broker, as the cas e may be, for which the
applic ant 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 or an insurance broker, as the case may be, unless an d un til it produces p r oo f t o t h e satisfactio
n of th e competent authority that it holds an appointment in writing from the company concerned to act on its behalf.
(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
Specific qualifications for enrolment in the case of local companies. Amended by:
XX. 2007.144.
article 10, the competent authority is satisfied that any one or more of the company’s directors are registered in the Brokers Register,
and the insurance intermediaries activities are carried on under the management of a registered person.
(2) Every person enrolled under article 13 shall make an application in writing to the competent authority before opening
a branch or setting up or acquiring a subsidiary in Malta.
(3) The competent authority may permit a person enrolled as aforesaid to open a branch in Malta if it satisfied that the insurance
intermedi a ries activities carried on by it from the branch are conducted by a registered person.
(4) No person enrolled under this Part of the Act may carry out insurance intermediaries activities, open a branch, office or other
place of business, or set up or acquire a subsidiary in any country outside Malta, except with the written consent of the competent
authority.
Specific requirements for enrolment in the case of foreign companies. Amended by:
XX. 2007.145.
(a) the company is registered or permitted in the country where its head office is situated to carry on insurance intermediaries
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 shall be under the management
of a registered insurance broker.
(2) In relation to a branch of a foreign company carrying on i n su rance in term ed iaries activ ities as m a y be pr escr ibed,
the insurance intermediaries activities shall be carried out from such branch by an individual who satisfies the following requirements:
(a) in the case of a company carrying on insurance intermediaries 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 intermediaries 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 intermediaries activities as may be prescribed, provisions
as may be prescribed.
(2) The competent authority shall have the power to require an applicant to provide such information as it may deem necessary for
the p u rp ose of det e rm ini ng an appl icati on for reg i strat i on 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 the i n fo rmati o n req u ir ed t o be su bmi tted un der th is Act an d an y 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 if it refuses to grant the registratio n or enrol m ent
it shall inform the applicant in writing of the reasons for the 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.
Grant of registration or enrolment by competent authority to insurance intermediaries.
(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.
(2) A certificate of registration or enrolment granted 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.
Certificate of registration or enrolment of intermediaries.
(3) The competent authority may by means of an insurance intermediaries rule made for the purposes of this article, determine t h e detai l s to be in cluded in the cer tif icate of r e g i strat i on or enrolment.
Automatic striking off of registration or enrolment of intermediaries. Amended by:
XX. 2007.146.
PART IV
POWERS OF INTERVENTION IN RELATION TO PERSONS ENROLLED UNDER PART III
(a) the intermediary does not commence to carry on the insurance intermediaries 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
(c) the intermediary has ceased to operate as a result of a merger with another company carrying on insurance intermediaries 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 on such activities.
(2) Subarticle (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.
(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 made
thereunder or any insurance intermediaries rule; or
(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 any regulations made thereunder, or any insurance intermediaries rule, 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 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 on insurance intermediaries
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 intermediaries
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 an insurance intermediaries rule made under this Act.
Notification of intention of suspension or striking a name off the register or list.
concerned notice in writing setting out the reasons for its intention to do so.
(2) Every notice given under subarticle (1) shall state that the person concerne d may, within such reason able period afte r the
service thereof as may be stated in the notice (being a period of not less than forty-eight hours and not longer than fifteen 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 R e gis t er, Ma nage rs Register or Brokers Register, or the Agents List, Managers
List or B r okers List, as a p plic able, an d the competent autho r ity shall co nsider an y representat ion s so m ade before arrivi
ng at a fi nal 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 B rokers 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 dee m neces sary to safegu a r d the inte re sts 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
specif ied in article 16 of th is Act, it may, if it so elect s give publicity to such suspension or striking off in a manner it
deems appropriate.
(6) The competent authority shall have power to order that all expenses, incurred by it in relation to such publicity, or such
part thereo f, as i t deems app r opri a te, shall b e p a id by the person concerned; and any sum so due s h al l be re co ve ra
b l e b y th e comp etent aut horit y in the same man n er as an administrativ e penalty imposed under this Act.
Restoration of a name struck off the register or list.
(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
made und er arti cl e 13; and if i t refuses to restore a nam e 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) Subarticle (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.
(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, 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,
Power of the competent authority to protect the public interest.
and having proceeded in any one or more of the manners aforesaid, 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 subarticle (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 subarticle (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 subarticle to the exclusion of any other person;
(c) under subarticle (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
subarticle; 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 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 subarticle (1)(f), such person shall be the liquidator of the intermediary for all purposes of law to the exclusion of any other person.
(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.
Monies held in a fiduciary capacity.
PART V
OBLIGATIONS OF PERSONS ENROLLED UNDER PART III
(2) No person shall have or obtain any recourse or right against
(1) in respect of a claim or right against an enrolled person until all proper claims ari sin g out of i nsu rance inter mediari es
activi ties agains t those monies have been satis f ied, even in the event of bankruptcy of the individual or insolvency of the company,
as the case may be.
(2) The bond referred to in subarticle (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 incur r ed loss or liability because of the inability or failure of the enrolled person to meet such financial obligations.
Fidelity bonds required of insurance intermediaries.
(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 i n come statem ents draw n up in a manner as determined by
an
Exemptions applicable to insurance managers.
Notification of persons registered in the register.
Submission of audited financial statements and income statements.
Cap. 386.
insurance intermediaries rule made for the purposes of this article and such statements shall be forwarded to the competent authority within such period as may be specified in the rule.
Submission of business of insurance intermediaries statements.
i n ter m ediar i es acti v it ies so car ri ed o n b y it, f o r w ar d to the competent authority a statement relating to that business
made out
in the form, manner and content as the competent authority may, by an insurance interm ediaries r u le made for the purp o ses of
thi s article determine; and the date by which such statement shall be
forwarded shall also be established by that rule.
(2) The statement required to be submitted under this article sh al l b e ver i f i ed in th e man n er required by the insurance
intermediaries rule.
(3) The competent authority may at any time direct an enrolled person to submit to it such statement at such interval and for such
period as it may specify in such rule.
Enrolled persons ceasing to carry on insurance intermediaries activities.
Amended by: XX. 2007.148.
Financial year of insurance intermediaries.
(2) The application for ceasing shall be submitted to the competent authority not later than three months before the date
on whi c h the enr o lled person i n tend s to cease t o car r y o n such activities.
PART VI
FINANCIAL YEAR AND AUDITORS
(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
autho r ity o f its fin a ncial y e ar; and after enrolment u nder 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" -
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.
Cap. 386.
(2) If the enrolled company fails to appoint an auditor as required by subarticle (1) or at any time fails to fill any
vacancy in the o ffi ce of an aud itor, the comp etent au thor ity shall have th e po wer to appoint an auditor for th at comp any
and shall fi x the remuneration to be paid by that company to such auditor.
(3) The auditor ’s report shall include a statement as to whether the various requirements of this Act and of any regulations
made thereunder and of any insurance intermediaries rule in respect of the enrolled company have been complied with and observed.
(4) Every auditor of an enrolled company 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 company.
(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 m e ntioned 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 company shall, not later
than fo urteen days fro m the t e rmination of such appointment, give notice in writing to the competent authority stating reasons
for such termination.
(8) The competent authority may require an enrolled company to change its appointed auditor where, in the competent authority’s
Appointment, duties and termination of appointment of auditors.
Cap. 386. Cap. 403.
opinion, such auditor is considered unfit for this appointment, at any time during his term of office.
(9) Before requiring an enrolled company to change the appointed auditor in the circumstances mentioned in subarticle
(8), the competent authority shall notify in writing its intention to the company and the auditor concerned stating reasons for
requiring such change and giving the auditor the opportunity to submit, in wr itin g, w ithin four teen days fr om the date of ser
v ing of such notice, the reasons why his appointment with the company 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 accorda nce with the
Companies Act and holds the authoris a t ion of the competent auth ority to act as auditor issu ed to him und er the Insura nce Business Act.
(11) Notwithstanding anything contained in the foregoing subarticles, the competent authority may, in the case of a foreign
compa n y, approve suc h alterna t ive arra ngements as it thinks reaso n able an d w h ich do no t m a t e ri ally detr act fro
m th e main o bjects o f t his ar ticle, an d where such arrangements have been ca rr ie d ou t, th e p ro vi sio ns of th is ar
ti cle sha ll n ot ap pl y to t he extent that they are replaced by such arrangements.
(12) If, in his capacity as auditor of an enrolled company 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 intermediaries activities carried on in Malta, he shall immediately inform the competent
aut h o r it y th ro ug h th e in ter m edi a r y ’ s man a gemen t o r , if circumstances so warrant, directly to the competent
authority.
(13) For the purposes of subarticle (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
(b) gravely impairs the company’s ability to continue as a going concern or to continue carrying on the activities in respect of
which it is enrolled; or
(c) may be prescribed by the Minister.
(14) An auditor of an enrolled company 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 soundness of the company or the integrity of the insurance intermediaries
activities carried on in Malta, of which he becomes aware in his capacity as an auditor to an enrolled company having close links
within the meaning of article 10.
Communication by auditors etc. with the competent authority.
(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
PROVISIONS APPLICABLE TO INTERMEDIARIES
CARRYING ON BUSINESS AS INSURANCE BROKERS
(2) Where a contract of insurance is a contract of a general business class or part class - falling within group 3 of Part II
of the Third Schedule to the Insurance Business Act, and such contract is a contract relating to a risk situated in Malta and is taken out with a Mutual Association, which is not
a European insurance u ndert ak ing , th at Mu tu al shall have to be a Mut u al with in the meaning of a "Mutual Association"
as construed in accordance with article 6(3) of the said Act; and the Mutual shall have to satisfy or comply with the requirements
of the insurance rule made for the purposes of the said article ei th er on o r b e fo re t h e da te of commencement of such contract
or not later than thirty days from
the date of such commencement.
(3) Save as otherwise provided in subarticle (2), the provisions of this article shall not apply to -
(a) business of reinsurance;
(b) large risks as defined by Article 5 of the Second
Council Directive 88/357/EEC of 22nd June 1988 on
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.
Cap. 403.
the coordination of laws, regulations and administrative provisions relating to direct insurance other than
the life assurance and laying down provisions to facilitate the effective exercise of freedom to provide
services and amends Directive 73/
239/EEC.
Underwriting agreements.
Restriction on persons for carrying out tied insurance intermediaries activities.
(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 an insurance intermediaries
rule made for the purpose of this article determine.
(3) Any person enrolled as aforesaid shall register with the competent authority any underwriting agreement made or entered
into under this article in the form and manner as the competent authority may by an insurance intermediaries rule determine.
(4) No business of insurance shall be accepted under an u nderwr itin g agr eem ent u nless the un derwr itin g agr eem
ent h as 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 intermediaries rule; 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 company and a person enrolled in the Brokers List und er arti cle 13 un der whi c h t h e enro lled person
may, in accordance with the terms thereof, accept risks on behalf of the authorised company; and, in this context, any other arrangement,
by whatever name it may be called, whose objects and purposes are simi lar t o an un derwri ti ng ag r eement, for the purposes of
this article, is deemed to be an underwriting agreement.
PART VIII
REGISTRATION AND ENROLMENT OF TIED INSURANCE INTERMEDIARIES
(2) This article shall not apply to a tied insurance intermediary,
which is reg i stered pursuant to Directive 2002/92 /EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation in a Member State or an EEA State, other than
Malta.
(2) Subject to the provisions of subarticle (1), every authorised company shall determine its own procedures for appointing and registering a person as a tied insurance intermediary in the Tied Insurance Intermediaries Company Register.
Tied Insurance Intermediaries Company Registers.
(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.
Qualifications for registration.
(2) It shall be the duty of an authorised company 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 of the company
under article 37.
(3) On obtaining from the competent authority a certificate of enrolment under article 37, an authorised company shall furnish
the person, in whose name the certificate of enrolment is made out, with the certific a te or a n of fici a l copy thereof, i ssue
d to th e company 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 thereof issued by the competent authority under
this article.
List of persons carrying out tied insurance intermediaries activities.
Appointment, registration and enrolment of tied insurance intermediaries. Amended by:
XX. 2007.150.
Provided that, a company is prohibited from appointing and registering in the Tied Insurance Intermediaries Company Register of the
company 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;
Cap. 403. (c) a company authorised under the Insurance Business
Act to carry on business of insurance:
Provided further that a company is prohibited from appo inting any p e rson acting on its behal f as a t i ed i n su
rance intermediary to carry out any t i ed insu rance in term edi a ri es acti v ities w ithin any cl ass or group o f classes of
b u siness of insurance as the competent authority may, from time to time, by an insurance intermediaries rule 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.
(2) Where an authorised company appoints and registers in the Tied Insurance Intermediaries Company Register of the company a person
which is not an individual, and that person carries out tied insurance intermediaries activities from any one or more places of busin
ess, that p e rson shal l ascertain t h at 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 subarticles (4) and (5), any person, other than a person mentioned in the first proviso to subarticle (1), may seek
and obtain under this article appointment and registration in a Tied Ins u rance Intermediarie s Company Regis t er of an a u thoris
ed company to carry out tied insurance intermediaries activities on behalf of that company.
(4) Where a person desires to seek appointment and registration in the Tied Insurance Intermediaries Company Register
of mo re th an on e comp an y auth or ised to carry o n l o n g term business, and where any class of long term business carried
on by the companies 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
concerned.
(5) Where a person desires to seek appointment and registration in the Tied Insurance Intermediaries Company Register
of more than one company authorised to carry on general business, and where any class, or any group of classes, of general business
carried on by the companies 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 cl asses of bu sin e ss onl y in t h e T i ed In su rance In termediaries Company Reg i ster o f
one of the comp ani e s concerned.
(6) No person who is an employee of an authorised company shall, solely by virtue of his employment by the company, require registration
in the Tied Insurance Intermediaries Company Register of the company under this article.
(7) (a) On granting an application for enrolment under this arti cle, t h e comp et ent autho r ity sh al l issue to the a p plic
ant conc erned a certificate of e n rolment evidencing enrolment of the person registered in the Tied Insurance Intermediaries
Company Register of the applicant in the Tied Insurance Intermediaries List.
(b) The competent authority may by means of an insurance intermediaries rule made for the purposes of this article,
determine the details to be included in the certificate of enrolment.
(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.
(9) An authorised company 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 company or offered on
its behalf through the services of such tied insurance intermediaries. For the purposes of this subarticle any reference to registered
tied insurance intermediaries shall include a reference to past as well as present registered tied insurance intermediaries.
(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 i n surance in termedi a ry unt il a ll proper claims ar ising out of insurance intermediaries activities against those monies have been
Maintenance of separate accounts.
Striking name off Tied Insurance Intermediaries Company Register.
Striking name off Tied Insurance Intermediaries Company Register or the Tied Insurance Intermediaries
List.
sa tisfie d, even in the event of b a n k ru ptcy of th e in di vid u al or insolvency of the company, as the case may be.
(3) Notwithstanding the provisions of subarticles (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 company 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 company to the tied 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.
(a) any authorised company may strike off the Tied Insurance Intermediaries Company Register of the company the name
of any person registered in the said register;
(b) any person registered in the Tied Insurance Intermediaries Company Register of an authorised company may
make an application in writing to the company concerned requesting the company to strike his name off the said register.
(2) Where an authorised company strikes the name of a person off the Tied Insurance Intermediaries Company Register of the company
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 company shall also notify in writing the competent authority the reasons for so doing.
(3) On receiving a notification from an authorised company that the company has elected to strike the name of a person off
the Tied Insurance Intermediaries Company Register of the company, the competent authority shall -
(a) if the striking of such name off the register is on grounds other than those specified in subarticle (2), as early as
reasonably practicable, confirm in writing to the company concerned that the name of such person, in so far as it relates to that
company, shall be struck off the Tied Insurance Intermediaries List as from the date specified in the company’s notification;
(b) if the striking of such name off the register is on
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 Ti ed Insurance Inte rmediaries Li st on the grounds specified
in subarticle (2), the competent authority may give publicity to the striking 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 company,
the competent authority shall also forthwith notify in writing that other company and direct it to strike forthwith
the name of that person off the Tied Insurance Intermediaries Company Register of that company and give the company the reasons
for its direction;
(b) if the competent authority elects to give publicity to the striking of that name off the Tied Insurance Intermediaries
List, the competent authority shall publish a notice giving publicity to that striking off in a manner it deems appropriate.
(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 pai d by th e p e rson con cerne d; an d an y sum so du e sha
l l b e recoverable by the competent authority in the same manner as an administrative penalty imposed under this Act.
(6) Where an authorised company receives in writing an application from a person re gi stered in the T i ed Insurance Intermediaries
Company Register of the company requesting the company to strike the name of that person off the said register, the company 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 company under subarticle (6), the company refuses, or unduly prolongs the p
r ocess, t o strike th e n a me of a person o ff the Ti ed Insurance Intermediaries Compa ny Register of the company, the person
concerned may refer the matter to the competent authority and the co mpetent author ity shall issue i n wr iting to th e company
concerned those directives it deems necessary to oblige the company to hasten the process to strike the name of that person off its
register.
(8) On notification by the competent authority to an authorised
company that the name of a person registered in the Tied Insurance Intermediaries Company Register of the company has been struck
off the Tied Insurance Intermediaries List, the company concerned shall forthwith surrender to the competent authority the certificate
of enrolment relating to that person, and any official copies thereof.
Protection of the public or other interest.
(a) refuse to enrol a person in the Tied Insurance
Intermediaries List;
(b) strike the name of a person off the Tied Insurance
Intermediaries List:
Provided that, in each case, the competent authority shall inform the company 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 insureds,
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.
Changes in documentation. Amended by: XXVII. 2009.39.
42. (Deleted by XXVII. 2009.38).
(2) In the case of a European insurance undertaking seeking to appoint a person resident in Malta or having its registered office
or head office in Malta to car r y out ti ed insurance interm ediaries activities, that undertaking shal l enrol s u ch person
with the competent authori t y as m a y b e determ i n ed by an insurance intermediaries rule made for the purposes of this article
and the said rule shall contain the particulars, conditions and requirements for enrolment.
PART IX
GENERAL PROVISIONS
(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 an insurance intermediaries rule 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 that rule.
(3) Without prejudice to the foregoing provisions of this article, a person enrolled under Part III, shall notify the competent
authority on a continuous basis, with any change or circumstance which may giv e rise to the existence of clo s e l i nk s wit h
in the meaning of article 10.
(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.
(2) Subarticle (1) shall apply irrespective of whether or not any of the relevant shares are shares listed on any regulated market
within t h e mean ing of the Financial Markets Act o r o n a n equivalent market in a non-Member State or non-EEA State.
Participation in an enrolled company. Added by:
XVII. 2009.40.
Cap. 345.
(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 subarticle (1).
(4) Notwithstanding anything contained in any other law, the written consent of the competent authority shall be required before
any enrolled company 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.
(5) It shall be the duty of all directors and qualifying sh arehold e rs of an enr o lled company to not ify
th e competent authority forthwith upon becoming aware that the company intends to take any of the actions set out in subarticle
(4).
(6) For the purpose of this article, the competent authority may issue an insurance in term ediaries rule dete rmining the form
in which notification in terms of subarticle (1) and subarticle (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
subarticle (1)(a) to (c), determine whether such person is a fit and proper person before giving its consent.
(7) Within three months of receipt of such notification or receipt of su ch information as the competent au thority 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 en rol l ed co mpany concerned in wri tin g of t h e reason
for such refusal.
(8) If any person or any enrolled company takes or intends to take any action set out in subarticle (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 similar action or any other action within the categories set out in subarticles
(1) and (4).
(9) In the case of a foreign company enrolled under this Act to carry out insurance intermediaries 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.
(10) Without prejudice to any other provision of this Act, where the influence exercised by an y p e rson ho ld i n g a q u a l i
f yi ng sharehol ding is, o r is likely t o , operate against the sound and prud ent man a gem e nt 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.
(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;
(c) the power to strike off the name of a tied insurance intermediary off the Tied Insurance Intermediaries List enrolled under article
41;
(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 authority information in its possession, whether such information is the
result of any of the above powers or otherwise.
(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
Co-operation in supervisory duties and sharing of information. Amended by:
XX. 2007.151.
Cap. 403.
out of Directive 2002/92/EC of the European Parliament and of the Council of 9 December 2002 on insurance mediation, as amended from time to time, and includes
any implementing measures that have been or may be used thereunder; 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.
(3) There shall be meetings held between an authorised company, an insurance intermediary, an approved auditor and
the co mpetent au tho r ity on a bi lateral or a mult ilateral basi s 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.
Confidentiality. Amended by: XX. 2007.152; X. 2011.93.
(2) Information obtained by the competent authority or by its officers, employees or agents, as well as by inspectors, auditors
and experts engaged by the competent authority for the purposes of, or pursuant to, any of the provisions of this Act, or of any
regulations made thereunder, or of any insurance intermediaries rule, or 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;
(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;
Financial Markets Act in exercise of their respective 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.
(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.
(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 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.
(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.
(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 Preve n tion of Mon e y Laun deri
ng Act and any procedures and guidance issued thereunder, and such disclosure shall not constitute a breach of confidentiality.
Cap. 345.
Cap. 373.
Access to the public of the registers and the lists.
during the normal working hours of the competent authority.
(2) Any person may, upon payment of such fee as may be prescribed, obtain from the competent authority extracts from
the Agents Register, Managers Register or Brokers Register and the Agents List, Managers List or Brokers List, and the Tied Insurance
Intermediaries List and official copies of certificates of registration or enrolment.
(3) The Tied Insurance Intermediaries Company Register of any local company authorised under the Insurance Business Act shall be open to public inspection, free of charge, at the principal office of the company concerned during the normal working hours
of the company.
Use of the word "insurance". Amended by: XX. 2007.153.
(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
List under article 37; or
Cap. 403. (d) a company 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 titl e or make any such use on any l etter paper, in
any notice or advertisement, or in any other similar manner.
(2) Any foreign company enrolled or 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 company shall add such explanatory
particulars to its name as the competent authority shall direct.
(3) The competent authority may, by an insurance intermediaries rule made for the purpose of this article,
determine the qualifications or experience for carrying on insuranc e intermediaries activities which are required of persons, other
than persons referred to in the foregoing subarticles 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.
(4) For the purposes of this article, the expression "insurance" includes reinsurance, assurance and reassurance and
any of their
business or the carrying out of such activities in any language in the descrip tion or title un der which a per s on is carr ying
o n su ch business or carrying out such activities.
(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
(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, a clerk or the representative of that body.
Service of notices, etc.
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.
(2) Subject to the provisions of this article, any person who, or any company which, is aggrieved by a decision of the competent
authority -
(a) to refuse to register or to enrol an applicant under article 13 or 41 of this Act;
(b) to impose any condition on, or subsequent to, registration and enrolment under article 13 or 37;
(c) to suspend or strike the name of a person off 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) to refuse 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) to refuse to register an underwriting agreement under article 32;
(f) to strike the name of a person off the Tied Insurance
Appeals. Amended by: XVII. 2009.41. Cap. 403.
Cap. 330.
Intermediaries List under article 40(3)(b);
Cap. 403. (g) to require a company authorised under the Insurance Business Act to strike the name of a person off the Tied Insurance Intermediaries Company Register of a company under article 41;
(h) to issue any notice or make any order under article
44A;
(i) to impose an administrative penalty in respect of infringements as may be prescribed under article 3,
may appeal against the decision to the Tribunal which shall have exclusive competence to hear appeals on the matters listed in this
subarticle.
(3) An appeal under this article shall lie only on any of the following grounds:
(a) that the competent authority has wrongly applied any of the provisions of this Act; or
(b) that the decision of the competent authority constitutes an abuse of discretion or is manifestly unfair, provided that the discretion
of the competent authority may not, so long as it has been exercised properly, be queried by the Tribunal.
(4) An appeal made under this article shall not suspend the operation of any decision from which the appeal is made except
in the case of an appeal from a decision as is mentioned in subarticle (2)(h):
Provided that a decision to strike the name of a person off the Agents R egister, Managers Register or Brokers Register or Agents
List, Managers List or Brokers List shall not become operative until the expiration of the period within which an appeal may be made
under this article and, if an appeal is made within such period, the decision shall become operative on the date of the decision
of the Tribunal dismissing the appeal or the date in which the appeal is abandoned.
Exclusion of liability.
Offences. Amended by: XVII. 2009.42.
(a) who for the purpose of obtaining the registration or enrolment under this Act or any regulations 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,
Insurance Business Act, as applicable in accordance with article 54 of this Act;
(c) who contravenes or fails to comply with any regulations made under this Act, other than regulations in relation
to which administrative penalties have been prescribed under article 3(2)(h);
(d) who contravenes or fails to comply with any insurance intermediaries rule or registration or enrolment condition;
(e) who fails to comply with any lawful order or requirement of the competent authority;
(f) who fails to comply with any lawful order or requirement of any other person made under this Act and any regulations
made thereunder;
(g) 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
(h) who intentionally obstructs a person exercising rights conferred by this Act or any regulations made thereunder,
shall be guilty of an offence.
(2) Any person who is knowingly a party to, or procures or aids and abets the commission of any offence under subarticle (1) shall
be guilty of an offence and shall be liable to the same penalties as the principal offender.
(3) The Minister shall make regulations under this article pre s cri b in g pe na lt i e s fo r of fe nc es ag ai n s t
th i s A c t , a n d su ch regulations may prescribe -
(a) penalties which are enforceable by prosecution in the courts of Malta;
(b) different penalties for contraventions of different provisions of this Act;
(c) penalties calculated in accordance with the duration of the commission of the offence,
unless such penalties are otherwise imposed under article 3.
52 -
(a) in the case of imprisonment, shall not provide for a sentence of imprisonment greater than two 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
Cap. 403.
Penalties.
Amended by:
L.N. 427 of 2007;
X. 2011.94.
one hundred sixteen thousand euro (€116,000);
(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.
(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.
(3) The provisions of this Act shall not affect any criminal proceedings that may be competent under any other law.
Application of certain articles of the Insurance Business Act to insurance intermediaries. Amended by: XVII. 2009.43. Cap. 403.
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 company" were a reference to an
"enrolled person";
(iii) to "business of insurance" were a reference to
"insurance intermediaries activities";
(b) articles 29 to 31A of the Act shall apply to a person enrolled in the Tied Insurance Intermediaries List as if reference in such
provisions -
(i) to "authorisation" were a reference to "enrolment in the Tied Insurance Intermediaries List";
(ii) to "an authorised company" were a reference to
"a tied insurance intermediary";
(iii) to "business of insurance" were a reference to
"tied insurance intermediaries activities".
(2) Subarticle (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 intermediaries rules".
Savings. Cap. 404.
55. (1) Every licence issued or other action whatever taken or com m enced under the Insurance Busine ss Act , in s o far as insurance agents and insurance managers are concerned, or under
the Insura nce Brokers and Ot he r I n t e rm ed ia ri es A c t * , 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.
Cap. 403. (2) Any person or company licensed under the Insurance
B u siness Ac t to ac t as an insuranc e agent or a s an insurance
*Repealed by this Act.
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 subarticle "appointed date" means a day
being six months after the date of the coming into force of this Act.
(3) Where a company ceases to act as an insurance agent, insurance manager or insurance broker on the grounds that such
company di d not, o n the appoint ed date, co nform wit h 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 da te to c eas e to ca rry on insur a nce i n termediaries
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.
(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 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.
(5) Where a person ceases to act as an insurance sub-agent on t h e g r ounds th at such person di d not, o n the appoin t ed 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
*Repealed by this Act.
Cap. 249.
Cap. 403.
Cap. 403.
Cap. 403.
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.
(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 cont inue in forc e and may be am ended, al tered, repealed or otherwise dealt with accordingly.
(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 th e c o r r esp
o n d i n g provision thereof.
(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 th e compet ent
authority before the coming into force of the provisions of this Act, and any reference in any law to an insurance intermediaries
dire ctive shall be deemed to be a reference to an insurance intermediaries rule.
(9) For the purpose of this article, "licence" includes authority
*Repealed by this Act.
or authorisation, per mit, ap proval, r egistration, enrolm ent and appo int m ent , and the word "licen sed " shall be const r ued accordingly.
Amended by: XX. 2007.154.
SCHEDULE (Article 2)
INSURANCE INTERMEDIARIES AND INSURANCE INTERMEDIARIES 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 subarticle (1) of article 2 of the Insurance Business Act.
First Column | Second Column | Third Column |
Independent Insurance Intermediaries | Dependent Insurance Intermediaries | Insurance Intermediaries Activities |
Insurance Broker | Insurance Agent Insurance Manager | 1. Professional activities of persons listed in the Fir st Co lum n of th is Schedu le w ho, act ing wi th complete freedom as to th eir c hoi ce of l a wful in su rers, bri n g to gether , wi th a view to the insurance or reinsurance of risks or commitments, pe rsons seeking insura n ce 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; 2. Professional activities of persons listed in the Second Column of this Schedule who are appointed by a com p an y authorised under the Insurance Bus i ness 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 company under the terms of the appointment; 3. Professional activities of persons listed in the 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; and |
First Column | Second Column | Third Column |
Independent Insurance Intermediaries | Dependent Insurance Intermediaries | Insurance Intermediaries Activities |
Tied Insurance Intermediary | (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; 4. Activities of persons listed in the Second Column of this Schedule who, carry on insurance intermediaries activities for or on behalf of one or more authorised companies in the case of insurance products which are not in competition, acting under th e f u ll r e spon sibi li ty of th ose a u th or ised companies for the pr oducts which concern them resp ectively an d who may collect premiums or am ounts intended for the policyholder, provided that no insurance commitments towards or on the part of t h e pu bl ic are gi ven as part of t h ese activities. |
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