INSURANCE DISTRIBUTION [CAP. 487. 1
CHAPTER 487
To regulate the registration and enrolment of insurance and reinsurance intermediaries and the
insurance and reinsurance distribution activities.
1st October, 2006
ACT XII of 2006, as amended by Act XX of 2007; Legal Notice 427 of 2007; Acts XVII of
2009 and X of 2011; Legal Notice 451 of 2013; and Act XXXIII of 2015 and XXVI of 2018 andV of 2020.
Arrangement of ActINSURANCE DISTRIBUTION ACTSubstituted by:
XXVI.2018.3
Articles
Part I Preliminary 1 - 2Part II Regulatory Powers 3 - 4Part III Registration or Enrolment of Insurance Agents,
Insurance Managers and Insurance Brokers  5 - 14
Part IV Powers of In tervention in relation to Persons enrolled
under Part III 15 - 19
Part V Obligations of Persons enrolled under Part III 20 - 26Part VI Financial Year and Auditors 27 - 29Part VII P rovisions applicable to Intermediaries carrying on
business as Insurance Brokers 30 - 32
Part VIII Registr ation and Enrolment of Tied Insurance
Intermediaries33 - 43
Part VIIIA Registration and Enrolment of Ancillary Insurance
Intermediaries43A-43J
Part VIIIB Provisions applicable to Undertakings Authorised unde r
the Insurance Business Act carrying out Distribution
Activities43K-43O
Part IX General Provisions 44 - 55
SCHEDULE
Insurance and Reinsurance Distribution Activities
2 [CAP. 487. INSURANCE DISTRIBUTION
PART I
PRELIMINARY
Short title.
Amended by:
XXVI.2018.6 .1. The short title of this Act is the Insurance Distribution Act.
Interpretation and 
scope.
Amended by:
X. 2011.91;XXXIII. 2015.79;XXVI. 2018.7.2.(1) In this Act, unless the context otherwise requires -
"advertisement", in r elation to insurance distribution activities,
means any form or medium of marketing activity or communicationdisseminated to the public by means of all types of media, othe r than a
prospectus, which promotes the purchase or procurement of a ser vice
or product and which is addressed by a person registered or enr olled
under this Act, carrying out insurance distribution activities,  to a client
or potential client;
"Agents List" means the list of persons acting as insurance
agents established and maintained under article 9;
"Agents Register" means the insurance agents register
established and maintained under article 7;
"ancillary insurance intermediaries activities", in relation to  a
person registered and enrolled as an ancillary insuranceintermediary, means the insurance distribution activities liste d in
paragraph (5) of the Third Column of the Schedule;
"Ancillary Insurance Intermediaries Company Register" in
relation to an authorised undertaking and an enrolled insurancebroker means the Ancillary Insurance Intermediaries CompanyRegister established and maintained by an authorised undertakin g
or an enrolled insurance broker under article 43B(1);
"Ancillary Insurance Intermediaries List" means the list of
ancillary insurance intermediaries established and maintainedunder article 43D(1);
"ancillary insurance intermediary" means any natural or legal
person, other than a credit institution or an investment firm, as defined
by points (1) and (2) of Article 4(1) of Regulation (EU) No. 57 5/2013
of the European Parliament and of the Council of 26 June 2013 o n
prudential requirements for credit institutions and investment firms
and amending Regulation (EU) No. 648/2012, carrying out theinsurance distribution activities listed in paragraph (5) of th e Third
Column of the Schedule;
"approved auditor" and "auditor" have the meaning assigned to
them by article 28(10);
"authorised insurance undertaking" has the same meaning as is
assigned to it by article 2(1) of the Insurance Business Act;
Cap. 403."authorised reinsurance undertaking" has the same meaning as is
assigned to it by article 2(1) of the Insurance Business Act;
Cap. 403."authorised undertaking" means an authorised insurance
undertaking or an authorised reinsurance undertaking which hasreceived authorisation pursuant to article 7 of the 
Insurance
Business Act or any person deemed authorised under the said Act,
to carry on business of insurance and includes a company enroll ed
under this Act to act as an insurance agent of the undertaking,  as
      
INSURANCE DISTRIBUTION [CAP. 487. 3
well as a European insurance undertaking or a European
reinsurance undertaking having its head office in a Member Stat e or
an EEA State establishing a branch or providing services in Mal ta
in exercise of a European right;
"binding authority agreement" means an agreement between a
member of Lloyd’s or a person acting on its behalf and acoverholder under which the coverholder may, in accordance withthe terms thereof, accept risks or commitments on behalf of tha t
member of Lloyd’s;
"body corporate" means an entity having a legal personality
distinct from that of its members and also includes a foreigncorporation;
"branch" means premises of the company, other than its head
office, from which insurance distribution activities or reinsur ance
distribution activities  are carried out;
"Brokers List" means the list of persons carrying on business a s
insurance brokers established and maintained under article 9;
"Brokers Register" means the insurance brokers register
established and maintained under article 7;
Cap. 403."business of insurance" has the same meaning as is assigned to it
by article 2(1) of the Insurance Business Act;
"business of insurance broking", in relation to a registered
insurance broker or an enrolled insurance broker, means theactivities listed in paragraph (1) of the Third Column of theSchedule;
Cap. 386."cell" has the same meaning as is assigned to it by the
Companies Act;
Cap. 386."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 authorityunder article 14 to the person evidencing enrolment ofthat person in the Agents List; and
(b) in relation to a person acting as an insurance manager,
means a certificate issued by the competent authorityunder article 14 of this Act to the person evidencingenrolment of that person in the Managers List;
(c) in relation to a person carrying on business as
insurance broker, means a certificate issued by thecompetent authority under article 14 to the personevidencing enrolment of that person in the Brokers List;
(d) in relation to a person registered as a tied insurance
intermediary in the Tied Insurance IntermediariesCompany Register of any authorised undertaking, means
a certificate issued by the competent authority underarticle 37 to the authorised undertaking enrolling thatperson evidencing enrolment of that person in the Tied
4 [CAP. 487. INSURANCE DISTRIBUTION
Insurance Intermediaries List; and;
(e) in relation to a person registered as an ancillary insurance
intermediary in the Ancillary Insurance IntermediariesCompany Register of any authorised undertaking or anyenrolled insurance broker, means a certificate issued bythe competent authority under article 43E to theauthorised undertaking or the insurance broker enrollingthat person evidencing enrolment of that person in the
Ancillary Insurance Intermediaries List;
"certificate of registration" -
(a) in relation to an individual registered as an insurance
agent, means a certificate issued by the competentauthority under article 14 of this Act to that individualevidencing registration of that individual in the AgentsRegister;
(b) in relation to an individual registered as an insurance
manager, means a certificate issued by the competentauthority under article 14 to that individual evidencingregistration of that individual in the ManagersRegister; and
(c) in relation to an individual registered as an insurance
broker, means a certificate issued by the competentauthority under article 14 to that individual evidencingregistration of that individual in the Brokers Register;
"class" -
Cap. 403.(a) in relation to long term business, means any of the
classes specified in the Second Schedule to the
Insurance Business Act; and
Cap. 403.(b) in relation to general business, means any of the
classes specified in Part I of the Third Schedule to the
Insurance Business Act;
"close links" means a situation in which two or more natural or
legal persons are linked by control or participation, or a situ ation in
which two or more natural or legal persons are permanently link ed
to one and the same person by a control relationship;
Cap. 403."commitment" and "country of the commitment" have the same
meanings as are assigned to them by article 2(1) of the Insurance
Business Act;
"company" includes a local company and a foreign company;
Cap. 330."competent authority" means the Malta Financial Services
Authority established by the Malta Financial Services Authority Act;
"conditions" includes obligations and restrictions;"Conduct of Business Rules" means rules relating to conduct of
business issued by the competent authority under various articl es of
this Act and under any regulations made thereunder;
Cap. 403."contract of insurance" and "contract" have the same meanings
as are assigned to them by article 2(1) of the Insurance Business
Act;
      
INSURANCE DISTRIBUTION [CAP. 487. 5
"control" means the relationship between a parent undertaking
and a subsidiary undertaking, as set out in Article 22 of Directive
2013/34/EU of the European Parliament and of the Council of 26
June 2013 on the annual financial statements, consolidatedfinancial statements and related reports of certain types ofundertakings, amending 
Directive 2006/43/EC of the European
Parliament and of the Council and repealing Council Directives 78/
660/EEC and 83/349/EEC, or a similar relationship between anynatural or legal person and an undertaking;
"controller", in relation to a body corporate, is a person who,
alone or together with others, exercises the power to determine  the
financial and operating policies of the body corporate;
"coverholder" means a person authorised under a binding
authority agreement to accept or to issue documents related tocontracts of insurance evidencing the acceptance of risks orcommitments on behalf of a member of Lloyd’s granting suchauthority pursuant to such agreement;
"director", in relation to a company, includes an individual
occupying the position of a director of the company, by whateve r
name he may be called, empowered to carry out substantially thesame functions in relation to the direction of the company as t hose
carried out by a director and, in respect of a foreign company,includes a member of a local board, an agent and the persondesignated as the representative of that company for the purpos e 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 2May, 1992 as amended by the Protocol signed at Brussels on the17th March, 1993 and as amended from time to time;
"EIOPA" means the European Insurance and Occupational Pensions
Authority established in terms of Article 1 of Regulation (EU) No.
1094/2010;
"enrolled" -
(a) in relation to a person acting as an insurance agent,
means enrolled in the Agents List under article 13;
(b) in relation to a person acting as an insurance manager,
means enrolled in the Managers List under article 13;
(c) in relation to a person carrying on business as
insurance broker, means enrolled in the Brokers Listunder article 13; 
(d) in relation to a person registered as a tied insurance
intermediary, means enrolled in the Tied InsuranceIntermediaries List under article 37; and 
(e) in relation to a person registered as an ancillary insurance
intermediary, means enrolled in the Ancillary InsuranceIntermediaries List under article 43E,
and, in each case, "enrolment" shall be construed
accordingly;
"European insurance undertaking" means an undertaking having
6 [CAP. 487. INSURANCE DISTRIBUTION
its head office in a Member State or an EEA State, other than
Malta, pursuing the activity of direct insurance within the mea ning
of Article 2 of the Solvency II Directive, which has received
authorisation in accordance with Article 14 of the Solvency II
Directive ;
"European reinsurance undertaking" means an undertaking
having its head office in a Member State or an EEA State, otherthan Malta, pursuing business restricted to reinsurance within the
meaning of Article 2 of the 
Solvency II Directive which  has
received authorisation in accordance with Article 14 of the
Solvency II Directive ;
"financial year" shall be construed in accordance with article
27(4);
"foreign company" means a company or a partnership en
commandite  or similar or equivalent body corporate, the capital of
which is divided into shares, registered, incorporated or const ituted
outside Malta under the laws of any country provided that suchcompany or partnership en commandite  has complied with the
provisions of any law which may from time to time be in force i n
Malta relating thereto;
Provided that, unless otherwise specified, the term "foreign
company" shall not include a European insurance intermediaryregistered under article 3 of the Insurance Distribution Direct ive;
"functions" includes responsibilities, powers and duties;
Cap. 403."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 relat ion
to Lloyd’s, means a person enrolled as such under article 13appointed by or on behalf of a member of Lloyd’s to be itscoverholder in Malta in respect of business of insurance withauthority to enter into contracts of insurance on behalf of tha t
member under the terms of a binding authority agreement;
"insurance-based investment product" means an insurance
product which offers a maturity or surrender value and where th at
maturity or surrender value is wholly or partially exposed, dir ectly
or indirectly, to market fluctuations, and does not include:
(a) insurance products falling within the classes of general
business specified in Part I of the Third Schedule tothe Insurance Business Act;
Cap. 403.(b) insurance contracts falling within the classes of long-
term business specified in the Second Schedule to the
Insurance Business Act, where the benefits under the
contract are payable only on death or in respect ofincapacity due to injury, sickness or disability;
(c) pension products which are recognised as having the
primary purpose of providing the investor with anincome on retirement, and which entitle the investor tocertain benefits;
      
INSURANCE DISTRIBUTION [CAP. 487. 7
(d) officially recognised occupational pension schemes
falling under the scope of Directive 2003/41/EC of theEuropean Parliament and of the Council of 3 June2003 on the activities and supervision of institutionsfor occupational retirement provision, as amended fromtime to time, or of the Solvency II Directive;
(e) individual pension products for which a financial
contribution from the employer is required by law andwhere the employer or the employee has no choice asto the pension product or provider;
"insurance broker" means a person carrying on business of
insurance broking;
"insurance distribution activities" means the activities of adv ising
on, proposing, or carrying out other work preparatory to theconclusion of contracts of insurance, of concluding such contra cts, or
of assisting in the administration and performance of such cont racts, in
particular in the event of a claim, including the provision ofinformation concerning one or more contracts of insurance inaccordance with criteria selected by the clients, through a web site or
other media and the compilation of an insurance product ranking  list,
including price and product comparison, or a discount on the pr ice of a
contract of insurance, when the client is able to directly or i ndirectly
conclude a contract of insurance using a website or other media , and
includes the activities listed in paragraphs (1) to (5) of the Third
Column of the Schedule, the distribution activities carried out  by an
authorised insurance undertaking and any other activities as ma y be
prescribed;
"Insurance Distribution Directive" means Directive (EU) 2016/97  of
the European Parliament and of the Council of 20 January 2016 o n
insurance distribution (recast), as amended from time to time, and
includes any delegated acts and any technical standards that ha ve been
or may be issued thereunder;
"Insurance Distribution Rules" means rules in respect of insura nce
distribution activities and reinsurance distribution activities , issued by
the competent authority under various articles of this Act and under
any regulations issued thereunder;
"insurance intermediary" means any natural or legal person, oth er
than an authorised insurance undertaking or an authorised reins urance
undertaking or their employees, and other than an ancillary ins urance
intermediary, who, for remuneration, takes up or pursues insura nce
distribution activities;
"insurance manager" means a person carrying out activities list ed
in paragraph (3) of the Third Column of the Schedule;
Cap. 403."insurer" has the same meaning as assigned to it by article 2(1 )
of the Insurance Business Act;
Cap. 386."local company" means a limited liability company formed and
registered under the Companies Act and includes, subject to
subarticle (2), a partnership en commandite , the capital of which is
divided into shares, formed and registered under the said Act;
8 [CAP. 487. INSURANCE DISTRIBUTION
Cap. 403."Malta’s international commitments" has the same meaning as
assigned to it by article 2(1) of the Insurance Business Act;
"Managers List" means the list of persons acting as insurance
managers established and maintained under article 9;
"Managers Register" means the insurance managers register
established and maintained under article 7;
"Member State" means a Member State of the European
Communities;
"Minister" means the Minister responsible for the regulation of
Financial Services;
Cap. 373."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, partn er,
manager or company secretary or any person effectively acting i n
such capacity whether formally appointed or not;
"own funds" shall be construed in accordance with Insurance
Distribution Rules made for the purpose of this Act to determin e
the amounts and components which make up the enrolled person’sown funds;
"participation" means the ownership, direct or by way of contro l,
of 20% or more of the voting rights or capital of an undertakin g;
"prescribed" means prescribed by regulations under this Act;"qualifying shareholding" means a direct or indirect holding in  a
company which represents ten per centum  or more of the share
capital issued by such company or of the voting rights attachin g to
such share capital or which makes it possible to exercise asignificant 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 AgentsRegister;
(b) in relation to a person registered as an insurance
manager under article 13, means registered in theManagers Register;
(c) in relation to a person registered as an insurance
broker under article 13, means registered in theBrokers Register;
(d) in relation to a person registered as a tied insurance
intermediary under article 37, means registered in the
Tied Insurance Intermediaries Company Register of
any one or more authorised undertakings; and
(e) in relation to a person registered as an ancillary insurance
intermediary under article 43E, means registered in the
Ancillary Insurance Intermediaries Company Register of
any one or more authorised undertakings or one enrolledinsurance broker,
      
INSURANCE DISTRIBUTION [CAP. 487. 9
and, in each case, "registration" shall be construed accordingl y;
"regulated market" means either of the following:
Cap. 345(a) in the case of a market situated in Malta, a market
authorised in terms of the Financial Markets Act ;
(b) in the case of a market situated in a Member State or an
EEA State, other than Malta, a regulated market asdefined in point (21) of Article 4(1) of Directive 2014/65/EU of the European Parliament and of the Council of 15May 2014 on markets in financial instruments andamending Directive 2002/92/EC and Directive 2011/61/EU (recast), as amended from time to time; or
(c) in the case of a market situated in a non-Member State
or non-EEA State, a financial market which fulfils thefollowing conditions:
(i) it is recognised by the competent authority and
fulfils requirements comparable to those laid
down in Directive 2014/65/EU; and
(ii) the financial instruments dealt in on that market
are of a quality comparable to that of theinstruments dealt in on the regulated market ormarkets in Malta;
"Regulation (EU) No. 1094/2010" refers to Regulation (EU) No.
1094/2010 of the European Parliament and of the Council of 24November 2010 establishing a European Supervisory Authority(European Insurance and Occupational Pensions Authority),amending Decision No. 716/2009/EC and repealing CommissionDecision 2009/79/EC;
"reinsurance distribution activities" means the activities of
advising on, proposing, or carrying out other work preparatory to
the conclusion of contracts of reinsurance, of concluding suchcontracts, or of assisting in the administration and performanc e of
such contracts, in particular in the event of a claim, includin g the
activities carried out by an authorised reinsurance undertakingwithout the intervention of a reinsurance intermediary, theactivities listed in paragraphs (1) to (3) of the Third Column of the
Schedule, and any other activities as may be prescribed; 
"reinsurance intermediary" means any natural or legal person,
other than an authorised reinsurance undertaking or its employe es,
who, for remuneration takes up or pursues reinsurance distribut ion
activities;
"remuneration" means any commission, fee, charge or other
payment, including an economic benefit of any kind or any otherfinancial or non-financial advantage or incentive offered or gi ven
in respect of insurance distribution activities;"; and
Cap. 403."representative" shall be construed in accordance with article 12
of the Insurance Business Act;
Cap. 403."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;
10 [CAP. 487. INSURANCE DISTRIBUTION
" Solvency II Directive" means Directive 2009/138/EC of the
European Parliament and of the Council of 25 November 2009 onthe taking-up and pursuit of the business of Insurance andReinsurance (Solvency II) (recast), as amended from time to tim e,
and includes any delegated acts and any technical standards tha t
have been or may be issued thereunder;
Cap. 403."third country insurance undertaking" means an undertaking,
other than a European insurance undertaking, which would requir e
authorisation as an authorised insurance undertaking pursuant t o
article 7 of the Insurance Business Act, as if its head office were
situated in Malta;
Cap. 403."third country reinsurance undertaking" means an undertaking,
other than a European reinsurance undertaking, which wouldrequire authorisation as an authorised reinsurance undertaking in
accordance with article 7 of the 
Insurance Business Act, as if its
head office were situated in Malta;
"tied insurance intermediaries activities", in relation to a pe rson
registered and enrolled as a tied insurance intermediary, means  the
insurance distribution activities listed in paragraph (4) of th e Third
Column of the Schedule,  including any person who carries on such
activities in addition to his main activity;
"Tied Insurance Intermediaries Company Register" in relation to
an authorised undertaking means the Tied Insurance Intermediari es
Company Register established and maintained by an authorisedundertaking under article 34(1);
"Tied Insurance Intermediaries List" means the list of tied
insurance intermediaries established and maintained under artic le
36(1);
"tied insurance intermediary" means a person carrying on tied
insurance intermediaries activities;
Cap. 330."Tribunal" means the Financial Services Tribunal referred to in
article 21 of the Malta Financial Services Authority Act.
(2) The objective of this Act is, in part, to transpose and
implement the provisions of the Insurance Distribution Directiv e and
any other European Union Directives and Regulations that may beissued and amended from time to time relating to insurancedistribution activities and reinsurance distribution activities , and
consequently this Act and any regulations, Insurance Distributi on
Rules and Conduct of Business Rules issued thereunder, shall beinterpreted 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 totime, make in any provision thereof, which modifications shall not
materially detract from the main object of the provisions somodified.
(4) In this Act and in any regulations made thereunder, if there
is any conflict between the English and the Maltese texts, theEnglish text shall prevail.
      
INSURANCE DISTRIBUTION [CAP. 487. 11
PART II
REGULATORY POWERS
Powers of the 
Minister.
Amended by:
XX. 2007.142;L.N. 427 of 2007;X. 2011.92.XXVI.2018.8;V .2020.55.3.(1) The competent authority shall carry out its functions
under this Act and, in particular, shall ensure compliance with  the
provisions of this Act.
(2) The Minister may, after consultation with the competent
authority, make regulations as may be required for carrying int o
effect any of the provisions of this Act and without prejudice to the
generality of the foregoing, the  Minister may, by such regulati ons,
in particular, make provisions in respect of any one or more of  the
following matters:
(a) the implementation of the Insurance Distribution
Directive;
(b) the transposition of any requirement or provision as may
arise under a Directive, Regulation or Decision of theEuropean Union or any other similar measure relevant forthe purposes of this Act. Any such regulations madeunder this paragraph and strictly related to transpositionas aforesaid, may provide that in so far as any of theprovisions of the regulations are inconsistent with theprovisions of this Act or of any other law, the provisionsof the regulations shall prevail, and the provisions of this
Act or of any other law shall, to the extent of the
inconsistency, not apply;
(c) the amendment or revocation of the Schedule;
(d) the payment by any person, body or cell created by a
cell company, as the case may be, of any fees, dutiesand such other charges payable to the competentauthority in respect of any matter provided for, by orunder the Act, or any regulations made under thisarticle;
(e) the registration or enrolment of persons, other than
persons registered or enrolled by virtue of this Act,carrying out insurance distribution activities orreinsurance distribution activities or providing services
ancillary to business of insurance as may beprescribed;
(f) any matter relating to or connected with any provision
contained in the Schedule;
(g) any matter that may or is to be prescribed under any
provision of this Act;
(h) the administrative measures and administrative penalties
in respect of infringements as may be prescribed, whichmay be imposed and recovered by the competentauthority without recourse to a court hearing, and suchadministrative penalties shall be due to the competentauthority as a civil debt;
(i) the penalties or other punishments to which persons
contravening or failing to comply with any provisionof any regulation made under this Act shall become
12 [CAP. 487. INSURANCE DISTRIBUTION
liable, being penalties of not less than two hundred and
thirty euro (€230) and not exceeding one hundred andfifty thousand euro (€150,000), in respect of any offenceand in respect of a continuing offence of a further penaltynot exceeding two hundred and thirty euro (€230) foreach day during which the offence continues;
(j) any matter incidental to or connected with any of the
above;
(k) any matter relating to the establishment, co-ordination,
amalgamation and otherwise of compensation
schemes.
(2A) The regulations made under paragraph (h) of sub-article (2)
may impose: 
(a) administrative penalties which may not be greater than
a financial penalty of one hundred and fifty thousandeuro (€150,000) for each infringement or failure tocomply, as the case may be, and, where suchinfringement or failure to comply continues, a furtherpenalty not exceeding one hundred and sixteen euro(€116) for each day during which the infringement orfailure to comply continues;and
(b) administrative penalties and fines higher than one
hundred and fifty thousand euro (€150,000), wheredeemed necessary or appropriate, for anycontravention of or failure of compliance with theInsurance Distribution Directive or any EU Regulationissued thereunder, or with any regulations, InsuranceDistribution Rules or Conduct of Business Rulesissued under this Act to transpose or to give effect tosuch Directive or Regulation.
(3) The Minister may, after consulting the competent authority,
make regulations exempting any person from all or any of theprovisions of this Act or any regulations made thereunder, subj ect
to such conditions or requirements including the requirement ofother forms of registration or enrolment and notification proce dures
as may be prescribed.
(4) The Minister may also by regulations under this article,
after consultation with the competent authority, extend and mak e
applicable any of the provisions of this Act to any other insur ance or
reinsurance distribution activity as may be prescribed which in  his
opinion ought, in the public interest, to be regulated by suchprovisions.
(5) Regulations made under this article may make such
exemptions, conditions or modifications as may be specifiedtherein in respect of different cases, circumstances or purpose s and
may give the competent authority such power of adaptation of th e
regulations as may be specified therein.
(6) In the event of a doubt as to whether an activity constitute s
the carrying out of insurance distribution activities or reinsu rance
distribution activities, or whether such insurance distribution  activities
      
INSURANCE DISTRIBUTION [CAP. 487. 13
or reinsurance distribution activities are or are not being car ried out in
or from Malta, the matter shall be conclusively determined by t he
competent authority.
(7) The exercise of any of the powers assigned under this
article shall be subject to any obligations or restrictions ari sing
from Malta’s international commitments.
(8) Regulations made under this Act and any amendment or
revocation of such regulations, may be published in the Englishlanguage only.
Powers and duties 
of the competent authority.
Amended by:
XXXIII. 2015.80.XXVI. 2018.9.4. (1) It shall be the duty of the competent authority to carry
out the functions assigned to it by or under this Act and to en sure
that:
(a) persons, companies, insurance intermediaries or
reinsurance intermediaries, registered or enrolled inaccordance with this Act and regulations madethereunder, comply with the provisions of this Act andof any regulations made thereunder, with InsuranceDistribution Rules and Conduct of Business Rulesmade and directives issued by the competent authorityin virtue of this Act and of any regulations madethereunder, and with the conditions specified incertificates of registration or enrolment; and 
(b) authorised insurance undertakings and authorised
reinsurance undertakings carrying out insurancedistribution activities and reinsurance distributionactivities comply with the provisions of this Act and ofany regulations made thereunder, with any InsuranceDistribution Rules and Conduct of Business Rules madeand directives issued by the competent authority in virtueof this Act and of any regulations made thereunder.
(1A) The competent authority shall also carry out the functions
and duties as competent authority for the purposes of the Insur ance
Distribution Directive, and the European Commission shall beinformed accordingly.
(1B) The competent authority shall have all the investigatory
powers that are necessary for the exercise of its functions.
(2) The competent authority may make Insurance Distribution
Rules and Conduct of Business Rules as may be required for carrying
into effect any of the provisions of this Act and of any regula tions
made thereunder. The competent authority may amend or revokesuch Insurance Distribution Rules or Conduct of Business Rules and
any amendment or revocation thereof shall be officiallycommunicated to the persons concerned.
(3) Insurance Distribution Rules shall be binding on persons
registered or enrolled under this Act, on authorised insuranceundertakings and authorised reinsurance undertakings and others  as may
be specified therein. Conduct of Business Rules shall be bindin g on
persons registered or enrolled under this Act, on authorised in surance
undertakings and others as may be specified therein.
14 [CAP. 487. INSURANCE DISTRIBUTION
(4) Insurance Distribution Rules and Conduct of Business Rules
made by the competent authority in virtue of this Act may provi de
for different regulatory requirements to be applicable to diffe rent
categories of insurance intermediaries and reinsurance intermed iaries;
and without prejudice to Insurance Distribution Rules and Condu ct of
Business Rules required to be made under this Act and to thegenerality of the foregoing, the competent authority may, by su ch
Insurance Distribution Rules and Conduct of Business Rules, inparticular -
(a) determine, in relation to persons registered or enrolled
under this Act , what constitutes fitness and properness;
(b) determine, in relation to persons registered or enrolled
under this Act, the criteria of sound and prudent
management;
(c) determine the information which persons enrolled under
this Act shall disclose to persons seeking or making use
of intermediary services;
(d) determine the codes of conduct which may regulate
any aspect of dealings between persons registered or
enrolled under this Act and authorised insuranceundertakings or authorised reinsurance undertakings, orbetween such persons and persons seeking or making use
of intermediary services;
(e) determine, in relation to insurance distribution activities,
the issuing of advertisements and the undertaking ofany other promotional activities.
(4A) The competent authority may make, amend or revoke
Insurance Distribution Rules and Conduct of Business Rules, asmay be required for the purpose of implementing any guidelinesand recommendations issued by EIOPA under Article 16 ofRegulation (EU) No. 1094/2010, for the implementation of theInsurance Distribution Directive.
(4B) The competent authority shall monitor the market relating
to insurance and reinsurance distribution activities, including  the
market for ancillary insurance products which are marketed,distributed or sold in, or from, Malta.
      
INSURANCE DISTRIBUTION [CAP. 487. 15
PART III
REGISTRATION OR ENROLMENT OF INSURANCE AGENTS, 
INSURANCE MANAGERS AND INSURANCE BROKERS
Application of this 
Part to specified 
insurance and reinsurance intermediaries.
Amended by:
XXVI.2018.10.5. This Part of the Act applies to persons acting as insurance
agents, insurance managers and insurance brokers, carrying outinsurance distribution activities, reinsurance distribution act ivities or
both activities hereinafter referred to as "the intermediary".
Registration or 
enrolment of insurance and reinsurance intermediaries.
Amended by:
XXVI.2018.11.6.(1) Subject to subarticle (3), no person shall act as an
intermediary and carry out, or attempt to carry out, in or from  Malta,
insurance distribution activities and reinsurance distribution activities,
unless such person is registered or enrolled under article 13.
(2) The competent authority shall not grant registration or
enrolment under article 13 to a person nor shall the competentauthority permit such person to be registered or enrolled there under
or to remain so registered or enrolled, unless it is satisfied that such
person fulfils or complies with the requirements set out in thi s Part
of the Act.
(3) This article shall not apply to a person, which is registere d
pursuant to the Insurance Distribution Directive in a Member State or
EEA State, other than Malta.
Register of 
insurance and reinsurance intermediaries.
Amended by:
XXVI.2018.12.7. The competent authority shall establish and maintain
registers of persons carrying out the insurance distribution ac tivities or
reinsurance distribution activities of insurance agents, insura nce
managers and insurance brokers, in this Act separately referred  to
as the "Agents Register", the "Managers Register" or the "Broke rs
Register", containing such particulars as the competent authori ty
may determine from time to time, by Insurance Distribution Rule s
made for the purposes of this article, of all persons which areentitled under this Act to be registered therein and to apply i n the
manner determined by the said Insurance Distribution Rules to b e so
registered.
Qualifications for 
registration.
Amended by:
XXVI.2018.13.8.(1) A person shall be entitled to be registered in the
"Agents Register", the "Managers Register" or the "BrokersRegister" if such person satisfies the competent authority that  the
person -
(a) is an individual;
(b) is fit and proper to be so registered and to ensure the
company’s sound and prudent management;
(c) has appropriate knowledge and ability in order to
complete tasks and perform duties adequately, in relationto insurance distribution activities and reinsurancedistribution activities and possesses the qualificationsand fulfils or complies with the requirements determinedby Insurance Distribution Rules made for the purposes ofthis article.
(2) A person shall not be entitled to carry out insurance
distribution activities and reinsurance distribution activities  by virtue
of his registration under this article unless he is a director or an
16 [CAP. 487. INSURANCE DISTRIBUTION
employee of a company enrolled under article 13.
List of persons 
carrying out insurance and reinsurance distribution activities.
Amended by:
XXVI.2018.14.9. (1) The competent authority shall establish and maintain a list
of persons carrying out insurance distribution activities andreinsurance distribution activities of insurance agents, insura nce
managers and insurance brokers, in this Act separately referred  to as
the "Agents List", the "Managers List", or the "Brokers List",containing particulars of all persons which are entitled under this Act
to be enrolled therein and which apply in the manner determined  from
time to time by the competent authority in Insurance Distributi on
Rules made for the purposes of this article. The said Lists sha ll be
updated on a regular basis.
(2) The Agents List, the Managers List, and the Brokers List
are to specify the names of the registered individuals within t he
management of the intermediary who are responsible for theinsurance distribution activities or reinsurance distributionactivities.
(3) In the case of cross-border activities carried out in terms of
the Insurance Distribution Directive, the Agents List, the Mana gers
List, and the Brokers List shall also indicate the Member State s or
the EEA States in which the intermediary is carrying out insura nce
distribution activities or reinsurance distribution activities,  and the
competent authority shall communicate that information to EIOPA ,
for the purpose of publication on EIOPA’s single electronic reg ister
in terms of Article 3(4) of the Insurance Distribution Directiv e. 
(4) The competent authority shall have the right to modify such
data stored on EIOPA’s single electronic register referred to i n sub-
article (3), and data subjects, whose personal details are stor ed on such
register and exchanged, shall have the right to access such sto red data
and the right to be appropriately informed.
General 
requirements for enrolment.
Amended by:
XX. 2007.143;L.N. 427 of 2007;XXXIII. 2015.81;XXVI. 2018.15.10. (1) Subject to paragraph ( b), the intermediary shall be
entitled to be enrolled in the Agents List, Managers List or th e
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 distributionactivities or reinsurance distribution activitieslisted in paragraphs (1), (2) and (3) of the ThirdColumn of the Schedule, as applicable, and tomatters or functions connected therewith orancillary thereto, to the exclusion of all othercommercial business, other than businessdetermined by Insurance Distribution Rulesmade for the purposes of this article;
(ii) the applicant discloses to the satisfaction of the
competent authority such information as thecompetent authority has requested of it inrelation to persons who will, upon its enrolment,have any proprietary, financial or other interestin, or in connection with, the applicant;
(iiA) the applicant discloses the identity of the
      
INSURANCE DISTRIBUTION [CAP. 487. 17
shareholders, direct or indirect, whether natural
or legal persons, who will have qualifyingholdings in that intermediary and the amounts ofthose holdings;
(iiB) the applicant discloses the identity of persons who
have close links with the applicant;
(iii) all qualifying shareholders, controllers, directors
and all persons who will effectively manage theaffairs or carry out the operations appropriate tothe application are fit and proper persons toensure its sound and prudent management;
(iiiA)  the applicant possesses appropriate knowledge
and ability in order to be able to complete tasksand perform duties adequately, in relation toinsurance distribution activities and reinsurancedistribution activities, as determined by InsuranceDistribution Rules made for the purposes of thisarticle;
(iv) the applicant’s own funds, whether in euro or in
other currencies acceptable to the competentauthority are at all times not less than suchamount appropriate for the kind of business to becarried on by it as may be determined byInsurance Distribution Rules made for thepurposes under this Act and such own fundsshall at all times be unencumbered;
(v) the applicant has at all times in its favour a
policy of professional indemnity insurance orsome other comparable guarantee, in each caseacceptable to the competent authority,indemnifying it or any person employed by it orotherwise acting for it, to such amount, in suchmanner and in respect of such matters as the
competent authority may from time to timedetermine by Insurance Distribution Rules;
(vi) the applicant submits to the satisfaction of the
competent authority a scheme of operationsappropriate to the application which shallinclude the particulars or proof as may bedetermined by Insurance Distribution Rules;
(b) in the case of an applicant who is an individual:
(i) sub-article (1)(a)(i), (iiA) and (iii) shall not apply;
and
(ii) he shall be entitled to be enrolled in the Agents
List, Managers List or the Brokers List if theapplicant satisfies the competent authority thatthe individual:
(aa)is fit and proper to be so enrolled and to
ensure that the business is carried on in asound and prudent manner;
(bb)has appropriate knowledge and ability in
18 [CAP. 487. INSURANCE DISTRIBUTION
order to complete tasks and perform duties
adequately in relation to insurancedistribution activities and reinsurancedistribution activities and possesses thequalifications and fulfils or complies withthe requirements as determined by the Actand Insurance Distribution Rules made forthe purposes of this article;
(cc)carries out activities which are limited to
operations arising directly from insurance
distribution activities and reinsurance
distribution activities, and matters andfunctions connected therewith or ancillarythereto, to the exclusion of all othercommercial business, other than businessdetermined by Insurance Distribution Rules;
(dd)discloses the identity of persons who have
close links with the applicant.
(2) Where the holdings or close links referred to in sub-article  (1)
exist between the intermediary and any other person, the competent
authority shall:
(a) only grant enrolment if it considers that such holdings or
close links do not prevent it from effectively exercising
its supervisory functions; and
(b) refuse to grant enrolment if it considers that the laws,
regulations or administrative provisions of anycountry, other than Malta, governing any person withwhom the intermediary has close links, or theirenforcement, prevent it from effectively exercising itssupervisory functions.
(3) Where the application is for enrolment to carry out insurance
distribution activities or reinsurance distribution activities as an
insurance agent or insurance manager, the applicant is required  to
produce proof to the satisfaction of the competent authority th at
such person holds an appointment in writing signed by a seniorofficer of an insurer, reinsurer or an insurance broker, as the  case may
be, for which the applicant desires to act designating the appl icant
to act in the name and on behalf of the company, or solely on b ehalf
of the company, in the capacity specified in the appointment an d in
respect of matters and under the conditions specified in thatappointment:
Provided that, where an application is for enrolment to act
as an insurance manager, the appointment referred in this parag raph
shall not constitute a prerequisite condition for granting enro lment
in that behalf provided that the enrolled insurance manager sha ll not
act for an insurer, reinsurer or an insurance broker, as the ca se may
be, unless and until it produces proof to the satisfaction of t he
competent authority that it holds an appointment in writing fro m
the company concerned to act on its behalf.
      
INSURANCE DISTRIBUTION [CAP. 487. 19
Specific 
qualifications for enrolment in the case of local companies.
Amended by:
XX. 2007.144;XXVI.2018.16.11. (1) In the case of an applicant which is a local company,
such company shall be entitled to be enrolled in the:
(a) Agents List if, in addition to the requirements of
article 10, the competent authority is satisfied that anyone or more of the company’s directors are registeredin the Agents Register;
(b) Managers List if, in addition to the requirements of
article 10, the competent authority is satisfied that anyone or more of the company’s directors are registeredin the Managers Register;
(c) Brokers List if, in addition to the requirements of
article 10, the competent authority is satisfied that anyone or more of the company’s directors are registeredin the Brokers Register,
and the insurance distribution activities or reinsurance distri bution
activities are carried out under the management of a registeredperson.
(2) A person enrolled under article 13 may, with the approval of
the competent authority given in writing, open a branch or set up or
acquire a subsidiary in Malta.
(3) The competent authority may permit a person enrolled as
aforesaid to open a branch in Malta if it is satisfied that the insurance
distribution activities or reinsurance distribution activities carried on
by it from the branch are conducted  by a registered person.
(4) Except with the written consent of the competent authority, no
person enrolled under this Part of the Act may carry out, nor h old itself
as carrying out, insurance distribution activities or reinsuran ce
distribution activities, open a branch, office or other place o f business,
or set up or acquire a subsidiary, in any country outside Malta .
Specific 
requirements for enrolment in the case of foreign companies.
Amended by:
XX. 2007.145;XXVI. 2018.17.12. (1) In the case of an applicant which is a foreign company,
such company shall be entitled to be enrolled in the Agents Lis t,
Managers List or Brokers List if, in addition to the requiremen ts of
article 10, the competent authority is satisfied that -
(a) the company is registered or permitted in the country
where its head office is situated to carry out insurance
distribution activities or reinsurance distributionactivities;
(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 insurancerelating to risks situated outside of Malta orcommitments where Malta is not the country ofcommitment may, either in lieu of or in addition toopening a branch in Malta, appoint an insurancemanager enrolled under the Act to manage suchbusiness; and as long as the insurance manager holdssuch appointment, the business of insurance broking
20 [CAP. 487. INSURANCE DISTRIBUTION
shall be under the management of a registered
insurance broker.
(2) In relation to a branch of a foreign company carrying out
insurance distribution activities or reinsurance distribution a ctivities as
may be prescribed, the insurance distribution activities or rei nsurance
distribution activities shall be carried out from such branch by an
individual who satisfies the following requirements:
(a) in the case of a company carrying out insurance
distribution activities or reinsurance distributionactivities -
(i) the individual is registered in the Agents
Register, Managers Register or BrokersRegister;
(ii) the individual is a director of the company or has
authority to act for the company and theinsurance distribution activities or reinsurancedistribution 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 ofthe company;
(b) in the case of a company carrying on other insurance
distribution activities or reinsurance distributionactivities as may be prescribed, provisions as may be
prescribed.
Grant of 
registration or enrolment by competent authority to insurance and reinsurance intermediaries.
Amended by:
XXVI.2018.18.13. (1) An application for registration or enrolment under this
article shall be made in such form and manner as the competentauthority may from time to time determine.
(2) The competent authority shall have the power to require an
applicant to provide such information as it may deem necessary for
the purpose of determining an application for registration orenrolment under this article.
(3) The competent authority may grant registration or
enrolment under this article only if it is satisfied on the bas is of
information required to be submitted under this Act and anyregulations or Insurance Distribution Rules made thereunder, an d any
information received by it, that registration or enrolment ought to be
granted.
(4) Subject to the provisions of this Act, the competent
authority may subject registration or enrolment made under thisarticle 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 month s of
receiving the information required to be submitted under this A ct and
any regulations or Insurance Distribution Rules made thereunder . The
competent authority shall notify the applicant of its decision,  without
undue delay; and if it refuses to grant the registr ation or enrolment
it shall inform the applicant in writing of the reasons for the
      
INSURANCE DISTRIBUTION [CAP. 487. 21
refusal:
Provided that, in each case the competent authority may
take such measures as it may deem necessary for the protection of
the interest of the public.
(6) The validity of the registration or enrolment under this art icle
shall be subject to a regular review by the competent authority .
Certificate of 
registration or enrolment of intermediaries.
Amended by:
XXIV .2018.19.14. (1) On granting registration or enrolment under article 13,
the competent authority shall issue to the applicant concerned a
certificate of registration or enrolment in the form and manner  as it
deems appropriate evidencing -
(a) in the case of an application for registration,
registration of the applicant in the Agents Register,Managers Register, or Brokers Register, as the casemay be;
(b) in the case of an application for enrolment, enrolment
of the applicant in the Agents List, Managers List orBrokers List, as the case may be.
(2) A certificate of registration or enrolment issued under this
article  or an official copy thereof shall be prominently displayed by
the intermediary concerned at his, or its place or places of bu siness,
in a part thereof to which the public has access.
(3) The competent authority may by means of Insurance
Distribution Rules made for the purposes of this article, deter mine
the details to be included in the certificate of registration o r
enrolment.
Professional and 
organisational requirements.
Added by:
XXIV .2018.20.14A.  An intermediary carrying out insurance distribution activities
or reinsurance distribution activities and its employees, carry ing out
insurance or reinsurance distribution activities, shall comply with
continuing professional training and development requirements i n
order to maintain an adequate level of performance correspondin g to
the role they perform and the relative market, as may be determ ined by
means of Insurance Distribution Rules and, or Conduct of Busine ss
Rules issued for the purposes of this article.
PART IV
POWERS OF INTERVENTION IN RELATION TO PERSONS 
ENROLLED UNDER PART III
Automatic striking 
off of registration or enrolment of intermediaries.
Amended by:
XX. 2007.146;XXVI.2018.21.15. (1) An intermediary registered or enrolled under this Act
shall automatically be struck off the register or list, if -
(a) the intermediary does not commence to carry out the
insurance distribution activities or reinsurancedistribution activities pursuant to the enrolment within
twelve months of it being granted, or within such otherperiod as may be specified in the enrolment; or
(b) the intermediary is declared bankrupt or goes into
liquidation or makes a composition with creditors ofthe intermediary or is otherwise dissolved; or
22 [CAP. 487. INSURANCE DISTRIBUTION
(c) the intermediary has ceased to operate as a result of a
merger with another company carrying out insurance
distribution activities or reinsurance distributionactivities,  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 thecountry of registration or where the head office issituated withdraws the registration or permission to
carry out 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;XXVI. 2018.22.16. Without prejudice to anything contained in any other
provision of this Act, the competent authority may at any timesuspend registration or enrolment or strike off the name of aregistered or enrolled person from the Agents Register, Manager s
Register or Brokers Register, or the Agents List, Managers List  or
Brokers List if -
(a) any document or information accompanying an
application for registration or enrolment, or anyinformation given in connection therewith, is false,incorrect or misleading in any material particular, orthe registered or enrolled person has concealed, orconceals from, or fails to notify to the competentauthority any document or information or changetherein which was the duty of the intermediary toreveal or to notify under this Act and any regulations,
Insurance Distribution Rules or Conduct of BusinessRules made thereunder;
(b) it considers that the registered or enrolled person does
not fulfil the requirements of, or has contravened, anyof the provisions of this Act and and any regulations,
Insurance Distribution Rules or Conduct of BusinessRules made thereunder, or has failed to satisfy or
comply with any condition to which he or it, or theregistration or the enrolment, is subject by virtue of orunder 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 AgentsList, 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 AgentsList, Managers List or Brokers List; or
(e) it receives a written request so to do by the registered
or enrolled person; or
(f) the enrolled person no longer possesses the required
own funds as applicable; or
(g) the enrolled person fails to pay the annual continuance
of registration or enrolment fee when due; or
(h) the registered person does not hold a directorship in, or
      
INSURANCE DISTRIBUTION [CAP. 487. 23
is no longer employed with, the enrolled company; or
(i) the enrolled company ceases to have on its board of
directors any one person who is a registered person; or
(j) it considers that, by reason of the manner in which the
registered or enrolled person is carrying out insurance
distribution activities or reinsurance distributionactivities, 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 useor illegally withheld monies held, or required to beheld, 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 anoffence which, owing to its trivial nature or thecircumstances under which it was committed, does notrender it or him unfit to have his name in the AgentsRegister, Managers Register or Brokers Register or the
Agents List, Managers List or Brokers List; or
(m) the registered or enrolled person is considered by the
competent authority to have carried on insurance
distribution activities or reinsurance distributionactivities  in an unprofessional manner; or
(n) the competent authority is prevented from exercising
its supervisory functions effectively because of theexistence of close links as may be defined by means of
Insurance Distribution Rules made under this Act;
(o) the enrolled insurance agent or insurance broker is not
utilising the services of intermediaries as required in termsof article 44B ; or
(p) the registered or enrolled person fails to comply with the
conduct of business requirements in relation to aninsurance-based investment product or in relation to anyinsurance product other than an insurance-basedinvestment product, set out in Conduct of Business Rules;or
(q) the registered or enrolled person ceases to fulfil any of th e
requirements laid down in articles 8(1)(b) and (c),10(1)(a)(iii), (iiiA), (iv) and (v), 10(1)(b)(ii)(aa) and (bb),14A and 20, and where applicable, any InsuranceDistribution Rules issued under the said articles.
Notification of 
intention of suspension or striking a name off the register or list.
Amended by:
XXVI.2018.23.17. (1) Subject to the following provisions of this article,
where the competent authority in tends to suspend a registration  or
enrolment or strike the name of a registered or enrolled person  off
the Agents Register, Managers Register or Brokers Register, or the
Agents List, Managers List or Brokers List, it shall give the p erson
concerned notice in writing setting out the reasons for its int ention
to do so.
24 [CAP. 487. INSURANCE DISTRIBUTION
(2) Every notice given under subarticle (1) shall state that the
person concerned may, within such reasonable period after theservice thereof as may be stated in the notice (being a period of not
less than forty-eight hours and not longer than thirty days), m ake
representations in writing to the competent authority giving re asons
why the registration or enrolment should not be suspended or th e
name of the person struck off the Agents Register, ManagersRegister or Brokers Register, or the Agents List, Managers List  or
Brokers List, as applicable, and the competent authority shallconsider any representations so made before arriving at a final
decision.
(3) The competent authority shall notify in writing its final
decision to the person concerned.
(4) On notification by the competent authority to a person that
his or its name has been suspended or has been struck off the
Agents Register, Managers Register or Brokers Register or theAgents List, Managers List or Brokers List, the intermediary sh all
forthwith surrender to the competent authority the certificate of
registration or enrolment, and any official copies thereof; and  in
each case, the competent authority may take such other measure as
it may deem necessary to safeguard the interests of insureds,policyholders, creditors or other interested persons.
(5) Where the competent authority has suspended the
registration or enrolment or struck off the name of a person fr om
the Agents Register, Managers Register or Brokers Register or t he
Agents List, Managers List or Brokers List on any of the ground s
specified in article 16 of this Act, the competent aut hority shall give
publicity to such suspension or striking off, and the provision s of
article 53A shall apply .
(6) The competent authority shall have power to order that all
expenses, incurred by it in relation to such publicity, or such  part
thereof, as it deems appropriate, shall be paid by the personconcerned; and any sum so due shall be recoverable by thecompetent authority in the same manner as an administrativepenalty imposed under this Act.
Restoration of a 
name struck off the register or list.18. (1) Where the name of a person has been struck off the
Agents Register, Managers Register or Brokers Register or theAgents List, Managers List or Brokers List, in pursuance of a
decision under article 16, the name of that person shall not ag ain be
entered in the register or list unless -
(a) otherwise ordered by the Tribunal; or
(b) in the absence of such order, the competent authority,
on an application made to it in that behalf, otherwisedecides.
(2) The competent authority shall determine an application for
restoration of a name of a person to the Agents Register, Manag ers
Register, or Brokers Register or  the name of an enrolled person  to
the Agents List, Managers List or Brokers List under this artic le
within three months of receiving the information required to besubmitted under this Act as if the application were an applicat ion
      
INSURANCE DISTRIBUTION [CAP. 487. 25
made under article 13; and if it refuses to restore a name of a n
individual or of a company to the register or list, it shall in form 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, andBrokers Register or the Agents List, Managers List or Brokers L ist
is made by an order of the Tribunal.
Power of the 
competent authority to protect the public interest.
Amended by:
V .2020.56.19. (1) Without prejudice to the powers conferred to the
competent authority under article 16, the competent authority m ay,
where it is satisfied that sufficient serious circumstances exi st,
proceed to take one or more of the following measures:
(a) require the intermediary forthwith to take such steps as
the competent authority may consider necessary torectify 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 purposesof safeguarding the interests of insureds,policyholders, creditors or other interested personsand, in the case of a local company, shareholders of thecompany;
(d) appoint a person to assume control of the business of
the intermediary, either to carry on that business or tocarry out such other function or functions in respect of
such business, or part thereof, including to take the
necessary action for the intermediary to be dissolved andwound up, as the competent authority may direct;
(e) issue an order for the dissolution and winding up of the
enrolled company or, in the case of a foreign company,for the winding up of its business in Malta;
(f) appoint a competent person to act as liquidator for the
purpose of winding up the affairs of the enrolledcompany;
(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 arelikely to be prejudiced owing to a deterioration in thefinancial position of the intermediary;
(i) require a registered or enrolled person to remove the
word "insurance" as part of his or its description ortitle and not make use of such word on any letterpaper, in any notice or advertisement, or in any anothersimilar manner;
(j) do such other act or require the doing of such other
thing as it may deem appropriate in the circumstances,
and having proceeded in any one or more of the manners aforesai d,
26 [CAP. 487. INSURANCE DISTRIBUTION
the competent authority may further proceed in any one or more of
such manners, whether in addition thereto or in substitutionthereof.
(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 advicegiven by such person unless and until the competentauthority, on representations made to it, directsotherwise;
(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 theintermediary in respect of those assets, and in relationto a company, whether exercisable by the company ingeneral meeting, or by the directors, or by any otherperson, including the legal and judicial representationof the intermediary, shall be exercisable by and vest inthe person appointed under the said subarticle to theexclusion of any other person;
(c) under subarticle (1)( d), the intermediary shall submit
the business to the control of such person and shallprovide him with such facilities as he may require theintermediary to provide him to carry on that businessor to carry out the functions assigned to him under thesaid subarticle; and all the powers, functions andduties of the intermediary, and in relation to acompany whether exercisable by the intermediary ingeneral meeting, or by the directors, or by any other
person, including for the purposes of the dissolution andwinding up of the intermediary as well as the legal andjudicial representation of the intermediary in all matters,
shall be exercisable by and vest in him to the exclusionof any other person;
(d) under subarticle (1)( f), such person shall be the
liquidator of the intermediary for all purposes of law tothe exclusion of any other person:
Cap. 403.Provided that the competent person shall not take anydecision for the purpose of the dissolution and windingup of the intermediary, unless the competent authorityissues a directive to that effect in terms of article 31A ofthe 
Insurance Business Act, made applicable by article
54 of the Act, and any such directive may contain suchinstructions, requirements and conditions as thecompetent authority may consider necessary, includingwith regard to the mode of winding up.
      
INSURANCE DISTRIBUTION [CAP. 487. 27
Cap. 386.(2A)  Without prejudice to the powers of the competent
authority in terms of sub-article (1), the competentauthority may also make an application to the court forthe dissolution and winding up by the court of anintermediary, where it appears to the competent authoritythat an intermediary should be dissolved and wound upby the court for the reason set out in article 214(2)(b)(iii)of the Companies Act, and where the court accedes to theapplication, the relevant provisions of the 
Companies
Act in relation to the dissolution and winding up by the
court and any other applicable provisions of any otherlaw shall apply.
(3) In the case of a foreign company, the branches and offices
in Malta of that company shall, if the competent authority so d irects
and to the extent it so directs be deemed to constitute a separ ate
company.
(4) Any measure adopted in terms of sub-article (1) shall remai n
in force notwithstanding that an intermediary ceases to be enro lled for
whatever reason, unless the competent authority otherwise direc ts.
PART V
OBLIGATIONS OF PERSONS ENROLLED UNDER PART III
Monies held in a 
fiduciary capacity.
Amended by:
XXVI.2018.24.20. (1) Every person enrolled under article 13 shall keep
monies held by him or it in a fiduciary capacity separate from his or
its own monies and shall, in respect of those monies, maintainseparate accounts in accordance with requirements determined byInsurance Distribution Rules made for the purposes of this arti cle.
(2) No person shall have or obtain any recourse or right against
monies standing to the credit of the account referred to in sub article
(1) in respect of a claim or right against an enrolled person u ntil all
proper claims arising out of insurance distribution activities or
reinsurance distribution activities against those monies have b een
satisfied, even in the event of bankruptcy of the individual orinsolvency of the company, as the case may be.
Fidelity bonds 
required of insurance intermediaries.
Amended by:
XXVI.2018.25.21. (1) Without prejudice to article 20, every person enrolled
under article 13 shall effect a fidelity bond in a specified fo rm, as
respects the insurance distribution activities carried on by th e
intermediary concerned, in such circumstances, to such value, i n
such manner and under such conditions as may be determined byInsurance Distribution Rules made for the purposes of this arti cle.
(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 mon ey
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 approve d
by the competent authority, to be applied for the benefit of an y
client of the enrolled person who has incurred loss or liabilit y
because of the inability or failure of the enrolled person to m eet
such financial obligations.
28 [CAP. 487. INSURANCE DISTRIBUTION
Exemptions 
applicable to insurance managers.22. The provisions of articles 20 and 21 shall not apply to a
person enrolled as an insurance manager for so long as such per son
holds no appointment from any insurer or an insurance broker fo r
so acting.
Notification of 
persons registered in the register.23. Every enrolled company shall, not later than the end of
January of each year, notify in writing the competent authority  in
such manner as the competent authority may require, the name an d
the other particulars as it may also require, of every director  and
employee of the company who are registered in the AgentsRegister, Managers Register or Brokers Register; and during thefollowing twelve months, the company shall give notice in writi ng
to the competent authority of any change that may, from time totime, occur among such directors and employees and such noticeshall be given within such period as may be specified by Insura nce
Distribution Rules.
Submission of 
audited financial statements and income statements.
Amended by:
XXVI.2018.2624. (1) Every enrolled company shall, not later than four
months from the date of closing of its financial year, or at an y other
time as may exceptionally be authorised in writing by thecompetent authority, forward to  the competent authority a copy of
its audited financial statements drawn up -
Cap. 386.(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 theregistered office or head office of the company issituated governing the financial statements of suchcompanies.
(2) Every enrolled person who is an individual shall provide
income statements drawn up in a manner as determined byInsurance Distribution Rules made for the purposes of this arti cle
and such statements shall be forwarded to the competent authori ty
within such period as may be specified by Insurance Distributio n
Rules.
Information to be 
provided for supervisory purposes.Substituted by:XXVI.2018.27.25. (1) Subject to the following sub-articles, an enrolled
person shall submit to the competent authority any information which
is necessary for the purposes of supervision, as may be specifi ed by
means of regulations, Insurance Distribution Rules or Conduct o f
Business Rules, which may also specify the period within which this
information is to be submitted.
(2) The information to be submitted to the competent authority
in terms of sub-article (1) shall include the submission of sta tements
relating to the business of insurance distribution activities a nd, or
reinsurance distribution activities, carried on by an enrolled person in
any calendar year. The statements relating to that business sha ll be
made out in the form, manner and  content as the competent autho rity
may, by Insurance Distribution Rules made for the purposes of t his
article determine; and the date by which such statements shall be
forwarded shall also be established by Insurance Distribution R ules.
      
INSURANCE DISTRIBUTION [CAP. 487. 29
(3) The statements required to be submitted under sub-article (2 )
shall be verified in the manner required by Insurance Distribut ion
Rules, and the competent authority may at any time direct an en rolled
person to submit to it such statements at such interval and for  such
period as it may specify in the Insurance Distribution Rules.
Enrolled persons 
ceasing to carry out insurance and reinsurance distribution activities.
Amended by:
XX. 2007.148;XXVI. 2018.28.26. (1) An enrolled person shall not cease to carry out, in or
from Malta, insurance distribution activities or reinsurancedistribution activities, except with the permission of the comp etent
authority given in writing on an application made to it in thatbehalf in such manner as it may require, and in compliance withsuch conditions as it may deem proper to impose.
(2) The application for ceasing shall be submitted to the
competent authority not later than three months before the date  on
which the enrolled person intends cease to carry out such activities.
PART VI
FINANCIAL YEAR AND AUDITORS
Financial year of 
insurance intermediaries.27. (1) A company enrolled under article 13 which is a local
company shall, not later than three months from the date of acompany’s enrolment, notify in w riting the competent authority of
the financial year and, failing such notice, the financial year  of the
enrolled company shall terminate on the thirty-first day ofDecember of each year.
(2) No enrolled company as aforesaid shall alter its financial
year unless and until the competent authority has given its app roval
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 compete nt
authority of its financial year; and after enrolment under thatarticle, where a foreign company alters its financial year, it shall
forthwith inform in writing the competent authority of such cha nge.
(4) For the purposes of this Act "financial year" -
Cap. 386.(a) in relation to an enrolled company which is a local
company, means an accounting period as is construedin 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 construedin accordance with the provisions of the laws of thecountry where the registered office or the head officeof the company is situated governing the accountingperiod of such companies.
Appointment, 
duties and termination of appointment of auditors.
Amended by:
XXVI.2018.29.28. (1) Every person enrolled under article 13 shall each year
appoint an approved auditor as auditor to the company whose dut y
shall be to report on the financial statements of the company o r the
income statements of the individual, as applicable, examined by  him
and on financial statements or income statements prepared by th e
company or individual, respectively.
(2) If the enrolled person fails to appoint an auditor as required
30 [CAP. 487. INSURANCE DISTRIBUTION
by subarticle (1) or at any time fails to fill any vacancy in t he office
of an auditor, the competent authority shall have the power toappoint an auditor for that person and shall fix the remuneration to be
paid by that person  to such auditor.
(3) The auditor’s report shall include a statement on compliance
by the enrolled person with requirements specified by means ofInsurance Distribution Rules made for the purposes of this arti cle,
which may also specify the information to be contained in suchstatement.
(4) Every auditor of an enrolled person shall have the right to
demand such information or explanation as he deems necessary in
the performance of his duties from any officer or employee of, or
any person under an appointment from, that enrolled person.
(5) An auditor shall immediately give notice in writing to the
competent authority if -
(a) he resigns;
(b) he does not seek to be re-appointed; or
(c) he decides to qualify the audit report,
and, in the situations mentioned in paragraphs ( a) and ( b), the
auditor shall specify the reasons for so doing.
(6) An enrolled company shall give notice in writing to the
competent authority immediately it receives notice of a resolut ion
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 n ot be
reappointed.
(7) Where, for any reason whatever, the appointment of an
auditor comes to an end, the enrolled person shall not later than
fourteen days from the termination of such appointment, givenotice in writing to the competent authority stating reasons fo r such
termination.
(8) The competent authority may require an enrolled person to
change its appointed auditor where, in the competent authority’ s
opinion, such auditor is considered unfit for this appointment,  at
any time during his term of office.
(9) Before requiring an enrolled person to change the appointed
auditor in the circumstances mentioned in subarticle (8), thecompetent authority shall notify in writing its intention to th e
enrolled person and the auditor concerned stating reasons forrequiring such change and giving the auditor the opportunity tosubmit, in writing, within fourteen days from the date of servi ng of
such notice, the reasons why his appointment with the enrolled person
should not be terminated.
Cap. 386.
Cap. 403.(10) For the purposes of this Act, an approved auditor shall be a
person who is qualified to be an auditor in accordance with the
Companies Act and holds the authorisation of the competent
authority to act as auditor issued to him under the Insurance
Business Act.
(11) Notwithstanding anything contained in the foregoing sub-
      
INSURANCE DISTRIBUTION [CAP. 487. 31
articles, the competent authority may, in the case of a foreign
company, approve such alternative arrangements as it thinksreasonable and which do not materially detract from the mainobjects of this article, and where such arrangements have beencarried out, the provisions of this article shall not apply to the
extent that they are replaced by such arrangements.
(12) If, in his capacity as auditor of an enrolled person or branch in
Malta of a foreign company enrolled under article 13 or due to a
direct request by the competent authority under this Act, an au ditor
becomes aware of any matter which relates to and may have aserious adverse effect upon the stability and soundness of thecompany or the integrity of the insurance distribution activiti es and
reinsurance distribution activities carried on in Malta by the enrolled
person or branch in Malta of a foreign company enrolled under a rticle
13, he shall immediately inform the competent authority, in the  case of
a company, through the intermediary’s management or, ifcircumstances so warrant, directly to the competent authority, and in
the case of an individual, 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
income statements of the individual; or
(b) gravely impairs the ability of the company to continue as
a going concern or the ability of the enrolled person orbranch in Malta of a foreign company enrolled underarticle 13 to continue carrying out the activities in
respect of which it is enrolled; or
(c) is a material breach of the provisions of this Act,
regulations or Insurance Distribution Rules which laydown the conditions governing registration or enrolmentor which specifically govern the carrying out ofinsurance distribution activities and reinsurancedistribution activities by an enrolled person.
(14) An auditor of an enrolled person or a branch in Malta of a
foreign company enrolled under article 13 shall likewise have a  duty
to report to the competent aut hority any facts and decisions wh ich
relate to or have a serious adverse effect upon the stability a nd
soundness of the company or the integrity of the insurancedistribution activities and reinsurance distribution activities  carried out
in Malta by the enrolled person or branch in Malta of a foreigncompany enrolled under article 13, of which he becomes aware in  his
capacity as an auditor to an enrolled person or branch in Malta  of a
foreign company enrolled under article 13 having close links wi thin
the meaning of article 10.
(15) Without prejudice to any provision contained in this Act, t he
competent authority may request the auditor to provide it with such
information and documentation relating to any fact or decision as
specified in sub-articles (12) or (14) concerning the enrolled person or
the branch in Malta of a foreign company enrolled under article  13.
32 [CAP. 487. INSURANCE DISTRIBUTION
Communication by 
auditors etc. with the competent authority.29. No duty, including the duty of professional secrecy, to
which -
(a) an auditor of a company enrolled under article 13 may
be subject, shall be regarded as contravened by reasonof his communicating in good faith to the competentauthority, whether or not in response to a request fromit, any information or opinion on a matter of which theauditor has become aware in his capacity as auditorand which is relevant to any functions of thecompetent authority under the provisions of this Act oris 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 regardedas contravened by reason of his communicating ingood faith to the competent authority, whether or notin response to a request made by it, on any matterwhich relates to the business or affairs of an enrolledcompany in relation to which a report is made.
PART VII
PROVISIONS APPLICABLE TO INTERMEDIARIES 
CARRYING ON BUSINESS AS INSURANCE BROKERS
Appointment of 
insurance managers by enrolled insurance brokers.
Amended by:
XX. 2007.149.30. A local company enrolled under article 13 and carrying on
business as an insurance broker, restricted to contracts of ins urance
relating to risks situated outside of Malta or commitments wher e
Malta is not the country of commitment, may appoint an insuranc e
manager enrolled under the Act to manage such business; and solong as the insurance manager holds such appointment, thebusiness of insurance broking sh all be under the management of a
registered insurance broker.
Contracts of 
insurance relating to risks situated in Malta or to commitments where Malta is the country of the commitment.
Amended by:
XXXIII. 2015.82;XXVI.2018.30.31. (1) Subject to the following sub-articles, except with the
approval of the competent authority given specifically in writi ng, a
contract of insurance relating to a risk situated in Malta or t o a
commitment where Malta is the country of the commitmentnegotiated, arranged or procured by an insurance broker on beha lf
of an insured person or a person to be insured shall be taken o ut
with an authorised undertaking.
(2) The provisions of this article shall not apply to -
(a) business of reinsurance;
(b) large risks as defined in Article 13 of the 
Solvency II
Directive .
Underwriting 
agreements.
Amended by:
XXXIII. 2015.83.32. (1) Subject to the following subarticles, any person
enrolled in the Brokers List under article 13 may make or enter  into
any underwriting agreement with any authorised undertaking.
(2) No person enrolled as aforesaid shall make or enter into any
underwriting agreement unless, with respect to that underwritin g
agreement, the person complies with or satisfies such requireme nts
as the competent authority may by Insurance Distribution Rulesmade for the purpose of this article determine.
(3) Any person enrolled as aforesaid shall register with the
      
INSURANCE DISTRIBUTION [CAP. 487. 33
competent authority any underwriting agreement made or entered
into under this article in the form and manner as the competentauthority may by Insurance Distribution Rules determine.
(4) No business of insurance shall be accepted under an
underwriting agreement unless the underwriting agreement hasbeen duly registered as aforesaid.
(5) The competent authority shall determine an application for
registration of an underwriting agreement under this article wi thin
one month of receiving the information required to be submittedunder the Insurance Distribution Rules; and if it refuses to re gister
the agreement it shall inform the applicant in writing of the r easons
for the refusal.
(6) Subject to the provisions of this Act, the competent
authority may subject registration of any underwriting agreemen t
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 betwee n
an authorised undertaking and a person enrolled in the Brokers List
under article 13 under which the enrolled person may, inaccordance with the terms thereof, accept risks on behalf of th e
authorised undertaking; and, in this context, any other arrange ment,
by whatever name it may be called, whose objects and purposes a re
similar to an underwriting agreement, for the purposes of thisarticle, is deemed to be an underwriting agreement.
PART VIII
REGISTRATION AND ENROLMENT OF TIED INSURANCE 
INTERMEDIARIES
Restriction on 
persons for carrying out tied insurance intermediaries activities.
Amended by:
XXVI.2018.31.33. (1) Subject to subarticle (2), no person shall act as a tied
insurance intermediary and carry out, or attempt to carry out i n
Malta tied insurance intermediaries activities unless such pers on is
appointed, registered and enrolled in accordance with theprovisions of this Act.
(2) This article shall not apply to a person which is registered
pursuant to the Insurance Distribution Directive, in a Member State or
an EEA State, other than Malta.
Tied Insurance 
Intermediaries Company Registers.
Amended by:
XXXIII. 2015.84.34. (1) Subject to article 43, every authorised undertaking
desirous of appointing a person to act on its behalf as a tiedinsurance intermediary shall establish and maintain a register of
persons acting as tied insurance intermediaries, in this Act re ferred
to as the "Tied Insurance Intermediaries Company Register",containing the particulars as the competent authority may, fromtime to time, by Insurance Distribution Rules made for the purp oses
of this article, determine, of all persons who are entitled und er this
Act to be registered therein.
34 [CAP. 487. INSURANCE DISTRIBUTION
(2) Subject to the provisions of subarticle (1), every authorise d
undertaking shall determine its own procedures for appointing a nd
registering a person as a tied insurance intermediary in the Ti ed
Insurance Intermediaries Company Register.
Qualifications for 
registration.
Amended by:
XXXIII. 2015.85;XXVI.2018.32.35. (1) A person shall be entitled to be registered by an
authorised undertaking in the Tied Insurance IntermediariesCompany Register of such undertaking if it is satisfied that su ch
person:
(a) is fit and proper to carry out tied insurance
intermediaries activities; and
(b) possesses appropriate knowledge and ability in order
to complete tasks and perform duties adequately, inrelation to tied insurance intermediaries activities, asdetermined by means of Insurance Distribution Rulesissued for the purposes of this article.
(2) A person shall not be entitled to carry out tied insurance
intermediaries activities, by virtue of his registration under article
37 unless and until he is enrolled by the competent authority i n the
Tied Insurance Intermediaries List under that article.
Professional and 
organisational requirements.
Added by:
XXVI.2018.33.35A.  A tied insurance intermediary carrying out tied insurance
intermediaries activities shall comply with continuing professi onal
training and development requirements in order to maintain an a dequate
level of performance corresponding to the role such intermediar y
performs, as may be determined by means of Insurance Distribution
Rules and, or Conduct of Business Rules issued for the purposes  of
this article.
List of persons 
carrying out tied insurance intermediaries activities.
Amended by:
XXXIII. 2015.86;XXVI.2018.34.36. (1) The competent authority shall establish and maintain a
list of persons carrying out tied insurance intermediaries acti vities
in this Act referred to as the "Tied Insurance Intermediaries L ist",
containing such particulars as the competent authority may,determine from time to time by Insurance Distribution Rules mad e
for the purposes of this article of all persons who are, or whi ch are,
entitled under this article to be enrolled therein. The Tied In surance
Intermediaries List shall be updated on a regular basis.
(2) It shall be the duty of an authorised undertaking to enrol
with the competent authority in the Tied Insurance Intermediari es
List any person registered by it as a tied insurance intermedia ry in
the Tied Insurance Intermediaries Company Register establishedand maintained by it under article 37.
(3) On obtaining from the competent authority a certificate of
enrolment under article 37, an authorised undertaking shall fur nish
the person, in whose name the certificate of enrolment is made out,
with the certificate or an official copy thereof, issued to theauthorised undertaking by the competent authority.
(4) Where a person enrolled as aforesaid carries out tied
insurance intermediaries activities from a place of business or  from
any other place accessible to the public, that person shall dis play in
a prominent position in that place in a part thereof to which t he
public has access, the certificate of enrolment or an official copy
      
INSURANCE DISTRIBUTION [CAP. 487. 35
thereof issued by the competent authority under this article.
(5) Where the enrolled person is not an individual, the Tied
Insurance Intermediaries List is to specify the name of the ind ividual
who carries out tied insurance intermediaries activities and wh o
satisfies the requirements of article 35(1).
Appointment, 
registration and enrolment of tied insurance intermediaries.
Amended by:
XX. 2007.150;XXXIII. 2015.87;XXVI. 2018.35.37. (1) Subject to the provisions of this Act, every authorised
undertaking desirous of appointing a person to act on its behal f as a
tied insurance intermediary shall, under this article, appoint and
register in the Tied Insurance Intermediaries Company Register of
the authorised undertaking and enrol with the competent authori ty
in the Tied Insurance Intermediaries List, any one or more pers ons
to act on its behalf as tied insurance intermediaries and to ca rry out
tied insurance intermediaries activities in the class or classe s of
long term business or the group or groups of classes of generalbusiness specified in their respective appointments and, where a
person is not an individual, such person must itself have anindividual who satisfies the requirements of article 35(1):
Provided that, an undertaking is prohibited from appointing
and registering in its Tied Insurance Intermediaries CompanyRegister a person which is -
(a) a person registered in the Agents Register, Managers
Register or Brokers Register under article 13;
(b) a person enrolled in the Agents List, Managers List or
Brokers List under that article;
(bb) a person enrolled in the Ancillary Insurance
Intermediaries List under article 43E;
Cap. 403. (c) an undertaking authorised under the Insurance
Business Act to carry on business of insurance:
Provided further that an undertaking is prohibited from
appointing any person acting on its behalf as a tied insuranceintermediary to carry out any tied insurance intermediariesactivities within any class or group of classes of business ofinsurance as the competent authority may, from time to time, byInsurance Distribution Rules made for the purposes of this arti cle
determine to be a class or group of classes of business within which
no tied insurance intermediaries activities shall be carried ou t.
(1A) Every authorised undertaking desirous of appointing,
registering and enrolling a person to act on his or its behalf as a tied
insurance intermediary shall disclose the following information  to
the competent authority: 
(a) where the tied insurance intermediary is a person
which is not an individual:
(i) the identity of the shareholders, direct or
indirect, whether natural or legal persons, whowill have qualifying holdings in the tiedinsurance intermediary and the amounts of thoseholdings; and
(ii) the identity of persons who have close links with
the tied insurance intermediary; and
36 [CAP. 487. INSURANCE DISTRIBUTION
(b) where the tied insurance intermediary is a person who
is an individual, the identity of persons who have closelinks with the tied insurance intermediary.
(1B) Where the holdings or close links referred to in sub-articl e (2)
exist between the tied insurance intermediary and any other per son, the
competent authority shall only grant enrolment if it considers that such
holdings or close links do not prevent it from effectively exer cising its
supervisory functions.
(2) Where an authorised undertaking appoints and registers in
its Tied Insurance Intermediaries Company Register a person whi ch
is not an individual, and that person carries out tied insuranc e
intermediaries activities from any one or more places of busine ss,
that person shall ascertain that tied insurance intermediariesactivities so carried out by it  from each such place of busines s are
carried out only by an individual who satisfies the requirement s 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 se ek
and obtain under this article appointment and registration in a  Tied
Insurance Intermediaries Company Register of an authorisedundertaking to carry out tied insurance intermediaries activiti es on
behalf of such undertaking.
(4) Where a person desires to seek appointment and
registration in the Tied Insurance Intermediaries Company Regis ter
of more than one undertaking, authorised to carry on long termbusiness, and where any class of long term business carried on by
the undertakings concerned is of the same kind, such person sha ll,
in respect of that class of business, seek and obtain appointme nt
and registration to carry out tied insurance intermediaries act ivities
relating to that kind of class of business only in the Tied Ins urance
Intermediaries Company Register of one of the undertakingsconcerned.
(5) Where a person desires to seek appointment and
registration in the Tied Insurance Intermediaries Company Regis ter
of more than one undertaking authorised to carry on generalbusiness, and where any class, or any group of classes, of gene ral
business carried on by the undertakings concerned is of the sam e
kind, such person shall, in respect of that class, or that grou p of
classes of business, seek and obtain appointment and registrati on to
carry out tied insurance intermediaries activities relating to that
class, or that group of classes of business only in the Tied In surance
Intermediaries Company Register of one of the undertakingsconcerned.
(6) No person who is an employee of an authorised undertaking
shall, solely by virtue of his employment by the undertaking,require registration in the Tied Insurance Intermediaries Compa ny
Register of the undertaking under this article.
(6A) The competent authority shall determine an application for
enrolment under this article within three months of the submiss ion
of a properly completed application form together with therequisite documentation required to be submitted under this Act
      
INSURANCE DISTRIBUTION [CAP. 487. 37
and any regulations or Insurance Distribution Rules made
thereunder. The competent authority shall notify the applicant of its
decision, without undue delay; and if it refuses to grant theenrolment it shall inform the applicant in writing of the reaso ns for
the refusal:
Provided that, the competent authority may take such
measures as it may deem necessary for the protection of the int erest of
the public.
(7) On granting an application for enrolment under this article,
the competent authority shall issue to the applicant concerned a
certificate of enrolment evidencing enrolment of the personregistered in the Tied Insurance Intermediaries Company Registe r
of the applicant in the Tied Insurance Intermediaries List.
(8) Subject to the provisions of this Act, the competent
authority may subject enrolment made under this article to suchconditions as it may from time to time deem fit to impose.
(8A) The validity of the enrolment under this article shall be s ubject
to a regular review by the competent authority.
(9) An authorised undertaking shall at all times be responsible
for any act or omission of its registered tied insuranceintermediaries provided that such act or omission is an act oromission pertaining to a contract of insurance issued by theundertaking or offered on its behalf through the services of su ch
tied insurance intermediaries. For the purposes of this subarti cle
any reference to registered tied insurance intermediaries shallinclude a reference to past as well as present registered tiedinsurance intermediaries.
Protection of 
clients monies.
Amended by:
XXXIII. 2015.88;XXVI. 2018.36.38. (1) Without prejudice to subarticle (3), every tied
insurance intermediary, shall, in respect of monies held by him  or it
in relation to a policy of insurance, keep such monies held by him
or it separate from his or its own monies and shall, in respect  of
those monies maintain separate accounts in accordance withrequirements determined by Insurance Distribution Rules made fo r
the purposes of this article.
(2) No person shall have or obtain any recourse or right against
monies standing to the credit of the account referred to in sub article
(1) in respect of a claim or right against a person acting as a  tied
insurance intermediary until all proper claims arising out ofinsurance distribution activities against those monies have bee n
satisfied, even in the event of bankruptcy of the individual orinsolvency 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 insuranceshall be treated as having been paid to the authorisedundertaking issuing or offering the contract, and onwhose behalf the tied insurance intermediary carrieson tied insurance intermediaries activities; and
(b) monies paid by the authorised undertaking to the tied
38 [CAP. 487. INSURANCE DISTRIBUTION
insurance intermediary, and intended for the
policyholder, shall not be treated as having been paidto the policyholder until such monies are actuallyreceived by the policyholder concerned.
Striking name off 
Tied Insurance 
Intermediaries Company Register.
Amended by:
XXXIII. 2015.89;XXVI.2018.37.39. Subject to the provisions of article 40 and to the terms and
conditions of any relevant tied insurance intermediariesappointment at any time and for any reason whatsoever -
(a) any authorised undertaking may strike off its Tied
Insurance Intermediaries Company Register the nameof any person registered in the said register;
(b) any person registered in the Tied Insurance
Intermediaries Company Register of an authorisedundertaking may make an application in writing to theundertaking concerned requesting it to strike his or its
name off the said register.
Striking name off 
Tied Insurance 
Intermediaries Company Register or the Tied Insurance Intermediaries List.
Amended by:
XXXIII. 2015.90;XXVI.2018.38.40. (1) Where an authorised undertaking elects to strike the
name of a person off its Tied Insurance Intermediaries CompanyRegister, such undertaking shall forthwith notify in writing th e
person concerned and the competent authority specifying the dat e
on which it elects to strike the name of that person off the re gister.
(2) Where an authorised undertaking strikes the name of a
person off its Tied Insurance Intermediaries Company Register o n
grounds of unfitness and improperness or because the personconcerned has acted fraudulently, or dishonestly, or in such ma nner
as to cease to be trustworthy, the undertaking shall also notif y in
writing the competent authority the reasons for so doing.
(3) On receiving a notification from an authorised undertaking
that such undertaking has elected to strike the name of a perso n off
its Tied Insurance Intermediaries Company Register, the compete nt
authority shall -
(a) if the striking of such name off the register is on
grounds other than those specified in sub-article (2), asearly as reasonably practicable, confirm in writing tothe authorised undertaking that the name of suchperson, in so far as it relates to that undertaking, shallbe struck off the Tied Insurance Intermediaries List asfrom the date specified in the undertaking’snotification;
(b) if the striking of such name off the register is on
grounds specified in subarticle (2), before striking thename of such person off the Tied InsuranceIntermediaries List, forthwith, give the personconcerned notice in writing setting out the reasons forso doing and the provisions of article 17(2) and (3)shall mutatis mutandis  apply to a notice given under
this article.
(4) Without prejudice to any action which the competent
authority may deem appropriate under this Act or any other law,where the competent authority strikes the name of a person off the
Tied Insurance Intermediaries List on the grounds specified in
subarticle (2), the competent authority shall give publicity to  the
      
INSURANCE DISTRIBUTION [CAP. 487. 39
striking of that name off the Tied Insurance Intermediaries Lis t
and -
(a) if the name of that person is registered in the Tied
Insurance Intermediaries Company Register of anyother authorised undertaking, the competent authorityshall also forthwith notify in writing that otherundertaking and direct it to strike forthwith the nameof that person off the Tied Insurance IntermediariesCompany Register of that undertaking and give theundertaking the reasons for its direction;
(b) the provisions of article 53A shall apply .
(5) The competent authority shall have power to order that all
expenses incurred by the publication of a notice pursuant to th is
article, or such part thereof as it may deem appropriate, shall  be
paid by the person concerned; and any sum so due shall berecoverable by the competent authority in the same manner as anadministrative penalty imposed under this Act.
(6) Where an authorised undertaking receives in writing an
application from a person registered in the Tied InsuranceIntermediaries Company Register of the undertaking requestingsuch undertaking to strike the name of that person off the saidregister, the undertaking shall without undue delay strike the name
of that person off the said register and notify in writing the person
concerned and the competent authority specifying the date onwhich it elects to strike the name of that person off the regis ter.
(7) Where, on an application made to an authorised
undertaking under sub-article (6), the undertaking refuses, orunduly prolongs the process, to strike the name of a person off  its
Tied Insurance Intermediaries Company Register, the person
concerned may refer the matter to the competent authority and t he
competent authority shall issue in writing to the undertakingconcerned those directives it deems necessary to oblige theundertaking to hasten the process to strike the name of that pe rson
off its register.
(8) On notification by the competent authority to an authorised
undertaking that the name of a person registered in the TiedInsurance Intermediaries Company Register of the undertaking ha s
been struck off the Tied Insurance Intermediaries List, theundertaking concerned shall forthwith surrender to the competen t
authority the certificate of enrolment relating to that person,  and
any official copies thereof.
Protection of the 
public or other interest.
Amended by:
XXXIII. 2015.91;XXVI.2018.39.41. (1) Notwithstanding any provision of this Act, the
competent authority may, at any time: 
(a) on grounds of unfitness and improperness or of
protection of the public interest:
(i) refuse to enrol a person in the Tied Insurance
Intermediaries List;
(ii) strike the name of a person off the Tied
Insurance Intermediaries List;
40 [CAP. 487. INSURANCE DISTRIBUTION
(b) strike the name of a person off the Tied Insurance
Intermediaries List, where the tied insuranceintermediary: 
(i) fails to comply with the conduct of business
requirements in relation to an insurance-basedinvestment product or in relation to any insuranceproduct other than an insurance-based investmentproduct, set out in Conduct of Business Rules ; or
(ii) ceases to fulfil any of the requirements laid
down in articles 35(1), 35A and 38, and where
applicable, any Insurance Distribution Rules
issued under the said articles;
(c) strike the name of a person off the Tied Insurance
Intermediaries List, where it comes to the knowledgeof the competent authority that any document orinformation provided pursuant to the application forenrolment, or any information given in connectiontherewith, is false, incorrect or misleading in anymaterial particular:
Provided that, in each case, the competent authority shall
inform the undertaking concerned in writing of the reasons for so
doing.
(2) In each case the competent authority may take any other
measure as it may deem necessary to safeguard the interests ofinsured, policyholders, creditors or other interested persons.
Restoration of a 
name struck off the 
Tied Insurance 
Intermediaries List.42. (Deleted by XXVII. 2009.38 ).
Application of Part 
VIII of the Act and 
European insurance undertakings.
Amended by:
XXXIII. 2015.92;XXVI. 2018.40.43. (1) Subject to subarticle (2), for the purposes of this Part
of this Act, "authorised undertaking" shall not include an auth orised
reinsurance undertaking, a reinsurance intermediary, a Europeaninsurance undertaking and a European reinsurance undertaking.
(2) In the case of a European insurance undertaking or an
insurance intermediary registered under Article 3 of the Insura nce
Distribution Directive in a Member State or EEA State other tha n
Malta, seeking to appoint a person resident in Malta or having its
registered office or head office in Malta to carry out tied ins urance
intermediaries activities, that undertaking or intermediary shall enrol
such person with the competent authority as may be determined b y
Insurance Distribution Rules made for the purposes of this arti cle and
the said Insurance Distribution Rules shall contain the particu lars,
conditions and requirements for enrolment.
PART VIIIA
REGISTRATION AND ENROLMENT OF ANCILLARY 
INSURANCE INTERMEDIARIES
      
INSURANCE DISTRIBUTION [CAP. 487. 41
Registration of 
ancillary insurance intermediaries.
Added by:
XXVI.2018.41.43A. (1) Subject to sub-article (2), no person shall act as an
ancillary insurance intermediary and carry out, or attempt to c arry out
in Malta ancillary insurance intermediaries activities, unless such
person is appointed, registered and enrolled in accordance with  the
provisions of this Act.
(2) This article shall not apply to an ancillary insurance
intermediary which:
(a) is exempted from enrolment under article 43E of
the Act, in terms of regulations issued under this Act;
(b) is registered pursuant to the Insurance
Distribution Directive, in a Member State or an EEA State,other than Malta.
Ancillary 
Insurance Intermediaries Company Registers.43B. (1) Subject to the provisions of article 43J, every
authorised undertaking and enrolled insurance broker desirous o f
appointing a person to act on its behalf as an ancillary insura nce
intermediary shall establish and maintain a register of persons  acting
as ancillary insurance intermediaries, in this Act referred to as the
"Ancillary Insurance Intermediaries Company Register", containi ng
the particulars as the competent authority may, from time to ti me, by
Insurance Distribution Rules made for the purposes of this arti cle,
determine, of all persons who are entitled under this Act to beregistered therein.
(2) Subject to the provisions of sub-article (1), every authoris ed
undertaking and enrolled insurance broker shall determine its o wn
procedures for appointing and registering a person as an ancill ary
insurance intermediary in the Ancillary Insurance Intermediarie s
Company Register.
Qualifications for 
Registration.43C. (1) A person shall be entitled to be registered by an
authorised undertaking or an enrolled insurance broker in the
Ancillary Insurance Intermediaries Company Register of such
undertaking or insurance broker if it is satisfied that such pe rson:
(a) is fit and proper to carry out ancillary insurance
intermediaries activities; and
(b) possesses appropriate knowledge and ability in
order to complete tasks and perform duties adequately, relatingto ancillary insurance intermediaries activities, as may bedetermined by means of Insurance Distribution Rules issued forthe purposes of this article.
(2) A person shall not be entitled to carry out ancillary
insurance intermediaries activities, by virtue of his registrat ion under
article 43E unless and until he is enrolled by the competent au thority
in the Ancillary Insurance Intermediaries List under that artic le.
42 [CAP. 487. INSURANCE DISTRIBUTION
List of persons 
carrying out ancillary insurance intermediaries activities.43D. (1) The competent authority shall establish and maintain
a list of persons carrying out ancillary insurance intermediari es
activities in this Act referred to as the "Ancillary InsuranceIntermediaries List", containing such particulars as the compet ent
authority may, determine from time to time by Insurance Distrib ution
Rules made for the purposes of this article of all persons who are, or
which are, entitled under this article to be enrolled therein. The
Ancillary Insurance Intermediaries List shall be updated on a r egular
basis.
(2) It shall be the duty of an authorised undertaking and an
enrolled insurance broker to enrol with the competent authority  in the
Ancillary Insurance Intermediaries L ist any person registered b y it as
an ancillary insurance intermediary in the Ancillary InsuranceIntermediaries Company Register established and maintained by i t
under article 43E.
(3) On obtaining from the competent authority a certificate of
enrolment under article 43E, an authorised undertaking or an en rolled
insurance broker, as the case may be, shall furnish the person,  in
whose name the certificate of enrolment is made out, with thecertificate or an official copy thereof, issued to the authoris ed
undertaking or the insurance broker by the competent authority.
(4) Where a person enrolled as aforesaid carries out ancillary
insurance intermediaries activities from a place of business or  from
any other place accessible to the  public, that person shall dis play 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 th ereof
issued by the competent authority under this article.
(5) Where the enrolled person is not an individual, the Ancillar y
Insurance Intermediaries List is to specify the name of the ind ividual
who is carrying out ancillary insurance intermediaries activiti es and
who satisfies the requirements of article 43C(1). 
Appointment, 
registration and enrolment of ancillary insurance intermediaries.43E. (1) Subject to the provisions of this Act, every
authorised undertaking and enrolled insurance broker desirous o f
appointing a person to act on its behalf as an ancillary insura nce
intermediary shall, under this article, appoint and register in  the
Ancillary Insurance Intermediaries Company Register of the
authorised undertaking or the insurance broker, as the case may  be,
and enrol with the competent authority in the Ancillary Insuran ce
Intermediaries List, a person to act on its behalf as an ancill ary
insurance intermediary and to carry out ancillary insuranceintermediaries activities, as shall be determined by means of I nsurance
Distribution Rules made for the purposes of this article, and, where a
person is not an individual, such person must itself have an in dividual
who satisfies the requirements of article 43C(1):
Provided that, an undertaking and an enrolled insurance
      
INSURANCE DISTRIBUTION [CAP. 487. 43
broker shall be prohibited from appointing and registering in i ts
Ancillary Insurance Intermediaries Company Register a person wh ich
is:
(a) a person registered in the Agents Register,
Managers Register or Brokers Register under article 13;
(b) a person enrolled in the Agents List, Managers
List or Brokers List under that article;
(c) a person enrolled in the Tied Insurance
Intermediaries List under article 37;
Cap.403.(d) an undertaking authorised under the Insurance
Business Act to carry on business of insurance.
(2) Every authorised undertaking or enrolled insurance broker,
as the case may be, desirous of appointing, registering and enr olling a
person to act on his or its behalf as an ancillary insurance in termediary
shall disclose the following information to the competent autho rity:
(a) where the ancillary insurance intermediary is a
person which is not an individual:
(i) the identity of the shareholders, direct or
indirect, whether natural or legal persons, who will havequalifying holdings in that ancillary insuranceintermediary and the amounts of those holdings; and
links with the ancillary insurance intermediary;
and
(b) where the ancillary insurance intermediary is a
person who is an individual, the identity of persons who haveclose links with the ancillary insurance intermediary.
(3) Where the holdings or close links referred to in sub-article
(2) exist between the ancillary insurance intermediary and any other
person, the competent authority shall only grant enrolment if i t
considers that such holdings or close links do not prevent it f rom
effectively exercising its supervisory functions.
(4) Where an authorised undertaking or an enrolled insurance
broker, as the case may be, appoints and registers in its Ancil lary
Insurance Intermediaries Company Register a person which is not  an
individual, and that person carries out ancillary insuranceintermediaries activities from any one or more places of busine ss, that
person shall ascertain that ancillary insurance intermediaries activities
so carried out by it from each such place of business are carri ed out
only by an individual who satisfies the requirements of article  43C(1).
(5) Any person, other than a person mentioned in the proviso to
44 [CAP. 487. INSURANCE DISTRIBUTION
sub-article (1), may seek and obtain under this article appoint ment and
registration in the Ancillary Insurance Intermediaries CompanyRegister of an authorised undertaking or an enrolled insurance broker
to carry out ancillary insurance intermediaries activities as d etermined
by means of Insurance Distribution Rules on behalf of such unde rtaking
or insurance broker.
(6) No person who is an employee of an authorised undertaking
or an enrolled insurance broker shall, solely by virtue of hisemployment by the undertaking or insurance broker, requireregistration in the Ancillary Insurance Intermediaries Company
Register of the undertaking or insurance broker under this arti cle.
(7) The competent authority shall determine an application for
enrolment under this article within three months of the submiss ion of a
properly completed application form together with the requisitedocumentation required to be submitted under this Act and anyregulations or Insurance Distribution Rules made thereunder. Th e
competent authority shall notify the applicant of its decision,  without
undue delay; and if it refuses to grant the enrolment it shall inform the
applicant in writing of the reasons for the refusal:
Provided that, the competent authority may take such
measures as it may deem necessary for the protection of the int erest of
the public.
(8) On granting an application for enrolment under this Act, the
competent authority shall issue to the applicant concerned a ce rtificate
of enrolment evidencing enrolment of the person registered in t he
Ancillary Insurance Intermediaries Company Register of the appl icant
in the Ancillary Insurance Intermediaries List.
(9) Subject to the provisions of this Act, the competent
authority may subject enrolment made under this article to suchconditions as it may from time to time deem fit to impose.
(10) The validity of the enrolment under this article shall be
subject to a regular review by the competent authority.
(11) An authorised undertaking and an enrolled insurance broker
shall at all times be responsible for any act or omission of it s registered
ancillary insurance intermediaries provided that such act or om ission
is an act or omission pertaining to a contract of insurance iss ued by the
undertaking or insurance broker, or offered on its behalf throu gh the
services of such ancillary insurance intermediaries. For the pu rposes of
this sub-article any reference to registered ancillary insuranc e
intermediaries shall include a reference to past as well as pre sent
registered ancillary insurance intermediaries.
Protection of 
clients monies.43F. (1) Without prejudice to sub-article (3), every ancillary
insurance intermediary, shall, in respect of monies held by him  or it in
      
INSURANCE DISTRIBUTION [CAP. 487. 45
relation to a policy of insurance, keep such monies held by him  or it
separate from his or its own monies and shall, in respect of th ose
monies maintain separate accounts in accordance with requiremen ts
determined by Insurance Distribution Rules made for the purpose s of
this article.
(2) No person shall have or obtain any recourse or right against
monies standing to the credit of the account referred to in sub -article
(1) in respect of a claim or right against a person acting as a n ancillary
insurance intermediary until all proper claims arising out of i nsurance
distribution activities against those monies have been satisfie d, even in
the event of bankruptcy of the individual or insolvency of thecompany, as the case may be. 
(3) Notwithstanding the provisions of sub-articles (1) and (2):
(a) monies received by the ancillary insurance
intermediary from a person in relation to a contract of insuran ce
shall be treated as having been paid to the authorisedundertaking or the enrolled insurance broker issuing or offerin g
the contract, and on whose behalf the ancillary insuranceintermediary carries on ancillary insurance intermediariesactivities; and
(b) monies paid by the authorised undertaking or the
enrolled insurance broker to the ancillary insuranceintermediary, and intended for the policyholder, shall not betreated as having been paid to the policyholder until suchmonies are actually received by the policyholder concerned.
Striking name off 
Ancillary 
Insurance Intermediaries Company Register.43G. Subject to the provisions of article 43H and to the terms and
conditions of any relevant ancillary insurance intermediariesappointment at any time and for any reason whatsoever:
(a) any authorised undertaking and enrolled
insurance broker may strike off their Ancillary InsuranceIntermediaries Company Register the name of any personregistered in the said register;
(b) any person registered in the Ancillary Insurance
Intermediaries Company Register of an authorised undertakingor an enrolled insurance broker may make an application inwriting to the undertaking or insurance broker concerned, as th e
case may be, requesting it to strike his or its name off the sa id
register.
46 [CAP. 487. INSURANCE DISTRIBUTION
Striking name off 
Ancillary 
Insurance Intermediaries Company Register or the Ancillary Insurance Intermediaries List.43H. (1) Where an authorised undertaking or an enrolled
insurance broker elects to strike the name of a person off its Ancillary
Insurance Intermediaries Company Register, such undertaking orinsurance broker shall forthwith notify in writing the person c oncerned
and the competent authority specifying the date on which it ele cts to
strike the name of that person off the register.
(2) Where an authorised undertaking or an enrolled insurance
broker strikes the name of a person off its Ancillary InsuranceIntermediaries Company Register on grounds of unfitness andimproperness or because the person concerned has acted fraudule ntly,
or dishonestly, or in such manner as to cease to be trustworthy , the
undertaking or the insurance broker shall also notify in writin g the
competent authority the reasons for so doing.
(3) On receiving a notification from an authorised undertaking
or an enrolled insurance broker that such undertaking or insura nce
broker has elected to strike the name of a person off its Ancil lary
Insurance Intermediaries Company Register, the competent author ity
shall:
(a) if the striking of such name off the register is on
grounds other than those specified in sub-article (2), as early  as
reasonably practicable, confirm in writing to the authorisedundertaking or the enrolled insurance broker that the name ofsuch person, in so far as it relates to that undertaking orinsurance broker, shall be struck off the Ancillary InsuranceIntermediaries List as from the date specified in theundertaking’s or insurance broker’s notification;
(b) if the striking of such name off the register is on
grounds specified in sub-article (2), before striking the name of
such person off the Ancillary Insurance Intermediaries List,forthwith, give the person concerned notice in writing settingout 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 An cillary
Insurance Intermediaries List on the grounds specified in sub -article
(2), the competent authority shall give publicity to the striki ng of that
name off the Ancillary Insurance Intermediaries List, and: 
(a) if the name of that person is registered in the
Ancillary Insurance Intermediaries Company Register of any
other authorised undertaking, the competent authority shall als o
forthwith notify in writing that other undertaking and direct i t to
strike forthwith the name of that person off the AncillaryInsurance Intermediaries Company Register of that undertaking
      
INSURANCE DISTRIBUTION [CAP. 487. 47
and give the undertaking the reasons for its direction; and
(b) the provisions of article 53A shall apply. 
(5) The competent authority shall have power to order that all
expenses incurred by the publication of a notice pursuant to th is
article, or such part thereof as it may deem appropriate, shall  be paid
by the person concerned; and any  sum so due shall be recoverabl e by
the competent authority in the same manner as an administrativepenalty imposed under this Act.
(6) Where an authorised undertaking or an enrolled insurance
broker receives in writing an application from a person registe red in
the Ancillary Insurance Intermediaries Company Register of theundertaking or insurance broker requesting such undertaking orinsurance broker to strike the name of that person off the said  register,
the undertaking or the insurance broker shall without undue del ay
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 re gister.
(7) Where, on an application made to an authorised undertaking
or an enrolled insurance broker  under sub-article (6), the unde rtaking
or the insurance broker, as the case may be, refuses, or undulyprolongs the process, to strike the name of a person off its An cillary
Insurance Intermediaries Company Register, the person concernedmay refer the matter to the competent authority and the compete nt
authority shall issue in writing to the undertaking or the insu rance
broker concerned those directives it deems necessary to oblige the
undertaking or the insurance broker to hasten the process to st rike the
name of that person off its register.
(8) On notification by the competent authority to an authorised
undertaking or an enrolled insurance broker that the name of a person
registered in the Ancillary Insurance Intermediaries Company Re gister
of the undertaking or the insurance broker has been struck off the
Ancillary Insurance Intermediaries List, the undertaking or the
insurance broker concerned shall forthwith surrender to the com petent
authority the certificate of enrolment relating to that person,  and any
official copies thereof.
Protection of the 
public or other interest.43I. (1) Notwithstanding any provision of this Act, the
competent authority may, at any time: 
(a) on grounds of unfitness and improperness or of
protection of the public interest:
(i) refuse to enrol a person in the Ancillary
Insurance Intermediaries List;
(ii) strike the name of a person off the
48 [CAP. 487. INSURANCE DISTRIBUTION
Ancillary Insurance Intermediaries List;
(b) strike the name of a person off the Ancillary
Insurance Intermediaries List, where the ancillary insuranceintermediary:
(i) ceases to fulfil any of the requirements laid
down in articles 43C(1) and 43F, and where applicable,any Insurance Distribution Rules issued under the saidarticles; or
(ii) fails to comply with conduct of business
requirements set out in Conduct of Business Rules;
(c) strike the name of a person off the Ancillary
Insurance Intermediaries List, where it comes to the knowledgeof the competent authority that any document or informationprovided pursuant to the application for enrolment, or anyinformation given in connection therewith, is false, incorrect or
misleading in any material particular:
Provided that, in each case, the competent
authority shall inform the undertaking or the insurance brokerconcerned 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 ofinsureds, policyholders, creditors or other interested persons.
Application of Part 
VIIIA of the Act.43J. (1) Subject to sub-article (2), for the purposes of this Part
of this Act:
(a) "authorised undertaking" shall not include an
authorised reinsurance undertaking, a reinsurance intermediary,a European insurance undertaking and a European reinsuranceundertaking; 
(b) "insurance broker" shall not include an insurance
intermediary registered under Article 3 of the InsuranceDistribution Directive in a Member State or EEA State otherthan Malta.
(2) In the case of a European insurance undertaking or an
insurance intermediary registered under Article 3 of the Insura nce
Distribution Directive in a Member State or EEA State other tha n
Malta, seeking to appoint a person resident in Malta or having its
registered office or head office in Malta to carry out ancillar y
insurance intermediaries activities, that undertaking or interm ediary
shall enrol such person with the competent authority as may bedetermined by Insurance Distribution Rules made for the purpose s of
this article and the said Insurance Distribution Rules shall co ntain the
particulars, conditions and requirements for enrolment.
      
INSURANCE DISTRIBUTION [CAP. 487. 49
PART VIIIB
PROVISIONS APPLICABLE TO UNDERTAKINGS AUTHORISED 
UNDER THE INSURANCE BUSINESS ACT CARRYING OUT 
DISTRIBUTION ACTIVITIES
Insurance and 
Reinsurance Distribution 
Activities.43K. This Part shall apply to an authorised insurance undertaking
and an authorised reinsurance undertaking carrying out insuranc e
distribution activities and reinsurance distribution activities , as
applicable, unless otherwise specified under this Part.
Exemption from 
enrolment under this Act.43L. (1) Without prejudice to sub-article (2),  an authorised
insurance undertaking, an authorised reinsurance undertaking, a nd
their employees, carrying out insurance distribution activities  and
reinsurance distribution activities, as applicable, shall not b e required
to be enrolled under this Act.
(2) Notwithstanding sub-article (1), an authorised insurance
undertaking and an authorised reinsurance undertaking carrying out
insurance distribution activities and reinsurance distribution activities,
as applicable, shall, at least once a year, inform the competen t
authority of the names of the individuals within the management  of the
authorised insurance and reinsurance undertaking, who are respo nsible
for the insurance distribution activities or reinsurance distri bution
activities of the authorised insurance and reinsurance undertak ing, and
the competent authority may by Insurance Distribution Rules mad e for
the purposes of this article, determine the form, manner and co ntent of
the information to be forwarded to it and the date by which suc h
information shall be forwarded to it. 
Professional and 
organisational requirements. 43M. (1) An authorised insurance undertaking, an authorised
reinsurance undertaking, and their employees, carrying out insu rance
distribution activities and reinsurance distribution activities , as
applicable, are required to possess appropriate knowledge and a bility
in order to complete their tasks and perform their duties adequ ately, as
may be determined by means of Insurance Distribution Rules issu ed
under this article.
(2) An authorised insurance undertaking and an authorised
reinsurance undertaking and their employees, carrying out insur ance
distribution activities and reinsurance distribution activities , as
applicable, shall comply with continuing professional training and
development requirements in order to maintain an adequate level  of
performance corresponding to the role they perform and the rele vant
market, as may be determined by means of Insurance DistributionRules and, or Conduct of Business Rules issued under this artic le.
Information to be 
provided for supervisory purposes.43N. An authorised insurance undertaking and an authorised
reinsurance undertaking carrying out insurance distribution act ivities
and reinsurance distribution activities, as applicable, shall s ubmit to
the competent authority any information which is necessary for the
purposes of supervision, as may be specified by means of regula tions,
50 [CAP. 487. INSURANCE DISTRIBUTION
Insurance Distribution Rules or Conduct of Business Rules, whic h
may also specify the period within which this information is to  be
submitted.
Conduct of 
business provisions.43O. An authorised insurance undertaking carrying out insurance
distribution activities shall be required to comply with conduc t of
business requirements, including requirements relating to insur ance-
based investment products, as may be determined by means ofConduct of Business Rules issued for the purposes of this artic le.
PART IX
GENERAL PROVISIONS
Changes in 
documentation.
Amended by:
XXVII. 2009.39;XXVI.2018.42.44. (1) Every person registered or enrolled under this Act,
shall notify in writing the competent authority of any materialchanges in the documentation provided or required to be provide d
by or under this Act and any regulations, Insurance Distributio n
Rules and Conduct of Business Rules made thereunder, as soon as the
registered or enrolled person becomes aware of such changes.
(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 otherinstrument constituting the company, submit in writingto the competent authority particulars of the proposedaddition or alteration for its prior consent; and no suchaddition or alteration shall be made or shall beregistered, or shall take effect, whether it is registeredor not, unless and until the competent authority hassignified its consent in writing; and
(b) inform the competent authority of the names of the
persons holding a qualifying shareholding in thecompany and the percentage of such holdings; and thecompetent authority may, by Insurance DistributionRules made for the purposes of this article, determinethe form, manner and content of the information to beforwarded to it and the date by which such informationshall be forwarded shall also be established by the said
Insurance Distribution Rules.
(3) (3)Without prejudice to the foregoing provisions of this
article:
(a) a person enrolled under Part III shall notify the
competent authority on a continuous basis, withoutundue delay, with any change or circumstance whichmay give rise to the existence of close links within themeaning of article 10; 
(b) a tied insurance intermediary enrolled under Part VIII
shall notify any authorised undertaking appointing it,on a continuous basis, without undue delay, with anychange in the information provided in article 37(1A);
(c) an ancillary insurance intermediary enrolled under
      
INSURANCE DISTRIBUTION [CAP. 487. 51
Part VIIIA shall notify any authorised undertaking or
any enrolled insurance broker appointing it, on acontinuous basis, without undue delay, with anychange in the information provided in article 43E(2);and
(d) an authorised undertaking appointing, registering and
enrolling a tied insurance intermediary or an ancillaryinsurance intermediary under Part VIII and Part VIIIA,respectively, and an enrolled insurance brokerappointing, registering and enrolling an ancillaryinsurance intermediary under Part VIIIA, shall notifythe competent authority on a continuous basis, withoutundue delay, with any change in the informationprovided in articles 37(1A) and 43E(2), respectively,as notified by the tied insurance intermediary orancillary insurance intermediary concerned.
Participation in a 
company enrolled under article 13.
Added by:
XVII. 2009.40.
Amended by:
XXXIII. 2015.93.XXVI.2018.43.44A. (1) Notwithstanding anything contained in any other law,
the prior written consent of the competent authority shall berequired before any person may lawfully:
(a) acquire, directly or indirectly, a qualifying
shareholding in a company enrolled under article 13(hereinafter referred to in this Act as the "enrolledcompany");
(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 enrolledcompany;
(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 thatperson’s subsidiary;
(e) reduce, directly or indirectly, a qualifying
shareholding so as to cause it to cease to be aqualifying shareholding; or
(f) divest itself, directly or indirectly, of a qualifying
shareholding.
(2) Subarticle (1) shall apply irrespective of whether or not an y
of the relevant shares are shares listed on any regulated marke t.
(3) It shall be the duty of an enrolled company and of the
directors thereof to notify the competent authority forthwith u pon
becoming aware that any person intends to take any of the actio ns
set out in subarticle (1).
(4) Notwithstanding anything contained in any other law, the
written consent of the competent authority shall be required be fore
52 [CAP. 487. INSURANCE DISTRIBUTION
any company enrolled under article 13 may  lawfully -
(a) merge with any other company, whether enrolled under
this Act or not;
(b) undergo any reconstruction or division; or
(c) increase or reduce its nominal or issued share capital
or effect any material change in voting rights.
(5) It shall be the duty of all directors and qualifying
shareholders of an enrolled company to notify the competentauthority forthwith upon becoming aware that the company intend s
to take any of the actions set out in subarticle (4).
(6) For the purpose of this article, the competent authority may
issue Insurance Distribution Rules determining the form in whic h
notification in terms of subarticle (1) and subarticle (4) shal l take
place and the information required to be furnished with suchnotification; and the competent authority shall, upon a notific ation
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 such information as the competent authority maylawfully require, whichever be the later, the competent authori ty
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 deemappropriate; or
(c) refusing consent to the taking of the action,
and if it refuses to grant consent, it shall inform the person or the
enrolled company concerned in writing of the reason for suchrefusal.
(8) If any person or any enrolled company takes or intends to
take any action set out in subarticle (1) or (4) without the pr ior
written consent of the competent authority, the competent autho rity
shall, without prejudice to any other penalty which may be impo sed
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 existingimmediately before such action was taken;
(d) restraining the person or company from exercising any
rights which such action would, if lawful, haveconferred upon them, including the right to receive anypayment or to exercise any voting rights attaching tothe shares acquired;
(e) restraining the person or company from taking any
      
INSURANCE DISTRIBUTION [CAP. 487. 53
similar action or any other action within the categories
set out in sub-articles (1) and (4).
(9) In the case of a foreign company enrolled under this Act to
carry out insurance distribution activities or reinsurance dist ribution
activities in or from Malta, the provisions of this article shall apply
only to the extent of requiring such company to give to thecompetent authority, not later than thirty days from such chang e or
occurrence, as the case may be, the information therein referre d to.
(10) Without prejudice to any other provision of this Act, where
the influence exercised by any person holding a qualifyingshareholding is, or is likely to, operate against the sound andprudent management of an enrolled company, the competentauthority may exercise any of it s powers under this Act, includ ing
the power to issue directives as it may deem reasonable in thecircumstances.
Appointment of 
intermediaries .
Added by:
XXVI.2018.44.44B. Without prejudice to the requirements of this Act, every
insurance agent and insurance broker enrolled under this Act sh all
utilise the services of intermediaries which are:
(a) enrolled under Parts VIII and VIIIA, as set out in
the said Parts; or
(b) registered under Article 3 of the Insurance
Distribution Directive or falling under Article 1(3) of theInsurance Distribution Directive.
Co-operation in 
supervisory duties and sharing of information.
Amended by:
XX. 2007.151;XXXIII. 2015.94;XXVI. 2018.4545. (1) The competent authority may exercise the following
powers at the request of or for the purposes of assisting an ov erseas
regulatory authority -
(a) the power to impose, revoke or vary conditions on the
grant of a registration or enrolment pursuant to theprovisions of article 13(4);
(b) the power to suspend or strike off the name of a
registered person from the Agents Register, ManagersRegister or Brokers Register or of an enrolled personfrom the Agents List, Managers List or Brokers Listunder article 16;
(bb) the power to impose, revoke or vary conditions on the
grant of an enrolment pursuant to the provisions ofarticles 37(8) and 43E(9);
(c) the power to strike off the name of a tied insurance
intermediary off the Tied Insurance Intermediaries Listenrolled under article 41;
(cc) the power to strike off the name of an ancillary insurance
intermediary off the Ancillary Insurance IntermediariesList enrolled under article 43E;
Cap. 403.(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
54 [CAP. 487. INSURANCE DISTRIBUTION
authority information in its possession, whether such
information is the result of any of the above powers orotherwise.
(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 ofone or more of its regulatory functions; or
(b) where so required within the terms of Malta’s
international commitments or the obligations arising out
of the Insurance Distribution Directive, as amended from
time to time, and includes any implementing measuresthat have been or may be issued thereunder, and inparticular, the competent authority shall, notwithstandingthe provisions of article 46 of this Act and article 59 ofthe Insurance Business Act, as applicable, cooperate andexchange information on insurance and reinsuranceintermediaries, ancillary insurance intermediaries andinsurance and reinsurance undertakings, with overseasregulatory authorities, for the purpose of ensuring theproper application of the Insurance DistributionDirective, pursuant to Article 13 of the said Directive; or
(c) where so required within the terms of undertakings
assumed in bilateral or multilateral agreements for theexchange of information and other forms ofcollaboration with overseas regulatory authoritiesincluding a request under a memorandum ofunderstanding concluded with the competent authority.
(3) There shall be meetings held between an authorised
undertaking, an insurance intermediary, an approved auditor andthe competent authority on a bilateral or a multilateral basis as
circumstances may warrant. Such meetings may be called by any o f
the parties and shall in each case be chaired by the competentauthority.
(4) The competent authority shall inform the European
Commission of any general difficulties which persons enrolled u nder
this Act encounter in establishing themselves or carrying out i nsurance
distribution activities and reinsurance distribution activities  in any
third country.
Confidentiality.
Amended by:
XX. 2007.152;X. 2011.93;XXVI.2018.46.46. (1) Nothing in this Act shall authorise the competent
authority to enquire or cause an enquiry to be made in relation  to an
enrolled person into the affairs of any individual client of th e
enrolled person except for the purpose of ensuring compliance w ith
any of the provisions of this Act or any other Act.
(2) Information obtained by the competent authority or by its
officers, employees or agents, including former officers, emplo yees
or agents, as well as by inspectors, auditors and experts actin g on
behalf of the competent authority for the purposes of, or pursuant to,
any of the provisions of this Act, or of any regulations, Insur ance
Distribution Rules or Conduct of Business Rules made thereunder , or
      
INSURANCE DISTRIBUTION [CAP. 487. 55
in the discharge of any functions under any of the said provisi ons,
shall be treated as confidential and protected by the duty ofprofessional secrecy, and shall not be disclosed to any other p erson,
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 thecompetent authority before any court under this Act;
(b) where the information is disclosed with a view to
enabling or assisting the competent authority in theperformance or discharge of any of its functions underthis Act;
(c) where the information has been made available to the
public by virtue of being disclosed in anycircumstances in which, or for any purpose for which,disclosure is not precluded by this article;
(d) where a summary or collection of information is
prepared or supplied in such a way as not to enable the
identity of any person to whom the information relates
to be ascertained, without prejudice to cases covered bycriminal law;
(e) where the information is disclosed to an auditor where
such disclosure would assist the auditor in the exerciseof his functions under article 28;
Cap. 345.(f) where the information is provided to the Central Bank
of Malta or to the Listing Authority under the
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 enforcementauthorities where such disclosure is required orrequested for the pursuance of serious regulatoryconcerns or the detection, prevention or prosecution ofcriminal offences;
(h) where the information is disclosed in civil or
commercial proceedings in relation to the bankruptcyor compulsory winding up of an insuranceintermediary provided such information does notconcern third parties involved in attempts to rescuesuch insurance intermediary, and to such overseasbodies responsible for the liquidation and bankruptcyof a person holding an authorisation or an equivalentlicence from an overseas regulatory authority.
(3) Subject to the provisions of article 45, information obtaine d
from an overseas regulatory authority may only be disclosed toanother person, to another overseas regulatory authority or to any
other third party with the prior approval of the authority whic h 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
56 [CAP. 487. INSURANCE DISTRIBUTION
affairs of an enrolled person or of a client of the enrolled pe rson
concerned which he has acquired in the performance of his dutie s
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.
Cap. 373.(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 acti vity could
involve money laundering, he shall act in compliance with thereporting and other obligations set out in the regulations made  under
article 12 of the Prevention of 
Money Laundering Act and  any
procedures and guidance issued thereunder, and such disclosure shall
not constitute a breach of confidentiality.
(7) The competent authority, when processing personal data for
the purposes of the Act and any regulations, Insurance Distribu tion
Rules and Conduct of Business Rules issued thereunder, shall do  so in
accordance with Regulation (EU) 2016/679 of the EuropeanParliament and of the Council of 27 April 2016 on the protectio n of
natural persons with regard to the processing of personal data and on
the free movement of such data, and repealing Directive 95/46/E C
(General Data Protection Regulation), as amended from time to t ime.
Co-operation with 
EIOPA.
Added by:
XXVI.2018.47.46A. (1) The competent authority shall cooperate with EIOPA
for the purposes of the Insurance Distribution Directive, inaccordance with Regulation (EU) No. 1094/2010.
(2) The competent authority shall provide EIOPA with all
information necessary to carry out its duties in accordance wit h
Regulation (EU) No. 1094/2010.
Access to the 
public of the registers and the lists.
Amended by:
XXXIII. 2015.95;XXVI.2018.48.47. Any Registers or Lists which are required to be maintained by
the competent authority in terms of this Act shall be accessibl e to the
public, free of charge, at the offices of the competent authori ty at
all times during the normal working hours of the competentauthority.
Use of the word 
"insurance".
Amended by:
XX. 2007.153;XXXIII. 2015.96;XXVI.2018.49.48. (1) Subject to the following provisions of this article, save
with the written permission of the competent authority, no pers on
other than -
(a) a person registered in the Agents Register, Managers
Register or Brokers Register under article 13; or
(b) a person enrolled in the Agents List, Managers List or
Brokers List under that article; or
      
INSURANCE DISTRIBUTION [CAP. 487. 57
(c) a person enrolled in the Tied Insurance Intermediaries
List under article 37; or
(cc) a person enrolled in the Ancillary Insurance
Intermediaries List under article 43E; or
Cap. 403.(d) an insurance and reinsurance undertaking authorised
under the Insurance Business Act; or
(e) a person who holds insurance qualifications of an
institute of repute recognised for such purpose by thecompetent authority; or
(f) an institute of repute which provides instruction in
insurance business studies and is recognised as suchby the competent authority; or
(g) a person prescribed by regulations under this Act,
shall use the word "insurance" as part of his or its descriptio n or
title or make any such use on any letter paper, in any notice o r
advertisement, or in any other similar manner.
(2) Any foreign company enrolled or any third country
insurance undertaking or third country reinsurance undertakingauthorised as aforesaid may use the name used in its country ofregistration, incorporation or constitution save that, where th ere is
a risk that the use of such name may be misleading, such foreig n
company, third country insurance undertaking or third countryreinsurance undertaking shall add such explanatory particulars to
its name as the competent authority shall direct.
(3) The competent authority may, by Insurance Distribution
Rules made for the purpose of this article, determine thequalifications or experience for carrying out insurance distrib ution
activities and reinsurance distribution activities which are required of
persons, other than persons referred to in the foregoing sub-ar ticles
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 thei r
derivatives or other words as may indicate or purport to indica te the
carrying on of business of insurance or the carrying out of ins urance
distribution activities or reinsurance distribution activities or the
carrying on of such business or the carrying out of such activi ties in
any language in the description or title under which a person i s
carrying on such business or carrying out such activities.
Service of notices, 
etc.
Amended by:
XXXIII. 2015.97;XXVI.2018.50.49. A notice or other document to be given or served under this
Act and any regulations or Insurance Distribution Rules or Conduct of
Business Rules made thereunder shall be deemed to have been duly
given or served on a person if -
(a) it has been delivered to him; or
(b) it has been left at the address furnished by him to the
competent authority, or at his last known address; or
(c) it has been sent to him by post or by telefax at any of
the aforesaid addresses; or
58 [CAP. 487. INSURANCE DISTRIBUTION
(d) in the case of a commercial partnership registered in
Malta, it has been delivered, sent by post or by telefax,or left at the registered office, or at the last knownregistered 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 servedin any of the manners aforesaid to or on a director, anofficer, secretary, a clerk or the representative of thatbody.
Appeals.
Amended by:
XVII. 2009.41;XXXIII. 2015.98;XXVI.2018.51.Cap. 403.
Cap. 330.50.(1)(a) For the purposes of any appeal made to the Tribunal
under this Act, the provisions of the proviso to article57(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, an appeal shall l ie
to the Financial Services Tribunal with respect to -
(a) any refusal to register or to enrol an applicant under
article 13, 41 or 43I;
(b) any condition imposed on, or subsequent to,
registration and enrolment under article 13, 37 or 43E;
(c) any suspension or striking off of the name of a person
from the Agents Register, Managers Register orBrokers Register or the name of an enrolled person offthe Agents List, Managers List or Brokers List underarticle 16;
(d) any refusal to restore the name of a person to the
Agents Register, Managers Register or Brokers
Register or the name of an enrolled person to the
Agents List, Managers List or Brokers List under
article 18(2);
(e) any one or more measures taken under article 19;
(f) any refusal to register an underwriting agreement
under article 32;
(g) any striking off of the name of a person from the Tied
Insurance Intermediaries List under article 40(3)( b);
(h) any requirement on an authorised undertaking to strike
the name of a person off the Tied InsuranceIntermediaries Company Register under article 41;
(ha) any striking off of the name of a person from the
Ancillary Insurance Intermediaries List under
article 43H(3)(b);
(hb) any requirement on an authorised undertaking or
an enrolled insurance broker to strike the nameof a person off the Ancillary InsuranceIntermediaries Company Register under article43I;
(i) any notice issued or any order made under article 44A;
      
INSURANCE DISTRIBUTION [CAP. 487. 59
Cap. 403. (j) any directive given under article 31A of the Insurance
Business Act, made applicable by article 54 of this
Act;
(k) any administrative penalty imposed in respect of
infringements as may be prescribed under article 3.
(3) The Financial Services Tribunal shall have exclusive
competence to hear appeals on the matters listed in sub-article  (2).
Exclusion of 
liability.
Amended by:
XXVI.2018.52.51. Deleted by Act V.2020 .57.
Offences.
Amended by:
XVII. 2009.42;XXXIII. 2015.99;XXVI.2018.53.52. (1) Any person -
(a) who for the purpose of obtaining the registration or
enrolment unde3.3.r this Act or any regulations,Insurance Distribution Rules or Conduct of BusinessRules made thereunder, furnishes information or
makes a statement or a declaration which the personknows to be inaccurate, false or misleading in anymaterial particular, or recklessly furnishes informationor makes a statement or a declaration which isinaccurate, false or misleading in any materialparticular; or
Cap. 403.(b) who contravenes or fails to comply with any of the
provisions of this Act as specified in regulations issued
under this article;
(c) who is knowingly a party to the carrying out of
insurance distribution activities or reinsurancedistribution activities, with a fraudulent intent or for a
fraudulent purpose; or
(d) who without any reasonable excuse alters, suppresses,
conceals, destroys or refuses to produce any documentwhich is lawfully required to be produced by anyperson under this Act and any regulations madethereunder; or
(e) who intentionally obstructs a person exercising rights
conferred by this Act or any regulations, InsuranceDistribution Rules or Conduct of Business Rules 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) sh all
be guilty of an offence and shall be liable to the same penalti es as
the principal offender.
(3) The Minister shall make regulations under this article
prescribing penalties for offences against this Act, and suchregulations may prescribe -
(a) penalties which are enforceable by prosecution in the
courts of Malta;
(b) different penalties for contraventions of different
60 [CAP. 487. INSURANCE DISTRIBUTION
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.
Penalties.
Amended by:
L.N. 427 of 2007;X. 2011.94;XXXIII. 2015.100;XXVI.2018.54.53. (1) The penalties prescribed by regulations made under
article 52 –
(a) in the case of imprisonment, shall not provide for a
sentence of imprisonment greater than four years;
(b) in the case of a fine imposed after a prosecution in the
courts of Malta, shall not provide for a fine ( multa ) of
less than two hundred thirty euro (€230) or greater thanfour hundred and sixty-six thousand euro (€466,000);
(bb) may provide for both such fine and imprisonment;
(c) in the case of a continuing offence, shall not provide for
a fine ( multa ) of less than one hundred and sixteen euro
(€116) or greater than two hundred thirty euro (€230) foreach 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 whicharticle 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.
Publication of 
penalties and other 
measures .
Added by:
XXVI.2018.55.53A. (1) The competent authority shall publish on its official
website, without undue delay, any administrative penalty or oth er
measure which is imposed for breaches of the provisions of this  Act
and of any regulations, Insurance Distribution Rules or Conduct  of
Business Rules issued thereunder. Such publication shall includ e
information on the type and nature of the breach and the identi ty of the
natural or legal person responsible for the breach:
Provided that, in cases where an appeal has been filed by the
person on whom such administrative penalty or other measure hasbeen imposed, the competent authority shall, without undue dela y,
publish on its official website such information and any subseq uent
information on the status of the appeal and the outcome thereof . The
competent authority shall also publish any decision annulling aprevious decision to impose a sanction or other measure which h as
been published:
Provided further that where the competent authority has
made a public statement in terms of this sub-article, it shallsimultaneously report that fact to EIOPA.
(2) Notwithstanding sub-article (1), the competent authority
may decide to defer publication, not to publish, or to publish on an
anonymous basis, any administrative penalty or other measureimposed, in any of the following circumstances:
      
INSURANCE DISTRIBUTION [CAP. 487. 61
(a) where the publication of the identity of legal
persons, or the identity or personal data of natural persons, i s
considered by the competent authority to be disproportionatefollowing a case-by-case assessment conducted on theproportionality of the publication of such data; 
(b) where the publication jeopardises the stability of
financial markets or an ongoing investigation. 
(3) The competent authority shall, in terms of Article 36 of the
Insurance Distribution Directive:
(a) inform EIOPA of all administrative penalties and
other measures imposed, but not published in accordance withsub-article (2), including any appeal in relation thereto and t he
outcome thereof;
(b) annually provide EIOPA with aggregated
information regarding all administrative penalties and othermeasures imposed in accordance with the Act and anyregulations, Insurance Distribution Rules and Conduct ofBusiness Rules issued thereunder, implementing the InsuranceDistribution Directive.
Application of 
certain articles of the Insurance Business Act to insurance intermediaries.
Amended by:
XVII. 2009.43;XXXIII. 2015.101;XXVI.2018.56.Cap. 403.54. (1) Subject to the provisions of subarticle (2) -
(a) the provisions of articles 29 to 31A of the Insurance
Business Act (hereinafter in this article referred to as
"the Act") shall apply to an enrolled person, as ifreference in such provisions -
(i) to "authorisation" were a reference to
"enrolment in the Agents List, Managers List orBrokers List";
(ii) to "authorised insurance or reinsurance
undertaking" were a reference to an "enrolledperson";
(iii) to "business of insurance" were a reference to
"insurance distribution activities or reinsurancedistribution activities";
(b) articles 29 to 31A of the Act shall apply to a person
enrolled in the Tied Insurance Intermediaries List or
Ancillary Insurance Intermediaries List, as if reference in
such provisions -
(i) to "authorisation" were a reference to "enrolment
in the Tied Insurance Intermediaries List" or"enrolment in the Ancillary InsuranceIntermediaries List", as applicable";
(ii) to "an authorised insurance undertaking" were a
reference to "a reference to "a tied insurance
intermediary" or "an ancillary insurance
62 [CAP. 487. INSURANCE DISTRIBUTION
intermediary";
(iii) to "business of insurance" were a reference to
"tied insurance intermediaries activities" or"ancillary insurance intermediaries activities".
(2) Sub-article (1) shall apply to an enrolled person as if
reference in the relevant provisions of the Act to "the compete nt
authority" were a reference to "the competent authority" under this
Act, and "references to "Insurance Rules" were references to
"Insurance Distribution Rules".
Savings.
Cap. 404.55. (1) Every licence issued or other action whatever taken or
commenced under the Insurance Business Act, in so far as
insurance agents and insurance managers are concerned, or underthe Insurance Brokers and Other Intermediaries Act*, shall
continue in force and to be valid as if such licence were issue d or as
if such other action were taken or commenced under this Act.
Cap. 403. (2) Any person or company licensed under the Insurance
Business Act to act as an insurance agent or as an insurance
manager within the meaning of that Act or licensed under theInsurance Brokers and Other Intermediaries Act* to act as aninsurance broker or insurance sub-agent within the meaning of t hat
latter Act shall, not later than the appointed date, conform wi th the
provisions of this Act or otherwise cease to act as an insuranc e
intermediary, and shall until the appointed date or until it co nforms
with the provisions of this Act, whichever is earlier, continue  to be
governed by the provisions of the Insurance Business Act or theInsurance 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 thi s Act.
(3) Where a company ceases to act as an insurance agent,
insurance manager or insurance broker on the grounds that suchcompany did not, on the appointed date, conform with theprovisions of this Act, that company shall be deemed to have ma de
an application to the competent authority under article 26 on t he
appointed date to cease to carry on insurance intermediariesactivities on that date and to have been given permission by th e
competent authority under that article on the appointed date tocease to carry on such business on that date and to run-off tha t
business as from that date. The competent authority may imposesuch 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 th e
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 tostrike his name off the said register on that date;
(b) the competent authority shall be deemed to have struck
*Repealed by this Act.
†Repealed by this Act.
      
INSURANCE DISTRIBUTION [CAP. 487. 63
the name of that person off the Brokers Register on
that date, and, also on that date, notified that personthat his name has been struck off the Brokers Register;
and the person, following the appointed date, shallforthwith surrender to the competent authority thecertificate of registration, and any official copiesthereof.
(5) Where a person ceases to act as an insurance sub-agent on
the grounds that such person did not, on the appointed date,conform with the provisions of this Act -
(a) that person shall be deemed to have made an
application to the authorised company, in whose TiedInsurance Intermediaries Company Register of thecompany his name is registered, under article 39( b), on
the appointed date, requesting the company to strikehis 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 TiedInsurance Intermediaries Register of the company onthat date, and, also on that date, notified that personand the competent authority accordingly, under article40(6);
(c) the competent authority shall be deemed to have struck
the name of that person off the Tied InsuranceIntermediaries List on that date, and, also on that date,notified the company concerned accordingly, underarticle 40(3)( a); and the authorised company
concerned shall forthwith, following the appointeddate, surrender to the competent authority thecertificate of enrolment relating to that person and anyofficial copies thereof.
Cap. 249.(6) Without prejudice to the provisions of article 12 of the
Interpretation Act -
Cap. 403.(a) all regulations, insurance directives, insurance
intermediaries directives, orders and other instrumentswhich 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
Cap. 403.(b) any agreements and arrangements which were made in
virtue of the Insurance Business Act, in so far as
insurance agents and insurance managers areconcerned, and the Insurance Brokers and OtherIntermediaries Act*, or made in virtue of anyregulation, insurance directive, insuranceintermediaries directive, order and other instrument,
shall, if and as in force immediately before the commencement o f
this article, be deemed to have been made under or in virtue of  this
Act and shall continue in force and may be amended, altered,
*Repealed by this Act.
64 [CAP. 487. INSURANCE DISTRIBUTION
repealed or otherwise dealt with accordingly.
Cap. 403.(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 t o
any provision thereof, shall, in so far as applicable, be read and
construed as a reference to this Act or to the correspondingprovision 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 the competentauthority before the coming into force of the provisions of thi s Act,
and any reference in any law to an insurance intermediariesdirective shall be deemed to be a reference to InsuranceDistribution Rules.
Added by:
XXVI.2018.57.
Cap. 487. 
Cap. 487.(8A) Any reference to Insurance Distribution Rules issued by the
competent authority in virtue of article 4(4) of the InsuranceIntermediaries Act, in any licence, notice, decision or other a ct made
or taken by the competent authority under the 
Insurance
Intermediaries Act, and any reference in any law to Insurance
Distribution Rules shall be deemed to be a reference to Insuran ce
Distribution Rules.
(9) For the purpose of this article, "licence" includes authorit y
or authorisation, permit, approval, registration, enrolment andappointment, and the word "licensed" shall be construedaccordingly.
      
INSURANCE DISTRIBUTION [CAP. 487. 65
INSURANCE AND REINSURANCE DISTRIBUTION ACTIVITIES
For the purposes of paragraph 1 of the Third Column of this Sch edule, "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.Amended by:
XX. 2007.154;L.N. 451 of 2013;XXXIII.2015.10;XXVI.2018.58 .SCHEDULE
(Article 2)
First Column Second 
ColumnThird Column
Independent 
Insurance 
IntermediariesDependent 
Insurance 
IntermediariesInsurance Distribution Activities and Reinsurance 
Distribution Activities
Insurance 
Broker1. Professional activities of persons listed in the
First Column of this Schedule who, acting withcomplete freedom as to their choice of lawfulinsurers, bring together, with a view to theinsurance or reinsurance of risks or commitments,persons seeking insurance or reinsurance andinsurers or reinsurers, carry out work preparatory tothe conclusion of contracts of insurance orreinsurance and, where appropriate, assist in theadministration and performance of such contracts,in particular in the event of a claim;
Insurance 
Agent2. Professional activities of persons listed in the
Second Column of this Schedule who are appointedby an undertaking authorised under the 
Insurance
Business Act and, or by a European insurance
undertaking to be its agent in respect of business of
insurance with authority to enter into contracts ofinsurance on behalf of the undertaking under theterms of the appointment;
Insurance 
Manager3. Professional activities of persons listed in the
Second Column of this Schedule which consist ofaccepting an appointment from:
(a) an insurer or reinsurer to manage
any part of its business, or to exercisemanagerial functions therein, or to beresponsible for maintaining accounts orother records of such insurer or reinsurerand in this context, “management” includesauthority to enter into contracts ofinsurance on behalf of the insurer orreinsurer under the terms of theappointment;
66 [CAP. 487. INSURANCE DISTRIBUTION
(b) an insurance broker enrolled under
this Act, restricted to contracts of insurancerelating to risks situated outside of Malta orcommitments where Malta is not thecountry of commitment, to manage any part
of its business, or to exercise managerial
functions therein, or to be responsible formaintaining accounts or other records forthe broker; and
(c) a reinsurance special purpose
vehicle authorised in accordance with anyregulations that may be made under the
Insurance Business Act (Cap. 403), to
manage any part of its business, or toexercise managerial functions in relationthereto.
Tied Insurance 
Intermediary4. Activities of persons listed in the Second
Column of this Schedule wh o, for remuneration, carry
out insurance distribution activities for or on behalf ofone or more authorised undertakings in the case ofinsurance products which are not in competition,acting under the full responsibility of thoseauthorised undertakings for the products whichconcern them respectively and who may collectpremiums or amounts intended for the policyholder,provided that no insurance commitments towards oron the part of the public are given as part of theseactivities.
Ancillary 
Insurance Intermediary5. Activities of persons listed in the Second
Column of this Schedule who, for remuneration,take up or pursue insurance distribution activitieson an ancillary basis, acting under the fullresponsibility of an authorised undertaking for theproduct which concerns such undertaking, or of anenrolled insurance broker, provided that all thefollowing conditions are met:
 (a) the principal professional activity of the
natural or legal person is other than insurancedistribution activities;
(b) the natural or legal person only carries out
insurance distribution activities in relation tocertain insurance products that are complementaryto a good or service; andFirst Column Second 
ColumnThird Column
Independent 
Insurance 
IntermediariesDependent 
Insurance 
IntermediariesInsurance Distribution Activities and Reinsurance 
Distribution Activities
      
INSURANCE DISTRIBUTION [CAP. 487. 67
(c) the insurance products concerned do not
cover long-term business of insurance or liabilityrisks, unless that cover complements the good orservice which the natural or legal person providesas its principal professional activity:
Provided that, no insurance commitments
towards or on the part of the public are given as partof these activities.First Column Second 
ColumnThird Column
Independent 
Insurance 
IntermediariesDependent 
Insurance 
IntermediariesInsurance Distribution Activities and Reinsurance 
Distribution Activities