MLT FSA published feedback statement to the consultation paper on proposed changes to the insurance rules and insurance distribution rules, and 3 circulars on the changes.
A circular on the Amendments to Insurance Rules and Insurance Distribution Rules.
Circular on the Publication of the Amendments to the Insurance Business Act, Insurance Business (Protection andCompensation Fund) Regulations, 2024, Insurance Business (Winding up of an Insurance Undertaking) (Amendment) Regulations, 2024 and Chapter 1 of the Insurance Rules.
Follows MLT FSA Mar. 2025 consult on insurance, insurance distribution, see #245827.
Also follows MLT GVT Mar. 2024 protection and compensation fund regs, see #234513.
Changes and Feedback following Consultation Process
Proposed amendments to chapter 1 on motor vehicle liability insurance business in another Member State retained, with clarifications provided in the feedback statement.
Proposed amendments to Annex II, chapter 6 of the Insurance Rules to clarify term 'independent' have been changed to refer to MLT FSA Corporate Governance Code.
In chapter 8, where one of the cells of the protected cell company is a pure captive, a new provision will be issued in due course about requirement to audit the captive cell.
Remuneration in chapters 1, 2 of Insurance Distribution Rules defined as per Insurance Distribution Act, without prejudice to Insurance Distribution (Exemption) Regulations.
Amendment to two-business-day requirement in chapter 8 of the Insurance Distribution Rules stands but no further changes will be made to that chapter.
Clarifications on treatment of fiduciary bonds and definition of 'preceding year' in chapters 9 and 10 of the Insurance Distribution Rules, as per explanation in feedback.
Effective Implementation
Changes to Chapter 1, the Annex to Chapter 6, Chapter 8 to the Insurance Rules and Chapters 8 of the Insurance Distribution Rules will come into force on Apr. 16, 2025.
New obligations in chapters 1, 2 of the Insurance Distribution Rules from May 5, 2025.
Insurance distributors not in line with the requirements of chapters 1, 2 of the Insurance Distribution Rules must be aligned with new requirements by Oct. 20, 2025.
Amendments to chapters 9, 10 of Insurance Distribution Rules are effective for the annual reporting periods beginning on or after Jan. 1, 2025.
Regulators
MLT FSA
Entity Types
IB; Ins
Reference
FS 02-2025, Cir 4/16/2025
Functions
Accounting; Audit; Compliance; Financial; Legal; Registration/Licensing; Reporting; Risk; Training
