S.L. 403.14 Art. 10Exercise of passport rights by European reinsurance undertakings.

(1) Subject to sub-regulation (2), a European reinsurance undertaking authorised in accordance with Article 14 of the

Solvency II Directive, shall be entitled to carry on business of reinsurance in Malta under the right of establishment or freedom to provide services in exercise of a European right.

(2) The entitlement to carry on business of reinsurance in Malta is to be treated as being on conditions or terms equivalent to those set out in the authorisation issued to a European reinsurance undertaking by its European regulatory authority; and shall be restricted to the business of reinsurance which the European reinsurance undertaking is authorised to carry on by its European regulatory authority.

(3) Where the competent authority has reason to consider that the activities of a European reinsurance undertaking, carrying on business of reinsurance in exercise of a European right in Malta, might affect the financial soundness of the European reinsurance undertaking, it shall inform the European regulatory authority of that undertaking.

(4) Where a European reinsurance undertaking carries on business of reinsurance in Malta through a branch in exercise of European right, its European regulatory authority may, after having first informed the competent authority, carry out itself, or through an intermediary it appoints for that purpose, on-site verification of the information necessary to ensure the financial supervision of the undertaking. The competent authority may participate in that verification.

(5) Where the competent authority is unable to exercise its right to participate in accordance with sub-regulation (4), it may refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) No 1094/2010.