S.L. 403.14 Art. 11Contravention by European reinsurance undertakings.

(1) Where the competent authority ascertains that a

European reinsurance undertaking which has established a branch in Malta or provides services in Malta has contravened or is likely to contravene the Maltese rules, it shall, in writing, require the European reinsurance undertaking to remedy that irregular situation. At the same time, the competent authority shall refer those findings to the European regulatory authority of that undertaking.

(2) If despite the measures taken by the European regulatory authority, or because such measures prove inadequate, the European reinsurance undertaking persists in violating the Maltese rules referred to in sub-regulation (1) in force in Malta, the competent authority may, after informing the European regulatory authority, take appropriate measures to prevent or penalise further irregularities, including, in so far as is strictly necessary, to prevent that European reinsurance undertaking from continuing to conclude new reinsurance contracts in Malta. In addition, the competent authority may refer the matter to EIOPA and request its assistance in accordance with Article 19 of Regulation (EU) 1094/2010.

(3) Without prejudice to the requirement contained in regulation 12(2)(c) for the purposes of this regulation, the competent authority may require a European reinsurance undertaking which carries on business of insurance in Malta pursuant to these regulations to appoint a person on whom to serve the legal documents necessary for such measures.

(4) Any measure adopted pursuant to this regulation, involving sanctions or restrictions on the conduct of the business of reinsurance, shall be communicated to the European reinsurance undertaking concerned in writing, together with reasons justifying such measures.