S.L. 403.14 Art. 3Exercise of passport rights by European insurance undertakings - establishment. S.L. 403.13

(1) A European insurance undertaking which is seeking to establish a branch in Malta in exercise of a European right shall satisfy the establishment conditions specified in sub-regulation (2)

and shall be exempt from the Act in accordance with the provisions of article 6 of the said Act.

(2) The establishment conditions for the purposes of this regulation are that -

(a) the European insurance undertaking has given to its European regulatory authority a notice containing the requisite details in terms of Article 145 of the Solvency II Directive;

(b) the competent authority has received from the European regulatory authority of such European insurance undertaking a consent notice in accordance with paragraph (c) stating that it has given its consent to the insurance undertaking to establish a branch in Malta; and

(c) the consent notice shall include:

(i) a scheme of operations setting out, the inter alia, types of business envisaged and the structural organisation of the branch;

(ii) the address in Malta from where documents may be obtained and to which they may be delivered, and such address shall be the one to which all communications to the general representative are to be sent;

(iii) the name of the general representative who must possess sufficient powers to bind the insurance undertaking in relation to third parties, and to represent it or them in relations with the competent authority and courts in Malta;

(iv) a certificate issued by the European regulatory authority of the European insurance undertaking attesting that such undertaking covers the Solvency Capital Requirement and the Minimum Capital Requirement calculated in accordance with Articles 100 and 129 of the Solvency II Directive;

(v) confirmation that such European insurance undertaking is authorised to carry on the business of insurance which it proposes to carry on in Malta; and

(vi) details of any insurance guarantee scheme, if applicable, which is intended to protect the branch’s policyholders in a manner not being less favourable than that prescribed in Part III of the Protection and Compensation Fund Regulations.

(3) The European insurance undertaking shall inform the competent authority of any change in the details of an insurance guarantee scheme referred to in sub-regulation (2).

(4) Before the branch of a European insurance undertaking commences business, the competent authority shall, within two months of receiving the information referred to in sub-regulation (2), inform the European regulatory authority concerned of the applicable provisions under which, in the interest of the general good, that business shall be carried on in Malta: Provided that a European insurance undertaking may establish the branch and commence business as from the date upon which the European regulatory authority concerned has received the applicable provisions, or, if no applicable provisions are received, on the expiry of the period referred to in this sub-regulation.

(5) In the event of a change in any of the particulars communicated in accordance with sub-regulation (2)(c)(i), (ii) and (iii), the European insurance undertaking shall give written notice of the change to its European regulatory authority and to the competent authority at least one month before implementing the change so that the authorities concerned may fulfil their obligations under Article 146 of the Solvency II Directive.

(6) For the purpose of this regulation, "applicable provisions" means the Maltese rules in accordance with which the European insurance undertaking is required to comply when carrying on the class or classes of long term business or class or classes or part classes of general business, identified in the consent notice, through a branch in Malta.