S.L. 487.7 Art. 13Contravention by European intermediaries – services.

(1) Where the competent authority has reason to consider that a European intermediary which provides services in

Malta has contravened any obligation arising from the provisions of the Act, or of any regulations, Insurance Distribution Rules or Conduct of Business Rules issued thereunder, transposing any obligation set out in the Insurance Distribution Directive, it shall communicate its considerations to the European regulatory authority concerned. The European regulatory authority shall, where applicable and at the earliest opportunity, take all appropriate measures to remedy the situation and ensure that the European intermediary concerned rectifies its position. The appropriate measures taken shall be communicated to the competent authority.

(2) Where, despite the measures taken by the European regulatory authority, or because those measures prove inadequate or insufficient, the European intermediary persists in violating the legal or regulatory provisions referred to in sub-regulation (1) in force in Malta, and in acting in a manner that is clearly detrimental to the interests of insureds and policyholders, in Malta, on a large scale, or to the orderly functioning of insurance and reinsurance markets, the competent authority may, after informing the European regulatory authority concerned, take appropriate measures to prevent or penalise further irregularities, including, in so far as is strictly necessary, to prevent that European intermediary concerned from continuing to carry out distribution activities in Malta and, or new distribution activities 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) Notwithstanding sub-regulations (1) and (2), the competent authority may take appropriate measures to prevent or penalise irregularities committed in Malta, in the cases where immediate action is necessary to protect the interests of insureds and policyholders. In such cases, the competent authority may prevent that European intermediary concerned from continuing to carry out distribution activities in Malta and, or new distribution activities in Malta.

(4) Any measures adopted by the competent authority pursuant to this regulation shall be communicated to the European intermediary concerned in writing, together with reasons justifying such measures. The competent authority shall inform the European regulatory authority concerned, EIOPA and the Commission of such measures, without undue delay.