S.L. 487.7 Art. 8Exercise of passport rights by Maltese intermediaries - establishment.

(1) A Maltese intermediary may exercise a European right to establish a branch if it satisfies the requirements set out in the following provisions of this regulation.

(2) Pursuant to article 11(4) of the Act, a Maltese intermediary intending to establish a branch in exercise of a European right shall give the competent authority a notice of intention which shall contain:

(a) the Member State or EEA State within the territory of which the Maltese intermediary proposes to establish a branch;

(b) a scheme of operations setting out, inter alia, the distribution activities it intends to carry out and the structural organisation of the branch;

(c) the relevant classes of insurance, if applicable;

(d) the address of the proposed branch from where documents may be obtained and to which they may be delivered;

(e) the name of the branch’s general representative who must possess sufficient powers to bind the Maltese intermediary in relation to third parties and to represent it in relations with the authorities and courts of the host Member State; and

(f) such other information as may be specified by means of Insurance Distribution Rules.

(3) Without prejudice to sub-regulations (5) and (8), the competent authority shall give a consent notice within the meaning of sub-regulation (4) to the European regulatory authority, within one month of receiving a complete notice of intention.

(4) The consent notice shall:

(a) be given in accordance with Chapter III of the Insurance Distribution Directive;

(b) confirm that the Maltese intermediary is enrolled to carry out the distribution activities which the branch proposes to carry out;

(c) contain the information stated in the notice of intention of the Maltese intermediary; and

(d) include such other information as may be specified by means of Insurance Distribution Rules.

(5) Unless the competent authority has reason to doubt the adequacy of the organisational structure or the financial situation of the Maltese intermediary, taking into account the distribution activities planned, it shall, within one month of receiving all the information referred to in sub-regulation (2), communicate that information to the European regulatory authority of the branch, and shall inform the Maltese intermediary concerned accordingly.

(6) The competent authority shall inform the Maltese intermediary of the applicable provisions, as communicated by the European regulatory authority of the host Member State through the means referred to in Article 11 of the Insurance Distribution Directive, under which, in the interest of the general good, the distribution activities shall be carried out in that Member State or EEA State.

(7) A Maltese intermediary may establish the branch and commence to carry out distribution activities in the host Member State:

(a) upon receiving the communication referred to in sub-regulation (6), provided that it complies with the said applicable provisions; or

(b) where no applicable provisions are communicated by the European regulatory authority of the host Member State through the means referred to in Article 11 of the Insurance Distribution Directive, within one month from the communication of the consent notice in terms of sub-regulation (3).

(8) Where the competent authority refuses to communicate the information referred to in sub-regulation (2) to the European regulatory authority of the host Member State, it shall give the reasons for its refusal to the Maltese intermediary concerned within one month of receiving all the information in question. The refusal or failure to act in the period stipulated shall be subject to a right of appeal to the Tribunal and the provisions of article 50 of the Act shall apply mutatis mutandis.

(9) In the event of a change in any of the particulars communicated in accordance with sub-regulation (2), the Maltese intermediary shall give written notice of the changes to the competent authority, at least one month before implementing the changes. The competent authority shall as soon as is practicable and not later than one month of such notification, inform the European regulatory authority of the host Member State, of such changes.

(10) For the purposes of this regulation, "applicable provisions" means the host Member State rules with which the Maltese intermediary is required to comply when carrying out distribution activities through the proposed branch in the host Member State concerned.