S.L. 487.7 Art. 14Powers of the competent authority in relation to applicable provisions.

(1) The competent authority may take appropriate and non-discriminatory measures, in so far as strictly necessary, to prevent or penalise irregularities committed in Malta by a European intermediary, which are contrary to applicable provisions protecting the general good. In such situations, the competent authority may prevent that European intermediary from continuing to carry out distribution activities in Malta and, or new distribution activities in Malta.

(2) For the purposes of sub-regulation (1), "applicable provisions" means the Maltese rules with which, in the interest of the general good, the European intermediary is required to comply when carrying out distribution activities, as identified in the consent notice, through a branch in Malta or when providing services in Malta.

(3) The competent authority may take appropriate measures to prevent a European insurance intermediary or a European ancillary insurance intermediary from carrying out distribution activities within Malta, under the freedom to provide services or, where applicable, the freedom of establishment, where:

(a) the relevant activities are entirely or principally directed towards Malta with the sole purpose of avoiding the legal provisions which would be applicable if that European insurance intermediary or European ancillary insurance intermediary, had its residence or registered office in Malta; and

(b) where its activities seriously endanger the proper functioning of Maltese insurance and reinsurance markets with respect to the interests of insureds and policyholders.

(4) In the case referred to in sub-regulation (3), the competent authority may, after informing the European regulatory authority concerned, take in respect of that European insurance intermediary or European ancillary insurance intermediary, all the appropriate measures needed in order to protect the interests of insureds and policyholders, 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) No 1094/2010, and in such a case, EIOPA may act in the event of a disagreement between the competent authority and the European regulatory concerned.