S.L. 487.7 ст. 12Contravention by European intermediaries - establishment.

(1) Where the competent authority ascertains that a

European intermediary which has established a branch in Malta has contravened any legal or regulatory provisions as set out in Conduct of

Business Rules, the competent authority may take any appropriate measures as it deems fit.

(2) Where the competent authority has reason to consider that a European intermediary which is carrying out distribution activities through a branch 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, and where the competent authority does not have the responsibility in accordance with regulation 5, the competent authority shall refer its findings to the European regulatory authority of such European intermediary. 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.

(3) 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 (2) 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) No 1094/2010.

(4) Notwithstanding sub-regulations (2) and (3), the competent authority may take appropriate and non-discriminatory measures to prevent or penalise irregularities committed in Malta, in the cases where immediate action is strictly necessary to protect the interests of insureds and policyholders, in Malta, where equivalent measures of the European regulatory authority are inadequate or insufficient. In such cases, the competent authority may also prevent that European intermediary concerned from continuing to carry out distribution activities in Malta and, or new distribution activities in Malta.

(5) 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.

(6) Where a European insurance intermediary which is in breach of any provisions of these regulations has an establishment or possesses property of any description in Malta, the competent authority may, in accordance with national law, impose an administrative penalty pursuant to article 52 of the Act.

(7) Where the competent authority is informed by the European regulatory authority of the removal from the register of the registration of a European intermediary carrying out activities of insurance distribution or reinsurance distribution in Malta, in exercise of a European right, it shall take appropriate measures to prevent the intermediary concerned from continuing to carry out insurance distribution or reinsurance distribution in Malta, under either the right of establishment or the freedom to provide services, and may make or issue public statements or notices in relation to these measures.

(8) A prohibition under this regulation may be:

(a) absolute; or

(b) limited, that is, imposed for a specified event or until specified conditions are complied with, and any period, event or conditions specified in the case of a limited prohibition may be varied by the competent authority and any such notice shall take effect on such date as is specified in the notice.