Cap. 403 Art. 11Applicants with head office outside Malta.

(1) The competent authority shall not issue an authorisation under article 7 to a third country insurance undertaking or third country reinsurance undertaking, nor shall the competent authority permit such undertaking to hold the authorisation issued thereunder, unless the undertaking -

(a) is permitted in the country where its head office is situated to carry on the business of insurance which forms the object of the application;

(b) has in Malta at all times:

(i) a general representative fulfilling the requirements of article 12; and

(ii) a branch;

(c) undertakes to set up at the place of management of the branch, accounts specific to the business of insurance which it carries on in Malta, and to maintain there all the records relating to the business carried on;

(d) undertakes to cover the Solvency Capital Requirement and the Minimum Capital Requirement in accordance with the requirements referred to in articles 15 and 17;

(e) submits a scheme of operations in accordance with article 8(1)(f); and

(f) fulfils the governance requirements referred to in article 18I.

(2) In relation to a branch of a third country insurance undertaking or third country reinsurance undertaking, the business of insurance shall be carried on under the management of a person fulfilling the following requirements of this sub-article:

(a) the person must be an individual resident in Malta or an insurance manager who has been designated by the undertaking for the purpose of this article;

(b) the person must not be the approved auditor, or a partner or an employee of the approved auditor, of the undertaking;

(c) the person possesses the qualifications and fulfils or complies with the requirements determined by Insurance Rules made for the purpose of this article; and

(d) the person is fit and proper to ensure its sound and prudent management.

(3) A third country insurance or reinsurance undertaking shall be required to:

(a) establish adequate technical provisions to cover the insurance and reinsurance obligations arising from the business carried out by the branch in Malta, calculated in accordance with Insurance Rules; and

(b) value assets and liabilities and determine own funds in accordance with Insurance Rules.

(4) A third country insurance and reinsurance undertaking shall be required to maintain in Malta at all times an amount of eligible own funds consisting of the items determined in accordance with Insurance Rules and deposit a specified proportion of such own funds as may be prescribed under article 18G.

(5) (a) Branches of third country insurance undertakings shall not simultaneously pursue long term business and general business in Malta.

(b) For the avoidance of doubt, a branch of a third country reinsurance undertaking may be granted an authorisation to carry on both general and long term business, in all classes of business, restricted to reinsurance.

(6) For the purposes of this article, "branch" means a permanent presence in Malta of a third country insurance undertaking or third country reinsurance undertaking, which has received authorisation in Malta to carry on business of insurance in Malta.

(7) The provisions of this article shall be without prejudice to any agreements concluded by the European Community with one or more third countries in terms of Article 171 of the Solvency II Directive.