Cap. 403 Art. 37ATransfer of business of insurance to an authorised insurance or reinsurance undertaking.

(1) Where it is proposed to carry out a transfer of business of insurance under which the whole or part of the general business or long term business of an insurance or reinsurance undertaking is to be transferred to an undertaking authorised under this Act ("the transferee") by an undertaking whose head office is in a country outside Malta, the transferee shall notify the competent authority of the particulars of the proposed transfer and no such transfer shall take place unless and until the competent authority has signified its consent in writing.

(2) Where the competent authority has required a recovery plan or a finance scheme in terms of article 16 or 18, it shall refrain from issuing a certificate of solvency for the purposes of this Part of this Act for as long as it considers that the rights of policyholders or the contractual obligations of the reinsurance undertaking are prejudiced.