Cap. 403 Art. 4Powers and duties of the competent authority.

(1) When carrying out its functions under this Act, the competent authority shall, in particular, have regard to:

(a) the protection of insured persons, policy holders, beneficiaries and the general public;

(b) the protection of the reputation of Malta, taking into account Malta's international commitments; and

(c) the promotion of competition and choice.

(2) Without prejudice to the generality of the foregoing, the competent authority shall, in the exercise of its duties, take into account the convergence in respect of supervisory tools and supervisory practices in the application of this Act, and of the regulations and Insurance Rules made thereunder, pursuant to the Solvency II Directive.

(3) For the purpose of sub-article (2):

(a) the competent authority shall participate in the activities of EIOPA;

(b) the competent authority shall comply with the guidelines and recommendations issued by EIOPA in accordance with Article 16 of Regulation (EU) No 1094/2010 and, if not, shall state the reasons for not doing so; and

(c) national mandates conferred on the competent authority shall not inhibit the performance of its duties under this Act or as a member of EIOPA.

(4) The competent authority may make Insurance Rules and Conduct of Business Rules as may be required for carrying into effect any of the provisions of this Act and of any regulations made thereunder. The competent authority may amend or revoke such Insurance Rules and, Conduct of Business Rules, and any amendment or revocation thereof, shall be officially communicated to the persons concerned.

(5) The competent authority may make, amend or revoke, Insurance Rules and Conduct of Business Rules, as may be required for the purpose of implementing any guidelines, recommendations issued by EIOPA under Article 16 of Regulation (EU) No 1094/2010, for the implementation of the Solvency II Directive.

(6) Insurance Rules shall be binding on authorised insurance and reinsurance undertakings and others as may be specified therein. Conduct of Business Rules shall be binding on authorised insurance undertakings and others as may be specified therein.