Cap. 403 Art. 7Authorisation by competent authority for carrying on business of insurance.

(1) The competent authority may authorise an undertaking to carry on under this Act -

(a) in the case of an undertaking whose head office is in

Malta, in or from Malta or in or from a country outside

Malta;

(b) in the case of a third country insurance undertaking or a third country reinsurance undertaking, in or from Malta, such of the classes of business of insurance specified in the Second or Third Schedule, or such parts of those classes, as may be specified in the authorisation.

(2) An authorisation under this article may be restricted to business of reinsurance; and an undertaking may not carry on business of reinsurance by virtue of an authorisation under this article unless the authorisation expressly extends to such business.

(3) An authorisation issued under this article shall entitle an undertaking whose head office is in Malta to carry on business of insurance in a Member State or EEA State, in exercise of a European right, subject to a notification to the competent authority as determined in accordance with regulations made under article 64.

(4) Without prejudice to article 5, an authorisation under this article shall also be required if an undertaking, which holds an authorisation to carry on business of insurance or reinsurance in a class or classes of insurance, intends to extend its business to a class or to classes of business other than those classes for which it is already authorised.

(5) The competent authority shall have the power to require any undertaking to provide such information as it may deem necessary for the purpose of determining an application for authorisation.

(6) An authorisation under this article shall only be issued if the competent authority is satisfied, on the basis of the information required to be submitted under this Act and any information received by it, that the authorisation ought to be granted.

(7) An authorisation issued under this article may identify classes or part classes of general business by referring to the appropriate groups specified in Part II of the Third Schedule.

(8) Subject to the provisions of this Act, the competent authority may subject an authorisation issued or held under this article to such conditions as it may from time to time deem fit to impose.

(9) Subject to sub-article (10), the competent authority shall determine an application for authorisation under this article within six months of receiving a properly completed application form together with the requisite documentation required to be submitted under this Act; and if it refuses to issue the authorisation it shall inform the applicant in writing of the reasons for the refusal.

(10) Where the authorisation sought is one restricted to reinsurance, the period prescribed by sub-article (9) shall be of three months.

(11) The competent authority shall not consider the economic needs of the market as a criterion when examining an application for an authorisation.

(12) On the issue to an undertaking of an authorisation under this article, any previous authorisation of that undertaking under this article shall lapse.

(13) The competent authority shall notify EIOPA of every authorisation issued in terms of this article.