Cap. 487 Art. 10General requirements for enrolment.

(1) Subject to paragraph (b), the intermediary shall be entitled to be enrolled in the Agents List, Managers List or the

Brokers List if, it satisfies the competent authority that:

(a) in the case of an applicant which is a company:

(i) the applicant’s objects are limited to operations arising directly from insurance distribution activities or reinsurance distribution activities listed in paragraphs (1), (2) and (3) of the Third Column of the Schedule, as applicable, and to matters or functions connected therewith or ancillary thereto, to the exclusion of all other commercial business, other than business determined by Insurance Distribution Rules made for the purposes of this article;

(ii) the applicant discloses to the satisfaction of the competent authority such information as the competent authority has requested of it in relation to persons who will, upon its enrolment, have any proprietary, financial or other interest in, or in connection with, the applicant;

(iiA) the applicant discloses the identity of the

(iiB) the applicant discloses the identity of persons who have close links with the applicant;

(iii) all qualifying shareholders, controllers, directors and all persons who will effectively manage the affairs or carry out the operations appropriate to the application are fit and proper persons to ensure its sound and prudent management;

(iiiA) the applicant possesses appropriate knowledge and ability in order to be able to complete tasks and perform duties adequately, in relation to insurance distribution activities and reinsurance distribution activities, as determined by Insurance Distribution Rules made for the purposes of this article;

(iv) the applicant’s own funds, whether in euro or in other currencies acceptable to the competent authority are at all times not less than such amount appropriate for the kind of business to be carried on by it as may be determined by Insurance Distribution Rules made for the purposes under this Act and such own funds shall at all times be unencumbered;

(v) the applicant has at all times in its favour a policy of professional indemnity insurance or some other comparable guarantee, in each case acceptable to the competent authority, indemnifying it or any person employed by it or otherwise acting for it, to such amount, in such manner and in respect of such matters as the competent authority may from time to time determine by Insurance Distribution Rules;

(vi) the applicant submits to the satisfaction of the competent authority a scheme of operations appropriate to the application which shall include the particulars or proof as may be determined by Insurance Distribution Rules;

(b) in the case of an applicant who is an individual:

(i) sub-article (1)(a)(i), (iiA) and (iii) shall not apply; and

(ii) he shall be entitled to be enrolled in the Agents List, Managers List or the Brokers List if the applicant satisfies the competent authority that the individual: (aa)is fit and proper to be so enrolled and to ensure that the business is carried on in a sound and prudent manner; (bb)has appropriate knowledge and ability in qualifications and fulfils or complies with the requirements as determined by the Act and Insurance Distribution Rules made for the purposes of this article; (cc)carries out activities which are limited to operations arising directly from insurance distribution activities and reinsurance distribution activities, and matters and functions connected therewith or ancillary thereto, to the exclusion of all other commercial business, other than business determined by Insurance Distribution Rules; (dd)discloses the identity of persons who have close links with the applicant.

(2) Where the holdings or close links referred to in sub-article (1) exist between the intermediary and any other person, the competent authority shall:

(a) only grant enrolment if it considers that such holdings or close links do not prevent it from effectively exercising its supervisory functions; and

(b) refuse to grant enrolment if it considers that the laws, regulations or administrative provisions of any country, other than Malta, governing any person with whom the intermediary has close links, or their enforcement, prevent it from effectively exercising its supervisory functions.

(3) Where the application is for enrolment to carry out insurance distribution activities or reinsurance distribution activities as an insurance agent or insurance manager, the applicant is required to produce proof to the satisfaction of the competent authority that such person holds an appointment in writing signed by a senior officer of an insurer, reinsurer or an insurance broker, as the case may be, for which the applicant desires to act designating the applicant to act in the name and on behalf of the company, or solely on behalf of the company, in the capacity specified in the appointment and in respect of matters and under the conditions specified in that appointment: Provided that, where an application is for enrolment to act as an insurance manager, the appointment referred in this paragraph shall not constitute a prerequisite condition for granting enrolment in that behalf provided that the enrolled insurance manager shall not act for an insurer, reinsurer or an insurance broker, as the case may be, unless and until it produces proof to the satisfaction of the competent authority that it holds an appointment in writing from the company concerned to act on its behalf. one or more of the company’s directors are registered in the Agents Register;

(b) Managers List if, in addition to the requirements of article 10, the competent authority is satisfied that any one or more of the company’s directors are registered in the Managers Register;

(c) Brokers List if, in addition to the requirements of article 10, the competent authority is satisfied that any one or more of the company’s directors are registered in the Brokers Register, and the insurance distribution activities or reinsurance distribution activities are carried out under the management of a registered person.

(2) A person enrolled under article 13 may, with the approval of the competent authority given in writing, open a branch or set up or acquire a subsidiary in Malta.

(3) The competent authority may permit a person enrolled as aforesaid to open a branch in Malta if it is satisfied that the insurance distribution activities or reinsurance distribution activities carried on by it from the branch are conducted by a registered person.

(4) Except with the written consent of the competent authority, no person enrolled under this Part of the Act may carry out, nor hold itself as carrying out, insurance distribution activities or reinsurance distribution activities, open a branch, office or other place of business, or set up or acquire a subsidiary, in any country outside Malta.