S.L. 403.13 Art. 9Whenfundsappear to be reasonably adequate.

(1) Subject to subregulation (2), whenever the funds held by the Management Committee in respect of the purpose of regulation 3(1)(a) amount to two million and three hundred and twenty-nine thousand and three hundred and seventy-three euro and forty cents (€2,329,373.40) in respect of general business and two million and three hundred and twenty-nine thousand and three hundred and seventy-three euro and forty cents (€2,329,373.40) in respect of long term business, the Management Committee shall inform the competent authority in writing of this fact.

(2) Notwithstanding that the funds held by the Committee in respect of each kind of business are not equal to the amount determined in subregulation (1), if at any time it appears to the Committee that the funds held by it are reasonably adequate for it to exercise its functions with respect to the purpose mentioned in subregulation (1), the Committee shall draw up a report on the adequacy of such funds stating the reasons for its consideration and shall submit that report to the competent authority.

(3) Whenever the competent authority receives information or a report as is envisaged in subregulations (1) and (2), the competent authority shall, after consultation with the Management Committee and the auditor of the Fund, direct the Committee in writing -

(a) to continue to exercise its functions and powers under regulation 7 with respect to contributions to the funds made under subregulation (6) of this regulation and to require the contributions payable thereunder to continue to be paid:

(i) according to the percentage specified in the said regulation; or

(ii) according to a percentage lower than the percentage specified in the said regulation as the competent authority shall specify in the directive, or

(b) to suspend exercising its functions and powers under the said regulation with respect to contributions to such funds in respect of such business for a period of one or more years as the competent authority shall specify in the directive.

(4) Whenever, and for so long as, payment of the contributions under regulation 7(5) is suspended, every insurer, other than an insolvent insurer, to which that directive applies shall pay to the Fund a contribution of six hundred and ninety-eight euro and eighty-one cents (€698.81) and such contribution shall be paid in the month of January of each year and be at the disposal of the Management Committee to meet ordinary expenses incurred by the administration of the Fund as in envisaged in regulation 7(6). For the purpose of this subregulation, ''insurer'' shall include an insurer which was licensed under the Insurance Business Act, 1981, repealed by the Act, or is authorised under the Act to carry on business of long term insurance, whether or not such business constitutes, in whole or in part, business of a protected commitment and which ceased to carry on that business and is carrying out servicing of that business, or which ceases to carry on that business and shall carry out servicing of that business.

(5) Whenever payment of contributions under regulation 7(5) is suspended, every insurer authorised under the Act to carry on business of insurance in Malta, on or after the date of enforcement of such suspension, shall pay to the Fund the contribution established by regulation 7(5) for a period to be determined by the Management Committee in consultation with the competent authority.

(6) If, for so long as the directive issued by the competent authority under subregulation (3) is in operation, whenever it appears to the Management Committee that the circumstances which led to the issuing of the directive have changed substantially or materially so that the funds held by the Fund are inadequate for the Committee to exercise its functions for the purpose of regulation 3(1)(a), the Committee shall, without delay, inform the competent authority of such change and of the new circumstances, and, on receiving that information, the competent authority shall forthwith modify or revoke its directive with respect to contributions to those funds.