S.L. 403.24 Art. 5Scope of supervision.

(1) The competent authority shall be solely responsible for the financial supervision of an authorised insurance undertaking and an authorised reinsurance undertaking, including the business carried on by that undertaking in a Member State or EEA State, either through establishment or under the freedom to provide services.

(2) For the purposes of sub-regulation (1) "financial supervision" includes verification, with respect to the entire business of the authorised insurance undertaking and authorised reinsurance undertaking, of its state of solvency, of the establishment of technical provisions, of its assets and of the eligible own funds, in accordance with the Act, regulations and Insurance Rules issued thereunder.

(3) Where the authorised insurance undertaking concerned is authorised to cover risks classified in class 18 of Part I of the Third Schedule to the Act, supervision shall extend to the monitoring of the technical resources which the authorised insurance undertaking has at its disposal for the purposes of carrying out the assistance activities it has undertaken to perform.

(4) Where the competent authority receives information -

(a) in the case of an authorised insurance undertaking, from the European regulatory authority of the Member State or EEA State, other than Malta, in which the risk is situated or the Member State or EEA State of the commitment; or

(b) in the case of an authorised reinsurance undertaking, from the European regulatory authority of the host Member State, that such European regulatory authority considers that the activities of the authorised insurance undertaking or the authorised reinsurance undertaking might affect the undertaking’s financial soundness, the competent authority shall determine whether that undertaking is complying with the prudential principles laid down in the Act, regulations and Insurance Rules issued thereunder.