S.L. 403.25 Art. 6Administration of the Protection and Compensation Fund.

(1) The Protection and Compensation Fund shall be administered by and be under the general control of the Management

Committee.

(2) The Management Committee may invest contributions made by insurers in terms of regulations 17 and 27 in a prudent manner.

(3) It shall be the duty of the Management Committee to keep the assets of Fund A, Fund B, Fund C and Fund D separate and separately identifiable:

Provided that the Management Committee may cause or permit the assets of Fund A, Fund B or Fund C or a combination of the same to be collectively invested or collectively managed provided that the assets in question remain separately identifiable.

(4) Subject to the provisions of sub-regulation (1), the Management Committee shall have the power to appoint officers or agents of the Protection and Compensation Fund and to grant them such powers or authority as it may deem appropriate. In consultation with the competent authority, the said Committee may, for the better fulfilment of its purposes, delegate any part of its business to be conducted on its behalf by such body or person and under such arrangements or agreements as it may deem appropriate.

(5) The Management Committee shall not enter into an arrangement or agreement as is envisaged in sub-regulation (4) in respect of the purpose set out in regulation 3(2)(c), unless there is in force and in a manner satisfactory to the Management Committee, an agreement among insurers carrying on business of motor insurance in Malta, binding on all parties thereto and requiring them to act as insurers concerned, and where any such agreement between insurers ceases to be operative or to be satisfactory to the Management Committee, any agreement or arrangement entered into by the Management Committee under this regulation shall cease to have effect upon notice in writing by the Management Committee to such person as may lawfully receive such notices on behalf of the body with which the arrangement or agreement was made. COMPENSATION FUND)

(6) Where an arrangement or agreement as is envisaged in sub-regulation (5) has been entered into by the Management Committee, and for so long as such arrangement or agreement is in operation, Part III shall have effect if the arrangement or agreement relates to the purpose set out in regulation 3(2)(a), Part IV shall have effect if the arrangement or agreement relates to the purpose set out in regulation 3(2)(b) on or after the initiation date, and Part V shall have effect if the arrangement or agreement relates to the purpose set out in regulation 3(2)(c).

(7) The competent authority may issue Insurance Rules to determine such incidental, supplementary and consequential provisions as appear necessary for the performance of the Management Committee’s functions and conduct of its business under any provisions of these regulations.