S.L. 487.8 Art. 10Breaches,penalties and other measures.

(1) Without prejudice to the powers conferred on the competent authority under the provisions of the Act and of any regulations issued thereunder, in the event of any breaches of the Conduct of Business Rules, in relation to the distribution of insurance-based investment products, by an insurance intermediary registered or enrolled under the Act or by an authorised insurance undertaking, the competent authority may impose on such intermediary or undertaking, at least, the following administrative penalties and other measures:

(a) a public statement, which identifies the natural or legal person responsible for the breach and the nature of such breach;

(b) an order requiring the natural or legal person responsible for the breach to cease the conduct and to desist from a repetition of that conduct;

(c) in the case of an insurance intermediary registered or enrolled under the Act, the striking off of the name of such intermediary from the Agents Register, Managers Register, Brokers Register, Agents List, Managers List, Brokers List or Tied Insurance Intermediaries List, as referred to in articles 16 and 41 of the Act, as applicable;

(d) a temporary suspension of any member of the Board of Directors of an insurance intermediary enrolled under the Act or of an authorised insurance undertaking, who is held responsible for the breach;

(e) in the case of a legal person, notwithstanding the penalties specified in the Second Schedule, the following maximum administrative penalties may be imposed:

(i) up to five million euro (€5, 000, 000) or up to 5 % of the total annual turnover according to the last available accounts approved by the Board of Directors. Where the legal person is a parent undertaking or a subsidiary of a parent undertaking which has to prepare consolidated financial accounts according to Directive 2013/34/EU of the European Parliament and of the Council of 26 June 2013 on the annual financial statements, consolidated financial statements and related reports of certain types of undertakings, amending Directive 2006/43/EC of the European Parliament and of the Council and repealing Council Directives 78/660/ EEC and 83/349/EEC, the relevant total turnover shall be the total annual turnover according to the last available consolidated accounts approved by the Board of Directors or equivalent body of the ultimate parent undertaking; or

(ii) up to twice the amount of the profits gained or losses avoided because of the breach, where those can be determined;

(f) in the case of a natural person, notwithstanding the penalties specified in the Second Schedule the following maximum administrative penalties may be imposed:

(i) up to seven hundred thousand euro (€700, 000); or

(ii) up to twice the amount of the profits gained or losses avoided because of the breach, where those can be determined.

(2) Without prejudice to the powers conferred on the competent authority under the provisions of the Act and of any regulations issued thereunder, the competent authority may impose any administrative measures, including an order requiring the natural or legal person responsible for the breach to cease the conduct and to desist from a repetition of that conduct, at least, in the event of the following:

(a) breaches of article 6 of the Act, by a person acting as an insurance intermediary, a reinsurance intermediary or an ancillary insurance intermediary, and carrying out insurance distribution activities and reinsurance distribution activities, as applicable, without registration or enrolment;

(b) an authorised undertaking, an authorised reinsurance undertaking, an insurance intermediary or reinsurance intermediary using the insurance or reinsurance distribution services, as applicable, of persons referred to in paragraph (a);

(c) a person obtaining enrolment under articles 13, 37 and 43E of the Act, through false statements or any other irregular means;

(d) breaches of provisions the Act and Insurance Distribution Rules or Conduct of Business Rules issued thereunder, relating to requirements transposing Article 10 of the Insurance Distribution Directive;

(e) conduct of business requirements set out in Conduct of Business Rules.