S.L. 487.8 Art. 14Recovery of administrative penalties.

Where a notice imposing an administrative penalty is served on a person and:

(a) such person fails to appeal within such time as an appeal may be entered, and fails to pay the penalty so imposed; or

(b) appeals within such time to the Financial Services Tribunal and the appeal is withdrawn or the Tribunal confirms the penalty in the amount fixed by the competent authority or in an amount reduced by it, and the penalty is not paid within fifteen days from the date of the withdrawal of the appeal or the date when the Tribunal confirms the penalty as aforesaid, then, in every case, the competent authority shall be entitled to take civil action to recover the amount due to it and the administrative penalty shall be due to the competent authority as a civil debt. FIRST SCHEDULE (Regulation 4)

Penalties which are enforceable by prosecution in the courts of Malta

First Third Second Column Column Column Level Fine (multa) Imprisonment 1 not less than €230 but not more not more than three than €18,600 months 2 not less than €9,300 but not more not less than one month than €93,200 but not more than six months 3 not less than €46,600 but not more not less than six than €466,000 months but not more than four years.

SECOND SCHEDULE (Regulation 4)

Administrative penalties which may be imposed by the competent authority without recourse to a court hearing

First Third Second Column Column Column Level Penalty Daily penalty 1 not less than €1,000 but not more not less than €15 but than €23,000 not more than €35 2 not less than €23,000 but not more not less than €25 but than €50,000 not more than €75 3 not less than €50,000 but not more not less than €60 but than €150,000 not more than €116. THIRD SCHEDULE (Regulation 5)

Court Penalties

First Third Second Column Column Column Penalty Article Offence Level 52(1)(a) Obtaining by deceit registration or enrolment 3 under the Act, or pursuant to any provisions of this Act or any regulations, Insurance Distribution Rules or Conduct of Business Rules made thereunder 52(1)(b) with Acting as an insurance intermediary and 2 reference to 6 carrying out insurance intermediaries activities in or from Malta without registration or enrolment 52(1)(b) with Disclosing of information relating to the affairs 1 reference to of an enrolled person or a client of an enrolled 46(4) person other than in specified circumstances 52(1)(c) Any person who is knowingly a party to the 3 carrying out of insurance distribution activities or reinsurance distribution activities, with a fraudulent intent or for a fraudulent purpose 52(1)(d) Altering, suppressing, concealing, destroying or 2 refusing to produce any document which is lawfully required to be produced by any person under the Act or under any regulations made thereunder 52(1)(e) Obstructing a person exercising rights conferred 2 by the Act or any regulations, Insurance Distribution Rules or Conduct of Business Rules made thereunder 52(2) Knowingly being a party to, or procuring or The penalty aiding and abetting, any contravention of any level provision of the Act or any regulations made applicableto thereunder or any Insurance Distribution Rules theprincipal or Conduct of Business Rules offence Any other offence arising under any provision of the Act not 2 specifically provided for in this Schedule FOURTH SCHEDULE (Regulation 5)

In this Schedule “Administrative Penalties” are those made under and for the purposes of article 3(2)(h) of the Act

Administrative Penalties

First Third Second Column Column Column Penalty Article Offence Level 10(1)(a)(iv) Failure of a person enrolled in the Agents List, 2 Managers List or the Brokers List to maintain at all times an amount of unencumbered own funds as determined by Insurance Distribution Rules 10(1)(a)(v) Failure of enrolled person to have in its favour 2 at all times a professional indemnity insurance or other comparable guarantee satisfying the requirements of article 10(1)(a)(v) 11(2) Opening a branch or setting up or acquiring a 1 subsidiary, in Malta, without the approval of the competent authority 11(3) Carrying out of insurance distribution 1 activities or reinsurance distribution activities from a branch in Malta under the management of a person other than a person who is a registered person under the Act 11(4) Carrying out insurance distribution activities 2 or reinsurance distribution activities, opening a branch, office or other place of business, or setting up or acquiring a subsidiary, in a country outside Malta, without the written consent of the competent authority 12(1)(b) Failure of a foreign company enrolled in the 2 Agents List, Managers List or Brokers List to have in Malta at all times a branch, or a representative, or both 13(4) Failure of person or company to comply with 2 any condition of registration or enrolment 14(2) Failure of displaying at the place of business in 1 a part accessible to the public a certificate of registration or enrolment 14A Failure of an intermediary or of its employees, 1 carrying out insurance distribution activities or reinsurance distribution activities, to comply with continuing professional training and development requirements as may be determined by means of Insurance Distribution Rules and, or Conduct of Business Rules, as applicable, issued for the purposes of article 14A 17(4) Failure of person having his name struck off 2 the Agents Register, Managers Register or Brokers Register or person having its name struck off the Agents List, Managers List or Brokers List to surrender to the competent authority a certificate of registration or enrolment or any official copies thereof 19(1)(e) Failure of an enrolled company or a foreign 3 company in relation to its business in Malta to dissolve and wind up following the issue of an order by the competent authority 20(1) Failure of enrolled person to keep in a separate 3 account monies held in a fiduciary capacity in accordance with requirements as may be determined by Insurance Distribution Rules made for the purpose of article 20 21 Failure of enrolled person to effect and hold a 3 fidelity bond as respects its insurance distribution activities in accordance with requirements as may be determined by Insurance Distribution Rules made for the purpose of article 21 23 Failure of enrolled company to notify the 1 competent authority in writing, within a specified period, the name and the other particulars of the company’s directors and employees who are registered in the Agents Register, Managers Register or Brokers Register; or to notify the competent authority in writing, within a specified period, any changes occurring among such directors and employees 24 Failure of enrolled company to forward 2 annually to the competent authority a copy of the company’s financial statements or failure of enrolled person to forward annually to the competent authority a copy of the income statements; or to forward such statements within a specified period or a period as may be authorised by the competent authority; or to forward a copy of such statements drawn up in accordance with the provisions of article 24 25(1) Failure of enrolled person to submit to the 1 competent authority any information which is necessary for the purposes of supervision, or to submit that information within a specified period; 25(2) Failure of enrolled persons to forward annually 1 to the competent authority statements in respect of insurance distribution activities or reinsurance distribution activities carried out by such person, or to forward such statements in the form, content and manner as may be determined by Insurance Distribution Rules made for the purposes of article 25(2) 26 Failure of enrolled person to notify the 1 competent authority in writing of ceasing to carry out insurance distribution activities or reinsurance distribution activities, or to comply with any condition made by the competent authority in the permit to cease the business 27(2) or (3) Failure of enrolled company to inform the 1 competent authority in writing of altering its financial year 28(1) Failure of person enrolled under article 13 of 2 the Act to appoint approved auditor 28(5) Failure of auditor to give notice in writing to 1 the competent authority if he resigns, does not seek re- appointment, qualifies the audit report, or failure to specify reasons in the case of resignation 28(6) Failure of enrolled company to give notice in 1 writing to the competent authority if it receives notice of a resolution to appoint as auditor a person other than the retiring auditor or not to re-appoint the retiring auditor 28(7) Failure of enrolled person to notify the 2 competent authority in writing, or to notify the competent authority in writing within a specified period, the reasons for terminating the appointment of the enrolled person’s auditor 28(8) Failure of enrolled person to change auditor if 2 so required by the competent authority 28(12) or (14) Failure of auditor to inform the competent 2 authority of any of the matters, facts and decisions provided by article 28(12) or (14) 31(1) Negotiating, arranging or procuring with an 1 unauthorised undertaking a contract of insurance relating to a risk situated in Malta or a commitment where Malta is the country of the commitment unless otherwise approved 32(3) Failure of enrolled person to register with the 1 competent authority an underwriting agreement made or entered into by the person 32(4) Accepting of business of insurance under an 1 underwriting agreement, by an enrolled person, without such underwriting agreement being duly registered by the enrolled person with the competent authority 33(1) Acting as a tied insurance intermediary and 1 carrying out tied insurance intermediaries activities without registration in any Tied Insurance Intermediaries Company Register of an undertaking and without enrolment in the Tied Insurance Intermediaries List 34(1) Failure of authorised undertaking appointing 2 persons to act as tied insurance intermediaries and to carry out tied insurance intermediaries activities on its behalf, to establish and maintain the Tied Insurance Intermediaries Company Register of the undertaking; or to establish and maintain the Tied Insurance Intermediaries Company Register of the undertaking in accordance with requirements as may be determined by Insurance Distribution Rules made for the purpose of article 34 36(2) Failure of authorised undertaking to enrol in 1 the Tied Insurance Intermediaries List a person registered by the undertaking as a tied insurance intermediary in the Tied Insurance Intermediaries Company Register established and maintained by it under article 37 36(3) Failure of authorised undertaking to furnish a 1 person in whose name a certificate of enrolment is issued with that certificate or an official copy thereof 36(4) Failure of person enrolled in the Tied 1 Insurance Intermediaries List of displaying at the place of business in a part accessible to the public the certificate of enrolment or an official copy thereof 37(2) Failure of company enrolled in the Tied 1 Insurance Intermediaries List carrying out tied insurance intermediaries activities from more than one place of business, to carry out those activities from each place of business by a person who is a fit and proper person to carry out such activities and who possesses appropriate knowledge and ability as determined by Insurance Distribution Rules issued for the purposes of article 35 37(4) Seeking appointment and registration in the 1 Tied Insurance Intermediaries Company Register of more than one authorised undertaking carrying on long term business in respect of any one class of long term business 37(5) Seeking appointment and registration in the 1 Tied Insurance Intermediaries Company Register of more than one authorised undertaking carrying on general business in respect of any one class, or any one group of classes, of general business 37(8) Failure of person or company to comply with 1 any condition of enrolment 38(1) Failure of the tied insurance intermediary to 3 keep in a separate account monies held in a fiduciary capacity in accordance with requirements as may be determined by Insurance Distribution Rules made for the purposes of article 38 40(1) Failure of authorised undertaking striking the 1 name of a person off its Tied Insurance Intermediaries Company Register to notify the competent authority in writing of that striking off or of the date of effect of that striking off 40(2) Failure of authorised undertaking to strike the 2 name of a person off its Tied Insurance Intermediaries Company Register on grounds of unfitness and improperness or because the person concerned has acted fraudulently, or dishonestly, or in such manner as to cease to be trustworthy 40(2) Failure of authorised undertaking to notify the 1 competent authority in writing the reasons for striking off that name when the undertaking strikes the name of a person off its Tied Insurance Intermediaries Company Register on specified grounds 40(4)(a) Failure of authorised undertaking to strike the 2 name of a person off its Tied Insurance Intermediaries Company Register if so required by the competent authority 40(7) Failure of authorised undertaking to comply 2 with a directive of the competent authority to hasten the process as striking the name of a person off its Tied Insurance Intermediaries Company Register if so required by the person concerned 40(8) Failure of authorised undertaking to surrender 1 to the competent authority the certificate of enrolment, or any official copies thereof, issued in the name of a person whose name has been struck off its Tied Insurance Intermediaries Company Register 41(2) Failure of a person to comply with any 2 measure taken by the competent authority for the purpose of article 41(2) 43 Acting as a tied insurance intermediary and 1 carrying out tied insurance intermediaries activities on behalf of a European insurance undertaking or of an insurance intermediary registered under Article 3 of the Insurance Distribution Directive in a Member State or EEA State other than Malta, without enrolment in the Tied Insurance Intermediaries List 43A(1) Acting as an ancillary insurance intermediary 1 and carrying out ancillary insurance intermediaries activities without registration in any Ancillary Insurance Intermediaries Company Register of an authorised undertaking or of an enrolled insurance broker, and without enrolment in the Ancillary Insurance Intermediaries List 43B(1) Failure of authorised undertaking or enrolled 2 insurance broker appointing a person to act as ancillary insurance intermediaries and to carry out ancillary insurance intermediaries activities on its behalf, to establish and maintain the Ancillary Insurance Intermediaries Company Register of the undertaking or insurance broker; or to establish and maintain the Ancillary Insurance Intermediaries Company Register of the undertaking or insurance broker in accordance with requirements as may be determined by Insurance Distribution Rules made for the purpose of article 43B(1) 43D(2) Failure of authorised undertaking or enrolled 1 insurance broker to enrol in the Ancillary Insurance Intermediaries List a person registered by the undertaking or insurance broker as an ancillary insurance intermediary in the Ancillary Insurance Intermediaries Company Register established and maintained by it under article 43E 43D(3) Failure of authorised undertaking or enrolled 1 insurance broker to furnish a person in whose name a certificate of enrolment is issued with that certificate or an official copy thereof 43D(4) Failure of person enrolled in the Ancillary 1 Insurance Intermediaries List of displaying at the place of business in a part accessible to the public the certificate of enrolment or an official copy thereof 43E(4) Failure of company enrolled in the Ancillary 1 Insurance Intermediaries List carrying out ancillary insurance intermediaries activities from more than one place of business, to carry out those activities from each place of business by a person who is a fit and proper person to carry out such activities and who possesses appropriate knowledge and ability as determined by Insurance Distribution Rules issued for the purposes of article 43C 43E(9) Failure of person or company to comply with 1 any condition of enrolment 43F(1) Failure of the ancillary insurance intermediary 3 to keep in a separate account monies held in a fiduciary capacity in accordance with requirements as may be determined by Insurance Distribution Rules made for the purposes of article 43F 43H(1) Failure of authorised undertaking or enrolled 1 insurance broker striking the name of a person off its Ancillary Insurance Intermediaries Company Register to notify the competent authority in writing of that striking off or of the date of effect of that striking off 43H(2) Failure of authorised undertaking or enrolled 2 insurance broker to strike the name of a person off its Ancillary Insurance Intermediaries Company Register on grounds of unfitness and improperness or because the person concerned has acted fraudulently, or dishonestly, or in such manner as to cease to be trustworthy 43H(2) Failure of authorised undertaking or enrolled 1 insurance broker to notify the competent authority in writing the reasons for striking off that name when the undertaking or insurance broker strikes the name of a person off its Ancillary Insurance Intermediaries Company Register on specified grounds 43H(4)(a) Failure of authorised undertaking to strike the 2 name of a person off its Ancillary Insurance Intermediaries Company Register if so required by the competent authority 43H(7) Failure of authorised undertaking or enrolled 2 insurance broker to comply with a directive of the competent authority to hasten the process as striking the name of a person off its Ancillary Insurance Intermediaries Company Register if so required by the person concerned 43H(8) Failure of authorised undertaking or enrolled 1 insurance broker to surrender to the competent authority the certificate of enrolment, or any official copies thereof, issued in the name of a person whose name has been struck off its Ancillary Insurance Intermediaries Company Register 43I(2) Failure of a person to comply with any 2 measure taken by the competent authority for the purposes of article 43I(2) 43J Acting as an ancillary insurance intermediary 1 and carrying out ancillary insurance intermediaries activities on behalf of a European insurance undertaking or of an insurance intermediary registered under Article 3 of the Insurance Distribution Directive in a Member State or EEA State other than Malta, without enrolment in the Ancillary Insurance Intermediaries List 43L Failure of an authorised insurance undertaking 1 and an authorised reinsurance undertaking to inform, at least once a year, the competent authority of the names of the individuals within their management, who are responsible for the insurance distribution activities or reinsurance distribution activities of the undertaking, in the form, manner and content and within such date as may be determined by Insurance Distribution Rules made for the purposes of article 43L 43M(1) Failure of an authorised insurance undertaking 1 or an authorised reinsurance undertaking to ensure that their employees carrying out insurance distribution activities or reinsurance distribution activities, possess appropriate knowledge and ability as determined by means of Insurance Distribution Rules issued for the purposes of article 43M(1) 43M(2) Failure of an authorised insurance undertaking 1 or of an authorised reinsurance undertaking or their employees, carrying out insurance distribution activities or reinsurance distribution activities, to comply with continuing professional training and development requirements as determined by means of Insurance Distribution Rules and, or Conduct of Business Rules issued for the purposes of article 43M(2) 43N Failure of an authorised insurance undertaking 1 or an authorised reinsurance undertaking, carrying out insurance distribution activities or reinsurance distribution activities, to submit to the competent authority any information which is necessary for the purposes of supervision, or to submit that information within the specified period 43O Failure of an authorised insurance undertaking 1 to 3 carrying out insurance distribution activities to comply with Conduct of Business Rules issued for the purposes of article 43O 44(1) Failure of registered or enrolled person to 1 notify the competent authority in writing of any material change in documentation provided, or required to be provided, by or under any provision of the Act 44(2)(a) Failure of enrolled company to submit in 1 writing to the competent authority for its approval particulars of any proposed addition or alteration to the company’s memorandum or articles of association or other instrument constituting the company 44(2)(b) Failure of the enrolled company to inform the 1 competent authority of the names of the persons holding a qualifying shareholding in the company and the percentage of such holding in the form, manner and content within such date as determined by Insurance Distribution Rules made for the purpose of article 44(2)(b) 44(3)(a) Failure of a person enrolled under Part III of 1 the Act to notify the competent authority on a continuous basis with any change or circumstance which may give rise to the existence of close links within the meaning of article 10 44(3)(b) Failure of a tied insurance intermediary to 1 notify any authorised undertaking appointing it, on a continuous basis, with any change in the information provided in article 37(1A) 44(3)(c) Failure of an ancillary insurance intermediary 1 to notify any authorised undertaking or an insurance broker, appointing it, on a continuous basis, with any change in the information provided in article 43E(2) 44(3)(d) Failure of an authorised undertaking 1 appointing, registering and enrolling a tied insurance intermediary or an ancillary insurance intermediary under Part VIII and Part VIIIA, respectively, to notify the competent authority, on a continuous basis, with any change in the information provided in article 37(1A) and 43E(2), respectively, as notified by the tied insurance intermediary or ancillary insurance intermediary concerned 44A(1) Failure of person to obtain in writing the 2 consent of the competent authority to acquire, increase, reduce or divest itself of a qualifying shareholding in an enrolled company 44A(3) Failure of enrolled company and its directors 2 to notify the competent authority of a person’s intention to acquire increase, reduce or divest itself of a qualifying shareholding in the company 44A(5) Failure of directors and qualifying 2 shareholders of an enrolled company to notify the competent authority where the company intends to merge with another company, or to undergo reconstruction or division, or to increase or reduce its nominal or issued share capital or to effect any material change in voting rights 44A(6) Failure of person to furnish the information 2 required to be furnished as may be determined by Insurance Distribution Rules made for the purposes of article 44A 44A(8) Failure of any person or any enrolled company 3 to comply with an order issued by the competent authority 44A(9) Failure of a foreign company enrolled under 1 the Act to submit the information to the competent authority, not later than thirty days from the change or occurrence 44B Failure of an insurance agent or an insurance 1 broker enrolled under the Act to utilise the services of intermediaries enrolled under Parts VIII and VIIIA, as set out in the said Parts, or which are registered under Article 3 of the Insurance Distribution Directive or falling under Article 1(3) of the said Directive 48(1) A person using the word "insurance" as part of 1 his or its description or title or making any such use on any letter paper, in any notice or advertisement, or in any other similar manner, without the written permission of the competent authority 48(2) Failure of foreign company or third country 1 insurance undertaking or third country reinsurance undertaking to add any explanatory particulars to the company’s or undertaking’s name as directed by the competent authority Any other infringement against any other provisions of the Act 1 to 3 or any regulations, Insurance Distribution Rules or Conduct of Business Rules made thereunder, and failure of a person to comply with any condition, limitation, or requirement, or to satisfy any directive or order made or given under the Act or any regulations, Insurance Distribution Rules or Conduct of Business Rules, and not specifically provided for in this Schedule