S.L. 403.13 Art. 5Protection and Compensation Fund Management Committee.

(1) There shall be a management committee to be known as the Protection and Compensation Fund Management Committee which shall consist of a chairperson and six members to be appointed by the competent authority and which shall include among its members -

(a) an officer, not below the grade of manager, performing duties with the competent authority possessing the necessary expertise and experience in business of insurance;

(b) three persons nominated by an association or other body representing insurers and recognised for such purpose by the competent authority, or of insurance agents acting on behalf of such insurers, of whom, at least -

(i) one person who represents insurers whose head office is in Malta; and

(ii) one person who represents insurers whose head office is in a country outside Malta, or of insurance agents acting on behalf of such insurers;

(c) a person who, because of his experience, qualifications or activities is considered as being able to state and represent the point of view of consumers;

(d) an independent person who, in the opinion of the competent authority, possesses the necessary expertise and experience in financial services: Provided that, the nomination of persons as is envisaged in paragraph ( ) shall be such as to include at all times a b representative of insurers carrying on long term business and a representative of insurers carrying on general business:

Provided further, that such members of the Management Committee shall serve the Fund in their own personal capacity and shall not represent or receive directives or instructions from the person or entity nominating them. All members of the Committee shall work in the best interest of the Fund and shall pursue and promote its purposes.

(2) Whenever, for any reason whatsoever, the association or other body representing insurers referred to in subregulattion (1)(b) fails to nominate, within the time given to it for such purpose by the competent authority the persons, or any of the persons, which it is required to nominate under that subregulation, the competent authority shall appoint the persons, or the remaining persons, having regard to the nomination provisions of subregulation (1).

(3) A person nominated by an association or other body representing insurers shall not be eligible for appointment if he has a financial or other interest as is likely to affect prejudicially the discharge by him of his functions under these regulations.

(4) Every member of the Committee shall hold office, including the office of chairperson, for such period and upon such terms and conditions as may be determined by the competent authority and indicated in the letter of appointment, such term of office being not less that one year and not more than three years. Every member of the Committee, including the chairperson, shall be eligible for re-appointment.

(5) A member of the Committee may be relieved of office by the competent authority on the grounds of inability to perform the functions of his office, whether due to infirmity of mind or of body, or to any other cause, or of misbehaviour; and for the purposes of this subregulation, repeated and unjustified non-attendance of the meetings of the Management Committee may be deemed to amount to misbehaviour.

(6) A member of the Committee may resign from office by letter addressed to the competent authority.

(7) The competent authority shall fill any vacancy occurring in the Committee for any reason whatsoever as early as the vacancy occurs; and in so doing, the competent authority shall have regard to the nomination provisions of subregulation (1).

(8) Notice of the names of the members of the Committee and of any resignation, dismissal and new appointment shall be published in the Gazette.

(9) The Committee may act notwithstanding any vacancy among its members but shall conduct business only if at least four members are present.

(10) Whenever at any meeting of the Committee the chairperson is absent, the members present for that meeting shall elect from among themselves a person to act as chairperson and to conduct the proceedings of that meeting.

(11) Decisions of the Committee shall be taken by a majority of votes of the members present. The chairperson shall have an original vote and, in the event of an equality of votes, a second or casting vote.

(12) Subject to the provisions of the Act and of these regulations, the Committee shall have power to regulate its own proceedings and may also establish such procedures or make such rules as it may deem appropriate for the better fulfilment of its purposes.

(13) Subject to subregulation (14), the Committee shall pay to the chairperson and each member of the Committee such remuneration as it may determine.

(14) Any determination of the Committee with respect to the remuneration to be paid to the chairperson and to any member of the Committee shall be subject to the approval of the competent authority.

(15) The competent authority shall appoint one of its officers to serve as secretary to the Management Committee. Such person shall be responsible to make the necessary preparations for the meetings of the Committee and to keep the minutes thereof.