INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  1
CHAPTER 404
INSURANCE BROKERS AND OTHER INTERMEDIARIES ACT
To regulate the registration of insurance brokers and other intermediaries and insurance
intermediaries activities.
1st October, 1998
ACT XVIII of 1998, as amended by Act XVII of 2002. 
Arrangement of Act
Articles
Part I. Preliminary 1-2
Part II. Regulatory Powers 3-4
Part III. Registration or Enrolment for carrying on business as
Insurance Brokers 5-18
Part IV. Obligations of Enrolled Companies 19-25
Part V. Financial Year and Auditors 26-28
Part VI. Registration and Enrolment of Insurance Sub-agents 29-37
Part VII. General Provisions 38-51
SCHEDULE
Insurance Intermediaries and Insurance Intermediaries Activities
  2  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
PART I
PRELIMINARY
Short title. l. The short title of this Act is the Insurance Brokers and
Other Intermediaries Act.
Interpretation.
Amended by:
XVII. 2002.271.
2. (1) In this Act, unless the context otherwise requires -
"advertisement", in relation to insurance intermediaries
activities, means any form of advertising, whether done verbally or
in writing, and, without prejudice to the generality of the foregoing,
includes advertising in a publication, the display of notices, signs,
labels or showcards, by means of letters, circulars, prospectuses,
catalogues, price lists or other documents, by an exhibition of
pictures or photographic or cinematographic films, by way of
sound broadcasting or television, by the distribution of recordings
or in any other manner, and references to the issue of an
advertisement shall be construed accordingly;
"approved auditor" and "auditor" have the meaning assigned to
them by article 27(10);
Cap. 403.
"authorised company" means a company authorised, or any
person deemed authorised, under the Insurance Business Act, to
carry on business of insurance, and includes a person authorised
under the said Act to act as an insurance agent of the company or
person;
"body corporate" means an entity having a legal personality
distinct from that of its members;
"branch" means premises of the company, other than its head
office, from which the business of insurance broking or such other
activities of other insurance intermediaries as may be prescribed
are carried out;
"brokers list" means the list of companies carrying on business as
insurance brokers established and maintained under article 7;
"brokers register" means the insurance brokers register
established and maintained under article 5;
Cap. 403.
"business of insurance" has the same meaning as is assigned to it
by article 2(1) of the Insurance Business Act;
"business of insurance broking", in relation to a registered
insurance broker or an enrolled company, means the activities
listed in paragraph 1 of the Third Column of the Schedule;
"certificate of enrolment" -
( a ) in relation to a company carrying on business as
insurance broker, means a certificate issued by the
competent authority under article 14 to the company
evidencing enrolment of that company in the brokers
list; and
( b ) in relation to a person registered as an insurance sub-
agent in the sub-agents company register of any
company, means a certificate issued by the competent
authority under article 33 to the company enrolling
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  3
that person evidencing enrolment of that person in the
sub-agents list;
"certificate of registration", in relation to a person registered as
an insurance broker, means a certificate issued by the competent
authority under article 14 to that person evidencing registration of
that person in the brokers register;
"class" -
Cap. 403.
( a ) in relation to long term business, means any of the
classes specified in the Second Schedule to the
Insurance Business Act; and
( b ) in relation to general business, means any of the
classes specified in Part I of the Third Schedule to that
Act;
"client", in relation to an enrolled company, means a person who
contacts, or is contacted by, an enrolled company with a view to
obtaining or giving advice on his insurance requirements or
entering into a contract of insurance with an insurance company or
for whom the enrolled company has arranged a contract of
insurance with an insurance company;
Cap. 403.
"commitment" and "country of the commitment" have the same
meanings as are assigned to them by article 2(1) of the Insurance
Business Act;
"company" includes a local company and a foreign company;
Cap. 403.
"competent authority" means the body appointed under article
3(2) of the Insurance Business Act;
"conditions" includes obligations and restrictions;
Cap. 403.
"contract of insurance" and "contract" have the same meanings
as are assigned to them by article 2(1) of the Insurance Business
Act;
"control", in relation to a body corporate, is the power to
determine the financial and operating policies of the body
corporate;
"controller", in relation to a body corporate, is a person who,
alone or together with others, exercises control of the body
corporate;
"director", in relation to a company, includes an individual
occupying the position of a director of the company, by whatever
name he may be called, empowered to carry out substantially the
same functions in relation to the direction of the company as those
carried out by a director and, in respect of a foreign company,
includes a member of a local board, an agent and the person
designated as the representative of that company for the purpose of
article 10(1)( b )(ii);
"enrolled" -
( a ) in relation to a company carrying on business as
insurance broker, means enrolled in the brokers list
under article 13; and
  4  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
( b ) in relation to a person registered as an insurance sub-
agent, means enrolled in the sub-agents list under
article 33,
and, in each case, "enrolment" shall be construed accordingly;
"financial year" shall be construed in accordance with article
26(4);
"foreign company" means a company or a partnership  en
commandite , the capital of which is divided into shares, registered,
incorporated or constituted outside Malta under the laws of any
country provided that such company or partnership  en commandite
has complied with the provisions of any law which may from time
to time be in force in Malta relating thereto;
"functions" includes responsibilities, powers and duties;
Cap. 403. 
"group" and "group of classes", in relation to general business,
means any group of classes or part classes specified in Part II of the
Third Schedule to the Insurance Business Act;
"insurance broker" means a person carrying on business of
insurance broking;
"insurance company", in relation to an enrolled company, means
and includes a company, a member of a recognised insurance body
or of any other undertaking lawfully carrying on business of
insurance;
"insurance intermediary" means a person who, by way of
business, or in the course of employment, falls within any of the
categories listed in the First or Second Column of the Schedule and
includes a person providing services ancillary to other insurance
intermediaries activities as may be prescribed;
"insurance intermediaries activities" and "activities" mean any of
the activities listed in paragraphs 1 and 2 of the Third Column of
the Schedule and includes any other activities as may be
prescribed;
"insurance intermediaries directive" means a directive in respect
of insurance intermediaries activities issued by the competent
authority in virtue of article 4(2);
Cap. 403.
"insurance manager" has the same meaning as assigned to it by
article 2(1) of the Insurance Business Act;
"insurance sub-agency activities", in relation to a person
registered as an insurance sub-agent, means activities listed in
paragraph 2 of the Third Column of the Schedule;
"insurance sub-agent" means a person carrying out insurance
sub-agency activities;
Cap. 386.
"local company" means a limited liability company formed and
registered under the Companies Act and includes, subject to
subarticle (2), a partnership  en commandite , the capital of which is
divided into shares, formed and registered under the said Act;
Cap. 403.
"Malta’s international commitments" has the same meaning as
assigned to it by article 2(1) of the Insurance Business Act;
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  5
"Minister" means the Minister responsible for finance;
Cap. 373.
"money laundering" has the same meaning as is assigned to it by
the Prevention of Money Laundering Act;
"officer", in relation to a company, includes a director, partner,
manager or company secretary or any person effectively acting in
such capacity whether formally appointed or not;
"own funds" shall be construed in accordance with an insurance
intermediaries directive made for the purpose of this Act to
determine the amounts and the components which make up the
company’s own funds;
"prescribed" means prescribed by rules or regulations under this
Act;
"qualifying shareholding" means a direct or indirect holding in a
company which represents ten per centum or more of the share
capital issued by such company or of the voting rights attaching to
such share capital or which makes it possible to exercise a
significant influence over the management of the company, and
"qualifying shareholder" shall be construed accordingly;
Cap. 403.
"recognised insurance body" has the same meaning as is assigned
to it by article 2(1) of the Insurance Business Act;
"registered" -
( a ) in relation to a person registered as an insurance
broker under article 13, means registered in the
brokers register; and
( b ) in relation to a person registered as an insurance sub-
agent under article 33, means registered in the sub-
agents company register of any one or more
companies,
 and, in each case, "registration" shall be construed accordingly;
"representative" -
Cap. 403.
( a ) in relation to a company whose head office is in a
country outside Malta, other than Lloyd’s or any of its
members or a recognised insurance body or any of its
members, shall be construed in accordance with article
12 of the Insurance Business Act;
( b ) in relation to Lloyd’s or any of its members or a
recognised insurance body or any of its members, shall
be construed in accordance with paragraphs 4.1, 4.2
and 4.3 of the First Schedule to that Act;
Cap. 403.
"risk situated in Malta" has the same meaning as is assigned to it
by article 2(1) of the Insurance Business Act;
"Schedule" means the Schedule to this Act;
"sub-agents list" means the list of insurance sub-agents
registered by authorised companies established and maintained
under article 31(1);
"sub-agents company register", in relation to an authorised
  6  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
company, means the insurance sub-agents company register
established and maintained by the company under article 29(1).
(2) The provisions of this Act shall apply to a partnership  en
commandite  subject to such modifications as the competent
authority may, from time to time, make in any provision thereof,
which modifications shall not materially detract from the main
object of the provisions so modified.
(3) In this Act and in any rules or regulations made thereunder,
if there is any conflict between the English and the Maltese texts,
the English text shall prevail.
PART II
REGULATORY POWERS
Powers and duties 
of the Minister.
Amended by:
XVII. 2002.272.
3. (1) It shall be the duty of the Minister to exercise the
powers conferred upon him by this Act to ensure compliance by
persons registered as insurance brokers, companies enrolled as
carrying on business as insurance brokers and persons carrying out
other insurance intermediary activities with the provisions of this
Act and any rules or regulations made thereunder and with such
conditions as may from time to time be specified in the respective
certificate of registration or enrolment.
Cap. 403.
(2) The competent authority appointed under article 3(2) of the
Insurance Business Act shall carry out the functions of the
competent authority under this Act and perform such other
functions as the Minister may consider appropriate in relation to
the operation of this Act.
(3) The Minister may, after consultation with the competent
authority, make rules or regulations as may be required for carrying
into effect any of the provisions of this Act and for amending or
revoking the Schedule and may amend or revoke such rules or
regulations; and, without prejudice to the generality of the
foregoing, the Minister may, by such rules or regulations, in
particular, make provision in respect of any one or more of the
following matters:
( a ) the fees and duties to be levied in respect of any matter
provided by or under this Act and any rules or
regulations made under this article;
( b ) the registration and enrolment of persons, other than
persons registered and enrolled by virtue of this Act,
carrying out insurance intermediary activities or
providing services ancillary to business of insurance as
may be prescribed;
( c ) any matter relating to or connected with any provision
contained in the Schedule;
( d ) the administrative penalties in respect of infringements
as may be prescribed which may be imposed and
recovered by the competent authority without recourse
to a court hearing; administrative penalties shall be
due to the competent authority as a civil debt:
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  7
Provided that an administrative penalty may not
be greater than a financial penalty of five thousand liri
in respect of any infringement and, where an
infringement continues, a further penalty not
exceeding fifty liri for each day during which the
infringement continues;
( e ) the penalties or other punishments to which persons
contravening or failing to comply with any provision
of any regulation made under this Act shall become
liable, being penalties of not less than one hundred liri
and not exceeding five thousand liri, in respect of any
offence and in respect of a continuing offence of a
further penalty not exceeding one hundred liri for each
day during which the offence continues.
(4) The Minister may also by regulations under this article,
after consultation with the competent authority, extend and make
applicable any of the provisions of this Act to any insurance
intermediary activity as may be prescribed which in his opinion
ought, in the public interest, to be regulated by such provisions.
(5) Rules or regulations made under this article may make such
exemptions, conditions or modifications as may be specified
therein in respect of different cases, circumstances or purposes and
may give the competent authority such power of adaptation of the
rules and regulations as may be specified therein.
(6) The exercise of any of the powers assigned under this
article shall be subject to any obligations or restrictions arising
from Malta’s international commitments.
(7) Rules and regulations made under this Act and any
amendment or revocation of such rules and regulations, may be
published in the English language only.
Powers and duties 
of the competent 
authority.
4. (1) It shall be the duty of the competent authority to carry
out the functions assigned to it by or under this Act and to ensure
that persons, companies or insurance intermediaries registered or
enrolled in accordance with this Act and rules or regulations made
thereunder comply with the provisions of this Act and of any rules
or regulations made thereunder, with insurance intermediaries
directives made by the competent authority in virtue of this Act and
of any rules and regulations made thereunder and with the
conditions specified in certificates of registration or enrolment.
(2) The competent authority may make insurance
intermediaries directives as may be required for carrying into effect
any of the provisions of this Act and of any rules and regulations
made thereunder. The competent authority may amend or revoke
such insurance intermediaries directives.
(3) Insurance intermediaries directives and any amendment or
revocation thereof shall be officially communicated to the persons
or companies concerned and be open to public inspection at the
offices of the competent authority at all times during the normal
working hours of the authority.
  8  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
(4) Insurance intermediaries directives made by the competent
authority in virtue of this Act may provide for different regulatory
requirements to be applicable to different categories of insurance
intermediaries; and without prejudice to insurance intermediaries
directives required to be made under this Act and to the generality
of the foregoing, the competent authority may, by such insurance
intermediaries directives, in particular -
( a ) determine, in relation to insurance intermediaries,
what constitutes fitness and properness;
( b ) determine, in relation to insurance intermediaries, the
criteria of sound and prudent management;
( c ) determine the information which companies enrolled
as carrying on business as insurance brokers and
persons carrying out other insurance intermediaries
activities shall disclose to persons seeking or making
use of insurance intermediary services;
( d ) determine the codes of conduct which may regulate
any aspect of dealings between insurance
intermediaries and insurance companies or between
such intermediaries and persons seeking or making use
of insurance intermediary services;
( e ) determine, in relation to insurance intermediaries
activities, the issuing of advertisements and the
undertaking of any other promotional activities.
PART III
REGISTRATION OR ENROLMENT FOR CARRYING ON 
BUSINESS AS INSURANCE BROKERS
The insurance 
brokers register.
5. The competent authority shall establish and maintain a
register of persons carrying on business of insurance broking, in
this Act referred to as "the brokers register", containing the names,
addresses, qualifications and such other particulars as the
competent authority may, from time to time, by an insurance
intermediaries directive made for the purpose of this article,
determine, of all persons who are entitled under this Act to be
registered therein and to apply in the manner determined by that
directive to be so registered.
Qualifications for 
registration. 
6. (1) Without prejudice to subarticle (2), a person shall be
entitled to be registered in the Brokers Register if he satisfies the
competent authority that -
( a ) he is an individual;
( b ) he is a fit and proper person to be so registered and to
ensure the company’s sound and prudent management;
( c ) he possesses the qualifications and fulfils or complies
with the requirements determined by an insurance
intermediaries directive made for the purposes of this
article.
(2) A person shall not be entitled to carry on any business of
insurance broking by virtue of his registration under this article
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  9
unless he is a director or an employee of a company enrolled under
article 9 or 10.
List of companies 
carrying on 
business as 
insurance brokers.
7. The competent authority shall establish and maintain a list
of companies carrying on business as insurance brokers, in this Act
referred to as "the brokers list", containing the names, principal
places of business and such other particulars as the competent
authority may, from time to time, by an insurance intermediaries
directive made for the purposes of this article, determine, of all
companies which are entitled under this Act to be enrolled therein
and to apply in the manner determined by that directive to be so
enrolled.
General 
requirements for 
enrolment.
Amended by:
XVII. 2002.273.
8. (1) Subject to article 9 or 10, as the case may be, a
company shall be entitled to be enrolled in the brokers list if it
satisfies the Competent Authority that -
( a ) the company’s objects are limited to business of
insurance broking and to matters or functions
connected therewith or ancillary thereto, to the
exclusion of all other commercial business, other than
business determined by an insurance intermediaries
directive made for the purposes of this article;
( b ) the company’s own funds, whether in Maltese liri or in
other currencies acceptable to the competent authority
are at all times, not less than such amount appropriate
for the kind of business to be carried on by the
company as may be determined by an insurance
intermediaries directive made for the purpose under
this Act; and such own funds shall at all times be
unencumbered;
( c ) all qualifying shareholders, controllers and all persons
who will effectively manage the affairs or carry on the
activities of the company are fit and proper persons to
ensure its sound and prudent management;
( d ) the company discloses to the satisfaction of the
competent authority such information as the competent
authority has requested of it in relation to persons who
will, upon enrolment of the company, have any
proprietary, financial or other interest in, or in
connection with, that company;
( e ) the company submits to the satisfaction of the
competent authority a scheme of operations which
shall include the particulars or proof as may be
determined by the insurance intermediaries directive
made for the purpose of this article;
( f ) the company has at all times in its favour a policy of
professional indemnity insurance acceptable to the
competent authority, indemnifying it, or any person
employed by it, or otherwise acting for it, to such
amount, in such manner and in respect of such matters
as the competent authority may, from time to time,
determine.
  10  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
(2) Where close links exist between a company applying to be
enrolled in the Brokers' List and any other person, the competent
authority shall -
( a ) only grant the enrolment if it considers that such close
links do not prevent it from effectively exercising its
supervisory functions; and 
( b ) refuse to grant such enrolment if it considers that the
laws, regulations or administrative provisions in any
country other than Malta governing any person with
whom the company has close links or their
enforcement, prevent it from effectively exercising its
supervisory functions.
(3) The competent authority may from time to time by means
of an insurance intermediaries directive issued under this Act
define the circumstances in which close links are to be regarded as
existing between a company and any other person.
Specific 
requirements for 
enrolment in the 
case of local 
companies.
9. A local company shall be entitled to be enrolled in the
brokers list if, in addition to the requirements of article 8, the
competent authority is satisfied that any one or more of the
company’s directors are registered insurance brokers and the
business of insurance broking is carried on under the management
of a registered insurance broker.
Specific 
requirements for 
enrolment in the 
case of foreign 
companies.
Amended by:
XVII. 2002.274.
10. (1) A foreign company shall be entitled to be enrolled in
the brokers list if, in addition to the requirements of article 8, the
competent authority is satisfied that - 
( a ) the company is registered or permitted in the country
where its head office is situated to carry on business of
insurance broking;
( b ) the company has in Malta at all times -
(i) a branch; and
(ii) a representative;
Cap. 403.
Provided that a company carrying on business as
an insurance broker restricted to contracts of insurance
relating to risks situated outside of Malta may, either
in lieu of or in addition to opening a branch in Malta,
appoint an insurance manager authorised under the
Insurance Business Act, to manage such business; and
so long as the insurance manager holds such
appointment the business of insurance broking must be
under the management of a registered insurance
broker.
(2) In relation to a branch of a foreign company carrying on
business as insurance broker or carrying on other insurance
intermediaries activities as may be prescribed, the business of
insurance broking or the insurance intermediaries activities shall be
carried out from such branch by a person who satisfies the
following requirements:
( a ) in the case of a company carrying on business as
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  11
insurance broker -
(i) the person is a registered insurance broker;
(ii) the person is a director of the company or has
authority to act for the company; and the
business of insurance broking is carried on under
his management;
(iii) the person is not an approved auditor, or a
partner or an employee of an approved auditor of
the company;
( b ) in the case of a company carrying on other insurance
intermediaries activities as may be prescribed,
provisions as may be prescribed.
Registration of 
persons for 
carrying on 
business as 
insurance brokers.
11. No person shall act as an insurance broker and carry on, or
attempt to carry on, in or from Malta, business as insurance broker
unless such person is registered under article 13.
Enrolment of 
companies for 
carrying on 
business as 
insurance brokers.
12. (1) No company which is a local company shall carry on,
or attempt to carry on, in or from Malta, or in or from a country
outside Malta, business as insurance broker unless such company is
enrolled under article 13.
(2) No company which is a foreign company shall carry on, or
attempt to carry on, in or from Malta, business as insurance broker
unless such company is enrolled under article 13.
Grant of 
registration or 
enrolment.
Amended by:
XVII. 2002.275.
13. (1) An application for registration or enrolment under this
article shall be made in such form and manner as the competent
authority may from time to time determine.
(2) The competent authority shall have the power to require
any applicant to provide such information as it may deem necessary
for the purpose of determining an application for registration or
enrolment under this article.
(3) The competent authority may grant registration or
enrolment under this article only if it is satisfied, on the basis of the
information required to be submitted under this Act and any
information received by it, that registration or enrolment ought to
be granted.
(4) Subject to the provisions of this Act, the competent
authority may subject registration or enrolment made under this
article to such conditions as it may from time to time deem fit to
impose.
(5) The competent authority shall determine an application for
registration or enrolment under this article within three months of
receiving the information required to be submitted under this Act;
and if it refuses to grant registration or enrolment it shall inform
the applicant in writing of the reasons for the refusal:
Provided that, in each case, the competent authority may
take such measures as it may deem necessary for the protection of
the interest of the public.
  12  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
Certificate of 
registration or 
enrolment.
14. (1) On granting an application for registration or
enrolment under article 13, the competent authority shall issue to
the applicant concerned a certificate of registration or enrolment in
the form and manner as it deems appropriate evidencing -
( a ) in the case of an application for registration,
registration of the applicant concerned in the brokers
register;
( b ) in the case of an application for enrolment, enrolment
of the applicant concerned in the brokers list.
(2) A certificate of registration or enrolment issued under this
article or an official copy thereof shall be prominently displayed by
the holder concerned at his, or its, place or places of business, in a
part thereof to which the public has access.
Opening of 
branches and 
appointment of 
insurance manager 
by enrolled local 
companies.
Amended by:
XVII. 2002.276.
15. (1) Every local company enrolled under article 13 shall
make application in writing to the competent authority before
opening a branch in Malta. 
(2) The competent authority may permit a local company
enrolled as aforesaid to open a branch in Malta if it is satisfied that
the business of insurance broking carried on by it from the branch
is under the management of a registered insurance broker.
(3) Except with the written consent of the competent authority,
no local company enrolled as aforesaid may open a branch or office
or set up or acquire any subsidiary in any country outside Malta.
Cap. 403.
(4) A local company enrolled as aforesaid and carrying on
business as insurance broker, restricted to contracts of insurance
relating to risks situated outside of Malta, may appoint an insurance
manager authorised under the Insurance Business Act to manage
such business; and so long as the insurance manager holds such
appointment the business of insurance broking must be under the
management of a registered insurance broker.
Striking a name off 
the brokers register 
or the brokers list.
Amended by:
XVII. 2002.277.
16. Without prejudice to anything contained in any other
provision of this Act, the competent authority may at any time
strike off the brokers register or the brokers list the name of any
registered person or enrolled company if -
( a ) any document or information accompanying an
application for registration or enrolment, or any
information given in connection therewith, is false,
incorrect or misleading in any material particular, or
the registered person or the enrolled company has
concealed, or conceals from or fails to notify to, the
competent authority any document or information or
change therein which it was his or its duty to reveal or
to notify under this Act and any rules or regulations
made thereunder, or any insurance intermediaries
directive; or
( b ) it considers that the registered person or the enrolled
company does not fulfil the requirements of, or has
contravened, any of the provisions of this Act and any
rules or regulations made thereunder, or any insurance
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  13
intermediaries directive, or has failed to satisfy or
comply with any condition to which he or it, or the
registration or the enrolment, is subject by virtue of or
under this Act; or
( c ) it considers that the registered person is unfit to retain
his name on the brokers register or the enrolled
company is no longer managed in a sound and prudent
manner to retain its name in the brokers list; or
( d ) it receives a written request so to do by the registered
person or the enrolled company; or
( e ) the enrolled company no longer possesses the required
own funds; or
( f ) the registered person or the enrolled company fails to
pay the annual continuance of registration or
enrolment fee when due; or
( g ) the registered person or the enrolled company does not
carry on business of insurance broking within twelve
months from registration or enrolment, or within such
other period as may be specified in the certificate of
registration or enrolment, or as may be granted by the
competent authority; or
( h ) the enrolled company is declared bankrupt or goes into
liquidation or makes a composition with its creditors
or is otherwise dissolved; or
( i ) the enrolled company ceases to have on its board of
directors any one person who is a registered insurance
broker; or
( j ) it considers that, by reason of the manner in which the
registered person or the enrolled company is carrying
on the business of insurance broking, or for any other
valid reason, the interest of the insurance industry or
of the public is threatened; or
( k ) the registered person or the enrolled company has
misappropriated or converted to his or to its own use
or illegally withheld moneys held, or required to be
held, by him or by it in a fiduciary capacity; or
( l ) the registered person is convicted by any court of law
of any criminal offence, not being an offence which,
owing to its trivial nature or the circumstances under
which it was committed, does not render him unfit to
have his name in the brokers register; or
( m ) the registered person or the enrolled company is
considered by the competent authority to have carried
on business of insurance broking in an unprofessional
manner; or
( n ) the competent authority is prevented from exercising
its supervisory functions effectively because of the
existence of close links as may be defined by means of
insurance intermediaries directives made under this
  14  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
Act.
Notification of 
intention of 
striking of a name 
off the brokers 
register or the 
brokers list.
Amended by:
XVII. 2002.278.
17. (1) Subject to the following provisions of this article,
where the competent authority intends to strike the name of a
registered person or of an enrolled company off the brokers register
or the brokers list, it shall give the person or the company
concerned notice in writing setting out the reasons for its intention
to do so.
(2) Every notice given under subarticle (1) shall state that the
person or the company concerned may, within such reasonable
period after the service thereof as may be stated in the notice (being
a period of not less than forty-eight hours and not longer than
fifteen days), make representations in writing to the competent
authority giving reasons why the registration or the enrolment
should not be struck off the brokers register or the brokers list and
the competent authority may consider any representations so made
before arriving at a final decision.
(3) The competent authority shall notify in writing its final
decision to the person or the company concerned.
(4) On notification by the competent authority to a person or a
company that his or its name has been struck off the brokers
register or the brokers list, the person or the company concerned
shall forthwith surrender to the competent authority the certificate
of registration or enrolment, and any official copies thereof; and in
each case, the competent authority may take such other measure as
it may deem necessary to safeguard the interests of insureds,
policyholders, creditors or other interested persons.
Restoration of a 
name struck off the 
brokers register or 
the brokers list.
18. (1) Where the name of a person or of a company has been
struck off the brokers register or the brokers list in pursuance of a
decision under article 16, the name of that person or company shall
not again be entered in the brokers register or the brokers list
unless-
( a ) otherwise ordered by the Financial Services Tribunal;
or
( b ) in the absence of such order, the competent authority,
on an application made to it in that behalf, otherwise
decides.
(2) The competent authority shall determine an application for
restoration of a name of a person or of a company to the brokers
register or the brokers list under this article within three months of
receiving the information required to be submitted under this Act as
if the application were an application made under article 13; and if
it refuses to restore a name of a person or of a company to the
brokers register or the brokers list, it shall inform the applicant in
writing of the reasons for the refusal.
(3) Subarticle (2) shall not apply where the restoration of a
name of a person or of a company to the brokers register or the
brokers list is made by an order of the Tribunal.
(4) Where the name of a person or company is struck off the
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  15
brokers register or the brokers list on any of the grounds specified
in article 16, if the competent authority elects to give publicity to
the striking of that name off the brokers register or the brokers list,
the competent authority shall publish a notice giving publicity to
the stiking off of that name in a manner it deems appropriate in at
least two daily local newspapers of which one is published in the
Maltese language and the other in the English language; and the
text of the notice shall be in Maltese in the Maltese daily and in
English in the English daily.
(5) The competent authority shall have power to order that all
expenses of a publication of a notice pursuant to this article, or
such part thereof as it deems appropriate, shall be paid by the
person or company concerned; and any sum so due shall be
recoverable by the competent authority in the same manner as an
administrative penalty imposed under this Act.
PART IV
OBLIGATIONS OF ENROLLED COMPANIES
Power of the 
competent 
authority to protect 
the public interest.
Added by:
XVII. 2002.279.
18A. (1)  In any of the cases in which the competent authority
may strike off the Brokers List the name of an enrolled company
under article 16, the competent authority may, either in lieu of, or
in addition to such striking off, and without prejudice to such
striking off proceed in any one or more of the following manners -
( a ) require the company forthwith to take such steps as the
competent authority may consider necessary to rectify
or remedy the matter;
( b ) appoint a person to advise the company in the proper
conduct of its business;
( c ) appoint a person to take charge of the assets of the
company, or any portion of them, for the purposes of
safeguarding the interests of insureds, policyholders,
creditors and shareholders of the company;
( d ) appoint a person to assume control of the business of
the company either to carry on that business or to carry
out such other function or functions in respect of such
business, or part thereof, as the competent authority
may direct;
( e ) require the company to dissolve and wind up its
business or, in the case of a company whose head
office is in a country outside Malta, to wind up its
business in Malta;
( f ) appoint a competent person to act as liquidator for the
purpose of winding up the affairs of the company;
( g ) fix the remuneration to be paid by the company to any
person appointed under this article; 
( h ) do such other act or require the doing of such other
thing as it may deem appropriate in the circumstances,
and having proceeded in any one or more of the manners aforesaid,
the competent authority may further proceed in any one or more of
  16  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
such manners, whether in addition thereto, or in substitution
thereof. 
(2) Where a person is appointed by the competent authority -
( a ) under subarticle (1)( b ), it shall be the duty of the
company to act in accordance with the advice given by
such person unless and until the competent authority,
on representation made to it, directs otherwise;
( b ) under subarticle (1)( c ), the company shall deliver to
such person all the assets of which he is placed in
charge, and all the powers, functions and duties of the
company in respect of those assets, whether
exercisable by the company in general meeting, or by
the directors, or by any other person, including the
legal and judicial representation of the company, shall
be exercisable by and vest in the person appointed
under the said paragraph to the exclusion of any other
person;
( c ) under subarticle (1)( d ), the company shall submit its
business to the control of such person and shall
provide him with such facilities as he may require the
company to provide him to carry on that business or to
carry out the functions assigned to him under the said
paragraph; and all the powers, functions and duties of
the company, whether exercisable by the company in
general meeting, or by the directors, or by any other
person, including the legal and judicial representation
of the company in all matters, shall be exercisable by
and vest in him to the exclusion of any other person;
( d ) under subarticle (1)( f ), such person shall be the
liquidator of the company for all purposes of law to the
exclusion of any other person.
(3) In the case of a foreign company, the branches and offices
in Malta of that company shall, if the competent authority so directs
and to the extent it so directs, be deemed to constitute a separate
company.
Moneys held in a 
fiduciary capacity.
19. (1) Every enrolled company shall keep moneys held by it
in a fiduciary capacity separate from its own moneys and shall, in
respect of those moneys, maintain separate accounts in accordance
with requirements determined by an insurance intermediaries
directive made for the purposes of this article.
(2) No person shall have or obtain any recourse or right against
moneys standing to the credit of the account referred to in
subarticle (1) in respect of a claim or right against an enrolled
company until all proper claims against those moneys have been
satisfied.
Fidelity bonds 
required of 
enrolled 
companies.
20. (1) Without prejudice to article 19, every enrolled
company shall effect a fidelity bond in a specified form, as respects
its business of insurance broking, in such circumstances, to such
value, in such manner and under such conditions as may be
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  17
determined by an insurance intermediaries directive made for the
purposes of this article.
(2) The bond referred to in subarticle (1) shall provide that in
the event of an enrolled company’s inability or failure to meet its
financial obligations in relation to any sums of money received by
it from, or on behalf of, its clients, a sum of money will become
available to a person nominated or approved by the competent
authority, to be applied for the benefit of any client of the company
who has incurred loss or liability because of the inability or failure
of the company to meet such financial obligations.
Contracts of 
insurance relating 
to risks situated in 
Malta or to 
commitments 
where Malta is the 
country of the 
commitment.
Amended by:
XVII. 2002.280.
21. (1) Subject to the following subarticles, except with the
approval of the Minister given generally by order in the Gazette, or
with the approval of the competent authority given specifically in
writing, a contract of insurance relating to a risk situated in Malta
or to a commitment where Malta is the country of the commitment
negotiated, arranged or procured by an enrolled company on behalf
of an insured person or a person to be insured shall be taken out
with an authorised company.
Cap. 403.
(2) Where a contract of insurance is a contract of a general
business class or part class falling within group 3 of Part II of the
Third Schedule to the Insurance Business Act, and such contract is
a contract relating to a risk situated in Malta and is taken out with a
Mutual Association, that Mutual shall have to be a Mutual within
the meaning of a "Mutual Association" as construed in accordance
with article 6(3) of the said Act; and the Mutual shall have to
satisfy or comply with the requirements of the insurance directive
made for the purposes of the said article either on or before the date
of commencement of such contract or not later than thirty days
from the date of such commencement.
(3) Save as otherwise provided in subarticle (2), the provisions
of this article shall not apply to -
( a ) contracts of insurance of a class, or part class, falling
within group 3 or 4, other than contracts relating to
marine risks which the Minister may, by order in the
Gazette, from time to time determine;
 ( b ) business of reinsurance.
Notification of 
persons registered 
in the brokers 
register.
22. Every enrolled company shall, not later than the end of
January of each year, notify in writing the competent authority in
such manner as the competent authority may require, the name and
the other particulars as it may also require, of every director and
employee of the company who are registered in the brokers
register; and during the next following twelve months, the company
shall give notice in writing to the competent authority of any
change that may, from time to time, occur among such directors
and employees and such notice shall be given not later than twenty
days from the date of such change.
Submission of 
audited financial 
statements.
23. Every enrolled company shall, not later than four months
from the date of closing of its financial year, or at any other time as
may exceptionally be authorised in writing by the competent
  18  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
authority, forward to the competent authority a copy of its audited
financial statements drawn up -
Cap. 386.
( a ) in the case of a local company, in accordance with the
provisions of the Companies Act; and
( b ) in the case of a foreign company, in accordance with
the provisions of the laws of the country where the
head office of the company is situated governing the
financial statements of such companies.
Submission of 
business of 
insurance broking 
statements.
24. (1) Subject to the following subarticles, an enrolled
company which in any calendar year carries on business of
insurance broking shall, in respect of the business of insurance
broking so carried on by it, forward to the competent authority a
statement relating to that business made out in the form, manner
and content as the competent authority may, by an insurance
intermediaries directive made for the purposes of this article
determine; and the date by which such statement shall be forwarded
shall also be established by that directive.
(2) The statement required to be submitted under this article
shall be verified in the manner required by the insurance
intermediaries directive.
(3) The competent authority may at any time direct an enrolled
company to submit to it such statement at such interval and for such
period as it may specify in such directive.
Companies ceasing 
to carry on 
business as 
insurance broker.
25. An enrolled company shall not cease to carry on, in or from
Malta, business as insurance broker except with the permission of
the competent authority given in writing on an application made to
it in that behalf in such manner as it may require, and in compliance
with such conditions as it may deem proper to impose.
PART V
FINANCIAL YEAR AND AUDITORS
Financial year of 
enrolled 
companies.
26. (1) Every enrolled company which is a local company
shall, not later than three months from the date of a company’s
enrolment, notify in writing the competent authority of its financial
year; and, failing such notice, the company’s financial year shall
terminate on the thirty-first day of December of each year.
(2) No enrolled company as aforesaid shall alter its financial
year unless and until the competent authority has given its approval
in writing on an application made to it in that behalf.
(3) Every foreign company applying for enrolment under
article 13 shall, on application, notify in writing the competent
authority of its financial year; and after enrolment under that
article, where a foreign company alters its financial year, it shall
forthwith inform in writing the competent authority of such change.
(4) For the purposes of this Act, financial year -
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  19
Cap. 386.
( a ) in relation to an enrolled company which is a local
company, means an accounting period as is construed
in accordance with articles 164 to 166 of the
Companies Act;
( b ) in relation to an enrolled company which is a foreign
company, means an accounting period as is construed
in accordance with the provisions of the laws of the
country where the head office of the company is
situated governing the accounting period of such
companies.
Appointment, 
duties and 
termination of 
appointment of 
auditors.
Amended by:
XVII. 2002.281.
27. (1) Every enrolled company shall each year appoint an
approved auditor as auditor to the company whose duty shall be to
report on the financial statements of the company examined by him
and on financial statements prepared by the company.
(2) If an enrolled company fails to appoint an auditor as
required by subarticle (1) or, at any time fails to fill any vacancy in
the office of an auditor, the competent authority shall have the
power to appoint an auditor for that company and shall fix the
remuneration to be paid by that company to such auditor.
(3) The auditor’s report shall include a statement as to whether
the various requirements of this Act and of any rules or regulations
made thereunder and of any insurance intermediaries directives in
respect of the company have been complied with and observed.
(4) Every auditor of an enrolled company shall have the right to
demand such information or explanation as he deems necessary in
the performance of his duties from any officer or employee of, or
any person under an appointment from, that company.
(5) An auditor shall immediately give notice in writing to the
competent authority if -
( a ) he resigns;
( b ) he does not seek to be re-appointed; or
( c ) he decides to qualify the audit report,
and, in the case of resignation, the auditor shall specify the reasons
for so doing.
(6) An enrolled company shall give notice in writing to the
competent authority immediately it receives notice of a resolution
intended to be put before the company’s annual general meeting to
appoint as an auditor a person other than the retiring auditor or
otherwise providing expressly that the retiring auditor shall not be
reappointed.
(7) Where, for any reason whatever, the appointment of an
auditor comes to an end, the enrolled company shall, not later than
fourteen days from the termination of such appointment, give
notice in writing to the competent authority stating the reasons for
such termination.
(8) The competent authority may require an enrolled company
to change its appointed auditor where, in the competent authority’s
opinion, such auditor is considered unfit for this appointment, at
  20  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
any time during his term of office.
(9) Before requiring an enrolled company to change its
appointed auditor in the circumstances mentioned in subarticle (8),
the competent authority shall notify in writing its intention to the
company and the auditor concerned stating the reasons for
requiring such change and giving the auditor the opportunity to
submit in writing within fourteen days from the date of serving of
such notice reason why his appointment with the company should
not be terminated.
Cap. 386.
Cap. 403.
(10) For the purposes of this Act, an approved auditor shall be a
person who is qualified to be an auditor in accordance with the
Companies Act and holds the authorisation of the competent
authority to act as auditor issued to him under the Insurance
Business Act.
(11) Notwithstanding anything contained in the foregoing
subarticles, the competent authority may, in the case of a foreign
company, approve such alternative arrangements as it thinks
reasonable and which do not materially detract from the main
objects of this article, and where such arrangements have been
carried out, the provisions of this article shall not apply to the
extent that they are replaced by such arrangements.
(12) If, in his capacity as auditor of an enrolled company or due
to a direct request by the competent authority under this Act, an
auditor becomes aware of any matter which relates to and may have
a serious adverse effect upon the stability and soundness of the
company or the integrity of the business of insurance broking in
Malta he shall immediately inform the competent authority through
the company’s management or, if circumstances so warrant,
directly to the competent authority.
(13) For the purposes of subarticle (12), any matter which
relates to and may have a serious adverse effect is any matter
which:
( a ) is likely to lead to a serious qualification, or refusal of,
the auditor's report on the accounts of the company; or
( b ) gravely impairs the company's ability to continue as a
going concern; or
( c ) may be prescribed by the Minister.
(14) An auditor of an enrolled company shall likewise have a
duty to report to the competent authority any facts and decisions
which relate to or have a serious adverse effect upon the stability
and soundness of the company or the integrity of the business of
insurance broking in Malta, of which he becomes aware in his
capacity as an auditor to a company having close links within the
meaning of article 8.
Cap. 386.
(15) Subject to the provisions of subarticle (10), in so far as the
provisions of this article are inconsistent with the provisions of the
Companies Act, the provisions of this article shall prevail and the
provisions of the said Act shall, to the extent of the inconsistency,
not apply to an enrolled company.
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  21
Communication by 
auditors, etc., with 
the competent 
authority.
28. No duty (including the duty of professional secrecy) to
which -
( a ) an auditor of an enrolled company may be subject,
shall be regarded as contravened by reason of his
communicating in good faith to the competent
authority, whether or not in response to a request from
it, any information or opinion on a matter of which the
auditor has become aware in his capacity as auditor of
that company and which is relevant to any functions of
the competent authority under the provisions of this
Act or is required to be communicated by virtue of this
Act;
( b ) a person appointed to make a report under any
provision of this Act may be subject, shall be regarded
as contravened by reason of his communicating in
good faith to the competent authority, whether or not
in response to a request made by it, on any matter
which relates to the business or affairs of an enrolled
company in relation to which a report is made.
PART VI
REGISTRATION AND ENROLMENT OF INSURANCE 
SUB- AGENTS
The insurance sub-
agents company 
registers.
29. (1) Every authorised company desirous of appointing a
person to act on its behalf as an insurance sub-agent shall establish
and maintain a register of persons acting as insurance sub-agents,
in this Act referred to as "the sub-agents company register",
containing the names, addresses, the class or classes of long term
business or the group or groups of classes of general business to be
carried out by such persons under their respective sub-agency
appointment and such other particulars as the competent authority
may, from time to time, by an insurance intermediaries directive
made for the purposes of this article, determine, of all persons who
are entitled under this Act to be registered therein.
(2) Subject to the provisions of subarticle (1), every authorised
company shall determine its own procedures for appointing and
registering a person as an insurance sub-agent in the sub-agents
company register of the company.
Qualifications for 
registration.
30. (1) A person shall be entitled to be registered by an
authorised company in the sub-agents company register of the
company if the company is satisfied that such person is fit and
proper to carry out insurance sub-agency activities.
(2) A person shall not be entitled to carry out insurance sub-
agency activities by virtue of his registration under article 33
unless and until he is enrolled by the competent authority in the
sub-agents list under that article.
  22  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
List of persons 
carrying out 
insurance sub-
agency activities.
31. (1) The competent authority shall establish and maintain a
list of persons carrying out insurance sub-agency activities in this
Act referred to as "the sub-agents list", containing the names of
such persons, the names of authorised companies appointing and
registering such persons as insurance sub-agents, the class or
classes of long term business or the group or groups of classes of
general business to be carried out by such persons under their
respective sub-agency appointment and such other particulars as
the competent authority may, from time to time, by an insurance
intermediaries directive made for the purposes of this article,
determine, of all persons who are, or which are, entitled under this
article to be enrolled therein.
(2) It shall be the duty of an authorised company to enrol with
the competent authority in the sub-agents list any person registered
by it as an insurance sub-agent in the sub-agents company register
of the company under article 33.
(3) On obtaining from the competent authority a certificate of
enrolment under article 33, an authorised company shall furnish the
person in whose name the certificate of enrolment is made out with
the certificate issued to the company by the competent authority or
an official copy thereof.
(4) Where a person enrolled as aforesaid carries out insurance
sub-agency activities from a place of business or from any other
place accessible to the public, that person shall display in a
prominent position in that place in a part thereof to which the
public has access, the certificate of enrolment issued by the
competent authority under this article or an official copy thereof.
Restriction on 
persons for 
carrying out 
insurance sub-
agency activities.
32. No person shall act as an insurance sub-agent and carry
out, or attempt to carry out in Malta insurance sub-agency activities
unless such person is appointed, registered and enrolled in
accordance with the provisions of this Act.
Appointment, 
registration and 
enrolment of 
insurance sub-
agents.
Amended by:
XVII. 2002.282.
33. (1) Subject to the provisions of this Act, every authorised
company desirous of appointing a person to act on its behalf as an
insurance sub-agent shall, under this article, appoint and register in
the sub-agents company register of the company and enrol with the
competent authority in the sub-agents list, any one or more persons
to act on its behalf as insurance sub-agents and to carry out in
Malta insurance sub-agency activities in the class or classes of long
term business or the class or classes, or group or groups of classes,
of general business specified in their respective sub-agency
appointment; and, where a person is not an individual, such person
must itself have an individual who satisfies the requirements of
article 30(1):
Provided that a company is prohibited from appointing and
registering in the sub-agents company register of the company a
person which is -
( a ) a person registered in the brokers register under article
13;
( b ) a company enrolled in the brokers list under that
article;
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  23
Cap. 403.
Act -
(i) to carry on business of insurance;
(ii) to act as an insurance agent;
(iii) to act as an insurance manager:
Provided further that a company is prohibited from
appointing any person acting on its behalf as an insurance sub-
agent to carry out any insurance sub-agency activity within any
class or group of classes of business of insurance as the competent
authority may from time to time by an insurance intermediaries
directive made for the purposes of this article determine to be a
class or group of classes of business within which no insurance
sub-agency activities shall be carried out.
(2) Where an authorised company appoints and registers in the
sub-agents company register of the company a person which is not
an individual, and that person carries out insurance sub-agency
activities from any one or more places of business, that person shall
ascertain that insurance sub-agency activities so carried out by it
from each such place of business are carried out only by an
individual who satisfies the requirements of article 30(1).
(3) Subject to subarticles (4) to (6), any person, other than a
person mentioned in the first proviso to subarticle (1), may seek
and obtain under this article appointment and registration in a sub-
agents company register of an authorised company to carry out
insurance sub-agency activities on behalf of that company.
(4) Any person desirous of seeking appointment and
registration in a sub-agents company register of an authorised
company to carry out insurance sub-agency activities -
( a ) relating to long term business, may obtain appointment
and registration in the sub-agents company register of
not more than two companies authorised to carry on
long term business;
( b ) relating to general business, may obtain appointment
and registration in the sub-agents company register of
not more than two companies authorised to carry on
general business.
(5) Where a person desires to seek appointment and
registration in the sub-agents company register of more than one
company authorised to carry on long term business, and where any
class of long term business carried on by the companies concerned
is of the same kind, such person shall, in respect of that class of
business, seek and obtain appointment and registration to carry out
insurance sub-agency activities relating to that kind of class of
business only in the sub-agents company register of one of the
companies concerned.
(6) Where a person desires to seek appointment and
registration in the sub-agents company register of more than one
company authorised to carry on general business, and where any
class, or any group of classes, of general business carried on by the
  24  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
companies concerned is of the same kind, such person shall, in
respect of that class, or that group of classes, of business, seek and
obtain appointment and registration to carry out insurance sub-
agency activities relating to that class, or that group of classes, of
business only in the sub-agents company register of one of the
companies concerned.
(7) No person who is an employee of an authorised company
shall, solely by virtue of his employment by the company, require
registration in the sub-agents company register of the company
under this article except where such person carries out insurance
sub-agency activities on behalf of the company in a place or places,
other than the company’s place, or places of business:
Provided that, the competent authority may exempt certain
categories of employees in certain circumstances as determined by
an insurance intermediaries directive made for the purposes of this
article.
(8) On granting an application for enrolment under this article
the competent authority shall issue to the applicant concerned a
certificate of enrolment in the form and manner it deems
appropriate evidencing enrolment of the person registered in the
sub-agents company register of the applicant in the sub-agents list.
(9) Subject to the provisions of this Act, the competent
authority may subject enrolment made under this article to such
conditions as it may from time to time deem fit to impose.
(10) An authorised company shall at all times be responsible for
any act or omission of its registered insurance sub-agents provided
that such act or omission is an act or omission pertaining to a
contract of insurance issued by the company or offered on its behalf
through the services of such insurance sub-agents. For the purposes
of this subarticle any reference to registered insurance sub-agents
shall include a reference to past as well as present registered
insurance sub-agents.
(11) Notwithstanding any other provision of this Act, for the
purposes of this article, "authorised company" shall not include any
member of a recognised insurance body carrying on business of
insurance in Malta solely with an enrolled company.
Striking names off 
sub-agents 
company registers.
34. Subject to the provisions of article 35 and to the terms and
conditions of any relevant insurance sub-agency appointment, at
any time and for any reason whatever -
( a ) any authorised company may strike off the sub-agents
company register of the company the name of any
person registered in the register of the company;
( b ) any person registered in the sub-agents company
register of an authorised company may make
application in writing to the company concerned
requesting the company to strike his name off the sub-
agents company register of the company.
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  25
Striking names off 
the sub-agents 
company registers 
or the sub-agents 
list.
Amended by:
XVII. 2002.283.
35. (1) Where an authorised company elects to strike the name
of a person off the sub-agents company register of the company, the
company shall forthwith notify in writing the person concerned and
the competent authority specifying the date on which it elects to
strike the name of that person off the register.
(2) Where an authorised company strikes the name of a person
off the sub-agents company register of the company 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, the company shall also notify in writing the
competent authority the reasons for so doing.
(3) On receiving a notification from an authorised company
that the company has elected to strike the name of a person off the
sub-agents company register of the company, the competent
authority shall -
( a ) if the striking of such name off the register is on
grounds other than those specified in subarticle (2), as
early as reasonably practicable, confirm in writing to
the company concerned that the name of such person,
in so far as it relates to that company, shall be struck
off the sub-agents list as from the date specified in the
company’s notification;
( b ) if the striking of such name off the register is on
grounds specified in subarticle (2), before striking the
name of such person off the sub-agents list, forthwith,
give the person concerned notice in writing setting out
the reasons for so doing and the provisions of article
17(2) and (3) shall  mutatis mutandis  apply to a notice
given under this article.
(4) Without prejudice to any action which the competent
authority may deem appropriate under this Act or any other law,
where the competent authority strikes the name of a person off the
sub-agents list on the grounds specified in subarticle (2), the
competent authority may give publicity to the striking of that name
off the sub-agents list and -
( a ) if the name of that person is registered in the sub-
agents company register of any other company, the
competent authority shall also forthwith notify in
writing that other company and direct it to strike
forthwith the name of that person off the sub-agents
company register of that company and give the
company the reasons for its direction;
( b ) if the competent authority elects to give publicity to
the striking of that name off the sub-agents list, the
competent authority shall publish a notice giving
publicity to that striking off in a manner it deems
appropriate in at least two daily local newspapers of
which one is published in the Maltese language and the
other in the English language; and the text of the
notice shall be in Maltese in the Maltese daily and in
English in the English daily.
  26  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
(5) The competent authority shall have power to order that all
expenses incurred by the publication of a notice pursuant to this
article, or such part thereof as it may deem appropriate, shall be
paid by the person concerned; and any sum so due shall be
recoverable by the competent authority in the same manner as an
administrative penalty imposed under this Act.
(6) Where an authorised company receives in writing an
application from a person registered in the sub-agents company
register of the company requesting the company to strike the name
of that person off the sub-agents company register of the company,
the company shall without undue delay strike the name of that
person off the sub-agents company register of the company and
notify in writing the person concerned and the competent authority
specifying the date on which it elects to strike the name of that
person off the register.
(7) Where, on an application made to an authorised company
under subarticle (6), the company refuses, or unduly prolongs the
process, to strike the name of a person off the sub-agents company
register of the company, the person concerned may refer the matter
to the competent authority and the competent authority shall issue
in writing to the company concerned those directives it deems
necessary to oblige the company to hasten the process to strike the
name of that person off the sub-agents company register of the
company.
(8) On notification by the competent authority to an authorised
company that the name of a person registered in the sub-agents
company register of the company has been struck off the sub-agents
list, the company concerned shall forthwith surrender to the
competent authority the certificate of enrolment relating to that
person, and any official copies thereof.
Protection of the 
public or other 
interest.
Amended by:
XVII. 2002.284.
36. (1) Notwithstanding any provision of this Act, the
competent authority may, at any time, on grounds of unfitness and
improperness or of protection of the public interest -
( a ) refuse to enrol a person in the sub-agents list;
( b ) strike the name of a person off the sub-agents list:
Provided that, in each case, the competent authority shall
inform the company concerned in writing of the reasons for so
doing.
(2) In each case the competent authority may take any other
measure as it may deem necessary to safeguard the interests of
insureds, policy holders, creditors or other interested persons.
Restoration of a 
name struck off the 
sub-agents list.
37. Where in pursuance of article 35 the name of a person has
been struck off the sub-agents list -
( a ) on grounds contained in subarticle (2) of that article,
the name of that person shall, upon application by an
authorised company, again be enrolled in the sub-
agents list only on the order of the Tribunal or on
acquittal from an offence under that subarticle by any
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  27
court;
( b ) on grounds other than those contained in subarticle (2)
of that article, the name of that person may, upon
application by an authorised company, again be
enrolled in the sub-agents list.
PART VII
GENERAL PROVISIONS
Co-operation in 
supervisory duties 
and sharing of 
information.
Substituted by:
XVII. 2002.285.
38. (1) The competent authority may exercise the following
powers at the request of or for the purpose of assisting an overseas
regulatory authority:
( a ) the power to impose, revoke or vary conditions on the
grant of an enrolment pursuant to the provisions of
article 13(4);
( b ) the power to strike off the name of an enrolled
company from the Brokers List under article 16;
Cap. 403.
( c ) the power to take any action under articles 29, 30 or 31
of the Insurance Business Act, as applicable in
accordance with article 49;
( d ) the power to communicate to the overseas regulatory
authority information in its possession, whether such
information is the result of any of the above powers or
otherwise.
(2) The competent authority shall exercise powers by virtue of
this article:
( a ) where the assistance is requested by the overseas
regulatory authority for the purposes of the exercise of
one or more of its regulatory functions; or
( b ) where so required within the terms of Malta’s
international commitments; or
( c ) where so required within the terms of undertakings
assumed in bilateral or multilateral agreements for the
exchange of information and other forms of
collaboration with overseas regulatory authorities
including a request under a memorandum of
understanding concluded with the competent authority.
(3) There shall be meetings between an authorised company
and the competent authority or between an enrolled company, its
approved auditor and the competent authority, on a bilateral or
multilateral basis as circumstances may warrant. Such meetings
may be called by any of the parties and shall in each case be
chaired by the competent authority.
Confidentiality.
Amended by:
XVII. 2002.286.
39. (1) Nothing in this Act shall authorise the competent
authority to enquire or cause an enquiry to be made in an enrolled
company into the affairs of any individual client of the enrolled
company except for the purpose of ensuring compliance with any
of the provisions of this Act or of any other Act.
  28  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
(2) Subject to the provisions of subarticle (3), information by
any person for the purposes of, or pursuant to, any of the provisions
of this Act, or of any rules or regulations made thereunder, or of
any insurance intermediaries directive, or in the discharge of any
functions under any of the said provisions, or from an overseas
regulatory authority shall be treated as confidential and protected
by the duty of professional secrecy, and shall not be disclosed to
any other person, not being a person who may lawfully obtain that
information for the purposes of, or pursuant to, the provisions of
this Act, or of any rules or regulations made thereunder or of any
insurance intermediaries directive except with the consent of the
person from whom he obtained the information, provided the
information relates solely to that person.
(3) The provisions of subarticle (2) shall not preclude the
disclosure of information -
( a ) with a view to the institution of, or otherwise for the
purposes of, criminal proceedings or of any
proceedings by the competent authority before any
court under this Act;
( b ) with a view to enabling or assisting the competent
authority in the performance or discharge of any of its
functions under this Act;
( c ) which has been made available to the public by virtue
of being disclosed on any circumstances in which, or
for any purposes for which, disclosure is not precluded
by this article;
( d ) in a summary or collection of information formed in
such a way as not to enable the identity of any person
to whom the information relates to be ascertained;
( e ) to an auditor where the competent authority considers
that such disclosure would assist the auditor in the
exercise of his functions under article 27;
Cap. 345.
( f ) to the Central Bank of Malta or to the Listing
Authority under the Financial Markets Act, where such
information is required by the Bank or the Listing
Authority in the exercise of their respective functions
in terms of law;
( g ) in response to a request from or for the purpose of
assisting, an overseas regulatory authority pursuant to
article 38;
( h ) to such other local or overseas regulatory, judicial or
enforcement authorities where such disclosure is
required or requested for the pursuance of serious
regulatory concerns or the deception, prevention or
prosecution of criminal offences;
( i ) in civil or commercial proceedings in relation to the
bankruptcy or compulsory winding up of an enrolled
company provided such information does not concern
third parties involved in attempts to rescue such
company, and to such overseas bodies responsible for
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  29
the liquidation and bankruptcy of a person who is
enrolled or holds an equivalent authorisation or licence
from an overseas regulatory authority or for other
similar procedures.
(4) No person, including past and present officers or agents of
an enrolled company, shall disclose any information relating to the
affairs of an enrolled company or of a client of an enrolled
company which he has acquired in the performance of his duties or
the exercise of his functions under this Act except -
( a ) when authorised to do so under any of the provisions
of this Act;
( b ) for the purpose of the performance of his duties or the
exercise of his functions;
( c ) when required to do so by any court or under a
provision of any law.
(5) In this article, the expression "agents", in relation to an
enrolled company, means and includes the bankers and the auditor
of the company.
Cap. 373.
(6) When an officer or an employee of an enrolled company, or
a person registered or enrolled, or an officer or an employee of such
person, has reason to believe that an activity or a proposed activity
could involve money laundering, he shall act in accordance with
regulations laid down under the Prevention of Money Laundering
Act and any guidelines issued by the competent authority.
Compliance with the provisions of this subarticle shall not
constitute a breach of confidentiality.
Inspection of the 
registers and the 
lists.
40. (1) The brokers register, the brokers list and the sub-
agents list shall be open to public inspection, free of charge, at the
offices of the competent authority at all times during the normal
working hours of the authority.
(2) Any person may, upon payment of such fee as may be
prescribed, obtain from the competent authority extracts from the
brokers register, the brokers list and the sub-agents list and official
copies of certificates of registration or enrolment.
(3) The sub-agents company register of any company shall be
open to public inspection, free of charge, at the principal office of
the authorised company concerned during the normal working
hours of the company.
Use of the word 
"insurance".
41. (1) Subject to the following provisions of this article, save
with the written permission of the competent authority, no person
other than -
( a ) a person registered in the brokers register under article
13; or
( b ) a company enrolled in the brokers list under that
article; or
Cap. 403.
Act; or
  30  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
( d ) a person who holds insurance qualifications of an
institute of repute recognised for such purpose by the
competent authority; or
( e ) an institute of repute which provides instruction in
insurance business studies and is recognised as such
by the competent authority; or
( f ) a person prescribed by regulations under this Act,
shall use the word "insurance" as part of his or its description or
title or make any such use on any letter paper, in any notice or
advertisement, or in any other similar manner.
(2) Any foreign company enrolled or authorised as aforesaid
may use the name used in its country of registration, incorporation
or constitution save that, where there is a risk that the use of such
name may be misleading, such company shall add such explanatory
particulars to its name as the competent authority shall direct.
(3) The competent authority may, by an insurance interme-
diaries directive made for the purpose of this article, determine the
qualifications or experience in business of insurance which are
required of persons, other than persons referred to in the foregoing
subarticles, who, on application to the competent authority, may be
permitted under this article to use the word "insurance" as part of
their description or title.
(4) For the purposes of this article, the expression "insurance"
includes reinsurance, assurance and reassurance and any of their
derivatives or other words as may indicate or purport to indicate the
carrying on of business of insurance or of business of insurance
broking or the carrying out of insurance intermediaries activities or
the carrying on of such business or the carrying out of such
activities in any language in the description or title under which a
person is carrying on such business or carrying out such activities.
Service of notices, 
etc.
42. A notice or other document to be given or served under this
Act and any rules or regulations made thereunder shall be deemed
to have been duly given or served on a person if -
( a ) it has been delivered to him; or
( b ) it has been left at the address furnished by him to the
competent authority, or at his last known address; or
( c ) it has been sent to him by post or by telefax at any of
the aforesaid addresses; or
( d ) in the case of a commercial partnership registered in
Malta, it has been delivered, sent by post or by telefax,
or left at the registered office, or the last known
registered office, of that commercial partnership; or
( e ) in the case of any other body of persons, whether
corporate or unincorporate, it has been given or served
in any of the manners aforesaid to or on a director, an
officer, a clerk or the representative of that body.
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  31
Underwriting 
agreements.
Amended by:
XVII. 2002.287.
43. (1) Subject to the following subarticles, any company
enrolled under article 13 may make or enter into any underwriting
agreement in respect of general business classes with any
authorised company.
(2) No company enrolled as aforesaid shall make or enter into
any underwriting agreement unless, with respect to that
underwriting agreement, the company complies with or satisfies
such requirements as the competent authority may by an insurance
intermediaries directive made for the purposes of this article
determine.
(3) Any company enrolled as aforesaid shall register with the
competent authority any underwriting agreement made or entered
into under this article in the form and manner as the competent
authority may by the insurance intermediaries directive determine.
(4) No business of insurance shall be accepted under an
underwriting agreement unless the underwriting agreement has
been duly registered as aforesaid.
(5) The competent authority shall determine an application for
registration of an underwriting agreement under this article within
one month of receiving the information required to be submitted
under the insurance intermediaries directive; and if it refuses to
register the agreement it shall inform the applicant in writing of the
reasons for the refusal.
(6) Subject to the provisions of this Act, the competent
authority may subject registration of any underwriting agreement
made under this article to such conditions as it may from time to
time deem fit to impose.
(7) For the purposes of this article "underwriting agreement",
in relation to business of insurance, means an agreement between
an authorised company and a company enrolled under article 13
under which the enrolled company may, in accordance with the
terms thereof, accept risks on behalf of the authorised company;
and, in this context, any other agreement, by whatever name it may
be called, whose objects and purposes are similar to an
underwriting agreement, for the purposes of this article, is deemed
to be an underwriting agreement.
Changes in 
documentation and 
information.
Amended by:
XVII. 2002.288.
44. (1) Every enrolled company shall notify in writing the
competent authority of any material changes in the documentation
provided or required to be provided by or under this Act and any
rules or regulations made thereunder or any insurance interme-
diaries directive, as soon as it becomes aware of such changes.
Cap. 403.
(2) Without prejudice to article 49 insofar as it refers to article
38 of the Insurance Business Act, every enrolled company which is
a local company shall, before making any addition or alteration to
the memorandum or articles of association or other instrument
constituting the company submit in writing to the competent
authority particulars of the proposed addition or alteration for its
prior consent; and no such addition or alteration shall be made or
shall be registered or shall take effect, whether it is registered or
not, unless and until the competent authority has signified its
  32  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
consent in writing.
(3) Without prejudice to the foregoing provisions of this
article, every enrolled company shall 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 8.
Appeals.
Amended by:
XVII. 2002.289.
Cap. 330.
45.  (1)  ( a )  For the purposes of this Act, the term "Financial
Services Tribunal" means the tribunal referred to in article 21 of
the Malta Financial Services Authority Act, and the term
"Tribunal" shall be construed accordingly:
Cap. 403.
Provided that for the purposes of any appeal made to the
Tribunal under this Act the provisions of the proviso to article
57(1) of the Insurance Business Act, shall apply.
Cap. 330.
( b )  For the purposes of any such appeal, the provisions of
article 21 of the Malta Financial Services Authority Act shall,
except in so far as any of them are incompatible with the provisions
of this action, also apply.
(2) Subject to the provisions of this article, any person who, or
any company which, is aggrieved by a decision of the competent
authority -
( a ) to refuse to register or to enrol an applicant under
article 13 or 36;
( b ) to impose any condition on, or subsequent to,
registration and enrolment under article 13;
( c ) to strike the name of a person off the brokers register
or the name of a company off the brokers list under
article 16;
( d ) to refuse to restore the name of a person to the brokers
register or the name of a company to the brokers list
under article 18(2);
( e ) to strike the name of a person off the sub-agents list
under article 35(3)( b );
( f ) to require an authorised company to strike the name of
a person off the sub-agents company register of a
company under article 36;
( g ) to refuse to register an underwriting agreement under
article 43;
( h ) to impose an administrative penalty in respect of
infringements as may be prescribed under article 3,
may appeal against the decision to the Financial Services Tribunal
which shall have exclusive competence to hear appeals on the
matters listed in this subarticle.
(3) An appeal under this article shall lie only on any of the
following grounds:
( a ) that the competent authority has wrongly applied any
of the provisions of this Act; or
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  33
( b ) that the decision of the competent authority constitutes
an abuse of discretion or is manifestly unfair, provided
that the discretion of the competent authority may not,
so long as it has been exercised properly, be queried
by the Tribunal.
(4) An appeal made under this article shall not suspend the
operation of any decision from which the appeal is made except in
the case of an appeal from a decision as is mentioned in subarticle
(2)( h ).
Exclusion of 
liability.
46. The competent authority and any member, officer or
employee of the competent authority, and any other person
appointed to perform a function under this Act and any rules or
regulations made thereunder shall not be liable in damages for
anything done or omitted to be done in the discharge or purported
discharge of any functions under this Act and any rules or
regulations aforesaid, unless the act or omission is shown to have
been done or omitted to be done, as the case may be, in bad faith.
Offences. 
Cap. 403.
( a ) who contravenes or fails to comply with any of the
provisions of this Act, or of article 29, 30 or 38 of the
Insurance Business Act, as applicable in accordance
with article 49 of this Act;
( b ) who contravenes or fails to comply with any rules or
regulations made under this Act, other than rules or
regulations in relation to which administrative
penalties have been prescribed under article 3(3)( d );
( c ) who contravenes or fails to comply with any insurance
intermediaries directive or registration or enrolment
condition;
( d ) who fails to comply with any lawful order or
requirement of the competent authority;
( e ) who fails to comply with any order or requirement of
the Financial Services Tribunal;
( f ) who fails to comply with any lawful order or
requirement of any other person made under this Act
and any rules or regulations made thereunder;
( g ) who without any reasonable excuse alters, suppresses,
conceals, destroys or refuses to produce any document
which is lawfully required to be produced by any
person under this Act and any rules or regulations
made thereunder,
shall be guilty of an offence.
(2) Any person who is knowingly a party to, or procures or aids
and abets the commission of any offence under subarticle (1) shall
be guilty of an offence and shall be liable to the same penalties as
the principal offender.
(3) The Minister shall make regulations under this article
prescribing penalties for offences against this Act, and such
  34  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
regulations may -
( a ) prescribe penalties which are enforceable by
prosecution in the courts of Malta;
( b ) prescribe different penalties for contraventions of
different provisions of this Act;
( c ) prescribe penalties calculated in accordance with the
duration of the commission of the offence,
unless such penalties are otherwise imposed under article 3.
Penalties. 48. (1) The penalties prescribed by regulations made under
article 47 -
( a ) in the case of imprisonment, shall not provide for a
sentence of imprisonment greater than two years;
( b ) in the case of a fine imposed after a prosecution in the
courts of Malta, shall not provide for a fine ( multa ) of
less than one hundred liri or greater than fifty thousand
liri;
( c ) in the case of a continuing offence, shall not provide
for a fine ( multa ) of less than fifty liri or greater than
one hundred liri for each day during which the offence
continues.
(2) No proceedings for an offence under this Act or any
regulations made thereunder other than an infringement to which
article 3(3)( d ) applies, shall be commenced without the consent of
the Attorney General.
(3) The provisions of this Act shall not affect any criminal
proceedings that may be competent under any other law.
Application of 
certain articles of 
the Insurance 
Business Act to 
enrolled companies 
and to persons 
enrolledcin sub-
agents lists.
Substituted by:
XVII. 2002.290.
Cap. 403.
49. (1) Subject to the provisions of subarticle (2):
( a ) the provisions of articles 29 to 31 and of article 38 of
the Insurance Business Act (hereinafter in this article
referred to as the "the Act") shall apply to a company
enrolled in the Broker List, as if reference in such
provisions -
(i) to "authorisation" were a reference to
"enrolment in the Brokers List";
(ii) to "an authorised company" were a reference to
"an enrolled company";
(iii) to "business of insurance" were a reference to
"business of insurance broking";
(iv) to "a company whose head office is in a country
outside Malta" were a reference to "a foreign
company"; and
( b ) articles 29 to 31 of the Act shall apply to a person
enrolled in the Sub-agents List as if reference in such
provisions:
(i) to "authorisation" were a reference to
"enrolment in the Sub-agents List";
INSURANCE BROKERS AND OTHER INTERMEDIARIES   _g CAP. 404.  35
(ii) to "an authorised company" were a reference to
"an insurance sub-agent";
(iii) to "business of insurance" were a reference to
"insurance sub-agency activities".
(2) Subarticle (1) shall apply to an enrolled company or to a
person enrolled in the Sub-agents List as if reference in the relevant
provisions of the Act to "the competent authority" were a reference
to "the competent authority" under this Act, and references to
"insurance directive" were references to "insurance intermediaries
directives".
Application of 
Exchange Control 
Act.
Cap. 233.
50. The Exchange Control Act shall not apply to business of
insurance broking carried out by an enrolled company with a client
who is a person not resident in Malta for the purposes of the said
Act.
Savings.
Cap. 290.
Cap. 403.
51. (1) Every licence issued or renewed or other action
whatsoever taken or commenced under the Insurance Business Act
(in this article referred to as "the Act"), prior to its repeal by the
Insurance Business Act, in so far as it applies to insurance brokers
and insurance salesmen, shall continue in force and to be valid as if
such licence were a certificate of enrolment issued or as if such
other action were action taken or commenced under this Act.
(2) Any person or company licensed under the Act to act as an
insurance broker or insurance salesman shall, not later than the
appointed date, conform with the provisions of this Act or
otherwise cease to act as an insurance broker or insurance
salesman, and shall, until the appointed date or until it conforms
with the provisions of this Act, whichever is earlier, continue to be
governed by the provisions of the Act. For the purpose of this
article "appointed date" means a day being six months after the date
of coming into force of this Act.
(3) Where a company ceases to act as an insurance broker on
grounds that such company did not, on the appointed date, conform
with the provisions of this Act, that company shall be deemed to
have made an application to the competent authority under article
25 on the appointed date to cease to carry on business as insurance
broker on that date and to have been given permission by the
competent authority under that article on the appointed date to
cease to carry on such business on that date and to service that
business as from that date. The competent authority may impose
such conditions with regard to the servicing of that business as it
may deem proper.
(4) For the purpose of this article, "licence" includes authority,
permit, approval and appointment.
Cap. 330.
(5) The provisions of this article shall not apply to insurance
broking offshore companies registered under the Malta Financial
Services Authority Act, until such time as the Minister may by
order in the Gazette establish.
  36  CAP. 404. _h   INSURANCE BROKERS AND OTHER INTERMEDIARIES  
SCHEDULE
(Article 2)
INSURANCE INTERMEDIARIES 
AND INSURANCE INTERMEDIARIES ACTIVITIES
For the purposes of paragraph 1 of the Third Column of this Schedule, "risk"
means and includes a risk situated in Malta or a risk situated outside Malta; and "risk
situated outside Malta", in relation to a contract of insurance, has the same meaning
as is assigned to it by article 2(1) of the Insurance Business Act. 
First Column Second 
Column
Third Column
Independent 
Insurance 
Intermediaries
Dependent 
Insurance 
Intermediaries
Insurance Intermediaries Activities
Insurance broker 1. Professional activities of persons listed in
the First Column of this Schedule who, acting with
complete freedom as to their choice of lawful
insurance companies, bring together, with a view to
the insurance or reinsurance of risks or
commitments, persons seeking insurance or
reinsurance and insurance companies, carry out
work preparatory to the conclusion of contracts of
insurance or reinsurance and, where appropriate,
assist in the administration and performance of such
contracts, in particular in the event of a claim;
Insurance 
sub-agent
2. Activities of persons listed in the Second
Column of this Schedule who, acting on behalf of
authorised companies, among other things carry out
introductory work, introduce contracts of insurance
or collect premiums, provided that no insurance
commitments towards or on the part of the public
are given as part of these activities.
