INVESTMENT SERVICES ACT 
(LINKED LONG TERM CONTRACTS OF INSURANCE 
STATUTORY NOTICE) [ S.L.370.07 1
SUBSIDIARY LEGISLATION 370.07
INVESTMENT SERVICES ACT
(LINKED LONG TERM CONTRACTS OF 
INSURANCE STATUTORY NOTICE) 
REGULATIONS
2nd December, 2002
LEGAL NOTICE 354 of 2002.
Citation.
Act (Linked Long Term Contracts of Insurance Statutory Notice)
Regulations.
Interpretation.
Cap. 370.
"linked long term contract of insurance" means a contract of
insurance within the meaning of paragraph 7 of the Second
Schedule of the Act;
"customer" means the party who has agreed to enter into a linked
long term contract of insurance;
Cap. 403.
"insurer" means the person authorised to carry on, in or from
Malta business of insurance consisting of contracts of long term
business within the meaning of class III contained in the Second
Schedule to the Insurance Business Act whether such person is
authorised under the Insurance Business Act or is exempted from
the requirement of authorisation under article 6(4) of the Insurance
Business Act,
and the words and expressions which are also used in the Act have
the same meanings as in the Act.
Statutory notice.
of insurance whether of a single or regular premium nature, unless
that insurer serves upon the customer a statutory notice in relation
to that contract either at the time when the contract is entered into
or within two working days from the date when the contract has
been entered into.
(2) A statutory notice is a notice which -
( a ) contains such matters and is in the form set out in the
First Schedule and complies with the requirements
specified in the following paragraphs of this
regulation; and
( b ) has annexed to it a form of notice of cancellation as set
out in the Second Schedule.
(3) A statutory notice shall be easily legible and shall, as nearly
as practicable, be a reproduction of that set out in the First
Schedule (and in so far as it relates to the notice of cancellation,
that set out in the Second Schedule), whether as respects size,
2 [ S.L.370.07
INVESTMENT SERVICES ACT 
(LINKED LONG TERM CONTRACTS OF INSURANCE 
STATUTORY NOTICE)
colour, print, the use of capitals or bold letters and other means of
emphasis.
(4) A linked long term contract of insurance shall, at the option
of the customer, be annullable, by reason of the fact that the insurer
has contravened this regulation in relation to that contract:
Provided that such right shall be exercisable by the
customer within one month from the date when the statutory notice
has been served.
(5) An insurer who contravened any of the provisions of this
regulation shall be guilty of an offence and shall be liable, on
conviction, to a fine ( multa ) of not less than two hundred liri but
not exceeding one thousand liri.
Notice of 
cancellation.
4. (1) A customer upon whom a statutory notice has been
served by an insurer in relation to any linked long term contract of
insurance, may, within a period of fifteen days beginning from the
date on which such notice has been served, serve on the insurer a
notice of cancellation which complies with subregulation (3).
(2) A customer to whom an insurer ought to have, but has not,
served a statutory notice in relation to any linked long term contract
of insurance may, before the lapse of one year beginning from the
date of the contract, serve a notice of cancellation on the insurer.
This right shall cease if before being served with a notice of
cancellation, the insurer serves a statutory notice upon the
customer.
(3) A notice of cancellation may, but need not be, in the form
annexed to the statutory notice, and shall have effect if, however
expressed, it indicates the intention of the customer to withdraw
from the contract in relation to which the statutory notice was or
ought to be served. Save as aforesaid, the requirements applicable
to the statutory notice shall  mutatis mutandis  apply to a notice of
cancellation.
(4) Where after having entered into a linked long term contract
of insurance, a customer serves a notice of cancellation, such notice
shall operate so as to cancel the contract.
(5) Where a notice of cancellation operates to cancel a linked
long term contract of insurance -
( a ) any money which the customer serving the notice has
paid in connection with the linked long term contract
of insurance (whether by way of premium or
otherwise, and whether to the insurer or to a person
who is the representative of the insurer for the
purposes of receiving the money) shall be recoverable
from the insurer by the customer serving the notice;
( b ) any benefit under the policy which the insurer has paid
to the customer serving the notice shall be refunded by
the customer to the insurer; and
( c ) any adverse market movement in the value of the
INVESTMENT SERVICES ACT 
(LINKED LONG TERM CONTRACTS OF INSURANCE 
STATUTORY NOTICE) [ S.L.370.07 3
property represented by the linked long term contract
of insurance shall be home by the customer serving the
notice of cancellation.
Service of a 
statutory notice 
and/or notice of 
cancellation.
5. (1) For the purpose of regulation 3(1), a statutory notice
shall -
(i) either be delivered to the customer by hand at
the time when the contract is entered into;
(ii) or be sent to the customer by registered post at
an address in Malta specified on the proposal
form within two business days from the date
when the contract has been entered into.
(2) For the purposes of regulation 4, a notice of cancellation
shall be sent to the insurer, or his representative, at an address in
Malta specified thereon, by any manner whatsoever.
(3) For the purpose of these regulations, where any doubt
arises-
( a ) the date on which a statutory notice shall be deemed to
be served on the customer shall be the first working
day following the day of posting by registered post;
and
( b ) the date on which a notice of cancellation shall be
deemed to be served on the insurer, or his
representative shall be the day of posting.
(4) In the event that the insurer alleges that the right of
cancellation had not been exercised by the customer within the
periods established by these regulations, the burden of proof shall
lie with the insurer.
(5) The insurer will also have the burden of proving that the
statutory notice was served to a customer and was properly
executed in the form and manner required by these regulations.
(6) It shall be the duty of the insurer or his representative to
properly explain to the customer his rights of cancellation arising
under these regulations and of the possibility to use the notice of
cancellation.
4 [ S.L.370.07
INVESTMENT SERVICES ACT 
(LINKED LONG TERM CONTRACTS OF INSURANCE 
STATUTORY NOTICE)
FIRST SCHEDULE
(Regulation 3)
LINKED LONG TERM CONTRACTS OF INSURANCE -
STATUTORY NOTICE
To: .............................................................................................
( Insert name and address of the person to whom this Notice is sent .)
IMPORTANT - READ THIS NOTICE CAREFULLY
YOUR RIGHT TO CHANGE YOUR MIND
............................................................................................
(Identify the contract to which the notice relates or state how it may be identified,
e.g. by reference to an accompanying contract note)
1. You have entered into/have applied to enter into a Linked Long Term
Contract of Insurance with
..............................................................................................................................
..............................................................................................................................
(name and address of the insurer with whom the contract has been entered into / is
being entered into).
2. The purpose of this Statutory Notice is to ensure that you are aware that you
have a legal right to reconsider the matter and to change your mind if you wish.
Points to consider
3. Before you decide whether you want to change your mind, ask yourself:
* If you received personal advice on your investment or policy of
insurance, are you clear whether that advice was given by an
independent person working on your behalf or by someone representing
the insurer?
* Have you received all the information you want in order to understand
your investment or policy of insurance?
* Are you satisfied that the investment or policy of insurance is suitable
for your needs?
* Do you, for example:
- understand how much you will pay now and in future?
- understand what benefits will be paid under the policy - either at
the end of the policy term or if you die before the end of the
policy term?
Do you also understand to what extent the benefits are guaranteed and
to what extent they depend on how well the investment or policy of
insurance performs?
- understand that if you stop the policy in the early years you could
lose money?
- understand the effect that any expenses or charges will have on
your investment or policy of insurance?
If the answer to any of these questions is NO, you should consult your
INVESTMENT SERVICES ACT 
(LINKED LONG TERM CONTRACTS OF INSURANCE 
STATUTORY NOTICE) [ S.L.370.07 5
adviser or the insurer as quickly as possible. There is no extension to the
cancellation period if you ask for further information or if the reply is delayed.
Your right to withdraw from the transaction
4. The law gives you 15 days beginning from the day on which you are served
with this notice, to consider the matter again and, if you so wish, to withdraw from
the transaction.
5. If you wish to go ahead with the transaction you should do nothing with the
attached notice of cancellation. But if you wish to withdraw and to have back the
money you have paid to the insurer or to his representative in connection with the
contract, you should serve notice of cancellation (either on the form attached to
this notice or otherwise in writing to the same effect) to the insurer whose
particulars are given in paragraph 1 of this notice within the period of 15 days:
Provided that you will have to repay any amounts already paid to you by the
insurer or his representative under the contract, and any adverse market movement
in the value of the property represented by the contract shall be at your risk.
Acknowledgment
6. You are asked to acknowledge receipt of this notice by signing the sub
joined form hereunder.
.......................................
(Signed)
........................................
(Name in block capitals)
.........................................
(Office)
MAKE SURE THAT YOU KEEP THIS NOTICE AND THAT YOU ONLY
RETURN A COPY THEREOF, DULY SIGNED AND DATED, TO THE
PERSON WHO HAS SERVED IT ON YOU.
RECEIPT
I, the undersigned, hereby declare that I have been served with a Statutory Notice
relating to the linked long term contact of insurance, of which the above is a copy.
................................
(Signed)
....................................
(Name in block capitals)
......................................
(Date)
6 [ S.L.370.07
INVESTMENT SERVICES ACT 
(LINKED LONG TERM CONTRACTS OF INSURANCE 
STATUTORY NOTICE)
SECOND SCHEDULE
(Regulation 3)
NOTICE OF CANCELLATION
IMPORTANT - THIS NOTICE, IF MADE USE OF, MAY BE SERVED BY HAND, 
BY YOU OR BY SOMEONE ELSE ON YOUR BEHALF, 
OR BY REGISTERED POST
(To be returned only if you want to cancel the contract)
...........................................................
*(Contract reference or code number)
..............................................................................................................................
*(Name of insurer)
..............................................................................................................................
*(Address of insurer, or his representative in Malta)
I, the undersigned, hereby give notice that I have decided not to proceed with this
Linked Long Term Contract of Insurance and that I request the return of the
money paid to you or to your representative in connection with the said contract.
........................................
(Signed)
.........................................
(Name in block capitals)
..............................................................................................................................
(Address) 
*(To be filled in by Insurer)
RECEIPT
I, the undersigned, hereby acknowledge receipt of the Notice of Cancellation
relating to the Linked Long Term Contract of Insurance reference Code number
..................................
(insert number)
proposed by ..........................................................................................................
(name of proposer)
..........................................
(Signed)
............................................
(Name in block capitals)
..............................................................................................................................
for (Name of Insurer/Agent)
..............................
(Date)
