In less than ten months, the Insurance Distribution Directive1 (‘IDD’) will be repealing the current Insurance Mediation Directive2 regulating the activities of insurance undertakings, insurance intermediaries and insurance ancillary intermediaries. The MFSA has issued a circular advising the market on the way forward with respect to the transposition of such Directive into Maltese Law and is currently conducting internal discussions and undergoing preparatory work in relation to the implementation and transposition of the IDD.
The Directive will be transposed by means of a Bill containing amendments to the current Insurance Intermediaries Act (Chapter 487 of the Laws of Malta), as well as amendments to the Insurance Business Act (Chapter 403 of the Laws of Malta). This will also necessitate the possible issue of new Insurance and Insurance Intermediaries Rules together with amendments to existing subsidiary legislation, i.e. rules and regulations issued under the Insurance Intermediaries Act and the Insurance Business Act. The MFSA is currently also working on a regime for ancillary insurance intermediaries. As a consequence, the tied insurance intermediaries regime, which the MFSA intends to retain, may necessitate some changes.
The MFSA will issue a Consultation Document in May 2017 explaining the proposed amendments to the said Acts and subsidiary legislation issued thereunder. In addition to this and following receipt of industry feedback in the past couple of years, the MFSA will be issuing all six chapters of the Insurance Rulebook for a final consultation procedure in May 2017, transposing the conduct of business provisions contained in the IDD.
Delegated Acts and Implementing Technical Standards to be issued under the IDD are expected to be adopted by the Commission in Autumn 2017. EIOPA will also be issuing further Guidelines by the 23rd August 2017. The foregoing will necessitate further amendments to be effected to the Conduct of Business Rulebook.
1Directive (EU) 2016/97 of the European Parliament and of the Council of 20 January 2016 on insurance distribution (recast)
2Directive 2002/92/EC of the European Parliament and of the Council of the 9th December 2002 on insurance mediation