The Authority has issued an explanatory Guide to Reinsurance Special Purpose Vehicles established in Malta, as regulated under the Reinsurance Special Purpose Vehicles Regulations (L.N. 452 of 2013), drawn up in conformity with the current EU Framework. This Guide provides a general description of the nature of insurance risk securitisation, as a unique segment of securitisation, and also an overview of the regulatory requirements applicable to RSPVs.
RSPVs established under the new Regulations may issue insurance-linked securities ("ILS") in order to fund their exposure under the risk transfer contract to professional clients as defined in Annex II of the European Markets in Financial Instruments Directive ("MiFID"). RSPVs provide additional opportunities to insurers and reinsurers to obtain access to capital resources. For investors ILS may provide opportunities to invest in asset class that are uncorrelated with that of the general financial market. Securitisation vehicles also have the option to list their securities on the European Wholesale Securities Market (the "EWSM"), a European regulated market based in Malta.
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