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
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.
1. Directive (EU) 2016/97 of the European Parliament and
of the Council of 20 January 2016 on insurance distribution
2. Directive 2002/92/EC of the European Parliament and of
the Council of the 9th December 2002 on insurance
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