The MFSA decided to proceed with imposing an administrative penalty of twenty-three thousand Euro (€23,000) on the Company in terms of the Insurance Distribution (Penalties and Other Measures) Regulations. This penalty was the highest penalty at the time of the breach which could have been imposed by the Authority for a contravention of the provisions of the Insurance Distribution Act (“IDA” or “Act”) which replaced the Insurance Intermediaries Act, applicable at the time.
Address:
deVere & Partners Holding Ltd
Centre Point, 1st Floor
Dun Karm Street
Birkirkara Bypass
Birkirkara BKR 9037
Business Activity: Financial Consultancy
BREACHES
The Malta Financial Services Authority (“MFSA” or “the Authority”) has been examining the activities carried out by the Company in and from Malta over the last years.
deVere was found to be in breach of Article 6(1) of the Insurance Distribution Act which prohibits any person to act as an insurance intermediary and carry out, or attempt to carry out, in or from Malta, insurance distribution activities, unless such person is registered or enrolled under Article 13 of the said Act.
The MFSA determined that deVere has been carrying out insurance distribution activities as defined in Article 2 of the Insurance Distribution Act, without the required licence and has established deVere’s principal roles as being:
[i] bringing together persons seeking insurance and insurance companies;
[ii] carrying out preparatory work in relation to the conclusion of life insurance contracts; and
[iii] assisting in the administration of such contracts during the term of the policy.
The Authority also considers that the conduct of Ms Yeomans has been well below the standard which is reasonably expected of a company director and that her decisions and actions have resulted in the Company being in breach of Article 6 of the Insurance Distribution Act. As the sole director and the person responsible at law for the administration, management and supervision of the affairs of the Company, Ms Yeomans had the responsibility of ensuring that deVere is acting in compliance with the laws and regulations that pertain to the financial services industry.
REGULATORY ACTION
On 30 March 2020, the MFSA has taken the following regulatory action against deVere & Partners Holding Limited:
[i] Imposed an administrative penalty of twenty-three thousand Euro (€23,000) in terms of Regulation 5(2) and Regulation 8 of the Insurance Distribution (Penalties and Other Measures) Regulations and the last paragraph of the Fourth Schedule of the said Regulations; and
[ii] Requested the Company to refrain from continuing to undertake any unauthorised activities in terms of the Insurance Distribution Act.
PUBLICATION
This notice is being published in terms of the powers vested in the Authority under Article 16(8) of the Malta Financial Services Authority Act and shall remain published in accordance with the Publication Policy of the Authority.
UPDATE ON 30 APRIL 2020
The Authority’s decision was not appealed before the Financial Services Tribunal within the period established by law.
