The Malta Financial Services Authority (“MFSA”) decided to proceed with issuing a Directive in terms of the powers conferred to it by Article 31A of the Insurance Business Act, as applicable under Article 54 of the Insurance Distribution Act.

In addition, the MFSA also decided to:

• Strike-off the Company from the Brokers’ List in terms of the powers granted to it under Article 16 (b), (d) and (g) of the Insurance Distribution Act; and
• Direct the Company to change its name and remove any reference to licensable activities in the objects clause contained in the Memorandum and Articles of Association.

Address:

62, Flat 1, St. Silvester Street
Mosta MST3705
Malta

Business Activity: Insurance Broker

BREACHES

The MFSA determined that the Company has:

• Failed to submit the Audited Financial Statements for Year End December 2018, 2019, and 2020 as well as, the business statements for Year End December 2018, 2019, and 2020 as per the requirements set out in Article 24 of the Insurance Distribution Act (“the Act”) and Rule 10.3.1 and Rule 10.3.5 of the Insurance Distribution Rules issued pursuant to Article 25 of the Act;
• Failed to comply with continued professional training and development requirements as per requirements set out in Rule 7.4.1 and Rule 7.6.4 of the Insurance Distribution Rules issued pursuant to Article 14A of the Act;
• Failed to fulfil the criteria of sound and prudent management in terms of Rule 5.3.6 and Rule 5.3.12 (b) of the Insurance Distribution Rules issued pursuant to Article 4 of the Act;
• Failed to pay its annual supervisory fee for year 2020 as per the requirement set out in Regulation 4 of the Insurance Distribution (Fees) Regulation (subsidiary legislation 487.03); and
• Failed to abide by the licencing conditions imposed on the Company by the MFSA.

REGULATORY ACTION

On 15 February 2023, the MFSA decided to proceed with issuing a Directive in terms of the powers conferred to it by Article 31A of the Insurance Business Act, as applicable under Article 54 of the Insurance Distribution Act which included directing the Company to cease with immediate effect from accepting new business of insurance and providing any new services (as applicable) including any possible renewals to its existing clients.

In addition, on 15 February 2023, the MFSA also decided to:

• Strike-off the Company from the Brokers’ List in terms of the powers granted to it under Article 16 (b), (d) and (g) of the Insurance Distribution Act; and
• Direct the Company to change its name and remove any reference to licensable activities in the objects clause contained in the Memorandum and Articles of Association.

It should be noted that the MFSA’s decision may be appealed before the Financial Services Tribunal within the period as prescribed by the applicable law.

PUBLICATION

This notice is being published in terms of the powers vested in the Authority’s standard enforcement policy and Article 16(8) of the Malta Financial Services Authority Act.