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On 28th March 2024 the Malta Financial Services
Authority (the “MFSA“) issued a Circular and Feedback Statement on the amendments to the
Companies Act (Cell Companies Carrying on Business of Insurance)
Regulations (the “PCC Regulations“), a
New Chapter 17 to the Insurance Rules titled ‘Cell
Companies carrying on Business of Insurance‘ and
Amendments to Chapter 5 to the Insurance Rules.
The Circular and Feedback statement were issued following the
publication of two Consultation Documents by the MFSA on
13th September 2023 – the consultation period
elapsed on 13th October 2023. The MFSA reviewed the
feedback received and discussed same internally, following which it
published the Circular and Feedback Statement highlighting the
comments raised by the insurance industry and the MFSA’s
replies thereto.
The Consultation Papers, Circular and Feedback Statement
primarily focus on the removal of non-recourse arrangements for
pure captives and reinsurers, transfers of protected cells and
liquidation of protected cells.
As for the way forward, the MFSA advised that the new Chapter 17
to the Insurance Rules will come into force when the amendments to
the PCC Regulations come into force – once the PCC
Regulations come into force, the MFSA will issue a Circular to
inform the market of same. Furthermore, the amendments to Chapter 5
of the Insurance Rules will apply on the date of the publication of
the above-mentioned Circular.
Originally published by Ganado Advocates
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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