The MFSA commenced a consultation process on its proposed amendments to the Insurance Distribution Rules (hereinafter referred to as the “IDR”). The consultation process began on the 26th of January 2023 and closes on the 8th of March 2023.
The following amendments are being proposed:
- Chapter 1 in relation to Professional Indemnity requirements;
- Chapter 2, together with a proposed new draft Annex to Chapter 2 and draft Schedules 4 – 8 of Chapter 2 in relation to: (i) the pre-requisite qualifications when submitting an application for registration of individuals in the Agents Register, Managers Register or Brokers Register, (ii) the introduction of specific requirements on the Tied Insurance Intermediaries and Ancillary Insurance Intermediaries pre-enrolment course and (iii) the removal of the requirement by the Tied Insurance Intermediary and Ancillary Insurance Intermediary to provide a bank reference letter as a pre-enrolment requirement;
- Chapter 4, together with a revised draft First and Second Schedule to Chapter 4 and a proposed new draft of a Third Schedule to Chapter 4 in relation to: (i) the credit risk transfer agreement, (ii) the definition of “insurance undertaking” in relation to credit risk transfer and (iii) the capital requirements of insurance intermediaries;
- Chapter 8 in relation to: (i) extension of the time period within which monies are to be paid to the undertaking by the intermediary and (ii) depositing of motor vehicle licence fees in clients’ account;
- Chapter 9 in relation to the fidelity bond; and
- Chapter 10 confirms the requirement to submit the auditor’s management letter.
The Consultation Document outlines the proposed amendments and new drafts to the respective Chapters of the IDR. The draft Legislation with the proposed amendments can be accessed here and on the MFSA website.
Market players are encouraged to submit their feedback to the MFSA by email by not later than the 8th of March.