On the 13th October 2014, the Malta Financial Services Authority (MFSA) issued a circular regarding re/insurance undertakings in a group. Undertakings are to inform the MFSA whether they fall within the scope of group supervision under Solvency II by the 14th November 2014.
Undertakings are expected to determine whether they form part of a group in terms of the definitions which apply under Solvency II and whether group supervision applies to their group. This must be followed with an assessment of the scope of the group supervision. To this end, the Authority is requesting the shareholding structure of the whole group clearly showing which entities will fall within the scope of insurance group supervision. Undertakings must also determine the applicable level of group supervision. Should it be concluded that group supervision does not apply, the re/insurance undertaking must provide the Authority with the grounds for its decision.
The full text of the circular may be accessed by clicking here.
For further information on Group Supervision under Solvency II and related matters, please contact Dr Matthew Bianchi.