On the 22nd December 2015 the MFSA published the new single rulebook which will replace all the existing 33 Insurance Rules under Solvency I. These Insurance Rules were repealed by Insurance Rule 34. This completes the transposition of Solvency II into national legislation.
The new Solvency II regulatory framework which will come into force on the 1st January 2016 has been transposed into local legislation through the amended Insurance Business Act which was published on the 20th November 2015, subsidiary legislation in the form of amended and new Regulations which were consulted in two sets between September and November 2015 and this new consolidated Rulebook made up of 15 Chapters covering the areas shown in the table below:
|Part||No. Of Chapters||Area of Regulation|
|2||Fit & Proper Criteria, Notification and Assessment|
|3||Prudential assessment of acquisitions and increase of holdings in authorised undertakings|
|4||Authorisation to act as Approved Auditor|
|B||9||Conditions for carrying on Business of Insurance||5||Valuation of Assets and Liabilities, Technical Provisions, Own Funds, SCR, MCR and Investment Rules|
|6||System of Governance|
|7||Separate Management of Long Term Business and General Business|
|8||Financial Statements and Supervisory Reporting Requirements|
|9||Freedom of Establishment and Freedom to provide Services by a European Re/Insurance undertaking|
|10||Freedom of Establishment and Freedom to provide Services by a Maltese Re/Insurance undertaking|
|11||Provisions applicable to specific classes of general business of insurance|
|12||Conduct of Business Rules|
|13||General Principles of Supervision Rules|
|C||2||Other Provisions||14||Reinsurance Special Purpose Vehicles|
|15||Phasing-In Measures for Solvency II Implementation|
The new consolidated Rulebook may be viewed by clicking here.
It is important to note that in addition to the above framework, any EU Regulations that are issued are directly applicable in all Member States from the date they come into force, without the need for transposition into national legislation. Therefore they become part of the local legal framework once they come into force. This includes the Commission Delegated Regulation (EU) 2015/35 (Level 2 of Solvency II) which came into force on the 10th October 2014 and a number of Implementing and/or Regulatory Technical Standards that have been issued in the form of 2 Sets of EU Regulations.
These may be seen on EIOPA’s web-site by clicking here.
The structure is also further supported by Level 3 of the Solvency II framework which relates to the guidelines delivered by EIOPA which may be seen on EIOPA’s web-site by clicking here.