Malta Referred To ECJ For Failure To Transpose EU Law

by Robert Lee, Tax-News.com, London

25 April 2006

The European Commission has decided to refer Malta, along with several other member states, to the European Court of Justice for not having written a directive covering insurance mediation into their national law.

The EC has stated that Directive 2002/92/EC should have been transposed by all Member States by 15 January 2005. While Germany, Greece and Portugal have informed the Commission that the legislative process is on-going, but not yet finalised, France, Malta and Spain have indicated that further national legislation is needed.

A bill fully transposing the EU Directive, entitled the Insurance Intermediaries Act, 2006, was published in Malta on March 7, 2006, after an extensive consultation process with various stakeholders. It is scheduled for a Second Reading when Parliament reconvenes on April 24, 2006.

According to the Ministry of Finance, current Maltese insurance intermediaries legislation, most of which dates back to 1981, already incorporates the most important provisions of the EU Insurance Mediation Directive.

"It should also be highlighted that in a number of areas, in particular those provisions relating to the financial capacity of insurance intermediaries and protection of customer’s money, the current Maltese legislation imposes more onerous obligations than those provided for in the EU Directive, in the interest of the consumer," the ministry commented in a statement.

On the 15th January 2005, in line with the EU Insurance Mediation Directive, regulations came in place to render it possible for EU insurance intermediaries to carry on insurance intermediaries activities in Malta in terms of the EU Insurance Mediation Directive. These regulations also provide for Maltese insurance intermediaries to carry on cross-border intermediaries activities in the European Union.

As a consequence of these regulations, Malta has already received a considerable number of notifications, 2354 as at to date, of insurance intermediaries based in other EU member states intending to carry on insurance intermediary activities in Malta.

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