MFSA Circular Relating To The Transposition Of The Insurance Distribution Directive

In less than ten months, the Insurance Distribution Directive¹ ('IDD') will be repealing the current Insurance Mediation Directive² regulating the activities of insurance undertakings, insurance intermediaries and insurance ancillary intermediaries. The MFSA has issued a circular advising the market on the way forward with respect to the transposition of such Directive into Maltese Law and is currently conducting internal discussions and undergoing preparatory work in relation to the implementation and transposition of the IDD.

The Directive will be transposed by means of a Bill containing amendments to the current Insurance Intermediaries Act (Chapter 487 of the Laws of Malta), as well as amendments to the Insurance Business Act (Chapter 403 of the Laws of Malta). This will also necessitate the possible issue of new Insurance and Insurance Intermediaries Rules together with amendments to existing subsidiary legislation, i.e. rules and regulations issued under