Following a demands and needs assessment workshop that was held
on 23rd November 2022, the Malta Financial Services
Authority (the "MFSA") issued a revised
version of the 'Nature and Art of Financial Supervision
– Conduct Supervision – The Demands and Needs
Assessment' (the "Circular")
which is intended to provide guidance and outline best practices in
the context of the demands and needs assessment which insurance
distributors are required to carry out in accordance with their
regulatory requirements.
As outlined in the Circular, insurance distributors are to
ensure that the insurance policy they propose or recommend to a
client is consistent with that client's demands and needs
– similarly, insurance distributors are not to offer to
clients a product/s which do not meet their demands and needs.
Furthermore, the Circular provides that the assessment of client
demands and needs by insurance distributors is required to be
carried out prior to the sale of all types
