Proposed Amendments to the IBA and IDA set out by MFSA in Consultation Document
The MFSA published a Consultation Document on proposed amendments to the Insurance Business Act (hereinafter referred to as the “IBA”) and the Insurance Distribution Act (hereinafter referred to as the “IDA”) on the 22nd of February. The MFSA also made available the draft legislation, as well as a podcast laying down the proposed amendments.
The amendments which have been put forward are geared towards allowing insurance undertakings authorised under the IBA, enrolled persons and companies under the IDA forming part of a group of companies, as well as Maltese branches or subsidiaries of multinational groups, to share confidential client information with entities within the same group, auditors or experts engaged to carry out a compliance assessment or to an outsourcing service provider whose services had been outsourced. The exchange of confidential client information to such persons is envisaged to only take place when it is necessary for the proper carrying out of their activities or for the fulfilment of their obligations.
As the legislation currently stands, the ability of an entity to exchange this information is limited to being exchanged amongst intermediaries, amongst insurers and between insurers and intermediaries. In order to carry out these amendments, the MFSA has proposed the introduction of a sub-article (3) to article 60 of the IBA and a similar addition to article 46 of the IDA in the form of a proposed sub-article (8).
It is important to note that the entity exchanging client information must ensure that communication of such information is subject to proper controls and safeguards, including that the recipient of such information be subject to the obligations of data protection, confidentiality and care under Maltese law and EU law, including under the General Data Protection Regulation (“GDPR”).
Related definitions within the IBA and IDA respectively also form part of this package of proposed amendments.
Market players are encouraged to submit their feedback to the MFSA by email by not later than the 30th of March.
Disclaimer: This document does not purport to give legal, financial or tax advice. Should you require further information or legal assistance, please do not hesitate to contact [email protected]
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