Over 300 Tied Insurance Intermediaries participated in a webinar on the regulatory requirements that they are subject to. The webinar is part of the MFSA’s ongoing stakeholder outreach, which has gone unabated, despite the ongoing pandemic.
Upon introducing the webinar, Emily Benson, Head of Conduct Supervision at the MFSA stated that “TIIs are considered to be a significant distribution channel in Malta and accordingly, it is very important that they act in line with their regulatory requirements to ensure the best interest of their customers. They are ultimately responsible for the services that they provide, and in particular for ensuring that their services comply with the rules and that customers are sold the right products.”
The webinar addressed various subjects including the sales process, the relevant requirements relating to pre-contractual disclosure, product distribution arrangements, and record-keeping, and provided an overview of the salient features of a Key Information Document that should be provided to policyholders. The webinar also focused on the requirements relating to the holding of clients’ money in a fiduciary capacity and on the importance of AML/CFT oversight. Furthermore, the risk-based approach, including the business risk assessment and customer risk assessment, were also discussed.
The webinar was addressed by : Sarah Pulis – Deputy Head, and Analysts Jacqueline Fenech, Emanuele Girgenti and Clarissa Said from Conduct Supervision; Jessica Stivala – Senior Manager, and Stefano Lazze’ – Senior Analyst, Insurance and Pensions Supervision; Eric Micallef – Analyst, Financial Crime Compliance, as well as Yanika Pisani – Senior Officer, Legal Affairs, Financial Intelligence Analysis Unit.
Tied Insurance Intermediaries distribute insurance products exclusively on behalf of their principal; however, they are still licensed in terms of the Insurance Distribution Act. Hence, they are required to personally abide by regulatory requirements relating to conduct of business, requirement relating to the protection of customers assets, and Anti Money Laundering.