Aggregated News From Investment Management Regulators

Regulatory Action against Setanta Insurance Company Limited – MFSA


Please complete the required fields.

On 2 June 2019, the Malta Financial Services Authority (“MFSA”) has taken regulatory action against Setanta Insurance Company Limited (the “Company”), now in liquidation, for committing the following serious regulatory breaches of the Insurance Business Act Chapter 403 of the Laws of Malta and the MFSA Act, Chapter 330 of the Laws of Malta:

  • Failure to comply with its Conditions of Authorisation;
  • Failure to maintain the required margin of Solvency;
  • Failure to maintain adequate Technical Reserves;
  • Failure to submit an effective plan for the restoration of a sound financial position; and
  • Failure to abide by the MFSA’s directive to cease writing new business including renewal of policies.

The MFSA has decided that in accordance with the parameters of the law, the above failures merit an administrative penalty of €475,192, however the Authority is cognisant of the fact that given the Company’s frail financial position, the imposition of an effective pecuniary penalty might cause further detriment and prejudice to the rights of policy holders and other claimants who might still be trying to recover their funds. Consequently the MFSA has decided that the administrative penalty of €475,192 it was going to otherwise impose upon the Company, shall be limited to a notional penalty of the same amount, which whilst reflecting the seriousness of the aforementioned breaches, shall not be paid to the MFSA in order to protect and safeguard the rights of policy holders and claimants.

This Decision of the MFSA may be appealed before the Financial Services Tribunal within the period as prescribed by the applicable law.

This notice is being published as part of the Authority’s standard enforcement policy and in terms of the powers vested in the MFSA by virtue of Article 16(8) of the Malta Financial Services Authority Act.

Regulator Information

Abbreviation: MFSA
Jurisdiction: Malta

Recent Articles

SEC Awards $20 Million to Whistleblower

Washington D.C., Nov.

Update on the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 — GFSC

In July 2022, the Lending, Credit and Finance (Bailiwick of Guernsey) Law, 2022 (the “Law”) was approved by the States of Guernsey, the States of Alderney and the Chief Pleas of Sark.

UK and Singapore deepen collaboration in FinTech and strengthen financial cooperation

The United Kingdom (UK) and Singapore held the 7th UK-Singapore Financial Dialogue in Singapore today. Both countries renewed their commitment to deepening the UK-Singapore...

Consultation on ‘six directorship’ exemption for directors — GFSC

The Policy & Resources Committee has today published a Consultation Paper seeking views on a proposed change to the requirements which affect some individuals acting as company directors, by way of b

The AMF is supplementing its policy on liquidity management tools

New disclosure obligations This update provides for new obligations if the regulatory documentation of the CIU does not include a mechanism to cap redemption requests (gates) and/or a mechanism to of

Get the latest from Regulatory.News in your inbox!