Insurance & Captives
Fenech and Fenech Advocates advises banks and financial institutions on the regulatory and operational implications to set up in Malta. We also act for some leading insurance companies authorised to carry on business locally and we are regularly involved in assisting insurance interests in dealing with regulatory requirements, including the transfer of insurance portfolios upon mergers or acquisitions. In the transactional field, we advise a number of players in the insurance market, including insurance agencies, loss adjusters and independent insurance consultants.
Over recent years Malta has established itself as a model jurisdiction in financial services regulation, including insurance. Malta provides the opportunity for companies to locate their captive insurance business and insurance management activity within an OECD-recognised tax environment that combines tax efficiency with controlled foreign company tax legislation requirements.
Malta's insurance legislation is based on research carried out among Maltese and international insurance operators and provides opportunities for captive insurance business and related activities, including cell companies, insurance management companies and regional operations for insurers, re-insurers and brokers.
Captive insurance business is regulated under a set of tailor made rules that take into consideration the current state of the market and possible future developments. These rules provide for the registration and operation of captive insurance companies which within the Maltese insurance legislation are termed "Affiliated Insurance Companies" ("AICs"). An application for authorisation by an affiliated company is processed within a statutory period of three months.
The advantages of EU membership in 2004 have certainly placed us as an even more attractive jurisdiction in the financial services sector. The benefits lie in a very extensive network of double taxation treaties, the direct applicability of EU regulations and the transposition of financial services directives, the possibility to offer EU-wide acceptable products, the presentation of a number of fiscal and business promotional incentives and other advantages including the single passport regime. All this has placed us on the financial map as a very significant and competitive jurisdiction when it comes to the establishment of investment firms, collective investment schemes and funds, captives and protected cell companies. Our firm is also up to date with the developments currently taking place in regard to Solvency II.
Through our professional skills and independence we can add value to your risk management plans and projects. We welcome your enquiries and would be pleased to discuss the potential benefits that a Malta insurance vehicle could bring to your business.