The recent amendments to the Accountancy Profession (general Accounting Principles In Respect Of Certain Eligible Entities Related To The Business Of Insurance) Regulations (GAPEE) aim to expand the framework to cover new types of entities involved in insurance‑related risk transfer. Specifically, the revisions introduce securitisation vehicles operating in the insurance sector, which may take the form of reinsurance special purpose vehicles, securitisation vehicles, or undertakings authorised to securitise (re)insurance transactions. These entities can assume insurance risk in various ways, either via traditional reinsurance/retrocession agreements or through synthetic arrangements such as derivative contracts, meaning not all risk transfers require an RSPV.
The amendments clarify that where such vehicles engage in transactions falling under the scope of Section 25 of GAPEE (i.e., (re)insurance contracts), they should be eligible for GAPEE. To this end, the definition of GAPEE's “eligible entities” was broadened to include:
| 01 | 02 |
| Risk transferee vehicles, encompassing all the vehicle types referenced above. | Parent undertakings of such vehicles. |
Malta introduced regulatory frameworks for RSPVs and securitisation a number of years ago. The recent changes brought about to GAPEE serve to strengthen Malta's proposition in this respect, allowing these eligible entities and their parent companies to prepare financial statements in accordance with GAPEE.
How can we help?
Contact our team to learn more about eligibility for GAPEE or if you are interested in setting up a risk transfer vehicle in Malta.
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