Conditions for recognition of institutional protection schemes

(1) An institutional protection scheme may, on application, be recognised by BaFin as a deposit guarantee scheme where the scheme 1. assumes compensation of the depositors of the CRR credit institutions belonging to the scheme in accordance with sections 5 to 16, 2. satisfies the conditions of Article 113(7) of Regulation (EU) No 575/2013, and 3. offers sufficient guarantee for the proper performance of its tasks under this Act.
(2) An institutional protection scheme offers sufficient guarantee for the proper performance of its tasks under this Act where 1. the scheme has at least two persons who, under law or the articles, exercise management and representation of the scheme and who are reliable and professionally suitable, 2. the scheme's management is overseen by a supervisory body, and the members of that supervisory body are reliable in accordance with section 25d(1) of the Banking Act and have the expertise necessary to perform their oversight function, 3. the scheme has the material and personnel resources, and an organisation and decision-making structure, necessary to perform the tasks of a deposit guarantee scheme under this Act, in particular to ensure the compensation of depositors and the raising of contributions and management of funds, 4. the available financial means are managed and invested separately from the scheme's other assets under section 18, and 5. the articles of the institutional protection scheme satisfy the minimum requirements of section 47(1) and (2).