General provisions for cooperation in supervision

(1) In exercising the tasks and powers conferred on it under this Act, the Federal Institute may request the competent authorities of the other member states of the European Union or the other contracting states of the Agreement on the European Economic Area to
1. exchange information,
2. cooperate in supervisory activities,
3. carry out an on-the-spot verification, or
4. carry out an investigation in the territory of that other state. Where the on-the-spot verification or the investigation is carried out by the competent foreign authorities, the Federal Institute may request that its officials take part in the investigations. With the agreement of the competent foreign authorities, it may itself carry out the on-the-spot verification or the investigation, or engage auditors or experts to carry out the on-the-spot verification or the investigation; the competent foreign authorities, in whose territory the on-the-spot verification or the investigation is to take place, may require that their own officials take part in the investigations. In the case of investigations of a branch of a capital management company in a host member state by the Federal Institute, prior notification of the competent authorities of that state is sufficient.
(2) Where the Federal Institute is requested by the competent authorities of another member state of the European Union or another contracting state of the Agreement on the European Economic Area to carry out an on-the-spot verification or an investigation, it
1. carries out the on-the-spot verification or the investigation itself,
2. permits the requesting authorities to carry out the on-the-spot verification or the investigation, or
3. permits auditors or experts to carry out the on-the-spot verification or the investigation. In the case of an on-the-spot verification or an investigation under the first sentence, point 1, the requesting authority may request that its own officials take part in the investigations carried out by the Federal Institute. Where the on-the-spot verification or the investigation is carried out under the first sentence, point 2, the Federal Institute may require that its own officials take part in the investigations.
(3) The Federal Institute may refuse the exchange of information and a request for verification or investigation under subsection (2), first sentence, or for participation under subsection (2), second sentence, only where
1. this could impair the sovereignty, security, or public order of the Federal Republic of Germany,
2. judicial proceedings have already been brought against the persons concerned, or a final decision has already been given, on the basis of the same facts, or
3. this would, in the case of requests connected with UCITS, be likely to impair its own investigations, enforcement measures, or criminal investigations. Where the Federal Institute does not comply with a request, or makes use of its right of refusal under the first sentence, it informs the requesting authority of this without delay and states the grounds; in the case of a refusal under the first sentence, point 2, precise information on the judicial proceedings or the final decision must be transmitted.
(4) The Federal Institute may request the assistance of the European Securities and Markets Authority in accordance with Article 19 of Regulation (EU) No 1095/2010, where
1. its request under subsection (1) is not acted upon within a reasonable period,
2. its request under subsection (1) is rejected without sufficient reason, or
3. there is otherwise disagreement between the Federal Institute and the competent authorities of the other member states of the European Union or the other contracting states of the Agreement on the European Economic Area regarding an assessment, measure, or omission in an area in which Directive 2011/61/EU prescribes cooperation or coordination.
(5) The more detailed procedure for on-the-spot verifications or investigations within the framework of Directive 2009/65/EC is governed by Articles 6 to 11 of Regulation (EU) No 584/2010, and, within the framework of Directive 2011/61/EU, by the technical implementing standards adopted by the European Commission on the basis of Article 54(4) of Directive 2011/61/EU.