Limitation of leverage by the Federal Institute

(1) The AIF capital management company must demonstrate to the Federal Institute that the limit on the level of leverage employed set by the AIF capital management company is appropriate, and that it complies with this limit at all times.
(2) The Federal Institute assesses the risks that could arise from the use of leverage by the AIF capital management company; after informing the European Securities and Markets Authority, the European Systemic Risk Board, and the competent authorities of the AIF's home Member State, it limits the level of leverage that the AIF capital management company may employ, where it considers this necessary to ensure the stability and integrity of the financial system. Alternatively, the Federal Institute orders other restrictions on the management of the AIF, so as to limit the extent to which the use of leverage contributes to the build-up of systemic risk in the financial system or the risk of market disruption. The Federal Institute duly informs the European Securities and Markets Authority, the European Systemic Risk Board, and the competent authorities of the AIF's home Member State of the measures taken in this regard.
(3) The information under subsection (2) must be given no later than ten working days before the planned taking effect or renewal of the measure initiated. The notice must contain the details of the proposed measure, the reasons for this proposal, and the time at which the measure is to take effect. Under special circumstances, the Federal Institute may order that the proposed measure takes effect within the period named in the first sentence.
(4) In its decision on measures, the Federal Institute takes into account the recommendation issued by the European Securities and Markets Authority following the information under subsection (2), third sentence, or on the basis of the information under subsection (2), first sentence. Where the Federal Institute provides for a measure that does not comply with this recommendation, it informs the European Securities and Markets Authority of this, stating the reasons.
(5) Article 112 of Delegated Regulation (EU) No 231/2013 applies correspondingly to the conditions under which the measures under subsection (2) are applied.