Lapse and revocation of authorisation

(1) The authorisation lapses where the capital management company 1. does not make use of it within one year of its grant, 2. has not exercised the business operations to which the authorisation relates for more than six months, 3. expressly waives it, or 4. is merged, in the course of a conversion under section 305 of the Conversion Act, into an EU management company, provided that the acquiring or new legal entity is an EU management company under section 320 of the Conversion Act, or transfers its statutory seat abroad under section 333 of the Conversion Act. For investment stock corporations with variable capital, investment stock corporations with fixed capital, open-ended investment limited partnerships, or closed-ended investment limited partnerships, the waiver within the meaning of the first sentence, point 3, must be demonstrated to the Federal Institute by the submission of a commercial register extract showing the corresponding change to the object of the undertaking and the change of the firm name.
(2) Insofar as the external capital management company also holds authorisation for financial portfolio management under section 20(2), point 1, or subsection (3), point 2, this authorisation lapses where the capital management company is excluded from the compensation scheme under section 11 of the Investor Compensation Act.
(3) In addition to the provisions of the Administrative Procedure Act, the Federal Institute may revoke, or, where sufficient in the individual case, suspend, the authorisation where 1. the capital management company obtained the authorisation on the basis of false statements or by other unlawful means, 2. the own funds of the capital management company fall below the thresholds provided for in section 25, and the company has not remedied this deficiency within a period to be determined by the Federal Institute, 3. facts become known to the Federal Institute that would justify a refusal of authorisation under section 23, points 2 to 11, 4. the external capital management company also holds authorisation for financial portfolio management under section 20(2), point 1, or subsection (3), point 2, and no longer satisfies the requirements under section 5(2), second or third sentence, of this Act in conjunction with section 17(1), point 2 or 3, of the Securities Institutions Act, 5. a fine may be imposed on the capital management company on account of a regulatory offence under section 340(1), points 1, 4, or 5, or (2), point 1, letter a, d, e, or f, points 3 to 7, 9, 10, 13, 35, 76, 77, or 81, or on account of a repeated regulatory offence under section 340(1), point 2 or 3, or (2), points 24, 31, 32, 37, 38, 40, 41, 49, 50 to 63, 65, 72, 73, 78, or 79, or on account of a regulatory offence, or a repeated regulatory offence, under section 120(10) and section 120a(1) and (2) of the Securities Trading Act, 6. the capital management company persistently infringes the provisions of this Act, 7. the capital management company has seriously, repeatedly, or systematically infringed the provisions of the Anti-Money Laundering Act.
(4) Section 38 of the Banking Act applies correspondingly where the Federal Institute revokes the authorisation of the capital management company, or the authorisation lapses.
(5) Upon the lapse of the authorisation, or the revocation of the authorisation, the right of the capital management company to manage an investment fund lapses.