Branch and cross-border provision of services by UCITS capital management companies; power to issue statutory instruments

(1) A UCITS capital management company must notify the Federal Institute without delay of its intention to establish a branch in another Member State of the European Union, or in another contracting state of the Agreement on the European Economic Area, in order to carry on collective asset management or activities under section 20(2), point 1, 2, 3, or 4. The notification letter must, in addition to the declaration of intent under the first sentence, contain the information under Article 1 of Delegated Regulation (EU) 2024/911.
(2) Where, in view of the planned activities, there is no reason to doubt the adequacy of the organisational structure and the financial position of the UCITS capital management company, the Federal Institute transmits the particulars under subsection (1), second sentence, to the competent authorities of the UCITS capital management company's host Member State within two months of receipt of the complete documents, and notifies the notifying UCITS capital management company of this without delay. It informs the competent authorities of the UCITS capital management company's host Member State, where applicable, of the investor compensation scheme to which the UCITS capital management company belongs. Where the Federal Institute refuses to forward the notification under subsection (1) to the competent authorities of the UCITS capital management company's host Member State, it notifies the UCITS capital management company of this without delay, but no later than within two months of receipt of the complete notification under subsection (1), second sentence, stating the reasons. The Federal Institute notifies the competent authorities of the UCITS capital management company's host Member State without delay of any change in its assessment of the adequacy of the organisational structure and the financial position of the UCITS capital management company, and of any change to the investor compensation scheme.
(3) The UCITS capital management company may not establish the branch and commence its activity until it has received a communication from the competent authority of the host Member State concerning the reporting obligations and the applicable provisions, or, where that authority does not respond, until two months have elapsed since the transmission of the particulars by the Federal Institute to the competent authority of the UCITS capital management company's host Member State under subsection (2), first sentence.
(4) Where the circumstances notified under subsection (1), second sentence, change, the UCITS capital management company must notify the Federal Institute and the competent authorities of the UCITS capital management company's host Member State of the changes, having regard to Article 4 of Delegated Regulation (EU) 2024/911, at least one month before the changes take effect. The Federal Institute decides whether, with regard to the changes under the first sentence, there are grounds to doubt the adequacy of the organisational structure and the financial position of the UCITS capital management company.
(4a) Where, as a result of a change named in subsection (4), first sentence, the UCITS capital management company would now infringe this Act or provisions issued on the basis of this Act, the Federal Institute notifies the UCITS capital management company, within 15 working days of receipt of the notification named in subsection (4), first sentence, that it may not carry out the change. In this case, the Federal Institute informs the competent authorities of the UCITS capital management company's host Member State accordingly.
(4b) Where a change named in subsection (4), first sentence, is carried out after a notification under subsection (4a), first sentence, and the UCITS capital management company, as a result of that change, now infringes this Act or provisions issued on the basis of this Act, the Federal Institute takes suitable measures and informs the competent authorities of the UCITS capital management company's host Member State without delay of the measures taken.
(5) Subsection (1), first sentence, applies correspondingly to the intention to carry on collective asset management or activities under section 20(2), point 1, 2, 3, or 4, by way of the cross-border provision of services in another Member State of the European Union or another contracting state of the Agreement on the European Economic Area. The notification letter must, in addition to the declaration of intent under the first sentence, contain the information under Article 2 of Delegated Regulation (EU) 2024/911.
(6) The Federal Institute transmits the particulars under subsection (5), second sentence, to the competent authorities of the UCITS capital management company's host Member State within one month of receipt of the complete documents, and notifies the notifying UCITS capital management company of this without delay. The Federal Institute informs the competent authorities of the UCITS capital management company's host Member State, where applicable, of the investor compensation scheme to which the UCITS capital management company belongs. Immediately after the Federal Institute has informed the competent authorities of the UCITS capital management company's host Member State, the UCITS capital management company may commence its activity in the host Member State. Where the circumstances notified under subsection (5), second sentence, change, the UCITS capital management company must notify the Federal Institute and the competent authorities of the UCITS capital management company's host Member State of the changes, having regard to Article 4 of Delegated Regulation (EU) 2024/911, before the changes take effect.
(7) UCITS capital management companies intending to establish a branch under subsection (1), or to carry on activities under section 20(2), point 1, 2, 3, or 4, by way of the cross-border provision of services under subsection (5), must manage at least one UCITS.
(8) The Federal Ministry of Finance is empowered to determine, by statutory instrument not requiring the consent of the Bundesrat, that subsections (1) to (4) apply correspondingly to the establishment of a branch in a third country, insofar as this is necessary in the area of the law of establishment on the basis of agreements between the European Union and third countries.