Requirements for holders of key functions and tied agents

(1) Holders of key functions must be professionally qualified and reliable.
(2) Institutions, and financial holding companies and mixed financial holding companies, take the measures necessary to ensure the proper exercise of key functions. This also includes the undertakings replacing the holder of a key function where that person does not meet the conditions under subsection (1).
(3) Where a holder of special key functions does not meet the requirements of subsection (1), the Federal Institute may require 1. that the special key function not be conferred on that person, or be withdrawn from them again, or 2. that the undertaking take all measures necessary to ensure that the person meets the requirements.
(4) Where a CRR credit institution makes use of a tied agent within the meaning of section 2(10), first sentence, it must ensure that the agent is reliable and professionally qualified, meets the statutory requirements when providing financial services, informs customers of their status under section 2(10), first and second sentences, before entering into the business relationship, and notifies them without delay of the ending of that status. The CRR credit institution must keep the necessary evidence of the fulfilment of its duties under the first sentence for at least five years after the end of the tied agent's status. Further provisions on the necessary evidence may be made by statutory instrument under section 24(4).