Expiry and revocation of the licence

(1) The licence expires where it is not used within one year of its grant. The licence also expires where the CRR credit institution has been excluded from the statutory compensation scheme under section 41 of the Deposit Guarantee Act, or from the compensation scheme under section 11 of the Investor Compensation Act, or where the Federal Institute has determined, under section 47(3), first sentence, of the Deposit Guarantee Act, that the institution does not belong to a deposit guarantee scheme. The second sentence does not apply insofar as the European Central Bank is the supervisory authority. In this case, the Federal Institute submits a draft decision to the European Central Bank under Article 14(5) of Regulation (EU) No 1024/2013. The licence also expires where, in the course of a conversion under section 305, section 320, or section 333 of the Transformation Act, an institution constituted as a legal person transfers its registered office abroad. The licence to conduct banking business within the meaning of section 1(1), second sentence, point 12, also expires where the authorisation of the central counterparty to provide clearing services under Article 14 of Regulation (EU) No 648/2012 has been refused by the Federal Institute and the refusal is final. The licence to conduct banking business within the meaning of section 1(1), second sentence, points 4 and 10, and to provide financial services within the meaning of section 1(1a), second sentence, points 1 to 4, expires on the revocation or expiry of the institution's licence to conduct other banking business.
(2) The supervisory authority may, apart from under the provisions of the Administrative Procedure Act, revoke the licence where
1. the business to which the licence relates has not been carried on for more than six months;
2. a credit institution is operated in the legal form of a sole trader;
3. facts become known to it that would justify a refusal of the licence under section 33(1), first sentence, points 1 to 8, (1a), or (2), points 1 to 3;
4. there is a danger to the fulfilment of the institution's obligations towards its creditors, in particular to the safety of the assets entrusted to the institution, and the danger cannot be averted by other measures under this Act; a danger to the safety of the assets entrusted to the institution also exists
a) in the case of a loss amounting to half of the own funds relevant under Article 72 of Regulation (EU) No 575/2013, as amended from time to time, or
b) in the case of a loss amounting to more than 10 percent of the own funds relevant under Article 72 of Regulation (EU) No 575/2013, as amended from time to time, in each of at least three consecutive financial years;
5. (repealed)
6. the institution has persistently breached the provisions of this Act, the Anti-Money Laundering Act, the Securities Trading Act, Regulation (EU) 2023/1113, or the regulations or orders issued to implement these Acts;
7. the institution has persistently breached Articles 14, 15, 16(1) or (2), Article 17(1), (2), (4), (5), or (8), Article 18(1) to (6), Article 19(1) to (3), (5) to (7), or (11), or Article 20(1) of Regulation (EU) No 596/2014, or orders of the Federal Institute relating to these provisions;
8. the supervisory requirements laid down in Parts 3, 4, or 6 of Regulation (EU) No 575/2013, with the exception of Articles 92a and 92b, are no longer met;
9. the institution, as a counterparty to securities financing transactions, has persistently breached the duties and requirements of Article 4 or 15 of Regulation (EU) 2015/2365, or orders of the Federal Institute relating to these provisions;
10. the institution has persistently breached Article 7(1), third sentence, or Article 11(1), third sentence, of Regulation (EU) No 600/2014, or orders of the Federal Institute relating to these provisions;
11. the institution uses its authorisation exclusively to conduct underwriting business or proprietary trading, and its average total assets were below the threshold values named in section 32 for a period of five consecutive years, or
12. the institution is an institution within the meaning of section 2(1) of the Recovery and Resolution Act, or an entity within the meaning of Article 2 of Regulation (EU) No 806/2014, and the following conditions are met:
a) a threat to viability under section 62(1), point 1, of the Recovery and Resolution Act, or under Article 18(1), letter a, of Regulation (EU) No 806/2014, has been determined,
b) the resolution authority under section 3 of the Recovery and Resolution Act declares that the condition set out in section 62(1), point 3, of the Recovery and Resolution Act, or in Article 18(1), letter b, of Regulation (EU) No 806/2014, is met, and
c) the resolution authority under section 3 of the Recovery and Resolution Act declares that the condition set out in section 62(1), point 2, of the Recovery and Resolution Act, or in Article 18(1), letter c, of Regulation (EU) No 806/2014, is not met.
(2a) The licence should be revoked by the supervisory authority where insolvency proceedings have been opened over the institution, or the institution's dissolution has been resolved. The lapse of the licence does not prevent the persons responsible for the liquidation from continuing to conduct particular activities of the institution, insofar as this is necessary or appropriate for the purposes of the insolvency or liquidation proceedings.
(2b) Where the European Central Bank is the supervisory authority, the Federal Institute may submit draft decisions to it under Article 14(5) of Regulation (EU) No 1024/2013, in accordance with subsections (2) and (2a).
(3) Section 48(4), first sentence, and section 49(2), second sentence, of the Administrative Procedure Act, on the one-year time limit, do not apply.
(4) Where an institution's licence to conduct banking business or provide financial services is revoked, the supervisory authority informs, without delay, the competent bodies of the other states of the European Economic Area in which the institution has established branches or has been active by way of the cross-border provision of services.