Measures against managers and members of the administrative or supervisory body

(1) In the cases under section 35(2), points 3, 4, and 6, the Federal Institute may, instead of revoking the licence, require the removal of the responsible managers, and may also prohibit these managers from exercising their activity at institutions or undertakings in the legal form of a legal person. For the purposes of the first sentence, section 35(2), point 4, applies on the basis that, in calculating the amount of the loss, accounting aids by means of which a reported loss is reduced or avoided are not taken into account. In the case of a breach of section 25i, 25k, or 25m, or of Regulation (EU) 2023/1113, the Federal Institute may also prohibit the managers responsible for it from exercising their activity at obliged entities under section 2(1) of the Anti-Money Laundering Act.
(1a) In the cases under Article 20(1), letters b to d, of Regulation (EU) No 648/2012, the Federal Institute may, instead of revoking the licence, require the removal of the responsible managers, and may also prohibit these managers from exercising their activity at institutions in the legal form of a legal person. The Federal Institute may also require a removal where the conditions of Article 27(1) of Regulation (EU) No 648/2012 are not met, or where the conditions of Article 31(1) of Regulation (EU) No 648/2012 are met.
(1b) In the cases under Article 20(1), letters b to d, or Article 57(1), letters b to d, of Regulation (EU) No 909/2014, the Federal Institute may, instead of withdrawing the authorisation under Article 20 of Regulation (EU) No 909/2014, or the approval under Article 57 of Regulation (EU) No 909/2014, require the removal of the responsible managers, and may also prohibit these managers from exercising their activity at institutions in the legal form of a legal person. The Federal Institute may also require a removal where the conditions of Article 27 of Regulation (EU) No 909/2014 are not met.
(2) The supervisory authority may caution a manager where that manager has breached the provisions of this Act, Regulation (EU) No 575/2013, Regulation (EU) No 648/2012, Regulation (EU) No 596/2014, Regulation (EU) No 600/2014, Regulation (EU) No 909/2014, Regulation (EU) 2015/2365, Regulation (EU) 2016/1011, the Building Societies Act, the Safe Custody Act, the Anti-Money Laundering Act, the Capital Investment Code, the Pfandbrief Act, the Payment Services Supervision Act, or the Securities Trading Act, Articles 6, 7, 9, 18 to 26, 26b to 26e, or 27(1) or (4) of Regulation (EU) 2017/2402, the provisions referred to in section 120a(1) and (2) of the Securities Trading Act, the regulations issued to implement the Acts named, the legal acts issued to implement Directive 2013/36/EU and Regulation (EU) No 575/2013, the legal acts issued to implement Regulation (EU) No 648/2012, Regulation (EU) No 596/2014, Regulation (EU) No 600/2014, Regulation (EU) No 909/2014, Regulation (EU) 2015/2365, Regulation (EU) 2016/1011, Regulation (EU) 2017/2402, or the provisions named in section 120a(1) and (2) of the Securities Trading Act, or orders of the supervisory authority. The subject matter of the caution is the finding of the facts material to the decision and of the breach thereby constituted. The supervisory authority may also require the removal of a manager and prohibit that manager from exercising their activity at institutions or undertakings in the legal form of a legal person, where the manager has breached the legal acts named in the first sentence, or orders of the supervisory authority, and, despite a caution under the first sentence, continues this conduct intentionally or recklessly.
(3) The Federal Institute may require the undertakings named in section 25d(3), first and second sentences, and section 25d(3a), first sentence, to remove a person designated in section 25d(3), first and second sentences, and section 25d(3a), first sentence, and may prohibit such a person from exercising their activity, where 1. facts exist showing that the person is not reliable, 2. facts exist showing that the person does not possess the required expertise, 3. facts exist showing that the person does not devote sufficient time to performing their duties, 4. material breaches by the undertaking of the principles of proper management, due to the person's negligent exercise of their monitoring and control function, have remained hidden from the person, and the person continues this negligent conduct despite a caution by the Federal Institute, 5. the person has not arranged for everything necessary to remedy breaches found, and continues to fail to do so despite a caution by the Federal Institute, 6. the person is already a manager of the same undertaking, 7. the person was a manager of the same undertaking, and two former managers of the undertaking are already members of the administrative or supervisory body, 8. the person designated under section 25d(3), first or second sentence, holds more than four control mandates, and the Federal Institute has not permitted them to hold further mandates, 9. the person designated under section 25d(3), first or second sentence, holds more than one manager function and two supervisory functions, and the Federal Institute has not permitted them to hold further mandates, or 10. the person designated under section 25d(3a), first sentence, holds more than five control mandates at undertakings under the Federal Institute's supervision. For institutions that, because of their legal form, are subject to special legal supervision, a measure under the first sentence is taken only after hearing the authority responsible for the legal supervision of these institutions. Insofar as the court must remove a supervisory board member on the application of the supervisory board, that application may, where the conditions under the first sentence, points 1 to 10, are met, also be made by the Federal Institute, where the supervisory board has not complied with the supervisory authority's request for removal. The removal of employee representatives on the supervisory board is governed solely by the provisions of the co-determination acts.
(4) (repealed)