Reinsurance undertakings with their registered office in another member state or contracting state

(1) Reinsurance undertakings with their registered office in another member state or contracting state that hold official authorisation under the legal provisions issued in their home member state to implement Article 14 of Directive 2009/138/EC may conduct reinsurance business domestically through a branch or under the freedom to provide services. Supervision, other than financial supervision, is the responsibility of the Federal Institute, which must cooperate in this with the competent supervisory authority of the home member state.
(2) Where the Federal Institute establishes that a reinsurance undertaking within the meaning of subsection (1) does not comply with the legal provisions applicable to the exercise of its activities, it calls on the undertaking to remedy these irregularities. At the same time, it informs the supervisory authority of the home member state. The Federal Institute also informs the supervisory authority of the home member state where it has grounds for assuming that the reinsurance undertaking's activities could impair its financial soundness. At the request of the supervisory authority of the reinsurance undertaking's home member state, the Federal Institute takes the measures provided for in the cases governed by sections 133, 134, and 135. The supervisory authority of the home member state must specify the assets that are to be the subject of this measure.
(3) Where the reinsurance undertaking continues to breach the applicable legal provisions despite the measures initiated under subsection (2), the Federal Institute may, after again informing the competent authority of the home member state, itself take all measures necessary to remedy past breaches and prevent future breaches. Where attempts to enforce orders by coercive means, or to execute for a coercive fine, are hopeless or unsuccessful, the Federal Institute may, where other measures do not achieve the objective or are not appropriate, prohibit further business activity domestically, in whole or in part. In addition, the Federal Institute may, under Article 19 of Regulation (EU) No 1094/2010, refer the matter to the European Insurance and Occupational Pensions Authority and request its assistance.
(4) For supervision by the Federal Institute under subsection (1), in addition to subsections (2) and (3), sections 4, 68(2), fourth sentence, sections 298, 299, point 1, sections 303, 305(1), point 2, and (3), section 306(1), first sentence, points 1 to 3, (2), first sentence, point 2, and (4) to (7), sections 306a and 310 of this Act, and section 17 of the Financial Services Supervision Act, apply correspondingly. Section 305(1), point 1, applies correspondingly, with the proviso that the ceding insurers take the place of the policyholders.