Requirements for persons who actually direct the undertaking or perform other key tasks

(1) Persons who actually direct an insurance undertaking or perform other key tasks must be reliable and professionally qualified. Professional qualification presupposes professional qualifications, knowledge, and experience that ensure a sound and prudent management of the undertaking. This requires appropriate theoretical and practical knowledge of insurance business and, in the case of persons performing management tasks, sufficient management experience. Sufficient management experience is generally assumed where three years of managerial activity at an insurance undertaking of comparable size and type of business is demonstrated.
(2) Persons who actually direct the undertaking are, in addition to the managers, those who are authorised to take material decisions for the undertaking. Managers are those natural persons who are called upon, by law or articles of association, or as the principal representative of a branch in a member state or contracting state, to conduct the business and to represent the insurance undertaking.
(3) A person may not be appointed as manager who already acts as manager at two insurance undertakings, pension funds, insurance holding companies, or insurance special purpose vehicles. Where these are undertakings of the same insurance or corporate group, the supervisory authority may permit more mandates. Appointment as manager does not preclude the exercise of a function within the meaning of section 7, first sentence, point 9.
(4) A person who was a manager of an undertaking may not be appointed as a member of the administrative or supervisory body of that undertaking where two former managers of the undertaking are already members of the administrative or supervisory body. A person may also not be appointed as a member of the administrative or supervisory body who already holds five control mandates at undertakings supervised by the Federal Institute; mandates at undertakings of the same insurance or corporate group are disregarded in this connection.