Supervision of business activity

(1) Financial supervision of the business activity within the meaning of section 61 is the sole responsibility of the supervisory authority of the home member state; supervision otherwise also falls to the Federal Institute. For the Federal Institute's supervision under the first sentence, the following apply correspondingly in addition to section 61(1) and (2):
1. of the general provisions, section 1(1) and (2) and sections 3 and 4;
2. of the provisions on cross-border business activity, section 68(2), fourth sentence;
3. of the provisions on business activity, sections 48 to 51 and, for undertakings that carry on their activity through a branch, also section 15a(1), section 25(6);
4. of the provisions on the prevention of money laundering and terrorist financing, section 53(1) to (3) and sections 54 and 55, insofar as these are branches within the meaning of section 57(2) conducting the business named in section 52;
5. of the provisions for individual classes, sections 142, 144, 146, 147, 149, and 150(1) to (3), section 152(1) to (4), sections 155 and 156(1), section 157(1), section 159 with the exception of the reference to section 160;
6. of the provisions on supervision, section 294(2), second to fourth sentences, sections 298 and 299, point 1, sections 303, 305(1), (2), points 1 and 2, (3), section 306(1), first sentence, points 1 to 3, (2), first sentence, points 1 and 2, (4) to (7), sections 306a, 308, and 310, and the provisions of a statutory instrument under section 310a, and
7. section 17 of the Financial Services Supervision Act.
(2) Where the Federal Institute has grounds to believe that the financial soundness of an undertaking active under section 61(1) may be impaired, it informs the authority responsible for financial supervision in the home member state of this.
(3) Where a direct insurance undertaking, in a business activity under section 61(1), fails to comply with requests or orders of the Federal Institute to remedy a deficiency (section 298(1)), the Federal Institute informs the supervisory authority of the home member state of the measures intended under the second sentence and requests cooperation. Where this request remains unsuccessful, and attempts to enforce orders by coercive means or to enforce a penalty payment are hopeless or unsuccessful, the Federal Institute may, where other measures do not achieve the objective or are not appropriate, prohibit the further business activity domestically, wholly or in part. In urgent cases, the orders named in the second sentence may be issued without informing the supervisory authority of the home member state. 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 assistance.
(4) Where an undertaking active under section 61(1) loses its authorisation to conduct business, the Federal Institute, after being informed by the supervisory authority of the home member state, takes the measures appropriate and necessary to prevent further domestic business activity.