Tasks and general powers of the Bundesanstalt

(1) The Bundesanstalt exercises supervision under the provisions of this Act. Within the scope of the tasks assigned to it, it is to counteract undesirable developments that impair the orderly conduct of trading in financial instruments or of investment services, ancillary investment services or data reporting services, or that may cause significant disadvantages for the financial market. It may make orders that are suitable and necessary to remove or prevent such undesirable developments.
(2) The Bundesanstalt monitors, within the scope of its respective competence, compliance with the prohibitions and requirements of this Act, of the statutory instruments issued under this Act, and of the European legal acts listed in section 1(1), no. 8, including the Commission delegated acts and implementing acts issued under those legal acts. It may make orders that are suitable and necessary for their enforcement. It may in particular issue public warnings on its website, insofar as this is necessary for the performance of its tasks. It may temporarily prohibit trading in one or more financial instruments, or order the suspension of trading in one or more financial instruments on markets on which financial instruments are traded, insofar as this is required to enforce the prohibitions and requirements of this Act, of Regulation (EU) No 596/2014 or of Regulation (EU) No 600/2014, or to remove or prevent undesirable developments under subsection (1). In the event of a breach of a prohibition or requirement under the first sentence, it may require the temporary or permanent discontinuance of the acts or conduct constituting the breach, and order the measures necessary to prevent a repetition of that breach.
(2a) Where the Bundesanstalt has a sufficiently well-founded suspicion that provisions of Regulation (EU) 2017/1129 of the European Parliament and of the Council of 14 June 2017 on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market, and repealing Directive 2003/71/EC (OJ L 168, 30.6.2017, p. 12), in particular Article 3, including in conjunction with Article 5, and Articles 12, 20, 23, 25 or 27, have been infringed, it may
1. suspend admission to trading on a regulated market, or
2. suspend trading
a) on a regulated market,
b) on a multilateral trading facility, or
c) on an organised trading facility, in each case for a maximum of ten consecutive working days, or order the operators of the regulated markets or trading facilities concerned to suspend trading for a corresponding period. Where the provisions referred to in the first sentence have been infringed, the Bundesanstalt may prohibit trading on the regulated market, multilateral trading facility or organised trading facility concerned. Where the provisions referred to in the first sentence have been infringed, or where there is a sufficiently well-founded suspicion that they would be infringed, the Bundesanstalt may prohibit admission to trading on a regulated market. The Bundesanstalt may further suspend trading in the securities, or require the operator of the multilateral trading facility or organised trading facility concerned to suspend trading, where trading would, having regard to the issuer's situation, be detrimental to investors' interests.
(2b) Where the Bundesanstalt has indications that an issuer within the meaning of Article 1, letter a) of Regulation (EU) 2023/2631, or a securitisation special purpose entity within the meaning of Article 2, point 2 of Regulation (EU) 2017/2402 of the European Parliament and of the Council of 12 December 2017 laying down a general framework for securitisation and creating a specific framework for simple, transparent and standardised securitisation, and amending Directives 2009/65/EC, 2009/138/EC and 2011/61/EU and Regulations (EC) No 1060/2009 and (EU) No 648/2012 (OJ L 347, 28.12.2017, p. 35), as last amended by Regulation (EU) 2021/557 (OJ L 116, 6.4.2021, p. 1), or an originator within the meaning of Article 2, point 3 of Regulation (EU) 2017/2402, has infringed provisions of Title II, Chapter 2, Article 18 or Article 19 of Regulation (EU) 2023/2631, it may suspend
1. admission of the relevant bond to trading on a regulated market, or
2. trading
a) on a regulated market,
b) on a multilateral trading facility, or
c) on an organised trading facility, in each case for a maximum of ten consecutive working days, or order the operators of the regulated markets or trading facilities concerned to suspend trading for a corresponding period.
(2c) Where the Bundesanstalt has indications that an issuer within the meaning of Article 1, letter a) of Regulation (EU) 2023/2631, or a securitisation special purpose entity within the meaning of Article 2, point 2 of Regulation (EU) 2017/2402, or an originator within the meaning of Article 2, point 3 of Regulation (EU) 2017/2402, is infringing provisions of Title II, Chapter 2, Article 18 or Article 19 of Regulation (EU) 2023/2631, it may prohibit
1. admission of the relevant bond to trading on a regulated market, or
2. trading
a) on a regulated market,
b) on a multilateral trading facility, or
c) on an organised trading facility.
(2d) Where the Bundesanstalt imposes a prohibition or restriction under Article 42 of Regulation (EU) No 600/2014, or the European Securities and Markets Authority imposes a prohibition or restriction under Article 40 of Regulation (EU) No 600/2014, the Bundesanstalt may further order that admission to trading on a regulated market be suspended or restricted for as long as that prohibition or restriction applies.
(2e) In exercising the powers referred to in subsection (2), fourth sentence, and in subsections (2a), (2b), (2c) and (2d), it may also issue orders against a public-law legal entity or against an exchange.
(2f) The Bundesanstalt may suspend the marketing or sale of financial instruments or structured deposits where an investment services undertaking has not developed or does not apply an effective product approval process under section 80(9), or has otherwise infringed section 80(1), second sentence, no. 2, or (9) to (11).
(2g) The powers of the Bundesanstalt under subsections (2b) and (2c) do not apply as against issuers of European green bonds falling under Article 1(2), letters b) and d) of Regulation (EU) 2017/1129.
(2h) The Bundesanstalt may
1. warn the public, or
2. suspend the dissemination of issuer-funded research by investment services undertakings, where issuer-sponsored research has not been prepared in accordance with the regulatory technical standards adopted under Article 24(3c) of Directive 2014/65/EU (EU code of conduct for issuer-sponsored research).
(3) The Bundesanstalt may require anyone to provide information, to produce documents or other data, and to surrender copies, and may summon and examine persons, in order to
1. monitor compliance with the prohibitions or requirements of the legal provisions listed in section 1(1), no. 8, or
2. examine whether the conditions for a measure under section 15 of this Act, Article 42 of Regulation (EU) 600/2014, or Article 63 of Regulation (EU) 2019/1238 are satisfied. It may in particular require information
1. on changes in holdings of financial instruments,
2. on the identity of other persons, in particular the principals and the persons entitled or obliged under transactions,
3. on the volume and purpose of a position or open exposure entered into by means of a commodity derivative, and
4. on all assets or liabilities in the underlying market. At the request of the Bundesanstalt, the information under the first and second sentences must be transmitted electronically. Where access to the Bundesanstalt's reporting and publication system already exists, or is required to be established, the information under the first sentence must, at the request of the Bundesanstalt, be transmitted by that means. The Bundesanstalt may further require transmission in a format determined by it. Statutory rights to refuse information or testimony, and statutory duties of confidentiality, remain unaffected. As regards the prohibitions and requirements of Regulation (EU) 2016/1011, the first and third sentences apply, in respect of the provision of information, summoning and examination, only as against persons involved in, or contributing to, the provision of a benchmark within the meaning of Regulation (EU) 2016/1011.
(4) The Bundesanstalt may, in particular at any time, require an investment services undertaking that engages in algorithmic trading within the meaning of section 80(2), first sentence, to provide information on its algorithmic trading and the systems used for that trading, insofar as this is necessary, on the basis of indications, for monitoring compliance with a prohibition or requirement of this Act. The Bundesanstalt may in particular require a description of the algorithmic trading strategies, details of the trading parameters or trading limits to which the system is subject, the key procedures for reviewing risks and compliance with the requirements of section 80, and details of its system testing.
(4a) Without prejudice to the powers of the competent exchange supervisory authority under section 3(4), first and second sentences of the Stock Exchange Act, and without prejudice to section 8(1) of the Stock Exchange Act, the Bundesanstalt may, for the purposes of Article 25a of Regulation (EU) No 596/2014, require an exchange within the meaning of section 2 of the Stock Exchange Act with a significant cross-border dimension to provide ongoing transmission of the records referred to in Article 25(2) of Regulation (EU) No 600/2014. Where a competent authority of a Member State of the European Union applies to the Bundesanstalt for data under Article 25a(4) of Regulation (EU) No 596/2014 from an exchange within the meaning of section 2 of the Stock Exchange Act with a cross-border dimension, the Bundesanstalt requests that data from the exchange concerned in a timely manner, and no later than four working days after the date of the application. The Bundesanstalt makes the requested data available to the competent authority that first submitted the application under the second sentence as soon as possible, and no later than within the period laid down by an implementing technical standard under Article 25a(6), letter c) of Regulation (EU) No 596/2014.
(5) Without prejudice to section 3(5), (11) and (12) and section 15(7) of the Stock Exchange Act, the Bundesanstalt is the competent authority within the meaning of Article 22 of Regulation (EU) No 596/2014 and within the meaning of Article 2(1), point 18 of Regulation (EU) No 600/2014. The Bundesanstalt is the competent authority for the purposes of Article 25(4), letter a), third subparagraph of Directive 2014/65/EU. The Bundesanstalt is the competent authority within the meaning of Article 21a(1) of Regulation (EU) No 600/2014.
(6) The Bundesanstalt is the competent authority under Article 46 of Regulation (EU) 2022/2554. In implementing Articles 26 and 27 of Regulation (EU) 2022/2554, the Bundesanstalt cooperates with the Deutsche Bundesbank. The Deutsche Bundesbank performs the operational tasks under Articles 26 and 27 of Regulation (EU) 2022/2554. Section 7(3) and (4) of the Banking Act applies correspondingly.
(7) The Bundesanstalt may prohibit a natural person responsible for a breach of Articles 14, 15, 16(1) and (2), Article 17(1), (2), (4), (5) and (8), Article 18(1) to (6), Article 19(1) to (3), (5) to (7) and (11), and Article 20(1) of Regulation (EU) No 596/2014, or of an order of the Bundesanstalt relating to those provisions, from dealing for their own account in the financial instruments and products referred to in Article 2(1) of Regulation (EU) No 596/2014, for a period of up to two years.
(8) The Bundesanstalt may prohibit a person employed at an undertaking supervised by the Bundesanstalt from carrying on a professional activity, for a period of up to two years, where that person has wilfully breached one of the provisions referred to in section 1(1), no. 8, or an order of the Bundesanstalt relating to those provisions, or has breached it again after a warning by the Bundesanstalt. In the event of a breach of one of the provisions referred to in section 1(1), no. 8, or of an order of the Bundesanstalt relating to those provisions, the Bundesanstalt may further prohibit a person from exercising management functions. Where the taking up or exercise of the activity has been prohibited without time limit under the second sentence, the person concerned may apply for that prohibition to be lifted at the earliest two years after it has become final; sections 48 and 49 of the Administrative Procedure Act remain unaffected.
(9) In the event of a breach of one of the provisions referred to in section 1(1), no. 8, or of an enforceable order of the Bundesanstalt relating to those provisions, the Bundesanstalt may publish on its website a warning naming the natural or legal person or association of persons that committed the breach and the nature of the breach. Section 125(3) and (5) applies correspondingly.
(10) The Bundesanstalt may prohibit an investment services undertaking that has breached provisions of Parts 9 to 11 of this Act, or of the statutory instruments issued to implement those provisions, provisions of Regulation (EU) No 600/2014 or of the Commission delegated acts and implementing acts adopted on the basis of those Articles, or an enforceable order of the Bundesanstalt relating to those provisions, from participating in trading on a trading venue, for a period of up to three months.
(11) During normal business hours, employees of the Bundesanstalt and persons commissioned by it must, insofar as necessary for the performance of their tasks, be permitted to enter the land and business premises of the persons subject to the duty to provide information under subsection (3). Entry outside those hours, or where the business premises are located within a dwelling, is permissible without consent, and is to be tolerated, only insofar as necessary to prevent imminent dangers to public safety and order and where there are indications that the person subject to the duty to provide information has breached a prohibition or requirement of this Act. The fundamental right under Article 13 of the Basic Law is restricted to that extent.
(12) Employees of the Bundesanstalt may search business and residential premises insofar as this is necessary for the prosecution of breaches of Articles 14 and 15 of Regulation (EU) No 596/2014. The fundamental right under Article 13 of the Basic Law is restricted to that extent. In the course of a search, employees of the Bundesanstalt may seize items that may be of importance as evidence for establishing the facts. Where the items are in the custody of a person and are not surrendered voluntarily, employees of the Bundesanstalt may confiscate them. Searches and confiscations must, except where delay would be dangerous, be ordered by a judge. The Frankfurt am Main Local Court has jurisdiction. An appeal lies against the judicial decision. Sections 306 to 310 and 311a of the Code of Criminal Procedure apply correspondingly. For confiscations without a judicial order, section 98(2) of the Code of Criminal Procedure applies correspondingly. The Frankfurt am Main Local Court has jurisdiction for the subsequently obtained judicial decision. A record must be made of the search. It must state the responsible department, the reason, time and place of the search, and its outcome. The first to eleventh sentences apply correspondingly to the premises of legal persons, insofar as necessary for the prosecution of breaches of Regulation (EU) 2016/1011.
(13) The Bundesanstalt may apply for the confiscation of assets, insofar as necessary to enforce the prohibitions and requirements of Regulation (EU) No 596/2014, Regulation (EU) No 600/2014, Regulation (EU) 2016/1011, the Commission delegated acts and implementing acts adopted on their respective bases, or of Parts 9 to 11 of this Act and the statutory instruments issued to implement those provisions. Measures under the first sentence must be ordered by a judge. The Frankfurt am Main Local Court has jurisdiction. An appeal lies against a judicial decision; sections 306 to 310 and 311a of the Code of Criminal Procedure apply correspondingly.
(14) The Bundesanstalt may effect, at the expense of the person obliged to do so, a publication or notification required under the provisions of this Act or under Regulation (EU) No 596/2014, where the obligation to publish or notify is not fulfilled, or is not fulfilled correctly, completely, or in the prescribed manner.
(15) A person obliged to provide information may refuse to answer questions the answering of which would expose that person, or a relative referred to in section 383(1), nos. 1 to 3 of the Code of Civil Procedure, to the risk of criminal prosecution or of proceedings under the Act on Regulatory Offences. The person obliged must be advised of the right to refuse information or testimony, and informed that they are free, under the law, to consult defence counsel of their choosing at any time, including before their examination.
(16) The Bundesanstalt may store, alter and use personal data communicated to it only to perform its supervisory tasks and for purposes of international cooperation in accordance with section 18.
(17) In performing its tasks, the Bundesanstalt may make use of other expert persons and bodies.