Managers

(1) The managers of an investment services undertaking must, within the framework of the duties under section 25c(3) of the Banking Act or section 41 of the Securities Institutions Act, discharge their tasks in a way that preserves market integrity and promotes the interests of clients. In particular the managers must determine, implement and oversee the following: 1. having regard to the nature, scale and complexity of the investment services undertaking's business, and all requirements the investment services undertaking must satisfy, a) the organisation for the provision of investment services and ancillary investment services, including the resources required for this and organisational arrangements, and b) whether staff have the necessary skills, knowledge and experience; 2. business policy as regards a) the investment services and ancillary investment services offered or provided, and b) the products offered or distributed, which must be consistent with the risk tolerance of the investment services undertaking and any particular characteristics and needs of its clients, whereby appropriate stress tests are to be carried out where necessary; and 3. the remuneration arrangements for persons involved in the provision of investment services or ancillary investment services to clients, which must be geared towards a) responsible corporate governance, b) fair treatment of clients, and c) the avoidance of conflicts of interest in relation to clients.
(2) The managers of an investment services undertaking must regularly monitor and review the following: 1. the suitability and implementation of the investment services undertaking's strategic objectives in providing investment services and ancillary investment services, 2. the effectiveness of the investment services undertaking's corporate governance arrangements, and 3. the adequacy of the corporate strategy as regards the provision of investment services and ancillary investment services to clients. Where deficiencies exist, the managers must promptly take the necessary steps to remedy them.
(3) The investment services undertaking must ensure that the managers have appropriate access to the information and documents necessary for supervision and oversight.
(4) The managers must effectively oversee the product approval process. They must ensure that the compliance reports to the managers systematically contain information about the financial instruments designed and recommended by the investment services undertaking, in particular about the respective distribution strategy. The compliance reports must be made available to the Bundesanstalt on request.
(5) The investment services undertaking must appoint an officer who bears responsibility for the investment services undertaking's compliance with its obligations relating to the safeguarding of clients' financial instruments and funds. The officer may also perform other tasks in addition.