Deployment of staff in investment advice, as distribution officers, in financial portfolio management or as compliance officers; authorisation to issue statutory instruments

(1) An investment services undertaking may entrust a staff member with investment advice only where that person is competent and possesses the reliability required for the activity.
(2) An investment services undertaking may entrust a staff member with informing clients about financial instruments, structured deposits, investment services or ancillary investment services (distribution staff member) only where that person is competent and possesses the reliability required for the activity.
(3) An investment services undertaking may entrust a staff member with financial portfolio management only where that person is competent and possesses the reliability required for the activity.
(4) An investment services undertaking may entrust a staff member with the design, implementation or monitoring of sales targets within the meaning of section 80(1), second sentence, no. 3 (distribution officer) only where that person is competent and possesses the reliability required for the activity.
(5) An investment services undertaking may entrust a staff member with responsibility for the compliance function within the meaning of Article 22(2) of Delegated Regulation (EU) 2017/565 and for the reports to management under Article 25(2) of Delegated Regulation (EU) 2017/565 (compliance officer) only where that person is competent and possesses the reliability required for the activity.
(6) Where facts exist showing that a staff member referred to in subsections (1) to (5) 1. does not, or no longer, satisfy the requirements under subsections (1) to (4), including in each case in conjunction with section 96, or subsection (5), the Bundesanstalt may, without prejudice to its powers under section 6, prohibit the investment services undertaking from deploying that staff member in the activity concerned for as long as they do not satisfy the statutory requirements, or 2. has breached a) provisions of Parts 3 and 9 to 11 of this Act and statutory instruments adopted to implement those provisions, b) provisions of Regulation (EU) No 596/2014, in particular Articles 4 and 14 to 21, and the delegated acts and implementing acts of the European Commission adopted on the basis of those Articles, c) provisions of Regulation (EU) No 600/2014, in particular the Articles contained in Titles II to VI, and the delegated acts and implementing acts of the European Commission adopted on the basis of those Articles, or d) provisions of Regulation (EU) 2016/1011 and the delegated acts and implementing provisions of the European Commission adopted on its basis, compliance with which must be observed in carrying out that activity, the Bundesanstalt may, without prejudice to its powers under section 6, e) warn the investment services undertaking and the staff member, or f) prohibit the investment services undertaking, for a period of up to two years, from deploying the staff member in the activity concerned. The Bundesanstalt may publicly announce, on its website, orders under the first sentence that have become unchallengeable, unless that publication would be liable to harm the legitimate interests of the investment services undertaking. The public announcement under the second sentence must be made without naming the staff member concerned. An objection and an action for rescission against measures under the first sentence have no suspensive effect.
(7) (repealed)
(8) Subsections (1) to (7) do not apply to those staff members of an investment services undertaking who work exclusively in a branch within the meaning of section 24a of the Banking Act or section 70 of the Securities Institutions Act, or in several such branches.
(9) The Federal Ministry of Finance may, by statutory instrument not requiring the consent of the Bundesrat, lay down further requirements as to competence and reliability under subsections (1) to (4), including in each case in conjunction with section 96, and under subsection (5). The Federal Ministry of Finance may transfer this authorisation, by statutory instrument, without the consent of the Bundesrat, to the Bundesanstalt.
(10) Subsections (1) to (3) do not apply to real-estate consumer credit agreements that are linked to the precondition that the consumer is provided with an investment service in relation to covered bonds issued to secure the financing of the credit and based on the same terms as the real-estate consumer credit agreement, and where this makes it possible for the loan to be paid out, refinanced or redeemed.