Refusal of the licence

(1) The licence must be refused where 1. the means required for the business, in particular sufficient initial capital satisfying the requirements of section 17, are not available; 2. facts exist showing that an applicant or a manager is not reliable; 3. facts justify the assumption that the holder of a significant holding, or, where that holder is a legal person, also a statutory or constitutional representative, or, where that holder is a commercial partnership, also a partner, is not reliable, or otherwise does not meet the standards required in the interest of a sound and prudent management of the securities institution; 4. facts exist showing that the holder or a manager does not have the professional qualifications required to manage the securities institution, and no other person is entrusted with management under section 20(6) either; 5. facts exist showing that a manager does not have sufficient time available to perform their tasks; 6. facts exist showing that a manager of a small or medium-sized securities institution breaches the requirements of section 20(4), or, in the case of a large securities institution, section 25c(2) of the Banking Act; 7. the securities institution would, on the grant of the licence, become a subsidiary undertaking of a financial holding company within the meaning of Article 4(1), point 16 of Regulation (EU) 2019/2033 in conjunction with Article 4(1), point 20 of Regulation (EU) No 575/2013, or of a mixed financial holding company within the meaning of Article 4(1), point 40 of Regulation (EU) 2019/2033 in conjunction with Article 2, point 15 of Directive 2002/87/EC, and facts justify the assumption that a person within the meaning of section 62 is not reliable or does not have the professional qualifications required to manage the business of the investment holding company or the mixed financial holding company; 8. a securities institution that is authorised, in providing investment services or ancillary investment services, to acquire ownership or possession of customers' funds or securities, or that is authorised, under a certificate of the Bundesanstalt under section 4(1), no. 2 of the Retirement Provision Contracts Certification Act, to offer retirement provision contracts, does not have at least two managers who are not acting for the securities institution merely in an honorary capacity; 9. the securities institution does not have its head office, and, where it is a legal person, its legal seat, domestically; or 10. the securities institution is not willing or able to make the organisational arrangements necessary for the orderly conduct of the business for which it applies for the licence.
(2) The Bundesanstalt may refuse the licence where facts justify the assumption that effective supervision of the securities institution would be impaired. This is in particular the case where 1. the securities institution is integrated into, or closely linked with, a group of undertakings with other persons or undertakings, where the structure of the network of holdings or a lack of economic transparency impairs effective supervision of the securities institution; 2. effective supervision of the securities institution is impaired by the laws or administrative provisions of a third country applicable to such persons or undertakings; or 3. the securities institution is a subsidiary undertaking of a parent undertaking having its seat in a third country that is not effectively supervised in the state of its seat or head office, or whose competent supervisory authority is not willing to cooperate satisfactorily with the Bundesanstalt.
(3) The Bundesanstalt may also refuse the licence where, contrary to Delegated Regulation (EU) 2017/1943, the licence application does not contain sufficient particulars or documents.
(4) The licence may not be refused for reasons other than those named in subsections (1) to (3).