Management or supervisory body

(1) The members of the management or supervisory body of a small or medium-sized securities institution must be reliable, must possess the expertise required to perform the control function and to assess and monitor the business conducted by the respective undertaking, and must devote sufficient time to the performance of their tasks. In examining whether a person named in the first sentence possesses the required expertise, the Bundesanstalt takes into account the scope and complexity of the business conducted by the securities institution, the investment holding company or the mixed financial holding company.
(2) The management or supervisory body must, as a whole, have the knowledge, skills and experience necessary to perform the control function and to assess and monitor the managers of the securities institution or of the investment holding group, the mixed financial holding company or the mixed financial holding group. The provisions of the co-determination acts on the election and removal of employee representatives in the management or supervisory body remain unaffected.
(3) Small or medium-sized securities institutions, investment holding companies and mixed financial holding companies must deploy adequate human and financial resources to facilitate the induction of members of the management or supervisory body into their office and to enable the further training necessary to maintain the required expertise.
(4) The management or supervisory body must also monitor the managers with regard to compliance with the relevant supervisory provisions. It must devote sufficient time to discussing strategies, risks and remuneration systems for managers and staff.
(5) The design of the remuneration systems for members of the management or supervisory body must not give rise to conflicts of interest with regard to the effective performance of the oversight function of the management or supervisory body. Members of the management or supervisory body may not receive variable remuneration components for their activity on that body. Remuneration must be gender-neutral; discrimination in pay on grounds of sex is impermissible.
(6) A person who does not satisfy the requirements of subsection (1), first sentence, may not be appointed as a member of the management or supervisory body of a small or medium-sized securities institution.