Obligations of securities institutions on the appointment of tied agents

(1) Where a securities institution makes use of a tied agent, the securities institution must ensure that the agent is reliable and has the required professional qualifications, satisfies the statutory requirements in providing the investment service, informs customers of the agent's status under section 3(2), first and second sentences before the business relationship is entered into, and informs customers without delay of the end of that status.
(2) The securities institution must keep evidence of the performance of its obligations under subsection (1), and must retain that evidence until five years after the end of the tied agent's status.
(3) The Bundesanstalt may prohibit a securities institution that has not properly conducted the selection or supervision of its tied agents, or that has breached the duties assigned to it in connection with the administration of the register under section 3(2), sixth sentence, from making use of tied agents. The first sentence also applies to domestic tied agents of a securities institution having its seat in another state party.
(4) The Federal Ministry of Finance is authorised, by statutory instrument not requiring the consent of the Bundesrat, to lay down more detailed requirements as to the reliability and professional qualifications of tied agents, the evidence required, and the manner of transmitting the relevant data. The Federal Ministry of Finance may transfer the authorisation to the Bundesanstalt. The leading associations of securities institutions must be heard before the statutory instrument is issued.