Scope of application

(1) Chapter 1 of this Part does not apply to small securities institutions, other than sections 38, 40, 41, nos. 1 to 3, section 43(1), and section 45(1), first, second and third sentences, no. 1, 3 and 4.
(2) Where a small securities institution was previously classified as a medium-sized securities institution, the requirements of this Chapter applicable exclusively to medium-sized securities institutions cease to apply once the securities institution has, without interruption, satisfied the conditions of Article 12(1) of Regulation (EU) 2019/2033 for a period of six months and has notified the Bundesanstalt and the Deutsche Bundesbank accordingly.
(3) Where a securities institution is no longer to be classified as a small securities institution but as a medium-sized securities institution, it must notify this to the Bundesanstalt. It must comply with the requirements of this Chapter applicable exclusively to medium-sized securities institutions at the latest twelve months after the date on which it was to be classified as a medium-sized securities institution.
(4) A medium-sized securities institution applies the requirements of section 46 as to remuneration granted for services rendered or for performance in the financial year following the financial year in which it was to be classified as a medium-sized securities institution.
(5) In the cases where this Chapter applies and Article 8 of Regulation (EU) 2019/2033 is applied, the provisions of this Chapter apply on an individual basis.
(6) In the cases where this Chapter applies and Article 7 of Regulation (EU) 2019/2033 is applied, the provisions of this Chapter apply both on an individual basis and on a consolidated basis. In derogation from the first sentence, this Chapter does not apply to subsidiary undertakings that are included in the prudentially consolidated situation within the meaning of Article 4(1), point 12 of Regulation (EU) 2019/2033 and that have their seat in third countries, provided the parent undertaking in the European Union can demonstrate to the competent bodies that application of this Chapter would be unlawful under the statutory provisions of the third country in which those subsidiary undertakings have their seat.
(7) The prudential consolidation of a securities institution group is governed by Articles 7 and 8 of Regulation (EU) 2019/2033. This also applies where one or more financial services institutions or credit institutions that are not CRR credit institutions within the meaning of section 1(3d), first sentence of the Banking Act are part of the securities institution group.