Internal capital and liquid assets

(1) Medium-sized securities institutions must ensure on an ongoing basis that they have adequate risk-bearing capacity. This includes procedures for determining and ensuring risk-bearing capacity, based on a prudent assessment of the risks and of the risk-coverage potential available to cover them. Medium-sized securities institutions must further ensure, through appropriate procedures, that they invest their funds in such a way that sufficient readiness to pay (liquidity) is guaranteed at all times.
(2) The rules, strategies and procedures referred to in subsection (1) must be appropriate and proportionate, having regard to the nature, scale and complexity of the securities institution's business. They must be reviewed internally by the securities institution on a regular basis.
(3) To the extent the Bundesanstalt considers it appropriate, it may require small securities institutions to comply with the requirements of subsections (1) and (2).