Additional own funds requirements

(1) The Bundesanstalt may order the additional own funds requirements referred to in section 49, no. 1, where facts justify the assumption that
1. the securities institution is exposed to, or poses to others, risks or risk components not covered, or not adequately covered, by the own funds requirements, in particular those for K-factors, in Part 3 or 4 of Regulation (EU) 2019/2033;
2. the securities institution does not satisfy the requirements of sections 39 and 41, and other supervisory measures are not likely to lead, within a reasonable period, to a sufficient improvement in the arrangements, procedures, mechanisms and strategies;
3. the adjustments to the valuation of trading-book positions are not sufficient to enable the securities institution to sell or hedge out its positions within a short period without incurring material losses under normal market conditions;
4. the non-compliance with the requirements for the use of permitted internal models will lead to inadequate own funds requirements; or
5. the securities institution repeatedly fails to comply with a requirement of the Bundesanstalt to increase own funds requirements under section 51.
(2) For the purposes of subsection (1), no. 1, risks or risk components are deemed not covered, or not adequately covered, by the own funds requirements in Parts 3 and 4 of Regulation (EU) 2019/2033 only where the internal capital that the Bundesanstalt, following the supervisory review of the assessment carried out by the securities institution under section 39(1), considers appropriate, exceeds, in its amount, nature and distribution, the own funds requirement provided for the securities institution in Part 3 or 4 of Regulation (EU) 2019/2033. The amount of internal capital considered appropriate may include such risks or risk components as are expressly excluded from the own funds requirements in Part 3 or 4 of Regulation (EU) 2019/2033.
(3) The Bundesanstalt determines the amount of the additional own funds required under section 49, no. 1 as the difference between the own funds considered appropriate under subsection (2) and the own funds requirements provided for in Part 3 or 4 of Regulation (EU) 2019/2033.
(4) The Bundesanstalt requires the securities institution to satisfy the additional own funds requirements referred to in section 49, no. 1 as follows:
1. the additional own funds requirements must be satisfied to the extent of at least three-quarters with Tier 1 capital;
2. the Tier 1 capital must consist of at least three-quarters of Common Equity Tier 1 capital; and
3. these own funds may not be used to satisfy any of the own funds requirements in Article 11(1) of Regulation (EU) 2019/2033.