Appointment of auditor and notification

(1) A small or medium-sized securities institution must notify the Bundesanstalt and the Deutsche Bundesbank of the auditor it has appointed, without delay after the appointment. The Bundesanstalt may, within two months of receipt of the notification, require the appointment of a different auditor, where this is warranted to achieve the purpose of the audit. The appointment of a different auditor is as a rule warranted to achieve the purpose of the audit where a securities institution that is not a public-interest entity within the meaning of section 316a, second sentence, no. 1 of the Commercial Code has notified the same auditor to the Bundesanstalt for at least eleven consecutive financial years. Where the securities institution has appointed as auditor a firm of public accountants that was the securities institution's auditor in one of the two preceding financial years, the Bundesanstalt may require a change of the responsible audit partner, where the preceding audit, including the audit report, did not fulfil the purpose of the audit; section 43(3), third sentence of the Public Accountants Act applies correspondingly. The Bundesanstalt may also require the appointment of a different auditor, or a change of the responsible audit partner, where facts become known to it that justify the assumption that the auditor has breached its duties under section 78(3).
(2) The court at the seat of the securities institution must, on application of the Bundesanstalt, appoint an auditor where 1. the notification under subsection (1), first sentence is not made without delay after the end of the financial year; 2. the securities institution does not comply without delay with a request for the appointment of a different auditor under subsection (1), second sentence; or 3. the auditor selected has declined to accept the audit engagement, has ceased to be available, or is prevented from completing the audit in good time, and the securities institution does not appoint a different auditor without delay. The appointment by the court is final. Section 318(5) of the Commercial Code applies correspondingly. The court may, on application of the Bundesanstalt, remove an auditor appointed under the first sentence.