Law on additional supervision of regulated entities in a financial conglomerate

Original Language Title: Gesetz zur zusätzlichen Aufsicht über beaufsichtigte Unternehmen eines Finanzkonglomerats

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Law on additional supervision of regulated entities in a financial conglomerate (Financial Conglomerate Supervisory Law-FKAG)

Unofficial table of contents

FKAG

Date of completion: 27.06.2013

Full quote:

" Financial Conglomerate Supervisory Law of 27 June 2013 (BGBl. I p. 1862), most recently by Article 2 (35) of the Law of 1 April 2015 (BGBl. I p. 434).

Status:

Last amended by Art. 2 sec. 35 G v. 1.4.2015 I 434

For more details, please refer to the menu under Notes

1: This Act is intended to implement Directive 2011 /89/EU of the European Parliament and of the Council of 16 November 2011 amending Directives 98 /78/EC, 2002 /87/EC, 2006 /48/EC and 2009 /138/EC as regards the supplementary supervision of the Financial entities in a financial conglomerate (OJ L 327, 22. (OJ L 326, 8.12.2011, p. 113).

Footnote

(+ + + Text certificate: 4.7.2013 + + +) 
(+ + + Official note from the norm-provider on EC law: 
 Implementation of the 
 EURL 89/2011 (CELEX Nr: 32011L0089) + + +)

The G was decided by the Bundestag as Article 1 of the G v. 27.6.2013 I 1862. It's gem. Article 7 of this G entered into force on 4 July 2013. Unofficial table of contents

§ 1 Competence and scope

(1) Supervisors of a financial conglomerate shall be subject to additional supervision in accordance with the provisions of this Act. The supervision is exercised by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht). (2) A financial conglomerate is a group or subgroup,

1.: at the top of which a regulated entity is located or where at least one of the subsidiaries is a regulated entity;
2.: in which at least one of the undertakings in the group or sub-group is a business of the insurance sector and at least one of the undertakings in the banking or investment services sector,
3.: in which the consolidated or aggregated activities of undertakings of the group or sub-group operating in the insurance sector and undertakings of the group or sub-group operating in the banking and investment services sector are in each case as are to be regarded as significant within the meaning of § 8 and
4.: which satisfies the conditions set out in the second or third sentence.

In the event that a regulated entity of a financial conglomerate is at the top of the group or sub-group, that entity must:

1.: is a parent company of a financial industry company,
2.: be a company that holds a stake in an enterprise in the financial sector, or
3.: be a company that forms a horizontal group of companies with an enterprise in the financial sector.

In the event that no regulated entity of a financial conglomerate is at the top of the group or sub-group, the focus of the group's or sub-group's activities must be within the meaning of Section 7 in the financial sector. Unofficial table of contents

§ 2 Definitions

(1) regulated entities in a financial conglomerate shall be conglomerate members

1.: CRR credit institutions within the meaning of the Banking Act,
2.: First and reinsurance undertakings, with the exception of the death-holders within the meaning of the Insurance Supervision Act,
3.: Insurance-purpose companies within the meaning of the Insurance Supervision Act,
4.: securities trading undertakings within the meaning of the Securities Trading Act,
5.: Management companies within the meaning of § 1 (14) of the capital investment code.

(2) Industry legislation within the meaning of this Act is the European Union's legislation in the field of financial supervision, in particular Directives 2004 /39/EC of the European Parliament and of the Council of 21 April 2004 on markets for financial instruments, amending Council Directives 85 /611/EEC and 93 /6/EEC and Directive 2000 /12/EC of the European Parliament and of the Council and repealing Council Directive 93 /22/EEC, Directive 2013 /36/EU of the European Parliament and of the Council Parliament and of the Council of 26 June 2013 on access to the activities of credit institutions and the supervision of credit institutions and investment firms, amending Directive 2002/87/EC and repealing Directives 2006 /48/EC and 2006 /49/EC (OJ L 136, 31.5.2006, p. 338), Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 646/2012 (OJ L 136, 31.5.2013, p. 1), Directive 2009 /65/EC of the European Parliament and of the Council of 13 July 2009 on the coordination of laws, regulations and administrative provisions relating to undertakings for collective investment in transferable securities (UCITS), and 2009 /138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of insurance and reinsurance (Solvency II), the domestic laws based thereon, including those relating to it and other legal provisions in the field of financial supervision (3) Financial sector are the following sectors:

1.

The banking and investment services sector, which includes:

a): credit institutions within the meaning of Article 1 (1) of the Banking Act;
b): financial services institutions within the meaning of Article 1 (1a) of the Banking Act;
c): Capital management companies within the meaning of Section 17 of the Capital Investment Code, externally managed investment companies within the meaning of Section 1 (13) of the Capital Investment Code,
d): Financial undertakings within the meaning of Section 1 (3) of the Banking Act,
e): Providers of ancillary services within the meaning of Section 1 (3c) of the Banking Act,
f): E-money institutions within the meaning of Article 1a (1) (5) of the Payment Services Supervisory Act,
g): Payment institutions within the meaning of Article 1 (1) (5) of the Payment Services Supervisory Act and
h): (a) to (h) corresponding undertakings with registered offices abroad;

for the purposes of § § 6 to 12, capital management companies and externally managed investment companies are considered to be non-members of the banking and investment services industry;

2.

the insurance industry, which includes:

a): First and reinsurance undertakings within the meaning of the Insurance Supervision Act, with the exception of the death-holders,
b): Insurance holding companies and insurance special purpose companies within the meaning of the Insurance Supervision Act and
c): (a) and (b) corresponding undertakings with registered offices abroad.

(4) parent undertakings shall be: parent undertakings within the meaning of Section 290 of the Commercial Code or of undertakings which actually exercise a dominant influence over another undertaking without the legal form or seat being important. By way of derogation from the first sentence, undertakings referred to in paragraph 3 (1) shall be considered to be the parent undertaking provided that they satisfy the conditions laid down in Article 4 (1) (15) of Regulation (EU) No 575/2013. (5) subsidiaries shall be: subsidiaries as defined in § 290 of the Commercial Code or the undertaking to which a parent undertaking actually exercises a dominant influence without having to rely on the legal form or the seat; any subsidiary undertaking of a subsidiary undertaking shall also be: subsidiary of the parent company. By way of derogation from the first sentence, undertakings referred to in paragraph 3 (1) shall be regarded as subsidiaries if they satisfy the conditions laid down in Article 4 (1) (16) of Regulation (EU) No 575/2013. (6) other undertakings in accordance with the first sentence of Article 271 (1) of the Commercial Code or the direct or indirect holding of at least 20 per cent of the voting rights or of the capital. By way of derogation from the first sentence, participation in the case of undertakings within the meaning of paragraph 3 (1) shall be determined in accordance with Article 4 (1) (35) of Regulation (EU) No 575 /2013. (7) A group shall be constituted as defined in this Act.

1.

from a parent undertaking, its subsidiaries and the undertakings in which the parent undertaking or a subsidiary holds a holding, or

2.

from at least two companies that are connected in such a way that:

a): they are jointly, on the basis of a statutes or of a contract, under a single management; or
b): the majority of their administrative, management or supervisory bodies shall be composed of the same persons who are in office during the financial year and until the end of the periods specified in Article 290 (1) of the Commercial Code, if they are have or would have a consolidated financial statements (horizontal group of companies).

(8) A close connection within the meaning of this law is

1.: a control relationship or a situation in which two or more natural or legal persons are permanently connected to the same person by a control relationship; or
2.: a combination of one or more undertakings, or of one or more natural persons, by holding, directly or indirectly, one or more subsidiaries or trustees of at least 20 per cent of the voting rights or of the Capital.

(9) The relationship between a parent company and a subsidiary or a similar relationship between a natural or legal person and a company is the relationship between a parent company and a company. (10) Joint financial holding company is a Parent undertaking which is not a regulated entity of a financial conglomerate and which, together with its subsidiaries, of which at least one is a regulated entity of a financial conglomerate having its head office in Germany or in a other State of the European Economic Area, and other undertakings (11) The Member States of the European Economic Area are the Member States of the European Union and the other States Parties to the Agreement on the European Economic Area. (12) Third countries are all States which do not Member States of the European Economic Area. (13) The competent authorities within the meaning of this Act are the authorities of the other States of the European Economic Area, which are responsible for the supervision of the Entities of a financial conglomerate at a single or group level (14) Competent authorities

1.: are the competent authorities of the other Member States of the European Economic Area, which are responsible for the sectoral group supervision of regulated entities in a financial conglomerate, in particular those at the top in an industry parent company, responsible,
2.: if the coordinator is not one of the authorities referred to in point 1, the coordinator shall be
3.: where appropriate, other competent authorities which, in the opinion of the authorities referred to in points 1 and 2, are also concerned.

Pending the adoption of the provisions of Article 21a (1) (b) of Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms Financial conglomerate and amending Council Directives 73 /239/EEC, 79 /267/EEC, 92 /49/EEC, 92 /96/EEC, 93 /6/EEC and 93 /22/EEC, and Directives 98 /78/EC and 2000 /12/EC of the European Parliament and of the Council (OJ L 136, 31.5.1998, p. 1), in particular the market share of regulated entities in the financial conglomerate in other Member States of the European Economic Area, in particular where this is more than 5%, and taking into account the weight of regulated entities established in other Member States of the European Economic Area within the financial conglomerate. (15) Conglomerate internal transactions are all Transactions in which regulated entities in a financial conglomerate are directly or indirectly based on other undertakings within the same group or on natural or legal persons having close links with undertakings in the group, in order to comply with a binding obligation, whether or not (16) Risk concentrations are all exposures of the companies in a financial conglomerate with a risk of default, in which the loss potential is is large enough to ensure the solvency or general financial position of a A financial conglomerate's regulated entity, whether or not the risk of default on an address risk, credit risk, investment risk, insurance risk, market risk, other risk or combination of risks, or an interaction between risks. (17) Joint Committee shall be the Joint Committee of the European Banking Authority, the European Insurance and Operational Supervisory Authority (ECEC), Pensions and the European Securities and Markets Market surveillance authority. Unofficial table of contents

§ 3 Cooperation with the Deutsche Bundesbank

The Bundesanstalt and the Deutsche Bundesbank are cooperating in accordance with this law. § 7 of the Banking Act shall apply accordingly. Unofficial table of contents

Section 4 Cooperation with the competent authorities and the Joint Committee

(1) In the case of the supervision of financial conglomerates operating across borders, the Bundesanstalt and the Deutsche Bundesbank shall work in the determination of a financial conglomerate and in the supervision at the conglomerate level in accordance with the conditions laid down in the Directive 2002/87/EC of the European Parliament and of the Council of 16 December 2002 on the supplementary supervision of credit institutions, insurance undertakings and investment firms in a financial conglomerate, and amending the Directives 73 /239/EEC, 79 /267/EEC, 92 /49/EEC, 92 /96/EEC, 93 /6/EEC and 93 /22/EEC Council and Directives 98 /78/EC and 2000 /12/EC of the European Parliament and of the Council together with the competent authorities and the Joint Committee; § 84 (3) and (4) sentence 5 of the Insurance Supervision Act; and Section 8 (5) and Article 9 (9) of the Insurance Supervision Act 1 sentence 8 of the Banking Act shall apply in accordance with. (2) The Federal Institute shall determine with the competent authorities of the States concerned of the European Economic Area, including the State in which the mixed financial holding company shall, in accordance with the provisions of Article 10 of Directive 2002/87/EC, be Coordinator. (3) At the request of a competent authority, the Bundesanstalt shall transmit the information intended to enable or facilitate supervision in accordance with Directive 2002/87/EC. (4) The Bundesanstalt may be responsible for the competent authority of the competent authority. (a) the authorities of the State of the European Economic Area in which a parent undertaking has its registered office, to require the parent undertaking to obtain the information which is appropriate for the performance of its tasks as a coordinator; and to them. (5) The provisions of Section 3 of Directive 2002 /87/EC the necessary cooperation and the exercise of the tasks referred to in Article 11 (1), (2) and (3) and Article 12 of Directive 2002/87/EC, and, where appropriate, the coordination and cooperation with the supervisory authorities concerned in each case, in Third States shall be made in a suitable form and subject to compliance with the obligations of confidentiality and Union law by colleges established in accordance with Article 131a of Directive 2006 /48/EC or Article 248 (2) of Directive 2009 /138/EC. (6) More detailed provisions on cooperation shall be laid down by the Bundesanstalt in Cooperation agreements with the competent authorities of the countries of the European Economic Area concerned. These agreements shall be included separately in the written coordination agreements concluded in accordance with Article 115 of Directive 2013 /36/EU or Article 248 of Directive 2009 /138/EC. Section 8e (7) of the Banking Act shall apply accordingly. Unofficial table of contents

§ 5 Tasks of the Federal Institute as Coordinator

(1) If the Bundesanstalt coordinator is responsible, it has the following tasks:

1.: the coordination of the collection and dissemination of useful and basic information in the context of ongoing supervision and crisis situations,
2.: the planning and coordination of activities in the context of ongoing supervision and in crisis situations, in cooperation with the relevant competent authorities;
3.: the general supervision and assessment of the financial situation of the financial conglomerate;
4.: the assessment of compliance with the rules on own resources and on risk concentrations and conglomerate-internal transactions;
5.: the assessment of the structure, organisation and internal control systems of the financial conglomerate;
6.: other tasks, measures and decisions to be assigned to the Bundesanstalt as a coordinator by Directive 2002/87/EC or in application of its provisions.

(2) In addition, the Bundesanstalt as coordinator shall carry out the following tasks:

1.

It shall inform you of the announcement of the determination pursuant to Article 8 (1).

a): the competent authorities which have authorised regulated entities in the group,
b): the competent authorities of the State of the European Economic Area in which the mixed financial holding company has its registered office, and
c): the Joint Committee.

2.

It shall inform the relevant competent authorities and the European Commission of the procedure chosen in the cases referred to in Article 15 (4).

3.

It shall consult the relevant competent authorities in the countries of the European Economic Area concerned in advance.

a): before decisions pursuant to § 12 (2) sentence 3 and § 15 (4),
b): before exemption pursuant to section 19 (1) (3),
c): before measures in accordance with Articles 20, 21 (1), 23 (4) and 28 (1), if this is important for the supervisory activities of these authorities.

In cases of urgency or in case of danger in default, the Federal Institute may depart from the previous hearing. It shall immediately inform the competent authorities of the action taken.

4.

It shall submit proposals to the competent authorities in respect of decisions relating to:

a): Failure to take account of certain undertakings or shareholdings in the determination of a financial conglomerate in accordance with Article 9 (1),
b): Repeal of the finding in accordance with Article 11 (2) that a group is a financial conglomerate,
c): Exemption pursuant to Section 13 (1) (3).

5.

It shall inform the Joint Committee of the results of a Union-wide forecast report.

6.

It shall make available to the Joint Committee the information referred to in Article 9 (4) and in Article 12 (1), second subparagraph, point (a) of Directive 2002/87/EC.

(3) If the Federal Institution is the coordinator of a collegiate body within the meaning of Article 4 (5), it shall decide which competent authorities shall take part in a meeting or activity of the college. Unofficial table of contents

Section 6 Determination of a financial conglomerate

(1) The Bundesanstalt determines whether an inter-branch operating group is to be classified as a financial conglomerate. (2) The Bundesanstalt considers that a company regulated by it within the meaning of Section 2 (1) (1) to (5) of the Financial Conglomerate shall be deemed to be a member of the Federal Institute for Economic Research (Bundesanstalt). , which may be a financial conglomerate, it shall inform the competent authorities of the countries concerned of the European Economic Area and of the Joint Committee. Unofficial table of contents

§ 7 Membership of the financial sector

A group is mainly active in the financial sector if the total assets of the regulated and unsupervised financial companies in this group are more than 40% of the total assets of the group. Unofficial table of contents

§ 8 Survey of consolidated or aggregated activities

(1) The cross-sectoral activities of undertakings in the group or sub-group shall be considered to be significant if:

1.: for each sector, the average share of the balance sheet total of this sector in the balance sheet total of the financial firms in the group and the share of solvency requirements of the same sector in the overall solvency requirement of the financial undertakings the group is more than 10 percent, or
2.: the balance sheet total of the weakest sector in the group exceeds 6 billion euros.

(2) As the most vulnerable sector in a financial conglomerate, the one with the lowest average share and the sector most represented is the one with the highest average share. (3) In the calculation the average share and the identification of the sector most vulnerable and most strongly represented in the financial conglomerate will be taken into account jointly by the banking and investment services sectors. Management companies within the meaning of Article 1 (14) of the capital investment code shall be attributed within the group of the financial sector to which they belong. If they do not belong exclusively to an industry within the group, they are attributed to the smallest industry. Unofficial table of contents

§ 9 Calculation of affiliation with the financial sector and the relevance of consolidated or aggregated activities

(1) In the case of the calculations in accordance with § § 7 and 8, the Bundesanstalt may, subject to sentences 2 and 3, leave a conglomerate-related company unaccounted for in individual cases, if and as long as

1.: the undertaking is located in a third country where there are obstacles to the transmission of the necessary information;
2.: the undertaking is of secondary importance with regard to the objectives of the additional supervision at the level of the conglomerate;
3.: the inclusion of the undertaking in the light of the objectives of the supplementary supervision would be unsuitable or misleading.

Where a number of conglomerate undertakings satisfy the conditions set out in point 2 of the first sentence, they shall be taken into account if they are not of secondary importance as a whole with regard to the objectives of supplementary supervision . Sentence 1 shall not apply if the undertaking has moved from a State of the European Economic Area to a third country and it has been shown that the move has been carried out in order to avoid supervision. (2) In the case of calculations according to § § 7 and 8 the Bundesanstalt may also, on a case-by-case basis, exclude one or more shareholdings in the sector represented by the weaker sector if and as long as these holdings determine the classification as a financial conglomerate, but in general in view of the on the objectives of the supplementary supervision of secondary importance (3) For the purposes of Articles 7 and 8, the Bundesanstalt may, on a case-by-case basis, replace or supplement the criterion of the balance sheet total by one or more of the following criteria if they are concerned with the objectives of supplementary supervision. are particularly meaningful:

1.: Yield structure,
2.: off-balance-sheet business,
3.: The total value of the assets under management.

(4) In the case of financial conglomerates acting on a cross-border basis, the Bundesanstalt shall take decisions pursuant to paragraphs 1 to 3 in agreement with the relevant competent authorities. Unofficial table of contents

Section 10 threshold values for the classification as financial conglomerate

In the case of a group whose regulated entities are already subject to supplementary supervision under this Act within the meaning of Article 2 (1) (1) to (5), the threshold values shall be subject to the provisions of Sections 7 and 8 during a financial year , it shall continue to be considered as a financial conglomerate if the following thresholds are exceeded in the following three financial years:

1.: in the case of § 7, a threshold of 35 per cent,
2.: in the case of Section 8 (1) (1), a threshold of 8 per cent or
3.: in the case of Section 8 (1) (2), a threshold value of EUR 5 billion.

Unofficial table of contents

Section 11 Determination of a financial conglomerate

(1) The Bundesanstalt determines that a group of companies active in the sector is a financial conglomerate. It shall announce the determination of the parent company at the head of the group. If no parent company is at the head, it shall disclose the determination of the regulated entity with the highest balance sheet total within the group. (2) In the cases of § 10, the Federal Office may, during the relevant period of time, be aware of the three financial years, the finding that a group is a financial conglomerate; paragraph 1, sentences 2 and 3 shall apply accordingly. In the case of financial conglomerates operating across borders, the Bundesanstalt decides in agreement with the relevant competent authorities. (3) The Bundesanstalt shall repeal the finding that a group is a financial conglomerate, if the The conditions laid down in § 1 (2) are no longer fulfilled. It shall, in particular, abolish the determination if the following threshold values are undershot:

1.: in the case of § 7, a threshold of 35 per cent,
2.: in the case of Section 8 (1) (1), a threshold of 8 per cent or
3.: in the case of Section 8 (1) (2), a threshold value of EUR 5 billion.

The second and third sentences of paragraph 1 shall apply mutatily. Unofficial table of contents

§ 12 Parent Company

(1) A parent company of a financial conglomerate is a regulated entity of the financial conglomerate, which is at the head of the financial conglomerate and has its head office domestiy. (2) Is not at the top of a financial conglomerate regulated entities established in Germany and having the mixed financial holding company domestiated, the Bundesanstalt shall designate a regulated subsidiary with its head office as the parent undertaking of the Financial conglomerate. By way of derogation, the Federal Institute may designate the mixed financial holding company or any other regulated entity as the parent company of the financial conglomerate. In addition to the structure of the financial conglomerate, the Federal Institute also takes into account whether the banking and investment services industry or the insurance industry is more strongly represented within the meaning of Section 8 (2). The company to be determined must be consulted in advance. Unofficial table of contents

Section 13 Liberation and exemption from the supplementary supervision

(1) At the request of the parent company at the head of the group, the Bundesanstalt may depart from the determination that a group is a financial conglomerate (liberation) or the parent company of the financial conglomerate from the obligations in accordance with § § 23 to 25, in whole or in part, if:

1.: although the balance sheet total of the weakest sector exceeds EUR 6 billion, the group does not reach the threshold referred to in Article 8 (1) (1) and the inclusion of the group in the supplementary supervision of the group is not achieved the conglomerate level or the application of sections 23 to 25 would not be necessary or would be inappropriate or misleading in view of the objectives of supplementary supervision;
2.: although the group reaches the threshold referred to in Article 8 (1) (1), the balance sheet total of the weakest sector does not exceed EUR 6 billion and the inclusion of the group in the supplementary supervision of the group is not exceeded. the conglomerate level or the application of sections 23 to 25 would not be necessary or would be inappropriate or misleading in view of the objectives of supplementary supervision;
3.: the exceeding of the threshold values in § § 7 and 8 is solely attributable to a significant change in the structure of the group; in this case, the exemption shall be limited to a maximum of three years, beginning with the next financial year following the following year: temporary ones.

(2) If no parent company is at the head of the group, the regulated entity of the financial conglomerate with the highest balance sheet total within the group may submit the application. In this case, the exemption is for a limited period of time. (3) The Federal Labour Office may revoke in whole or in part an exemption with effect for the future if a reason for the exemption is subsequently eliminated. (4) In the case of financial conglomerates, the , the Bundesanstalt decides in agreement with the competent authorities and informs the competent authorities of the competent authorities in the other countries of the European Economic Area concerned. (5) The Federal Agency shall publish the decisions, unless exceptional circumstances (6) Each year, the Bundesanstalt shall re-evaluate the exemptions referred to in paragraph 1 and shall review the quantitative indicators and risk-based assessments of the groups. Unofficial table of contents

Section 14 Exception of day-to-day supervision

At the request of a parent undertaking of a financial conglomerate, the Bundesanstalt may depart from the current supervision at the financial conglomerate level and the parent company of the financial conglomerate shall be able to comply with the obligations of the financial conglomerate shall be revocably exempted from this law if:

1.: the financial conglomerate is a subgroup of another financial conglomerate whose parent undertaking has its head office in another Member State of the European Economic Area, and in so far as it provides supplementary supervision in accordance with the conditions laid down in Directive 2002/87/EC, or
2.: this is appropriate taking into account the structure of the financial conglomerate and the relative weight of its activities in different countries of the European Economic Area.

The parent company of the financial conglomerate shall be given the opportunity to express its views. Unofficial table of contents

Section 15 Extension of supplementary supervision

(1) In agreement with the relevant competent authorities, the Federal Institute may, in accordance with the provisions of Article 1 (2), § 12 (2) sentence 2 or 3 (3), in accordance with Article 2 (14), Articles 3 and 5 of Directive 2002/87/EC, enter into force a a cross-sector group as a financial conglomerate and a regulated entity of a financial conglomerate as a parent company. The provisions of this Act shall apply mutagenously in this case. (2) There shall be no financial conglomerate, but shall consist of participations in at least one regulated entity in a financial conglomerate or a capital relationship with a The Bundesanstalt, in agreement with the competent authorities, may, in agreement with the competent authorities, apply the provisions of this Act wholly or in part to such undertakings, or may a dominant influence be exerted on such a company. in accordance with the procedure referred to in Article 1 (2), first sentence, points 2 and 3 Conditions are fulfilled, in which case the Bundesanstalt shall designate one of these undertakings as the parent undertaking of a financial conglomerate. The Bundesanstalt shall take its decision in the light of the objectives of the supplementary supervision. (3) Underlying regulated entities in a financial conglomerate established in Germany, the subsidiaries of a regulated entity. of a financial conglomerate or of a mixed financial holding company established in a third country, and in which a third country is not subject to supervision which is equivalent to supervision under this Act, the Federal Institute may be the Financial conglomerate and a regulated entity of a Determine financial conglomerates as a parent company. In this case, the provisions of this Act shall apply accordingly. If the Bundesanstalt does not agree with the decision taken by a competent authority within the meaning of Article 18 (1) of Directive 2002/87/EC, it may, in accordance with the provisions of Article 19 of Regulation (EU) No 1093/2010, Regulation (EU) No 1094/2010 or Regulation (EU) No 1095/2010, the European Banking Authority, the European Insurance and Occupational Pensions Authority, or the European Securities and Markets Authority ( (4) The Bundesanstalt may, by way of derogation from paragraph 3, apply in the Take into account cases of appropriate supervision at the level of the conglomerate in a different way. In particular, it may require that a mixed financial holding company be set up domestiated in the territory of the country or in another State of the European Economic Area. In this case, the provisions of this Act shall be applied accordingly. (5) If another State of the European Economic Area is concerned, the Federal Agency shall take decisions in accordance with paragraph 4 in agreement with the coordinator. Unofficial table of contents

Section 16 Reference to balance sheet total or solvency requirements

(1) Insofar as the balance sheet total is referred to in § § 7 to 13, the aggregate balance sheet total of the group's enterprises shall be assumed to be based on the individual annual accounts. Undertakings in which a holding is held shall be taken into account in the amount of their balance sheet total, which corresponds to the aggregated proportional share held by the group. If a consolidated financial statements are present, this shall be the case by way of derogation from the first sentence. (2) Insofar as § 8 refers to solvency requirements, these are in accordance with § § 53c and 104g of the Insurance Supervision Act as well as Articles 11 to 386 of Regulation (EU) No 575/2013. If a company having its head office is to be included in another State of the European Economic Area which is not already covered by the calculation according to § 104g of the Insurance Supervision Act or Article 10a of the Banking Act in conjunction with the Articles 11 up to 24 of Regulation (EU) No 575/2013, the solvency requirements of the host State shall be decisive, as appropriate for undertakings established in a third country where there are equivalent solvency requirements there. Unofficial table of contents

Section 17 Own Resources

(1) A financial conglomerate must have adequate own resources at the level of the conglomerate. (2) The Bundesanstalt shall verify that the financial conglomerate's own resources are appropriate. The parent company of a financial conglomerate must submit the necessary information to the Bundesanstalt and the Deutsche Bundesbank. Unofficial table of contents

Section 18 Calculation of own resources

(1) The calculation of own resources at the level of the conglomerate referred to in Article 17 (1) shall include the parent undertaking of a financial conglomerate having its head office in the territory of the country and the mixed financial holding companies in the conglomerate; Credit institutions, financial services institutions, financial firms, ancillary services providers, capital management companies, externally managed investment companies, e-money institutions, payment institutions, insurance undertakings, Insurance holding companies and Insurance-purpose companies (subordinated entities in a financial conglomerate). These companies, as own resources, are subject to the elements recognised in accordance with the provisions of the Banking Act of Regulation (EU) No 575/2013, the Insurance Supervision Act and other special laws (2) The Federal Agency shall determine which of the calculation methods specified in the Legal Regulation pursuant to Article 22 (1), first sentence, point 3, shall apply the financial conglomerate in the calculation of own resources at the conglomerate level; the parent company of the financial conglomerate must be consulted in advance. Where a mixed financial holding company is at the head of a financial conglomerate whose regulated entities in the financial conglomerate are not domicised exclusively in the territory of the country, the application of each of those entities shall be governed by the law in accordance with the provisions of the The parent undertaking of the financial conglomerate shall immediately notify the Bundesanstalt and the Deutsche Bundesbank of the choice of the method of calculation. (3) The parent undertaking of the financial conglomerate shall be informed of the choice of the calculation method immediately. Entities in a financial conglomerate shall be required to own resources of the financial conglomerate. However, in order to comply with this obligation, the subordinated undertakings in the financial conglomerate to be included in the calculation of own resources at the level of the conglomerate referred to in paragraph 1 shall only act on the basis of the general (4) The undertakings to be included in the calculation of own resources at the level of the conglomerate referred to in paragraph 1 shall have the right to ensure that they are properly prepared and forwarded for the purposes of the supplementary Supervision required a proper organisation and to establish adequate internal control procedures. The subordinated entities in a financial conglomerate shall be obliged to provide the information required for the supplementary supervision to the parent companies of the financial conglomerate notifiable under Article 17 (2) (1). If the notifiable enterprise cannot obtain the necessary information for individual subordinated undertakings in a financial conglomerate, the carrying amounts of the carrying amount of the carrying amount of the accounts payable to such undertakings shall be subject to the conditions laid down in Article 22 (1) of the Regulation from the own resources of the parent company of the financial conglomerate. (5) § 17 (1), (3) and (4) shall not apply if and as long as the financial conglomerate is a sub-group of another financial conglomerate for which Article 17 (1), (3) and (4) applies and its parent company has its domials. Unofficial table of contents

Section 19 exemption from the own resources requirements

(1) The Bundesanstalt may be a parent company of a financial conglomerate on its application or on its own initiative on the basis of the own resources requirements of Sections 17 and 18 as regards individual subordinated entities in a financial conglomerate Revocable, if:

1.: the company is located in a third country where there are obstacles to the transmission of the necessary information,
2.: the undertaking is of secondary importance with regard to the objectives of the additional supervision at the level of the conglomerate;
3.: the inclusion of the undertaking in the light of the objectives of the supplementary supervision would be unsuitable or misleading.

Where a number of downstream undertakings in the financial conglomerate are satisfied, the conditions set out in point 2 of paragraph 1 shall be fulfilled if the undertakings as a whole are satisfied with regard to the objectives of the supplementary supervision of supervision are not of secondary importance. Unofficial table of contents

Section 20Setting of correction items

(1) The Bundesanstalt may set a correction post on the own funds of the financial conglomerate if:

1.: the solvency of the financial conglomerate is at risk, without prejudice to the fulfilment of the requirements of § 17 (1) in conjunction with the legal regulation pursuant to § 22 (1) or § § 23 to 25.
2.: significant conglomerate internal transactions or significant risk concentrations at the level of the financial conglomerate risk jeopardising the financial position of the financial conglomerate.

(2) The Bundesanstalt may not set the correction post until the danger has been remedied within a time limit set by the Bundesanstalt. The Bundesanstalt shall, at the request of the parent undertaking of a financial conglomerate, abolish the fixing in whole or in part if the risk is omitted. Unofficial table of contents

Section 21 Measures in the case of insufficient own resources at the level of the conglomerate

(1) In the case of a financial conglomerate, own resources shall not be subject to the requirements of Section 17 (1), the Bundesanstalt shall be able to:

1.: the parent company of the financial conglomerate, the persons referred to in § 1 (2) sentence 1 or § 2d paragraph 1 of the Banking Act, or the persons referred to in Article 7a (1) sentence 4 or paragraph 3 of the Insurance Supervision Act, or the controlling persons taking the necessary and appropriate measures; in particular, it may require a solvency plan or a financing plan, which shall be free from the assets of the undertaking; limit or prohibit balance-sheet measures or , which are intended to compensate for a loss of the year or to show a balance sheet profit;
2.: the mixed financial holding company shall take the necessary and appropriate measures; it may, in particular, prohibit or restrict the taking-up of profits by the proprietor or the partner and the distribution of profits.

(2) The Bundesanstalt shall not take the measures referred to in paragraph 1 until the parent undertaking of the financial conglomerate or the persons referred to in paragraph 1 (1) of that undertaking or the mixed financial holding company the defect has not been remedied within a time limit to be determined by the Bundesanstalt. Decisions relating to the distribution of profits shall be void in so far as they are contrary to an order referred to in paragraph 1 (2). Unofficial table of contents

Section 22 Regulation empowerment for more detailed provisions on the appropriate own resources

(1) The Federal Ministry of Finance is authorized, in consultation with the Deutsche Bundesbank, by means of a regulation which does not require the approval of the Federal Council, to lay down more detailed provisions on the appropriate own resources for the implementation of the Article 6 and Annex I to Directive 2002/87/EC, in particular on:

1.

the composition of own resources,

2.

the volume of the additional own resources requirement and the form of its calculation, and the other technical principles,

3.

the following allowed calculation methods for the additional own resources requirement:

a): Calculation on the basis of consolidated accounts (Method 1),
b): Deduction and aggregation method (Method 2) or
c): Combination of methods 1 and 2,

4.

risk models,

5.

calculation intervals,

6.

The nature, scope, timing and form of the information to be submitted in accordance with Article 17 (2) and the authorised data carriers and transmission routes.

(2) The Federal Ministry of Finance may transfer this authorisation to the Federal Institute by means of a regulation of law, subject to the proviso that the Regulation shall be issued in agreement with the German Federal Bank. Prior to the adoption of the legal regulation, the top associations of the institutions within the meaning of Section 1 (1b) of the Banking Act and the Insurance Advisory Board of the Bundesanstalt are to be consulted in accordance with Section 92 of the Insurance Supervision Act. Unofficial table of contents

§ 23 Risk concentrations and conglomerate internal transactions

(1) The parent undertaking of a financial conglomerate shall notify the Bundesanstalt and the Deutsche Bundesbank of significant risk concentrations at the conglomerate level and significant conglomerate-internal transactions. (2) A supervising Without prejudice to the effectiveness of legal transactions, undertakings in a financial conglomerate may only carry out significant conglomerate-internal transactions on the basis of a unanimous decision by all the directors of the regulated entity. The decision is to be taken before implementation. If this is not possible on a case-by-case basis because of the urgency of the business, the decision must be taken up without delay. The decision is to be informed. If the conglomerate-internal transaction has been carried out without prior unanimous decision by all managers and the decision-making will not be collected within one month of implementation, the regulated entity shall not be required to: (3) Without prejudice to the effectiveness of legal transactions, the parent undertaking of a financial conglomerate shall be responsible for ensuring that the financial conglomerate is Risk concentrations at conglomerate level or significant conglomerate-internal transactions without the consent of the Bundesanstalt do not exceed the limits laid down in the legal regulation in accordance with Article 24 (1) or against the restrictions on the nature of the transactions laid down in the legal regulation conglomerate-internal transactions. However, in order to fulfil its obligations under the first sentence, the parent company may only act on the conglomerate-based undertakings, in so far as the general company law does not preclude them; § 18 (4), first sentence, and 2 and paragraph 5 shall apply accordingly. The third sentence of Article 18 (4) shall apply if the undertaking referred to in paragraph 1 for individual downstream undertakings in a financial conglomerate within the meaning of Article 18 (1) provides the information required for the notification referred to in paragraph 1. cannot be obtained. If this is the case, these subordinated undertakings must be adequately taken into account in the risk management system of the financial conglomerate. The consent of the first sentence shall be at the discretion of the Federal Institute. Irrespective of whether the Bundesanstalt has given its consent, the companies of the Bundesanstalt and the Deutsche Bundesbank, which are notifiable in accordance with paragraph 1, have to exceed the limits or the infringements of the restrictions with regard to the type of conglomerate-internal transaction without delay. (4) The Bundesanstalt may

1.: in the event of the parent undertaking of a financial conglomerate exceeding the ceilings laid down in the regulation in accordance with Article 24 (1), the imposition of the excess amount by own funds shall be required;
2.: To prevent infringements of the restrictions on the type of conglomerate-internal transactions, as defined in the regulation pursuant to Section 24 (1), by appropriate and necessary measures.

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Section 24 Regulation empowerment for more detailed provisions on risk concentrations and conglomerate internal transactions

(1) The Federal Ministry of Finance is authorized, in consultation with the Deutsche Bundesbank, by means of a legal regulation which does not require the approval of the Federal Council, more detailed provisions on risk concentrations and conglomerate internal transactions on the implementation of Articles 7 and 8 and Annex II to Directive 2002/87/EC, in particular on:

1.: the types of risk concentrations to be displayed and conglomerate-internal transactions and thresholds on the basis of which the risk concentrations and conglomerate-internal transactions are to be regarded as significant;
2.: the ceilings for significant risk concentrations and significant conglomerate-internal transactions, and restrictions on the type of conglomerate-internal transactions;
3.: The type, scope, timing and form of the information to be displayed in accordance with § 23 (1) to (3), as well as of the authorised data carriers and transmission routes.

(2) The Federal Ministry of Finance may transfer the authorization by means of a legal regulation with the proviso that the legal regulation shall be issued in agreement with the German Federal Bank. Prior to the adoption of the legal regulation, the top associations of the institutions within the meaning of Section 1 (1b) of the Banking Act and the Insurance Advisory Board are to be heard in accordance with Section 92 of the Insurance Supervision Act. Unofficial table of contents

Section 25 Special organisational obligations

(1) A financial conglomerate shall have a proper business organisation in accordance with Article 9 of Directive 2002 /87/EC. § 64a (1) of the Insurance Supervision Act and Article 25a (1) of the Banking Act shall apply in accordance with the provisions of Section 7a (1) sentence 4 or paragraph 3 of the Insurance Supervision Act or the provisions of § 1, paragraph 2, sentence 1 or § 2d (1) persons of the parent undertaking of a financial conglomerate referred to in paragraph 1 of the Banking Act are responsible for the orderly business organisation of the financial conglomerate. § 18 (3) sentence 2 and (4) sentence 1 and 2, as well as § 64a (3), § 81 (1) sentence 5 and § 104e (4) of the Insurance Supervision Act shall apply accordingly. In addition, Section 64b (1) to (3), (5) and (6) of the Insurance Supervision Act shall apply mutagenically to parent companies in a financial conglomerate. A proper business organisation at the conglomerate level shall also include appropriate arrangements to contribute to appropriate recovery and settlement procedures and plans, as appropriate, and to develop such procedures and plans. These arrangements shall be reviewed and adjusted regularly. (2) The Federal Agency may, in relation to the parent undertaking of the financial conglomerate, in relation to a regulated downstream entity in a financial conglomerate, be able to: persons referred to in the second sentence of paragraph 1 of this undertaking and persons controlling those undertakings shall take measures which are appropriate and necessary in order to ensure compliance with the specific organisational obligations referred to in Paragraph 1. (3) Parent company of a By 15 May of each year, the Bundesanstalt and the Deutsche Bundesbank must provide details of the legal and governance and organisational structure of the financial conglomerate, including all regulated entities, to the Bundesanstalt and the Deutsche Bundesbank. non-regulated subsidiaries and major branches. (4) Parent companies in a financial conglomerate must, by 15 May of each year, either complete or by reference to equivalent provide information on the legal and governance issues; and The organizational structure of the financial conglomerate. Unofficial table of contents

§ 26 Forecast calculations

(1) The Federal Institution may require the parent company of a financial conglomerate to submit forecast calculations for the financial conglomerate concerned. In this case, it shall determine the parameters, dates and methods of calculation, and the form and time limit in which the forecasting calculation is to be submitted. (2) The Federal Institute shall allow the parent company of a financial conglomerate to use own calculation methods, to the extent that this does not make the assessment of the financial conglomerate or of the relevant market as a whole more difficult. It may require that certain accounting assumptions be used in this context. Unofficial table of contents

Section 27 Statement of reasons for business relations

(1) A regulated entity of a financial conglomerate shall have the right to acquire a stake in a company domicated abroad or to establish a business relationship with a company, thereby making it a business entity. subordinated undertakings within the meaning of Article 18 (1) shall be required to ensure that the parent companies of the financial conglomerate responsible for the summary are responsible for the fulfilment of the respective obligations in accordance with § § § 17 to 24 shall be provided. (2) Paragraph 1 shall not apply if:

1.: the regulated entities of the financial conglomerate do not procure the information required for the summary in accordance with § § 17 to 24 and forward it to the parent company or to the parent company on other to make wise accessible,
2.: the summary is taken into account in accordance with Section 10a (6) or (7) of the Banking Act to take account of the risk arising from the justification of the participation or the business relationship; and
3.: it is possible for the Bundesanstalt to verify compliance with the condition referred to in point 2.

The regulated entity of a financial conglomerate shall immediately notify the Bundesanstalt and the Deutsche Bundesbank of the change or task of a holding or company relationship referred to in paragraph 1. (3) Bundesanstalt may prohibit the continuation of the participation or the corporate relationship if the parent company of a financial conglomerate does not receive the information required for the performance of the obligations under § § 17 to 24. Unofficial table of contents

Section 28 Mixed financial holding companies

(1) The Bundesanstalt may, at the head of a financial conglomerate, conduct a mixed financial holding company with the exercise of its voting rights in the parent undertaking of a financial conglomerate and the subordinated undertakings of the Financial conglomerates shall be subject to the following conditions:

1.: the mixed financial holding company does not provide the information required for supervision at the conglomerate level in accordance with § § 17 (2) and 23 (1) of the notifiable financial holding company pursuant to § § 18 (4) sentence 2 or § 18 of the German Financial Supervisory Board (§ § 18) the second sentence of paragraph 4, in conjunction with Article 23 (3), second sentence, second sentence;
2.: where it appears that a person who actually leads the business of the mixed financial holding company is not reliable or does not have the professional competence required to manage the transactions;
3.: where it appears that a person who is a member of the supervisory body of the mixed financial holding company is not reliable or who is not responsible for the performance of the control function and for the assessment and monitoring of the Transactions which the Company operates shall have the necessary expertise.

(2) In the event of a plea in accordance with paragraph 1, at the request of the Bundesanstalt, the court of the seat of the parent undertaking of the financial conglomerate shall appoint a trustee to which it shall transmit the exercise of the voting rights. The trustee shall, in exercising the voting rights, take account of the interests of sound and prudential management of the undertakings concerned. The Federal Office may, for important reasons, request the appointment of another trustee. If the conditions set out in paragraph 1 are not met, the Bundesanstalt shall request the revocation of the trustee's order. The trustee shall be entitled to compensation for reasonable outlays and to remuneration for his activities. The court shall, at the request of the trustee, determine the expenses and the remuneration; the appeal against the payment of the remuneration shall be excluded. The Federal Institute shall present the expenses and the remuneration; for its expenses, the mixed financial holding company and the undertakings concerned shall be jointly and severally liable. (3) As long as the submission of the subsection pursuant to paragraph 1 is fully enforceable, the undertakings concerned shall not be regarded as subordinated undertakings within the meaning of Article 18 (1) of the mixed financial holding company. (4) In the cases referred to in paragraph 1 (2), the Bundesanstalt may also apply to the parent undertaking of the Financial conglomerate orders, instructions of the mixed Do not comply with the financial holding company provided that there are no company law possibilities to discontinue the persons who actually lead the transactions of the mixed financial holding company. The same is true if there are such possibilities, but their exhaustion has been unsuccessful. (5) A mixed financial holding company, which is at the head of a financial conglomerate, has the Federal Institute and the German Bundesbank once a year to show the conglomerate-affiliated companies. Changes in the stock of conglomerate-related companies are to be reported immediately to the Bundesanstalt and the Deutsche Bundesbank. (6) The provisions of the Banking Act and the Insurance Supervision Act for mixed Financial holding companies remain unaffected. Unofficial table of contents

Section 29 Information and examinations

(1) The Bundesanstalt and the Deutsche Bundesbank are competent to provide information to the regulated entities in a financial conglomerate, to the members of their board of directors and to other directors or to persons controlling those undertakings; and to request the submission of documents relating to the business matters which are appropriate for the supplementary supervision. If the regulated entity of the financial conglomerate does not transmit this information despite the request, the Federal Institute and the Deutsche Bundesbank may also provide the information and the presentation of the documents from the mixed Financial holding company. Where the Bundesanstalt or the Deutsche Bundesbank require information already issued to a competent authority in accordance with the legislation adopted for the undertakings included in the supplementary supervision, the Bundesanstalt or Deutsche Bundesbank shall be required to: (2) In the context of the supplementary supervision, the Bundesanstalt may also carry out audits of the information referred to in paragraph 2 in the business premises of the regulated entities in a financial conglomerate. 1. This power shall also be conferred on it vis-à-vis affiliated undertakings and undertakings and their affiliated undertakings of the regulated entity of a financial conglomerate subject to the supplementary supervision of supervision, and to the undertakings concerned. corresponding mixed financial holding company. The Federal Institute may take part in examinations carried out by the Federal Institute for Examination pursuant to Section 319 of the Commercial Code or commission such persons to carry out exams; for these persons, Section 323 of the Commercial Code shall apply. as well as the grounds for exclusion of § 319 (2) to (5) and section 319a of the Commercial Code accordingly. The Bundesanstalt may carry out an audit of the Bundesbank (Bundesanstalt). (3) The employees of the Bundesanstalt, the Deutsche Bundesbank, and the other persons who are the Federal Institute for the conduct of the examinations , the business premises of the companies can be accessed and visited within the usual operating and business hours. The fundamental right of Article 13 of the Basic Law is limited to this extent. The persons concerned shall have the right to take measures under paragraphs 2 and 3. (4) The person concerned may refuse to provide information on such matters, the answers of which shall be answered by him or by one of the questions referred to in Article 383 (1) (1) to (3) of the The Civil Procedure Code would expose the members of the Civil Procedure Code to criminal prosecution or to proceedings under the Law on Administrative Offences. Unofficial table of contents

§ 30 Cross-border information and examinations

(1) Legislation which precludes the transmission of data shall not apply to the transmission of data between a parent undertaking or a subordinated entity of a financial conglomerate within the meaning of Article 18 (1) and another such undertaking established abroad or between a conglomerate-affiliated undertaking and a company established abroad, which shall have a close connection within the meaning of Article 2 (8), if the transmission of the data , in order to ensure compliance with the rules laid down in Directive 2002/87/EC on the To meet companies based abroad. The Bundesanstalt may prohibit the transfer of data to a parent or subordinated entity in a financial conglomerate into a third country. (2) Post-ordered companies in a financial conglomerate with a head office abroad have the In so far as this is necessary for the performance of the tasks of the Federal Agency, the Federal Agency shall, on request, permit the examinations permitted by this Act, in particular the verification of the accuracy of the data transmitted in accordance with § § 17 to 24, to the extent necessary for the performance of in accordance with the law of the other State. The first sentence shall also apply to non-affiliated subsidiaries established abroad. For the purpose of examining the information required in the context of supplementary supervision in another Member State of the European Economic Area, the Bundesanstalt shall request the competent authority of the State concerned to notify the Commission of its intention to: (3) At the request of a competent authority (applicant authority) within the meaning of the third sentence of paragraph 2, the Bundesanstalt shall have the accuracy of the information provided by a company domicated within the country in accordance with the provisions of Directive 2002 /87/EC to verify or to allow the requesting authority to: Auditor or expert shall check this data. The applicant authority may be present on request if the Federal Institute carries out the examination itself. Otherwise, the Federal Institute may take part in the examination. The Bundesanstalt may, at its discretion, proceed in accordance with the supervisory authorities in third countries, if reciprocity is guaranteed. Section 5 (2) of the Administrative Procedure Act on the Limits of Mutual Assistance and Article 29 (3) shall apply. (4) When a competent authority acts as the coordinator of a regulated entity of a financial conglomerate domiciled in the territory of the country of Article 19 (1) (2) and (3) does not involve the calculation of the additional own resources requirement, the Bundesanstalt may be headed by the enterprise at the head of the financial conglomerate with its head office in the other State of the European Union. the economic area of information which it is responsible for the supervision of the Make business easier. Unofficial table of contents

Section 31 Immediate Enforceability

Opposition and appeal against measures pursuant to Sections 21, 23 (4), 28 (1) and 29 (1) and 29 (1) and (2) do not have suspensive effect. Unofficial table of contents

Section 32 Penbual provisions

(1) Contrary to the provisions of § 28 (5) sentence 1, the person who intentionally or recklessly does not submit an advertisement, is not correct, is not fully or not reimbursed in good time. (2) The administrative offence can be carried out with a fine of up to two hundred thousand The euro will be punished. Unofficial table of contents

Section 33 Transitional provisions on § 23

The parent company of a financial conglomerate of the Bundesanstalt and the Deutsche Bundesbank (Bundesanstalt) has a financial conglomerate pending the adoption of the legal regulation pursuant to Section 24 (1)

1.

indicate all significant risk concentrations occurring during a calendar year up to 15 May of the following year. A risk concentration is significant if the risk of address failure, credit risk or investment risk, in accordance with Articles 387 to 403 in conjunction with Article 10 of Regulation (EU) No 575/2013 and Article 13 of the Banking Act, is also significant. in connection with the legal regulation pursuant to Section 13 of the Banking Act, as well as to Article 54 of the Insurance Supervision Act, to be determined in relation to a measure to be determined in accordance with Article 4 (1) (39) of Regulation (EU) No 575/2013 Address individually or in total 10 percent of the capital requirement on reach or exceed the level of the conglomerate;

2.

the risk concentrations resulting from insurance risks, based on the internal risk management system, which are identified as being of major risks and cumulative risks, as well as risks with a long development phase in the case of unsafe Cause the chain to display immediately. Where such risks also have a direct effect on individual addresses referred to in point 1, this shall also be indicated on the ad, broken down by individual address. The risk of insurance consists in the possible use, the amount of which, taking into account the contractual insurance sum, including the reinsurance, the damages of the past and the mathematical models to be used. shall be determined;

3.

to immediately notify the risks arising from a combination of and by interactions between the different types of risk;

4.

all significant conglomerate-internal transactions carried out during a calendar year, until 15 May of the following year. Conglomerate internal transactions are in particular:

a): Loans,
b): guarantees, guarantees and other off-balance-sheet transactions;
c): Transactions relating to the own resources referred to in Articles 11 to 91 of Regulation (EU) No 575/2013, as well as Articles 53c and 104g of the Insurance Supervision Act,
d): capital investments;
e): reinsurance business,
f): Cost-sharing agreements.

A conglomerate-internal transaction is significant if the individual transaction reaches at least 5 percent of the capital requirement at the conglomerate level. Several transactions of the same or different conglomerate companies with another conglomerate company during a financial year shall be grouped together in each case, even if the individual transaction is 5% of the capital requirement at the conglomerate level is not reached.