§ 87 Regulatory fines provisions

(1) Whoever, in their capacity as member of a supervisory board or member of an audit committee of a company which is a public-interest entity within the meaning of section 316a sentence 2 no. 1 or no. 2 of the Commercial Code,

• 1.  does not monitor the independence of the statutory auditor or of the audit firm in accordance with the provisions of Article 4 (3) subparagraph (2) of Article 5 (4) subparagraph (1) sentence 1 or of Article 6 (2) of Regulation EU No 537/2014 of the European Parliament and of the Council of 16 April 2014 on specific requirements regarding statutory audit of public-interest entities and repealing Commission Decision 2005/909/EU (OJ L 158, 27.5.2014, p. 77, L 170, 11.6.2014, p. 66) or
• 2.  makes a recommendation regarding the appointment of a statutory auditor or of an audit firm which does not comply with the requirements under Article 16 (2) subparagraph (2) or subparagraph (3) of Regulation (EU) No 537/2014 or was not preceded by a selection procedure in accordance with Article 16 (3) subparagraph (1) of Regulation (EU) No 537/2014

is deemed to have committed a regulatory offence.

(2) Whoever, in their capacity as member of a supervisory board which has not appointed an audit committee, submits a proposal to the shareholders of a company which is a public-interest entity within the meaning of section 316a sentence 2 no. 1 or no. 2 of the Commercial Code regarding the appointment of a statutory auditor or of an audit firm and which does not comply with the requirements under Article 16 (5) subparagraph (1) of Regulation (EU) No 537/2014 is deemed to have committed a regulatory offence.

(3) Whoever, in their capacity as member of a supervisory board which has appointed an audit committee, submits a proposal to the shareholders of one of the companies referred to in subsection (2) regarding the appointment of a statutory auditor or of an audit firm and which does not comply with the requirements under Article 16 (5) subparagraph (1) or subparagraph (2) sentence 1 or sentence 2 of Regulation (EU) No 537/2014 is deemed to have committed a regulatory offence.

(4) A fine of no more than 500,000 euros may be imposed for a regulatory offence.

(5) The administrative authority within the meaning of section 36 (1) no. 1 of the Act on Regulatory Offences (Ordnungswidrigkeitengesetz) is, in the case of a company which is a public-interest entity within the meaning of section 316a sentence 2 no. 2 of the Commercial Code, the Federal Financial Supervisory Authority, in all other cases the Federal Office of Justice.