Other provisions
Amendment details· last amended 30 Dec 2024
Last amended 30 Dec 2024 by Regulation (EU) 2023/1114 of 31 May 2023.
This Article shall apply at least in any of the following circumstances:
an institution has obtained an authorisation through false statements or any other irregular means;
an institution, on becoming aware of any acquisitions or disposals of holdings in their capital that cause holdings to exceed or fall below one of the thresholds referred to in Article 22(1) or Article 25, fails to inform the competent authorities of those acquisitions or disposals in breach of the first subparagraph of Article 26(1);
an institution listed on a regulated market as referred to in the list to be published by ESMA in accordance with Article 47 (opens EUR-Lex in a new tab) of Directive 2004/39/EC (opens EUR-Lex in a new tab) does not, at least annually, inform the competent authorities of the names of shareholders and members possessing qualifying holdings and the sizes of such holdings in breach of the second subparagraph of Article 26(1) of this Directive;
an institution fails to have in place governance arrangements and gender neutral remuneration policies required by the competent authorities in accordance with Article 74;
an institution fails to report information or provides incomplete or inaccurate information about a large exposure to the competent authorities in breach of Article 394(1) of Regulation (EU) No 575/2013;
an institution fails to report information or provides incomplete or inaccurate information on liquidity to the competent authorities in breach of Article 415(1) and (2) of Regulation (EU) No 575/2013;
an institution fails to maintain a net stable funding ratio in breach of Article 413 or 428b of Regulation (EU) No 575/2013 or repeatedly and persistently fails to hold liquid assets in breach of Article 412 of that Regulation;
an institution fails to disclose information or provides incomplete or inaccurate information in breach of Article 431(1), (2) and (3) or Article 451(1) of Regulation (EU) No 575/2013;
an institution makes payments to holders of instruments included in the own funds of the institution in breach of Article 141 of this Directive or in cases where Article 28, 52 or 63 of Regulation (EU) No 575/2013 prohibit such payments to holders of instruments included in own funds;
an institution is found liable for a serious breach of the national provisions adopted pursuant to Directive 2005/60/EC (opens EUR-Lex in a new tab);
an institution allows one or more persons not complying with Article 91 to become or remain a member of the management body;
a parent institution, a parent financial holding company or a parent mixed financial holding company fails to take any action that may be required to ensure compliance with the prudential requirements set out in Part Three, Four, Six or Seven of Regulation (EU) No 575/2013 or imposed under point (a) of Article 104(1) or Article 105 of this Directive on a consolidated or sub-consolidated basis;
an institution fails to meet the own funds requirements laid down in Article 92(1) of Regulation (EU) No 575/2013;
an institution or a natural person repeatedly fails to comply with a decision imposed by the competent authority in accordance with national provisions transposing this Directive or in accordance with Regulation (EU) No 575/2013;
an institution fails to comply with the remuneration requirements laid down in Articles 92, 94 and 95 of this Directive;
an institution acts without the prior permission of the competent authority where national provisions transposing this Directive or Regulation (EU) No 575/2013 require the institution to obtain such prior permission or an institution obtained such permission through false statements or does not comply with the conditions under which such permission was granted;
an institution fails to meet the requirements in relation to the composition, conditions, adjustments and deductions related to own funds as laid down in Part Two of Regulation (EU) No 575/2013;
an institution fails to meet the requirements in relation to its large exposures to a client or a group of connected clients laid down in Part Four of Regulation (EU) No 575/2013;
an institution fails to meet the requirements in relation to the calculation of the leverage ratio, including the application of derogations laid down in Part Seven of Regulation (EU) No 575/2013;
an institution fails to report information or provides incomplete or inaccurate information to the competent authority in relation to the data referred to in Article 430(1) to (3) and in Article 430a of Regulation (EU) No 575/2013;
an institution fails to comply with the data collection and governance requirements laid down in Part Three, Title III, Chapter 2, of Regulation (EU) No 575/2013;
an institution fails to meet the requirements in relation to the calculation of the risk-weighted exposure amounts or own funds requirements or fails to have in place the governance arrangements laid down in Part Three, Titles II to VI, of Regulation (EU) No 575/2013;
an institution fails to meet the requirements in relation to the calculation of the liquidity coverage ratio or the net stable funding ratio as laid down in Part Six, Titles I and IV of Regulation (EU) No 575/2013 and in Delegated Regulation (EU) 2015/61.
Member States shall ensure that in the cases referred to in paragraph 1, the measures that can be applied include at least the following:
administrative penalties:
in the case of a legal person, administrative pecuniary penalties of up to 10 % of the total annual net turnover of the undertaking;
in the case of a natural person, administrative pecuniary penalties of up to EUR 5 million or, in the Member States whose currency is not the euro, the corresponding value in the national currency on 17 July 2013;
administrative pecuniary penalties of up to twice the amount of the profits gained or losses avoided because of the breach, where those profits gained or losses avoided can be determined;
periodic penalty payments:
in the case of a legal person, periodic penalty payments of up to 5 % of the average daily net turnover which, in the case of an ongoing breach, the legal person shall be obliged to pay per day of breach until compliance with an obligation is restored; the periodic penalty payment may be imposed for a period of up to six months from the date set out in the decision of the competent authority requiring the termination of a breach and imposing the periodic penalty payment;
in the case of a natural person, periodic penalty payments of up to EUR 50 000 or, in the Member States whose currency is not the euro, the corresponding value in the national currency on 9 July 2024, which, in the case of an ongoing breach, the natural person shall be obliged to pay per day of breach, until compliance with an obligation is restored; the periodic penalty payment may be imposed for a period of up to six months from the date set out in the decision of the competent authority requiring the termination of a breach and imposing the periodic penalty payment;
other administrative measures:
a public statement which identifies the natural person, institution, financial holding company, mixed financial holding company or intermediate EU parent undertaking responsible and the nature of the breach;
an order requiring the natural or legal person responsible to cease the conduct and to desist from a repetition of that conduct;
in the case of an institution, withdrawal of the authorisation of the institution in accordance with Article 18;
subject to Article 65(2), a temporary ban against a member of the management body or any other natural person who is held responsible for the breach from exercising functions in institutions.
By way of derogation from the first subparagraph, point (b), Member States may apply periodic penalty payments on a weekly or monthly basis. In that case, the maximum amount of periodic penalty payments to be applied for the relevant weekly or monthly period when a breach takes place shall not exceed the maximum amount of periodic penalty payments that would apply on a daily basis in accordance with that point for the relevant period.
Periodic penalty payments may be imposed on a given date and start applying at a later date.
The total annual net turnover referred to in paragraph 2, point (a)(i), of this Article shall be the sum of the following items, determined in accordance with Annexes III and IV to Implementing Regulation (EU) 2021/451:
interest income;
interest expenses;
expenses on share capital repayable on demand;
dividend income;
fee and commission income;
fee and commission expenses;
gains or losses on financial assets and liabilities held for trading, net;
gains or losses on financial assets and liabilities designated at fair value through profit or loss, net;
gains or losses from hedge accounting, net;
exchange differences (gain or loss), net;
other operating income;
other operating expenses.
For the purposes of this Article, the basis for the calculation shall be the most recent yearly supervisory financial information which produces an indicator above zero. Where the legal person referred to in paragraph 2 of this Article is not subject to Implementing Regulation (EU) 2021/451, the relevant total annual net turnover shall be the total annual net turnover or the corresponding type of income in accordance with the applicable accounting framework. Where the undertaking concerned is part of a group, the relevant total annual net turnover shall be the total annual net turnover resulting from the consolidated account of the ultimate parent undertaking.
The average daily net turnover referred to in paragraph 2, point (b)(i), shall be the total annual net turnover referred to in paragraph 3 divided by 365.