Revisiting The ECB-SSM Guide To Setting Administrative Pecuniary Penalties (the SAPP Guide)

QuickTake

On 2 March 2021 the European Central Bank (ECB), acting in its role at the head of the Banking Union's Single Supervisory Mechanism (SSM), published its supervisory guide to the method of setting administrative pecuniary penalties (the SAPP Guide)¹ pursuant to Article 18(1) and (7) of the SSM Regulation.² For sake of context "administrative pecuniary penalties" also includes fines.

This Client Alert revisits the ECB-SSMs SAPP Guide and how the ECB-SSM decides on how to fine Banking Union supervised institutions (BUSIs) and specifically when credit institutions, financial holding companies and mixed financial holding companies (collectively referred to as "supervised entities" in the SAPP Guide) breach compliance with requirements falling within the ECB's SSM mandate.