CJEU Annuls Resolution Board's Decision Due To Lack Of Transparency

(Based on Max Heinr. Sutor v Single Resolution Board (T-393/21, 8th May 2024))

Introduction and Background

On the 8th of May 2024 following an action for annulment by German credit institution Max Heinr. Sutor OHG ("The Applicant"), the General Court annulled a decision by the Single Resolution Board ("SRB") in regard to the setting of 2021 contributions to the Single Resolution Fund ("SRF"). The SRB is a Board responsible for determining the annual contributions from financial institutions to the SRF as part of the Single Resolution Mechanism ("SRM"), which acts as an operation framework designed to ensure the orderly resolution of failing banks with minimal impact on the Union and Member States' public finance. Such action was brought by the applicant due to failure of the Board to fulfil its obligation to provide reasons as regards to the determination of the annual target level.