Periodic penalty payments

(1) In the case of a continuing breach of this Act or of the statutory instruments issued thereunder, of Regulation (EU) No 575/2013, or of enforceable orders of the Federal Institute, the Federal Institute may impose the payment of a periodic penalty payment on undertakings, managers, members of the administrative or supervisory body, holders of key functions, risk takers, and any other natural person responsible for the breach, in order to induce them to comply with the provisions or orders being breached. Other powers existing on account of this breach remain unaffected by this. The imposition of a periodic penalty payment may be combined with an order issued under other provisions to discontinue the breach or to remedy deficiencies.
(2) The periodic penalty payment is to be paid from the day determined by the Federal Institute when it is imposed, until the breach has ended, but for no longer than six months. A retroactive imposition is excluded. When imposing it, the Federal Institute determines the amount of the periodic penalty payment arising for each day of the breach (daily amount).
(3) After the breach has ended, or after expiry of the period named in subsection (2), first sentence, the Federal Institute determines the final total amount of the periodic penalty payment to be paid, based on the number of days the breach has continued since the day determined under subsection (2), first sentence, and the daily amount.
(4) The daily amount of the periodic penalty payment is, for each day of the breach:
1. for natural persons, up to EUR 50,000, and
2. for legal persons and partnerships with legal capacity, up to 5 percent of the average daily net turnover under subsection (5).
(5) The average daily net turnover is one three-hundred-and-sixty-fifth of the annual net turnover under the second to fifth sentences. The annual net turnover is the sum of the following items, determined in accordance with Annexes III and IV to Implementing Regulation (EU) 2021/451, as amended on 15 March 2024:
1. interest income,
2. interest expenses,
3. expenses for share capital repayable on demand,
4. dividend income,
5. income from fees and commissions,
6. expenses for fees and commissions,
7. gains or losses on financial assets and liabilities held for trading, net,
8. gains or losses on financial assets and liabilities designated at fair value through profit or loss, net,
9. gains or losses from hedge accounting, net,
10. exchange differences (gain or loss), net,
11. other operating income, and
12. other operating expenses. The determination is made on the basis of the most recent annual supervisory financial information that yields an indicator above zero. Where the legal person or partnership with legal capacity is not subject to Implementing Regulation (EU) 2021/451, the annual net turnover corresponds to the total annual net turnover, or the corresponding type of income, under the accounting provisions applicable to it. Where the undertaking concerned is part of a group, the relevant annual net turnover corresponds to the total annual net turnover resulting from the consolidated financial statements of the parent undertaking at the head of the group.