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Austria / Supreme Administrative Court / AW 2010/17/0015

A bank v Federal Republic of Austria (Financial Market Authority)

Policy area:
Economic and monetary affairs
Deciding Body type:
National Court/Tribunal
Deciding Body:
Supreme Administrative Court
Decision date:

Key facts of the case:

The Financial Market Authority stated in a decision of 8 January 2009 that Mr. T., the managing director of the applicant company (a local bank) did no longer fulfil the requirement of personal reliability. Therefore one of the preconditions for the banking licence was given no longer. The bank was ordered under penalty of fine to dismiss Mr. T. and to appoint another managing director. The bank complained to the Supreme Administrative Court and requested to grant the complaint suspensive effect. It argued that the threat of a fine was a disproportional burden for the bank. If it complied with the order substantive costs would incur as a new managing director would have to be employed. Furthermore the dismissal of the managing director would lead to a mayor loss of reputation of the bank, as these facts could not be held secret in the small town where it was located.