Early intervention power to remove senior management

The sequential order between Article 27 and 28 of Directive 2014/59/EU (BRRD) stems from the legal text: The wording in Article 28 BRRD establishes that the power for the removal of senior management and management body under it is available in case of significant deterioration in the financial situation or in case of serious infringements of law, regulations, statutes of the institution or serious administrative irregularities and " if other measures taken in accordance with Article 27 are not sufficient" . Therefore, the framework provides a gradual and proportionate approach depending on the seriousness of the relevant situation. However, it may not be necessary or possible to take the measures established in Article 27 BRRD, before taking those laid down in Article 28 BRRD. It may for example even not be feasible to "take" the measure laid down in Article 27(1)(d) BRRD before exercising the power in Article 28 BRRD which is possible even if there is no 'fit and proper' issue under Directive 2013/36/EU (CRD IV) or Directive 2014/65/EU. It should also be borne in mind that the powers under Article 27(1) BRRD are not exhaustive as they complement the powers of Article 104 CRD IV and are to be taken according to the relevant situation. Therefore, it would not seem justified to have to effectively take the measures under Article 27(1) BRRD before acting under Article 28 BRRD if the conditions in Article 28 BRRD are met. The list of measures in Article 27 BRRD is to be considered a minimum list. Disclaimer: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.