Recital 32

(32) When imposing periodic penalty payments, a competent authority should take into account the potential impact of the periodic penalty payment on the financial situation of the natural or legal person in breach and seek to avoid a situation where the penalty would cause the natural or legal person in breach to become insolvent or lead to serious financial distress or would represent a disproportionate percentage of the annual income of the natural person or of the total annual turnover of the legal person. Competent authorities should also ensure that periodic penalty payments are applied to the members of the management body, senior management, key function holders, other material risk takers and to any other natural persons who are identified as being directly responsible for the breach, either individually or collectively.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04 · Text as adopted (Official Journal); later amendments are not incorporated in this text.