‘(52a)

“legal risk” means the risk of loss, including, expenses, fines, penalties or punitive damages, which an institution might incur as a consequence of events that result in legal proceedings, including the following: supervisory actions and private settlements; failure to act where action is necessary to comply with a legal obligation; action taken to avoid compliance with a legal obligation; misconduct events, which are events that arise from wilful or negligent misconduct, including inappropriate supply of financial services or the provision of inadequate or misleading information on the financial risk of products sold by the institution; non-compliance with any requirement derived from national or international statutory or legislative provisions; non-compliance with any requirement derived from contractual arrangements, or with internal rules and codes of conduct established in accordance with national or international rules and practices; non-compliance with rules on ethics;

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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.