Article 50, Administrative Penalties And Remedial Measures, Digital Operational Resilience Act (DORA)

Overview

1. Competent authorities shall have all supervisory, investigatory and sanctioning powers necessary to fulfil their duties under this Regulation.

2. The powers referred to in paragraph 1 shall include at least the following powers to:

(a) have access to any document or data held in any form that the competent authority considers relevant for the performance of its duties and receive or take a copy of it;

(b) carry out on-site inspections or investigations, which shall include but shall not be limited to;

(i) summoning representatives of the financial entities for oral or written explanations on facts or documents relating to the subject matter and purpose of the investigation and to record the answers;

(ii) interviewing any other natural or legal person who consents to be interviewed for the purpose of collecting information relating to the subject matter of an investigation;

(c) require corrective and remedial measures for breaches of the requirements of this Regulation.

3. Without prejudice to the right of Member States to impose criminal penalties in accordance with Article 52, Member States shall lay down rules establishing appropriate administrative penalties and remedial measures for breaches of this Regulation and shall ensure their effective implementation.

Those penalties and measures shall be effective, proportionate and dissuasive.

4. Member States shall confer on competent authorities the power to apply at least the following administrative penalties or remedial measures for breaches of this Regulation:

(a) issue an order requiring the natural or legal person to cease conduct that is in breach of this Regulation and to desist from a repetition of that conduct;

(b) require the temporary or permanent cessation of any practice or conduct that the competent authority considers to be contrary to the provisions of this Regulation and prevent repetition of that practice or conduct;

(c) adopt any type of measure, including of pecuniary nature, to ensure that financial entities continue to comply with legal requirements;

(d) require, insofar as permitted by national law, existing data traffic records held by a telecommunication operator, where there is a reasonable suspicion of a breach of this Regulation and where such records may be relevant to an investigation into breaches of this Regulation; and

(e) issue public notices, including public statements indicating the identity of the natural or legal person and the nature of the breach.

5. Where paragraph 2, point (c), and paragraph 4 apply to legal persons, Member States shall confer on competent authorities the power to apply the administrative penalties and remedial measures, subject to the conditions provided for in national law, to members of the management body, and to other individuals who under national law are responsible for the breach.

6. Member States shall ensure that any decision imposing administrative penalties or remedial measures set out in paragraph 2, point (c), is properly reasoned and is subject to a right of appeal.

Summary Of Article 50

Article 50 of the Digital Operational Resilience Act (DORA) grants competent authorities extensive powers to supervise, investigate, and enforce compliance with the regulation. These authorities can access relevant documents and data, conduct on-site inspections, and interview individuals to collect information. They are also empowered to impose corrective and remedial measures for non-compliance, ensuring financial entities meet the regulation’s requirements.

Member States must establish administrative penalties that are effective, proportionate, and dissuasive. These penalties may include orders to cease non-compliant activities, the temporary or permanent cessation of harmful practices, financial sanctions, and public notices identifying breaches. Additionally, authorities may request data traffic records from telecommunication operators if relevant to an investigation.

The article also empowers competent authorities to apply penalties and measures to members of a company’s management body or other responsible individuals when necessary. Any decision to impose penalties or remedial measures must be well-reasoned and subject to appeal, ensuring fairness and transparency in enforcement. These provisions help ensure that financial entities adhere to DORA’s operational resilience and cybersecurity standards.