Christos V. Gortsos, Elli K. AnastopoulouFrom: Liability of Financial Supervisors and Resolution Authorities
Edited By: Danny Busch, Christos Gortsos, Gerard McMeel QC
The Greek financial supervisors (Bank of Greece and Hellenic Capital Market Commission) are subject to a statutory no-fault liability standard, whereby their liability is established in cases of illegality in their actions; proving fault in their behaviour (negligence or intention) is not required. However, Greek case law has limited their liability by holding them liable only in cases of grave illegality. Equally, case law has limited the right to compensation of aggrieved parties to reasonable compensation, while in certain instances it has granted the supervisors compensatory immunity. When the Bank of Greece acts in its capacity as a resolution authority, the statutory liability standard is that of gross negligence and bad faith. This chapter discusses the liability of Greek financial supervisors and resolution authorities and evaluates the limitations introduced thereto in light of the EU law requirements.