Key data
| Regulation | Resolution of July 22, 2026, from the Under-Secretariat, publishing the Legal Assistance Agreement between the General Administration of the State and the Orderly Banking Restructuring Fund |
|---|---|
| BOE Publication | August 13, 2026 |
| Entry into force | July 2, 2026 (date of registration in the state electronic registry) |
| Direct affected parties | FROB and General State Attorney's Office |
| Indirect affected parties | Banking entities in resolution process |
| Category | Public Sector |
| Annual amount | €190,000 + VAT |
| Payment method | Three four-monthly installments |
| Validity | 2 years from registration, renewable for another 2 by express agreement |
| BOE Reference | BOE-A-2026-17672 |
The Orderly Banking Restructuring Fund (FROB) will have legal coverage from the General State Attorney's Office starting July 2, 2026. The agreement, published in the BOE on August 13, 2026 (BOE-A-2026-17672), formalizes a legal assistance relationship that covers both advisory services and representation and defense before any jurisdiction.
For banking entities in resolution process, this agreement means that the body managing their restructuring—FROB—will have a specialized state legal team to defend its positions in any judicial or administrative proceeding.
What does this regulation establish?
The agreement regulates the provision of legal assistance by the General State Attorney's Office to FROB in two differentiated modalities:
- Advisory services: the Attorney's Office issues legal opinions and reports on FROB's actions.
- Representation and defense: state attorneys assume FROB's defense before any jurisdiction (civil, administrative-contentious, criminal, etc.).
The agreement includes the following key operational conditions:
| Aspect | Detail |
|---|---|
| Coordination | A coordinating state attorney will be designated to oversee all matters |
| Conflict of interests | If there is opposition of interests between FROB and the State, the Attorney's Office will refrain from intervening |
| Private attorney | FROB may designate a private attorney when it deems appropriate; in that case, it waives state assistance for that entire proceeding |
| Renewal | Renewable for another two years by express agreement between the parties |
| Registry | The agreement enters into force upon registration in the state electronic registry of bodies and cooperation instruments |
The conflict of interests abstention clause is especially relevant: in cases where FROB and the State itself maintain opposing positions—something that can occur in complex banking resolution proceedings—the Attorney's Office cannot act, and FROB must resort to private representation.
Economic and operational impact
The total cost of the agreement amounts to €190,000 annually plus VAT, which represents a maximum disbursement of €380,000 plus VAT if the initial two-year validity is exhausted, and up to €760,000 plus VAT if the renewal for another two years is activated.
The payment schedule is structured in three four-monthly installments per year, which facilitates FROB's treasury planning and avoids large single disbursements.
| Period | Accumulated cost (without VAT) |
|---|---|
| Year 1 (initial validity) | €190,000 |
| Year 2 (initial validity) | €190,000 |
| Total initial validity (2 years) | €380,000 |
| Year 3 (renewal) | €190,000 |
| Year 4 (renewal) | €190,000 |
| Total maximum (4 years) | €760,000 |
From an operational perspective, the designation of a coordinating state attorney ensures continuity and traceability in the management of legal matters, something critical in banking resolution processes that can extend over years.
Who does it affect?
- FROB (Orderly Banking Restructuring Fund): is the direct beneficiary of the service. It assumes the cost of €190,000 annually plus VAT and obtains comprehensive legal coverage.
- General State Attorney's Office: assumes the provision of the service, with the obligation to designate a coordinator and to refrain in cases of conflict of interests.
- Banking entities in resolution: indirectly affected, since FROB—which manages their restructuring processes—will have state legal representation in proceedings concerning them.
- Creditors and shareholders of entities in resolution: may be affected by the legal positions that FROB defends in judicial proceedings.
Practical example
Suppose a banking entity in resolution process challenges before the administrative-contentious jurisdiction a FROB decision on the valuation of its assets. Under this agreement, it would be a state attorney—coordinated by the coordinating attorney specifically designated for FROB—who would assume the defense of FROB's position in that litigation.
However, if in that same proceeding the State (as creditor or as a party) maintained a position contrary to FROB's, the Attorney's Office would have to refrain from intervening. In that scenario, FROB would have to hire a private attorney for that specific proceeding, waiving the agreement's coverage for that specific case. The cost of the private attorney would be separate from the €190,000 annually already committed.
What should companies do now?
- If you are a banking entity in resolution process: identify whether you have active judicial or administrative proceedings in which FROB is an opposing or allied party. FROB's legal coverage has been strengthened, which may affect your entity's procedural strategy.
- If you provide legal advice to entities in resolution: keep in mind that the State Attorney's Office will act as FROB's representative in most proceedings. Adjust procedural strategy accordingly.
- If you manage legal assistance contracts with public bodies: this agreement is a reference model for structuring similar agreements: fixed annual amount, four-monthly payments, conflict of interests clause and possibility of resorting to private attorney.
- Monitor the renewal: the agreement can be extended until 2030 if both parties agree to the renewal. Any change in economic conditions or in the scope of assistance must be formalized by express agreement.
Frequently asked questions
How much does FROB pay for the State Attorney's Office legal assistance?
FROB pays €190,000 annually plus VAT, distributed in three four-monthly installments. If the agreement is renewed for another two years, the total accumulated cost would reach €760,000 plus VAT in four years.
When does the agreement between FROB and the State Attorney's Office enter into force?
The agreement entered into force on July 2, 2026, the date of its registration in the state electronic registry of bodies and cooperation instruments. It was published in the BOE on August 13, 2026.
What happens if there is a conflict of interests between FROB and the State?
In case of opposition of interests between FROB and the General Administration of the State, the General State Attorney's Office will refrain from intervening in that proceeding. FROB must then designate a private attorney for that specific case, waiving state assistance for that entire proceeding.
Can FROB hire a private attorney even though it has this agreement?
Yes. FROB maintains the power to designate a private attorney when it deems appropriate. However, if it does so, it waives the assistance of the State Attorney's Office for that entire proceeding, not just part of it.
How long does the agreement last and can it be renewed?
The initial validity is two years from the date of registration (July 2, 2026). It can be renewed for another two additional years by express agreement between the parties, which would extend its maximum validity until 2030.
Official source
Consult complete regulation in official source
Notice: This article is merely informative in nature and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://www.boe.es/diario_boe/txt.php?id=BOE-A-2026-17672