These FAQs relate to the Industry Funding Levy for 2012.
What is the 2012 Industry Funding Levy?
Pursuant to section 32D of the Central Bank Act 1942 (as inserted by the Central Bank Reform Act, 2010) the Central Bank may, with the approval of the Minister for finance, raise approximately 50 per cent of its annual budget directly from the firms it regulates.The Central Bank of Ireland pays the other 50 per cent.
For further details please see the Guide to Industry Funding Regulations 2012.
Why am I required to pay the Industry Funding Levy?
All regulated entities that held an authorisation as at 31 December 2011 are required to pay their contribution of the 2012 levy.
How much do I have to pay?
The 2012 levy for each industry category is set out in the Guide to Industry Funding Regulations 2012. Firms can calculate the amount of their 2012 levy, on a sub-category basis, by viewing the sample calculations.
The levy that a regulated entity must pay will depend on the basis of calculation for that industry category. An entity that holds an authorisation in more than one category must pay the levy for each category. For example, a credit union (category F) may also hold an authorisation as a multi-agency intermediary (category C) and is therefore required to pay the appropriate levy in both categories.
Where a firm holds two authorisations within the same category, the levy is based on the total declared income from business carried on by that firm other than business carried out under the provisions of the Insurance Mediation Directive. For example, if a firm holds an authorisation as a mortgage intermediary and a multi agency intermediary, the levy is based on the total income earned on regulated activity.
What industry category am I included in?
The full list of industry categories are set out the in the Levying Process section as well as in the Guide to Industry Funding Regulations 2012.
I was authorised for the first time in 2011. Am I required to pay the 2012 Industry Funding Levy?
All firms and funds that held an authorisation from the Central Bank as at 31 December 2011 are required to pay a levy in 2012.
According to the 2012 Regulations I fall within Category C and I am required to complete a ‘Self-Declaration of Income’ form. Where can I get one?
You can download a Self Declaration of Income. Each intermediary (category C) who was authorised for the first time in 2011 was requested to supply a Self-Declaration of Income form to the Central Bank. The declaration should cover income earned from all regulated business in the period from the date of the authorisation to 31 December 2011. This will enable the Central Bank to calculate the income band within which you fall and to determine the appropriate levy.
I am unclear about what figure I should include on the Self Declaration Form? What is income?
The information required is the income from regulated activity that was generated during your financial year ending in 2011. This figure will match the figure in your audited accounts (if appropriate). The amount declared should consist of income received from Product Producers in relation to all regulated activity including:
- All commission and other income derived from product producers
- All payments and amounts received from individual or companies in relation to services/advice provided in relation to regulated activities
- All other income derived from regulated activities (but nor including interest earned by an entity on credit bank balances)
Premiums paid to a broker by a client that are passed straight on to a product producer should not be included.
My authorisation was revoked in 2012. Do I have to pay the levy?
All firms and funds, that held an authorisation as at 31 December 2011, must pay a proportion of the levy based on the period of 2012 for which they were authorised. Where the authorisation is revoked before 5 September 2012 (the date on which the Regulations were made law) the proportion will be calculated with reference to the 2011 Regulations. Where the authorisation is revoked subsequent to 5 September 2012 the proportion will be based on the 2012 Regulations.
What does the term ‘authorised entities’ on the Self Declaration of Income form relate to?
“Authorised entities” on the Self Declaration of Income form refers to any firm or individual that has been granted an authorisation by the Central Bank of Ireland (or any of its predecessors) to operate as a intermediary (including investment product intermediary, mortgage intermediary and insurance/reinsurance intermediary).
I want to pay my 2012 levy contribution by Electronic Funds Transfer.
To ensure payments are dealt with efficiently, a payment reference must be included in the Text Field (Field 72) and must include at least one of the following details: account number and/or levy invoice number. Failure to include the required details may result in the payment being returned at the remitters expense and the levy remaining due.
Payment details are as follows:
Bank of Ireland
| Account Details
| Sort Code
| Account Number
|| IE48 BOFI 9000 1713 7865 15
| Bank Identifier Code
Why should I complete the direct debit mandate? I don’t feel comfortable signing a direct debit without knowing how much I have to pay.
Payment by direct debit is the most efficient means of collecting the levy from the large number of firms regulated by Central Bank of Ireland. It is also a convenient way to pay and makes sure that your contribution is paid on time. You will receive a levy notice at least 28 in advance of the payment by direct debit and therefore will know in advance the amount due from you for this levy year.
However, the direct debit is not mandatory and the levy can be paid by other means. More information can be found in the levying process section, or download and read full details on payment options.
I want to confirm the calculation of my levy. How can I do this?
You can see how the Central Bank of Ireland has calculated your levy contribution by viewing the sample calculations.
I want to appeal payment of the 2012 levy. How can I do this?
A financial service provider may appeal the levy amount to the Head of Financial Regulation to change the amount of the levy where it considers that the amount is incorrectly assessed but must do so no later than 21 days following the date of the levy notice. A financial services provider may only dispute the amount of assessment. A financial services provider cannot dispute an amount correctly calculated from the Schedule to the Regulations.
Any such appeals must be in writing and must:
- dispute the calculation of the levy because of either
- an incorrect figure, or
- an incorrect category or categories;
- set out the grounds of the appeal in detail;
- be accompanied by the amount of required levy contribution that is not in dispute; and
- include any supporting documentation or representations, where relevent.
Once an appeal has been considered and the financial services provider has been notified of the decision, it must pay the balance of the levy owing (if any) within 10 days of the day of notification.
I am a tied agent, what commission income should I declare?
It depends on the type of legal arrangement in place with your product producer and your business’s legal structure as a tied agent.
The following rules apply:
- If you (as the tied agent) are a sole trader, and the product producer takes full and unconditional responsibility for your business, then the Self Declaration of Income form should exclude your commission income.
- If you are a sole trader, and the product producer does not take full and unconditional responsibility for your business, then the Self Declaration of Income form should include commission income.
- If your business is a limited company, then the Self Declaration of Income form should include commission income.
I don’t understanding some of the terms used in relation to the Levy
Please find below an explanation of some of the terms used:
Regulated Entity or Regulated Firm
A firm or individual who holds an authorisation from the Central Bank of Ireland e.g. mortgage intermediary, insurance broker, multi agency intermediary, authorised advisor.
Principal Regulated Entity/Other Regulated Entities
These terms are used on the reverse of the direct debit mandate and are intended to allow those individuals/firms who have more than one authorisation (e.g. an authorised advisor who also holds a mortgage intermediary authorisation) to set up one direct debit to cover all their authorisations.
We have requested that one of the authorisations held be designated as the "principal regulated entity" for our own administration purposes where the direct debit mandate is intended to cover more than one authorisation.
If you have more than one authorisation the "Principle Regulated Entity" should be the largest business.
All commissions and any other income received from product producers.
All payments and amounts received from individuals or companies for services/advice provided in relation to regulated services.
Any other income derived from regulated activities (but not including interest earned by you on credit bank balances held in your own name).
These questions do not deal with my queries. What can I do?
Please send an email to firstname.lastname@example.org with any other queries or telephone the funding team at 01-224-4022