Introduction to the Industry Funding Levy 

The Central Bank Reform Act, 2010 confers on the Central Bank of Ireland the power, with the approval of the Minister for Finance, to make Regulations prescribing an annual Industry Funding Levy (‘the levy’) to be paid by regulated financial service providers to the Central Bank of Ireland.  The purpose of this levy is to fund the relevant proportion of the cost of the annual budget for financial regulation. The balance is funded by the Central Bank of Ireland.

Following a consultation process, the Central Bank introduced in 2013 a revised approach to the levy calculation process designed to more closely align the funding, by regulated financial service providers, of the costs of financial regulation on a basis consistent with the deployment of its supervisory resources.  Further details of these changes can be found in the 2013 Guide to Industry Funding Regulations.

For information on the most recent levies issued to regulated financial service providers please see the  Funding Strategy and Guide To Industry Funding Regulations 2018.

Who is liable to pay?

Any financial service provider who is authorised and regulated by the Central Bank of Ireland on 31 December of a given year is liable to pay the levy for the following year.  In addition, a financial service provider that become authorised during the course of a levying year will be liable to pay a levy for the period for which it holds the authorisation in that year. 

For example: a firm holding an authorisation as a financial services provider on the 31 December 2017 will be liable to pay the 2018 levy.

Levy categories

For the purposes of calculating its annual levy, a financial services provider is classified as falling within a particular ‘levy category’, according to the type of business it is authorised to undertake.

For example: firms authorised to provide retail intermediary services will fall within category C. 

Levying Process 

How the annual Industry Funding Levy is calculated

The method of calculating a financial service provider’s annual levy varies depending on the industry funding category within which the financial service provider falls.

There are currently 12 categories contained in the Regulations. A financial service provider may fall into more than one industry category. In such a case, the financial services provider must pay the levy for each category.

For example: a credit union (Category F) may also hold a retail intermediary authorisation (Category C) and is therefore obliged to pay the levy for both categories.

2018 Industry Funding Levy Categories

Full details of the varying bases of individual levy calculations can be accessed through each of the category links below, and in the Funding Strategy and Guide to the 2018 Industry Funding Regulations.

Category Name   Financial Services Provider Industry Sector 
Category A    Credit Institutions 

Credit Institutions

Category B Insurance Undertakings

Life Insurance Companies

Non-Life Insurance Companies

Reinsurance Companies

Category C Retail Intermediaries & Debt Management Companies

Insurance/Reinsurance Intermediaries

Investment Intermediaries

Mortgage Intermediaries

Debt Management Companies

Category D Securities and Investment Firms

IIA Non-Retail Firms

MiFID Firms

Category E Investment Funds, Alternative Investment Fund Managers and other Investment Fund Service Providers

Authorised UCITS

Authorised Unit Trusts

Authorised Investment Companies (Designated and non-Designated)

Authorised Investment Limited Partnerships

Authorised Common Contractual Funds

UCITS Self-Managed Investment Companies (SMICs)

Authorised Designated Investment Companies (Internally Managed Alternative Investment Funds)

Administrators

AIF Management Companies

UCITS Managers (Non Delegating)

Depositories

Alternative Investment Fund Managers

UCITS Managers (Delegating)

Category F
Credit Unions
Credit Unions
Category G Moneylenders Moneylenders
Category H Approved Professional Bodies Approved Professional Bodies
Category J Bureaux de Change Bureaux de Change
Category L Default Assessment
Category M Home Reversion Firms/Retail Credit Firms/Credit Servicing Firms

Retail Credit Firms

Home Reversion Firms

Credit Servicing Firms 

Category N Payment Institutions / E-Money Institutions

Payment Institutions

E-Money Institutions

Levy Notices

The Central Bank of Ireland issues a levy notice to almost all financial service providers after the regulations are made. The levy must be paid no later than 28 days from the date on the levy notice. If a financial services provider fails to pay the levy by the required date, the Central Bank of Ireland may take steps to recover the amount of the levy.  Recovery action may include court proceedings.

However, financial service providers who do not receive a levy notice are still legally obliged to pay the levy calculated in accordance with the appropriate industry category as set out in the Regulations.

In such a case, the financial service provider should request a copy of the levy notice by sending an email to funding@centralbank.ie

Pro-Rata Levies

Each financial service provider will be liable to a levy for the portion of the year in respect of which it holds an authorisation from the Central Bank.  It follows that financial service providers authorised in 2018 will be liable to a levy covering the period from the date of authorisation to 31 December 2018.  Similarly, financial service providers whose authorisation is revoked during the course of 2018 will be liable to a levy covering the period 1 January 2018 to the date on which the relevant authorisation is revoked.

Payment Methods

Levies may be paid by Direct Debit or Electronic Funds Transfer (EFT).

SEPA Direct Debit Mandate | pdf 487 KB

Paying by EFT: to ensure payments can be allocated correctly, a payment must include at least one of the following details: account number and/or invoice number. Failure to include the required details may result in a failure to identify the payer, the payment being returned at the remitter's expense and the levy remaining due.

Payment details are as follows:

Account Name Central Bank - Industry Funding Levy
IBAN
IE44 DABA 9519 9020 0038 24
Bank Identifier Code
DABAIE2D

Appeals

A financial service provider may submit and appeal the levy amount.  All such appeals must be submitted within 21 days of the due date of the levy contribution /supplemental levy contribution.  This deadline will be strictly enforced.

Any such appeal must set out in writing the grounds for the appeal and include all supporting documentation or representations; and be accompanied by a payment or a receipt evidencing payment of that portion of the levy contribution / supplementary levy contribution that is not under appeal.

Where, in the reasonable opinion of the Central Bank, the obligation of a regulated entity to pay a levy contribution / supplementary levy would be likely to make that entity insolvent, or where the regulated entity / former regulated entity is a sole trader, bankrupt, the Central Bank may waive the obligation of that entity under these regulations to pay the levy contribution / supplementary levy contribution.

The Central Bank may, at its discretion, waive or reduce part / all of a levy contribution / supplementary levy contribution in exceptional circumstances.

The Central Bank shall advise the regulated entity in writing of its decision in respect of the appeal, providing reasons and details of any amount outstanding and the due date applicable for the payment of any outstanding levy liability.