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 financial regulation activities. 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 and Strategy Guide to the 2020 Industry Funding Regulations.

Funding the Cost of Financial Regulation activity

Funding the Cost of Financial Regulation | pdf 190 KB

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 2019 will be liable to pay the 2020 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.  Further details on levy categories are available in the Funding and Strategy Guide to the 2020 Industry Funding Regulations.

Consultation

On the 16 February 2021 the Central Bank published a consultation paper seeking views on a revised methodology for calculating the Industry Funding levy payable by Payment Institutions and E-Money Institutions. View the Consultation on New Methodology to Calculate Funding Levies payable by Payment Institutions and E-Money Institutions.

On the expiry of the consultation period on 16 April 2021, a total of 12 responses were received which were considered in detail. A Feedback Statement has been prepared setting out the Central Bank’s position on the matter which reflects the consensus view from Industry. View the Feedback Statement here.