Industry Funding Levy Information for High Cost Credit Providers
Category G - High cost credit providers
In 2018, the Central Bank published CP117 “New Methodology to Calculate Funding Levies payable by Moneylenders” in which it proposed a new methodology for the calculation of levies payable by moneylenders (now 'high cost credit providers'). This revised calculation methodology which was implemented in 2018 means that high cost credit providers will be charged a levy comprising a flat element plus a variable element, set as a percentage of reported turnover from regulated activity that exceeds a threshold. These flat and variable elements will be determined annually.
Levy Calculation
The levy for high cost credit providers will be calculated as set out in Table 1 below:
|
Table 1
|
|
|
Minimum Levy plus Variable Levy
|
|
High cost credit providers
|
Minimum Levy
|
Variable Levy
|
|
G
|
High cost credit providers
|
€1,920
|
Variable Levy (V) is calculated as follows:
(A - B) x C
Where:
A = firms’ turnover reported to the Central Bank in section 6.2 of the most recently received Renewal Application for the entity.
B = threshold level of total ‘Turnover’ of €60,000;
C = variable levy rate of 1.178%.
|
Click here to read more on the annual levying process.