Levying Process

How the annual Industry Funding Levy is calculated

The method of calculating a regulated entity's annual levy varies depending on the industry funding category within which the regulated entity falls.

There are currently 12 categories contained in the Regulations. A regulated entity may fall into more than one industry category. In such a case, the regulated entity 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.

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 2023 Industry Funding Regulations.

Levy Notices

The Central Bank of Ireland issues a levy notice to almost all regulated entities after the Regulations are made. The levy must be paid no later than 28 days from the date on the levy notice. If a regulated entity 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, regulated entities 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 regulated entity should request a copy of the levy notice by sending an email to [email protected].

Pro-Rata Levies

Each regulated entity 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 regulated entities authorised in 2022 will be liable to a levy covering the period from the date of authorisation to 31 December 2022.  Regulated entities authorised in 2023 will be levied in 2024.

Similarly, regulated entities whose authorisation was revoked during the course of 2022 are liable to a levy covering the period 1 January 2022 to the date on which the relevant authorisation was revoked. Regulated entities whose authorisation is revoked in 2023 will be levied at the time of revocation.

Payment Methods

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

Paying by EFT: to ensure payments can be allocated correctly, a payment must include at least one of the following details: invoice number or account 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:

If paying by SWIFT, please note the payment reference (invoice number or account number) should be populated in the correct fields on the payment:

     SWIFT Payments:         MT103: Field 70

 We kindly request that, where possible, one payment is made per account.

Appeals

A regulated entity may 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, or bankrupt, the Central Bank may waive the obligation of that entity under the 2023 Industry Funding 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.