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 approximately 50 per cent of the cost of the annual budget for financial regulation. The remaining 50 per cent is funded by the Central Bank of Ireland.
Following a consultation process, the Central Bank announced in its Feedback Statement on Consultation Process and Other Levy Related Matters its intention to introduce in 2013 a revised approach to the levy calculation process designed to more closely align the funding, by regulated entities, 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 and in the Levying Process area of this website.
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.
For example: a firm holding an authorisation as a financial services provider on the 31 December 2012 will be liable to pay the 2013 levy.
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.
There are currently 13 levy categories.
For further information and details, see Levying Process.