In 2003, the Irish Government created the Irish Financial Services Regulatory Authority (‘the Financial Regulator’) and gave it the power to raise an annual Industry Funding Levy (‘the levy’) directly from the financial service providers it authorises and regulates.
The purpose of this levy is to fund approximately 50% of the cost of the Financial Regulator’s annual budget. The remaining 50% is paid by the Central Bank and Financial Services Authority of Ireland.
Who is liable to pay?
Any financial service provider who is authorised and regulated by the Financial Regulator 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 2008 will be liable to pay the 2009 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 financial intermediary services will fall within category C.
There are currently 13 levy categories.
For further information and details, see Levying Process.