Frequently Asked Questions on the Industry Funding Levy  

These FAQs relate to the Industry Funding Levy for 2009. 

What is the 2009 Industry Funding Levy?

The government gave the power to raise a levy to the Chief Executive of the Financial Regulator pursuant to the Central Bank and Financial Services Authority of Ireland Act 2003 (Section 33J) directly from the firms it regulates.  The total levy payable is used to fund approximately 50% of the cost of the Financial Regulator’s budget.  The Central Bank of Ireland pays the other 50%.  For further details please see the Guide to Industry Funding Regulations 2009.

Why am I required to pay the Industry Funding Levy?

All regulated entities that held an authorisation as at 31 December 2008 are required to pay their contribution of the 2009 levy.  All Collective Investment Schemes that were authorised as at 31 March 2009 are required to pay the 2009 levy.  

How much do I have to pay?

The 2009 levy for each industry category is set out in the Guide to Industry Funding Regulations 2009. Firms can calculate the amount of their 2009 levy, on a sub-category basis, by viewing the sample calculations.

The levy that a regulated entity must pay will depend on the basis of calculation for that industry category.  An entity that holds an authorisation in more than one category must pay the levy for each category.  For example, a credit union (category F) may also hold an authorisation as a multi-agency intermediary (category C) and is therefore required to pay the appropriate levy in both categories.

Where a firm holds two authorisations within the same category, the levy is based on the total declared income from business carried on by that firm other than business carried out under the provisions of the Insurance Mediation Directive.  For example, if a firm holds an authorisation as a mortgage intermediary and a multi agency intermediary, the levy is based on the total income earned on regulated activity.

What industry category am I included in?

The full list of industry categories are set out the in the Levying Process section as well as in the Guide to Industry Funding Regulations 2009.

I was authorised for the first time in 2008.  Am I required to pay the 2009 Industry Funding Levy?

All firms and funds that held an authorisation from the Financial Regulator as at 31 December 2008 are required to pay a levy in 2009.

According to the 2009 Regulations I fall within Category C and I am required to complete a ‘Self-Declaration of Income’ form.  Where can I get one?

You can download a Self Declaration of Income form here.

Each intermediary (category C) who was authorised for the first time in 2008 was requested to supply a Self-Declaration of Income form to the Financial Regulator by 2 February 2009.  The declaration should cover income earned from all regulated business, other than business carried out under the provisions of the Insurance Mediation Directive, in the period from the date of the authorisation to 31 December 2008.  This will enable the Financial Regulator to calculate the income band within which you fall and to determine the appropriate levy.  

I am unclear about what figure I should include on the Self Declaration Form?  What is income?

The information required is the income from regulated activity (other than business carried out under the Provisions of the Insurance Mediation Directive) that was generated during your financial year ending in 2008.  This figure will match the figure in your audited accounts (if appropriate).  The amount declared should consist of income received from Product Producers in relation to all regulated activity including:

• All commission and other income derived from product produce
• All payments and amounts received from individual or companies in relation to services/advice provided in relation to regulated activities
• All other income derived from regulated activities (but nor including interest earned by an entity on credit bank balances)

Premiums paid to a broker by a client that are passed straight on to a product producer should not be included. 

My authorisation was revoked in 2009.  Do I have to pay the levy?

All firms and funds, that held an authorisation as at 31 December 2008, must pay a proportion of the levy based on the period of 2009 for which they were authorised.  Where the authorisation is revoked before 4 August 2009 (the date on which the Regulations were made law) the proportion will be calculated with reference to the 2008 levy amount. Where the authorisation is revoked subsequent to 4 August 2009 the proportion will be based on the 2009 levy amount.

What does the term ‘authorised entities’ on the Self Declaration of Income form relate to?

“Authorised entities” on the Self Declaration of Income form refers to any firm or individual that has been granted an authorisation by the Financial Regulator (or any of its predecessors) to operate as a intermediary (including investment product intermediary, mortgage intermediary and insurance/reinsurance intermediary).

I want to pay my 2009 levy contribution by Electronic Funds Transfer. 

Please ensure that you quote your account number and levy notice number with payment.  If there are insufficient details included with the remittance to allow us to allocate the payment to your account, the remittance may be returned.  Payment details are as follows:

Bank of Ireland
College Green
Dublin 2

Why should I complete the direct debit mandate?  I don’t feel comfortable signing a direct debit without knowing how much I have to pay.

Payment by direct debit is the most efficient means of collecting the levy from the large number of firms regulated by Financial Regulator.  It is also a convenient way to pay and makes sure that your contribution is paid on time.   You will receive a levy notice at least 28 in advance of the payment by direct debit and therefore will know in advance the amount due from you for this levy year. 

However, the direct debit is not mandatory and the levy can be paid by other means.  More information can be found in the levying process section, or download and read full details on payment options.

I want to confirm the calculation of my levy.  How can I do this?

You can see how the Financial Regulator has calculated your levy contribution by viewing the sample calculations.  

I want to appeal payment of the 2009 levy.  How can I do this?

A financial service provider may appeal the levy amount to the Chief Executive of the Financial Regulator but must do so within the timeframe and in the manner set out in the Regulations. A financial services provider may only dispute the amount of assessment. A financial services provider cannot dispute an amount correctly calculated from the Regulations.

In order to appeal, a financial services provider must:

• dispute the calculation of the levy because of either
• an incorrect figure, or
• an incorrect category or categories;
• include the grounds for appeal against the amount assessed;
• include any supporting documentation (if any);
• and pay the undisputed balance of the levy.

After an appeal is considered and the financial services provider is notified of the decision, the financial services provider must pay the balance of the levy owing (if any) within 10 days.

I am a tied agent, what commission income should I declare?

It depends on the type of legal arrangement in place with your product producer and your business’s legal structure as a tied agent.

The following rules apply:

• If you (as the tied agent) are a sole trader, and the product producer takes full and unconditional responsibility for your business, then the Self Declaration of Income form should exclude your commission income.
• If you are a sole trader, and the product producer does not take full and unconditional responsibility for your business, then the Self Declaration of Income form should include commission income.
• If your business is a limited company, then the Self Declaration of Income form should include commission income.

I don’t understanding some of the terms used in relation to the Levy

Please find below an explanation of some of the terms used:  

These questions do not deal with my queries.  What can I do?

Please phone the Financial Regulator at 01 224 4022 or email to funding.pfd@finanicalregulator.ie with any other queries.