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.
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 2011 will be liable to pay the 2012 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 financial intermediary services will fall within category C.
There are currently 14 levy categories.
For further information and details, see Levying Process.