Consultation on New Methodology to Calculate Funding Levies

PUBLISHED: 30th March 2017

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Have your say by 28 April 2017.

The Central Bank of Ireland has published a Consultation Paper (CP 108) on the industry funding levy that is paid to the Central Bank by regulated financial services providers in relation to its supervision of those entities.

In the Consultation Paper, the Central Bank proposes to revise the way the current industry funding levy is calculated for certain service providers.

  • Banks
  • Investment firms
  • Fund service providers
  • EEA insurers
     

The levy for banks would be calculated according to the ECB methodology.

The levy for investment firms and fund service providers would be replaced by a more gradual and smoothed function, as opposed to the current system where the levy is calibrated in steps.

EEA insurers, regulated by the Central Bank for conduct of business, would face higher levies if they are large or write motor business in Ireland.

The timing of this Consultation Paper is unfortunate at a time when firms are adjusting to the challenges of managing their businesses in the context of Brexit, because any unnecessary uncertainty in Ireland has the potential to result in decisions being made by such firms that are unfavourable to Ireland.  However, it will be a trade-off -- some firms will benefit and some will lose out under these proposals.

The Consultation is open until 28 April 2017 and we would invite you to either forward any comments or observations you may have to us so that we may submit them  to the Central Bank on your behalf, or alternatively, you can respond directly to the Central Bank.


For further information, please contact Trevor Dolan, Partner at tdolan@lkshields.ie.