Statement - Industry Funding Levies 2016

The Central Bank has today published the Guide to the Industry Funding Regulations 2016. 

Under the current funding arrangements, which are approved annually by the Minister for Finance, regulated entities are levied 50 per cent^[1] of the costs incurred on financial regulation, with some exceptions.  The balance is funded by the Exchequer by means of subvention from the Central Bank.  In general, costs are levied on industry sectors on a proportionate basis, depending on the level of regulatory input and oversight required.

The budget for financial regulation for 2016 reflects:

• The growth of the financial sector and number of firms and funds regulated, notably in the International Financial Services Centre (IFSC).
• The additional mandates, number and complexity of the financial regulations that the Central Bank is tasked with supervising and enforcing, most notably Alternative Investment Fund Managers Regulations and the Solvency II, which introduced a harmonised EU-wide insurance regulatory regime and came into force on 1 January 2016.
• The phased roll-out of the measures detailed in the Central Bank’s 2016-2018 Strategic Plan, including addressing the IMF recommendations such as bringing low-impact supervision up to an acceptable standard of intensity, improving the Central Bank’s IT infrastructure and the increased cost of contested enforcement actions, such as inquiries, refusals, appeals and litigation.

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^[1] Credit institutions that were admitted to the Eligible Liabilities Guarantee Scheme 2009 currently pay a levy of 100 per cent of the cost of regulation.