Dáil Éireann Debate, Tuesday - 22 September 2015
351. Deputy Michael McGrath asked the Minister for Finance if he has received a request from the Central Bank of Ireland to approve an increased levy on financial institutions to deal with a deficit in the Central Bank of Ireland pension scheme; and if he will make a statement on the matter. [31493/15]
View answer354. Deputy Michael McGrath asked the Minister for Finance if he will provide in tabular form the total levies collected by the Central Bank of Ireland from financial institutions in the past five years to cover its costs; and if he will make a statement on the matter. [31496/15]
View answer359. Deputy Dara Calleary asked the Minister for Finance if he will be approving the proposed increases in the 2015 industry levy; if he has considered the points raised by the Professional Insurance Brokers Association and the Irish Brokers Association regarding the impact of these increases on their members; and if he will make a statement on the matter. [31552/15]
View answer381. Deputy Michael McGrath asked the Minister for Finance his views on the proposed increase in the industry funding levy imposed by the Central Bank of Ireland; if he is aware of the impact the proposed increase will have on small independent brokers, intermediaries and financial advisers; his views that it is fair to increase the levy in order to contribute towards a deficit in the Central Bank of Ireland defined benefit pension scheme; and if he will make a statement on the matter. [32049/15]
View answer392. Deputy Finian McGrath asked the Minister for Finance the reason the Financial Regulator wants the small and often single operator broker to fund their pension shortfall in the context of concerns expressed about the banking sector (details supplied); and if he will make a statement on the matter. [32283/15]
View answerI propose to take Questions Nos. 351, 354, 359, 381 and 392 together.
Under Sections 32D and 32E of the Central Bank Act 1942, the Central Bank is required to seek my approval for the Regulations prescribing levies and fees to be paid by entities subject to regulation by the Central Bank.
I am aware that the Central Bank consulted industry on their proposed 2015 levies which I understand would in some cases amount to a significant increase on the 2014 levies. The Bank has attributed the proposed increase to both a proliferation of legislative regulation/regulatory activity and an increase in staff pension costs arising from Financial Reporting Standard 17 coupled with current low yields on the bond market.
There has been significant regulatory change since the economic crisis of 2008 in order to protect against future financial crises and also to protect consumers and taxpayers. Both the Central Bank and industry have responded to this new regulatory environment by increasing the level of resources devoted to regulatory and compliance matters. The Government priority is to ensure that the regulator is sufficiently resourced to fulfil its important role and staff costs (including pension costs) are a key component of this effective regulatory regime.
It is important to note that a robust regulatory environment benefits the financial services industry by promoting stability, a level playing field and facilitating prudent development and innovation. A well regulated financial services sector also benefits consumers, industry, and the economy at large. However, I have not yet made any decision under Sections 32D and 32E on the 2015 levies that will be applied by the Central Bank.
I am aware of the issues raised by the Professional Insurance Brokers' Association and the Irish Brokers' Association regarding the impact of any increase on their members and the linkage with the Central Bank pension scheme. I will be taking these matters into consideration in my deliberations on the matter.
As follows in tabular form are the total levies collected by the Central Bank from the financial services industry in the last five years to part fund the regulation of the industry.
|
- |
2010 |
2011 |
2012 |
2013 |
2014 |
|
Gross Annual levies excluding supplemental levies |
€40.0m |
€50.8m |
€61.5m |
€46.7m |
€50.0m |
|
Supplemental Levies* |
€1.6m |
€28.7m |
€13.1m |
€7.2m |
€21.8m |
|
Gross Amounts Levied |
€41.6m |
€79.5m |
€74.6m |
€53.9m |
€71.8m |
*Supplementary levies raised relating to the cost of professional fees associated with the appointment of third parties to carry out significant reviews of Credit institutions.
These costs were fully recovered from the Credit Institutions concerned.
