Tuesday, 23 July 2019

Questions (251)

Fiona O'Loughlin


251. Deputy Fiona O'Loughlin asked the Minister for Finance his views on the Central Bank industry levy increase; and if he will make a statement on the matter. [34010/19]

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Written answers (Question to Finance)

The funding strategy for financial regulation seeks to increase the proportion of financial regulation costs chargeable to industry to 100 per cent over the medium term, thereby reducing taxpayer subvention and recovering the full cost of financial regulation activity from regulated firms. The objective of this strategy is to adhere to the user pays principle in relation to financial regulation and to free up State funds for wider public service priorities. 

This has been a longstanding objective as set out in the feedback statement on CP95 ‘Funding the Cost of Financial Regulation’ in which the Department of Finance and the Central Bank jointly set out a strategic intention to move towards full industry funding on a phased basis.

The recovery rate applicable to credit institutions, insurance, investment firms and fund service providers increased from 65 per cent to 80 per cent in 2018.