Dáil Éireann Debate, Tuesday - 10 October 2017
64. Deputy Michael McGrath asked the Minister for Finance the cost of regulation in the Central Bank per year in the past five years; the portion of these costs obtained from levies on financial institutions; his plans for the funding model for regulation at the Central Bank; and if he will make a statement on the matter. [42440/17]
Amharc ar fhreagraSections 32D and 32E of the Central Bank Act 1942 (as amended by the Central Bank Reform Act 2010) provide that the Central Bank Commission may make regulations prescribing levies and fees to be paid by entities subject to regulation by the Central Bank, subject to my approval as Minister for Finance.
The annual Industry Funding Levy is designed to recoup, directly from regulated entities, the relevant proportion of the budgeted cost of regulation for the year in question. The balance is funded by the public by means of subvention from the Central Bank. In previous years, there has been a 50:50 funding contribution model, with industry funding approximately 50% of the costs of financial regulation, and the remainder being funded by a subvention from the Central Bank.
The Central Bank of Ireland publishes the guide to Industry Funding Levies on an annual basis. The 2017 Funding Levies are due to be published shortly. The cost of regulation and the income from the levy for 2012–2016 (as per the annual financial statements of the Central Bank) are as follows:
|
|
Cost of Regulation |
Industry Levy Income |
|
2016 |
€155.1m |
€73.3m* |
|
2015 |
€146.7m |
€67.7m* |
|
2014 |
€139.4m |
€75.8m* |
|
2013 |
€128.0m |
€69.7m |
|
2012 |
€110.7m |
€65.2m |
*Excludes deferred levy income arising from spreading the impact of pension volatility over a rolling ten-year period.
This year, the contribution by industry to the Central Bank’s overall cost of financial regulation will be 65%, for most industry categories, with the remainder to be funded by public subvention by the Bank.
This move to 65% funding follows a period of review and public consultation on funding the costs of financial regulation, by my Department and the Central Bank which has taken place over several years. A joint feedback statement to the public consultation was published on 28 September 2017. The press release and joint feedback statement are available at the following link:http://www.finance.gov.ie/updates/department-of-finance-and-central-bank-publish-feedback-statement-to-joint-public-consultation-paper-on-funding-the-cost-of-financial-regulation/.
