Dáil Éireann Debate, Tuesday - 15 September 2020
282. Deputy Ged Nash asked the Minister for Finance the cost to the Exchequer relating to governance and regulation of the financial services industry; the potential estimated revenue accrued from a levy at 0.5% and 1% on turnover for the financial services industry; and if he will make a statement on the matter. [23748/20]
Amharc ar fhreagraAs the deputy may be aware the Central Bank disclose the total cost of Financial Regulation (Net Annual Funding Requirement or nAFR) in the Central Bank Annual Report each year. The most recent report covers the 2019 cost of Financial Regulation and revealed a total cost of €204.5m (see link below). The cost of €204.5m is part funded by income from industry of €165.8m (which it is expected to raise from the issue of levy invoices in late September 2020) and the balance is subvented by the Central Bank, effectively reducing the dividend available to the exchequer.
As the levy methodology used varies across the different categories of firms, it is not possible to provide a response based on percentage of turnover. The overall recovery rate at 81% is calculated as a percentage of the nAFR divided by the cost of regulation (€204.5m).
I have been advised that in conjunction with the issue of levy invoices in September, the Central Bank will publish the 2020 Industry Funding Guide which contains significant disclosures on 2019 costs and levies.
https://www.centralbank.ie/docs/default-source/publications/corporate-reports/annual-
reports/annual-report-2019-and-annual-performance-statement-2019-2020.pdf?sfvrsn=12
