Strategic Plan 2013-2015

The Central Bank of Ireland’s Strategic Plan 2013 – 2015 sets out its key strategic priorities for the next three years.  The plan underpins the Central Bank’s continued emphasis on consumer protection and financial stability.

Key objectives outlined in the plan include the following:

  • Restoring financial stability
  • Supporting economic recovery
  • Contributing to economic and regulatory policy in Ireland and internationally
  • Protecting consumers

The plan outlines the Central Bank’s regulatory approach and its strengthened legal mandate. Of particular interest to regulated entities are comments on:

  • Strengthening its ‘gatekeeper role’, particularly in relation to the staff of regulated entities
  • Enhanced enforcement tools contained in Government proposals for reform (e.g. increased penalties and further powers to issue directions)

Industry Funding Levy Proposals

The Central Bank has also published a consultation paper setting out proposals as to how the Central Bank will calculate the levies that it charges in future.  The paper proposes using its PRISM ratings for regulated companies to calculate the levy payable. This aims to align the amount of the levy a regulated company will pay with the cost of supervising that company.

A regulated company’s “PRISM” category determines the number of supervisors assigned to that company.  Under the proposals, a single levy rate for each impact category within each PRISM category for an industry would apply. 

There are five impact categories under PRISM. Companies have already been informed of the category that they have been assigned.  In the consultation paper, it is estimated that levies payable in 2012 under the new approach would have been as follows:

  • Ultra-high (€1,313,240)
  • High (€599,166)
  • Medium-high (€136,249)
  • Medium-low (€27,086)
  • Low (€9,361)

The consultation paper contains useful comparative examples of how levies payable by various companies under the existing process will compare with levies payable under the proposed impact-based approach.  These examples highlight that the new approach will increase the levy payable by some regulated companies and decrease it for others.

It should be noted that the ECB is considering the regulatory funding costs of Eurozone credit institutions in the context of the proposed Single Supervisory Mechanism; this could have implications for the levy calculation process.

The Central Bank is looking for responses on various issues, including the treatment of monetary penalties, application fees, pro-rata levies and unpaid levies. The closing date for comments is 22 February 2013.