The Central Bank has opened a consultation CP61 Consultation on Impact Based Levies and Other Levy Related Matters setting out proposed reforms to the levy calculation process which are designed to make the process more equitable and transparent. The Central Bank is proposing to introduce an impact based approach to the levy calculation process for the funding year 2013 as well as introducing application fees for those firms seeking authorisation in respect of the provision of financial services. Usefully, Section 5 of CP61 sets out, for illustrative purposes only, a number of examples comparing the amount of the levy that might be expected to apply under an impact based approach to the levy process with the corresponding 2012 levy payable under the present levy calculation methodology.

While the Governor and the Deputy Governor (Financial Regulation) have each expressed the view that the public sector (through the Central Bank) cannot continue indefinitely the practice of, in effect, discharging half of the costs of regulation, the proportion of funding provided by industry is primarily a matter for the Minister for Finance and so is outside the scope of this consultation. Likewise, the absolute quantum of the annual funding requirement (details of which are submitted to the Minister for Finance for approval on an annual basis) is outside the scope of this consultation. The consultation will close on 22 February 2013.