On 4 October, the Central Bank Act 1942 (Section 32D) Regulations 2016 (S.I. No. 508 of 2016) (the Regulations) were signed into law.
The Regulations set out the framework for this year's levying process and the basis on which individual financial service providers' levies will be calculated. From 4 October, all financial service providers are liable to pay an annual levy. The objective of the regulations is to raise approximately 50% of the budget attributed to the Central Bank's financial regulation activities directly form the financial service providers it regulates.
The Central Bank issued guidance on the Regulations. Section 2 of the guidance sets out significant changes to the levy in 2016. One of these changes is that, retail intermediaries will now pay levies based on a minimum flat rate levy and a variable levy based on the portion of income from fees and income from commissioners that exceed a specified threshold. Section 3 (Category B and Category C) of the guidance sets out the calculation of the industry funding levy for insurance undertakings and intermediaries respectively.