The Consultation Paper states that the mitigation of prudential risk and prevention of customer loss are both key goals of the Central Bank and in order to meet these challenges the Central Bank needs to optimise the allocation of its finite supervisory resources in the performance of its regulatory responsibilities.

In the Consultation Paper, the Central Bank proposes reforms to the levy calculation process designed to make the process more equitable and transparent.

The most significant reform is an impact based approach to the levy calculation process given that the impact categorisation of a firm determines the number of supervisors allocated to it and therefore the costs of such supervision.

The Central Bank intends to implement the proposed impact based levy calculation regime for the funding year 2013.

It is also proposed to introduce application fees for those firms seeking authorisation in respect of the provision of financial services to reflect the cost involved in the processing of applications.

The consultation process will run for three months from 20 November 2012 until 22 February 2013.