The Central Bank of Ireland and the Department of Finance today published a joint consultation paper entitled ‘Funding the Cost of Financial Regulation’.
This paper outlines a number of changes to the current funding structure, and addresses a number of topics including:
- the case for full industry funding
- the current regulatory cost model
- the future cost of financial regulation
- international comparisons
- domestic comparisons
- regulatory landscape for each of the regulated sectors.
At present, industry funds 50% of the costs incurred by the Central Bank with certain exceptions (as outlined on page 2 of the consultation paper). This results in a corresponding reduction in the annual surplus remitted by the Central Bank to the Exchequer.
The most significant change outlined in the consultation paper is to more closely align the funding levies paid by regulated entities with the costs of their supervision. Any change to the funding levy arrangements will have due regard to the impact on not just the financial services sector and individual firms but also to the fiscal impact and any potential impact on consumers.
Interested parties are asked to comment on the public consultation by 25 September 2015. Responses to submissions received will be published on www.centralbank.ie.
Any queries or submissions in relation to this consultation paper should be sent to funding@finance.gov.ie. Alternatively, you may respond by post to: Funding the Cost of Financial Regulation – Public Consultation, Financial Services Division, Department of Finance, Government Buildings, Upper Merrion Street, Dublin 2.
Source: CBI Ireland