Brokers Ireland Meet Central Bank on Industry Funding Levy

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26th Oct 2017

 

Brokers Ireland met with the Central Bank on the 28th of September 2017 in relation to the 2017 industry funding levy.

The Central Bank advised that the 2017 budgeted costs to be recovered from the Retail Intermediary sector of €4.4 million represent 50% of the Budgeted costs of €8.8 million attributable to this sector, this is an increase of 1.3 million. Brokers Ireland queried what the reason for this increase in budget was and it was advised that additional staff have been recruited in the enforcement area.   This is to support the Central Bank’s strategy of a more enhanced supervision of the intermediary sector.

Brendan Sheridan, Deputy Head of Division, Financial Control and Procurement Division advised that all sectors bar the intermediary sector will be moving to 65% funding this year – it was advised that the exception for intermediaries this year was due to lobbying by Brokers Ireland.  The intermediary sector will continue to fund 50 % this year,  however will move to 65% next year with the aim of been at 100% funding within 5 years.

The levies were outline as follows:

Retail Intermediaries 2017 (Proposed)

2016 (Actual)

2017 Proposed V

2016 Actual

%

Minimum Levy 932 700 33.1%
Variable Levy 0.22% 0.15% 46.7%
Threshold for Income 300,000 300,000 0.0%

Brokers Ireland strongly outlined it concerns about the significant increase in the levy, particularly when intermediary numbers are continuing to drop – the Central Bank indicated that there is approximately 2500 regulated intermediaries.   Brokers Ireland outlined the many concerns which members have in relation to the role of the Central Bank and how it engages with intermediaries.  Given the significant concerns of the membership, it was agreed that Brokers Ireland would meet with the Central Bank again in relation to issues and concerns highlighted by members.

Levy notices will be issued to Brokers in the coming weeks.

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