What is the Additional Supervisory Levy?

Section 32D of the Central Bank Act 1942 (as inserted by the Central Bank Reform Act 2010 (No. 23 of 2010)) provides that the Commission of the Central Bank of Ireland ('Central Bank'), with the approval of the Minister for Finance, may make regulations prescribing levies to be paid by persons who are subject to regulation under the designated enactments and designated statutory instruments. 

The Additional Supervisory Levy is a once off fee that is to be payable by fund service providers, MiFID firms, investment funds and sub-funds following authorisation / approval by the Central Bank. 

Legislation

S.I. No 17 of 2019, The Central Bank Act 1942 (Section 32D) (Additional and Supplementary Supervisory Levies – Regulated Entities) Regulations 2019 ( No.17 of 2019)’, as approved by the Minister for Finance, were signed into law on 29 January 2019 and became effective as of that date.  These Regulations  (‘The Regulations’) extend the principle, implemented in 2017 in relation to defined funds, to include fund service providers and MiFID firms. 
‘The Central Bank Act 1942 (Section 32D) (Investment Funds Additional Supervisory Levy) Regulations 2019 (No. 441 of 2017)’ were revoked on the same date.

Who is liable to pay?

Fund Service Providers and MiFID Firms

The Regulations apply to every fund service provider and MiFID firm authorised by the Central Bank after 29 January 2019 under the following legislation and require them to pay a once off Additional Supervisory Levy:

1. The Investment Intermediaries Act 1995 (No. 11 of 1995); or
2. The European Union (Markets in Financial Instruments) Regulations 2017 (S.I. No. 375 of 2017); or
3. The European Union (Alternative Investment Fund Managers) Regulations 2013  (S.I. No. 257 of 2013); or
4. The European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. No. 352 of 2011).

Funds

The Regulations apply to every investment fund that is authorised, and every sub-fund approved (subsequent to the authorisation of an umbrella investment fund), under the following legislation and require them to pay a once off Additional Supervisory Levy:

1. European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011; or
2. Unit Trusts Act 1990, Part XIII; or
3. Part 24 of the Companies Act 2014; or
4. Investment Funds, Companies and Miscellaneous Provisions Act 2005; or
5. Irish Collective Asset-management Vehicles Act 2015; or
6. Investment Limited Partnerships Act 1994.

How much is the Additional Supervisory Levy?

Fund Service Providers and MiFID Firms

The amount of the Additional Supervisory Levy payable by a fund service provider or MiFID firm is determined by:

1. The Central Bank’s assessment of the potential impact of the failure of a regulated entity on financial stability and consumers; and
2. Whether the application is for a new authorisation or an extension of an existing authorisation.

Basis of calculation for additional supervisory levy payable by fund service provider or MiFID firm

‘Impact Category’ will be assessed by the Bank as part of the authorisation process, in accordance with its Probability Risk and Impact System (PRISM) to reflect the Bank’s assessment of the potential impact of the failure of a regulated entity on financial stability and consumers.

Investment funds

The amount of the Additional Supervisory Levy payable by an investment fund is set out in the tables below.  Umbrella funds will pay €3,000 plus a contribution per sub-fund of €2,000.  Where the number of sub-funds received in a single application for authorisation exceeds ten, the amount to be charged will not exceed €23,000.  For the avoidance of doubt, all further sub-funds approved are liable to pay the Additional Supervisory Levy upon approval.

Umbrella Funds:

Standalone Funds:

Sub-fund approved subsequent to authorisation of umbrella investment fund:

When is the levy payable?

Relevant entities are required to pay this levy within 28 days of the issue of the levy notice (as specified on the levy notice).

Without prejudice to any other remedy available to the Central Bank, where the Additional Supervisory Levy has not been received by the due date, interest shall accrue thereon but may not be charged in accordance with the provisions of the European Communities (Late Payment in Commercial Transactions) Regulations 2012 (S.I. 580 of 2012) or any amending or replacing legislation. 

If the Additional Supervisory Levy remains outstanding as at the due date, the Central Bank may take steps to recover the amount due.  Recovery action may include court proceedings.  It should be noted that relevant entities who do not receive an Additional Supervisory Levy notice are still legally obliged to pay the amount as set out in the Regulations.

Billing Process

Following authorisation / approval of a fund service provider, MiFID firm or investment fund, the Central Bank will issue a levy notice to that entity setting out the amount due to the Central Bank together with details of the bank account into which payment must be made.  Upon receipt of such levy notice, the fund service provider, MiFID firm or investment fund is advised to review the levy notice in conjunction with the Regulations, to ensure that the amount of the levy has been calculated correctly and make arrangements to remit the relevant amount to the Central Bank.

Appeals

A fund service provider, MiFID firm or investment fund may, no later than 21 days following the due date of the levy notice submit an appeal in respect of the Additional Supervisory Levy.

Any such appeals must be in writing and must:

• Set out in writing the grounds of the appeal and should include, in particular, all supporting documentation or representations; and/or

• Include payment or a receipt evidencing payment of that portion of the Additional Supervisory Levy that is not under appeal.

The Central Bank will advise the fund service provider, MiFID firm or investment fund concerned in writing of its determination of the appeal and details of any amount outstanding in respect of the disputed amount of the Additional Supervisory Levy and the due date applicable for the payment of any outstanding Additional Supervisory Levy.

Payment of the Additional Supervisory Levy 

How can payment of the Additional Supervisory Levy be made?

By Electronic Funds Transfer

Payments details for Electronic Funds Transfer are as follows:

Fund service Providers and MiFID Firms

Account Number (IBAN):IE38 DABA 9519 9050 0169 93
Bank Identifier Code (BIC):DABAIE2D

Funds

Account Number (IBAN): IE90 DABA 9519 9050 0143 11
Bank Identifier Code (BIC):DABAIE2D

In either case, the payment reference must include at least one of the following details: account number and/or invoice number (both details will be available on the levy invoice).  If this information is not submitted, the Central Bank of Ireland may be unable to allocate the payment in which case it will be returned at the sender.

If paying by SWIFT, please note the payment reference (account number or invoice number) should be populated in the correct fields on the payment:

SWIFT Payments:         MT103: Field 70

We kindly request that, where possible, one payment is made per account.

Contact Us

For queries on the Additional Supervisory Levy, please contact:[email protected]