What is the Additional Supervisory Supplementary Levy?

From time to time, the Central Bank incurs significant professional fees in building capability in relation to particular frameworks and in processing applications for authorisation and/or applications to extend authorisation by banks/large investment firms, including a review of business models.

It is Central Bank strategy that

1. to the extent to which elements of these costs can be reasonably attributed to specific firms, they should be funded in full by the entities concerned, which will obviate the need for taxpayer subvention;
2. where these costs cannot reasonably be attributed to firms, they should be funded by the Central Bank by means of a subvention.

The Additional Supervisory Supplementary Levy is a once off fee that may be payable by credit institutions, fund service providers or MiFID firms, following authorisation/approval by the Central Bank.

Legislation

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.

Statutory Instrument 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, was signed into law on 29 January 2019 and became effective as of that date.

Who is liable to pay?

The Regulations require that credit institutions, fund service provider and MiFID firms authorised by the Central Bank under the following legislation after 29 January 2019 may be liable to an Additional Supervisory Supplementary Levy (ASSL).
Credit institutions authorised pursuant to Sections 9 or 9A of the Central Bank Act 1971; or an investment firm or a fund service provider authorised by the Central Bank under the following
a. the Investment Intermediaries Act 1995 (No. 11 of 1995); or
b. The European Union (Markets in Financial Instruments) Regulations 2017 (S.I. No. 375 of 2017); or
c. The European Union (Alternative Investment Fund Managers) Regulations 2013  (S.I. No. 257 of 2013); or
d. The European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations 2011 (S.I. No. 352 of 2011).

How much is the Additional Supervisory Supplementary Levy?

This levy is designed to recover professional fees incurred by the Central Bank in processing a specific application for authorisation/application for extension in authorisation where these fees can be reasonably attributed to the firm in question.  While the amount will therefore vary from one instance to another, firms will, where relevant, be advised of the amount of such levy, as part of the supervisory engagement process.

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 Supplementary Levy has not been received by the due date, interest shall accrue (but may not be charged) thereon 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 SupervisorySupplementary 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. 

Billing process

Following authorisation/approval of a credit institution, fund service provider or MiFID firm, the Central Bank will, where relevant, 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 credit institution, fund service provider or MiFID firm is requested to make arrangements to remit the relevant amount to the Central Bank.

Appeals

A credit institution, fund service provider or MiFID firm may appeal the Additional Supervisory Supplementary Levy amount  but must do so no later than 21 days following the due date of the levy notice. 
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 Supplementary Levy that is not under appeal.

The Central Bank will advise, in writing, its determination of the appeal and details of any amount outstanding in respect of the disputed amount of the Additional Supervisory Supplementary Levy and the due date applicable for the payment of any outstanding Additional Supervisory Supplementary Levy.                      

Payment of the Additional Supervisory Supplementary Levy

How can payment of the Additional Supervisory Levy be made?

By Electronic Funds Transfer
Payments details for Electronic Funds Transfer are as follows:
Account Number (IBAN):             IE38 DABA 9519 9050 0169 93
Bank Identifier Code (BIC):         DABAIE2D

Contact Us

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