Department of Finance and Central Bank Publish Feedback Statement to Joint Public Consultation Paper on Funding the Cost of Financial Regulation
The Minister for Finance and Public Expenditure & Reform, Paschal Donohoe T.D and the Deputy Governor, Ed Sibley (Prudential Regulation) of the Central Bank are today (Thursday, 28th September 2017) pleased to announce the publication of a feedback statement in response to the joint public consultation paper “Funding the Cost of Financial Regulation” (CP95).
This formally concludes the consultation process on the subject of industry funding the costs of financial regulation, which has been ongoing since July 2015. The objective at the time of the public consultation was to look at moving towards industry funding the full cost of its regulation, however, industry was wary of an immediate increase from 50 to 100 per cent funding and called for a phased increase. This view, along with the changes in the financial regulatory landscape caused by the UK’s decision to leave the EU, informed the decision to move to the Bank levying 65 per cent of its regulatory costs in 2017.
The feedback statement collates the submissions by industry and outlines the Department of Finance and Central Bank consideration and response to the issues raised.
Minister Donohoe welcomed the release of the feedback statement, saying: “This document forms a comprehensive response to the matters raised in this consultation, and is the culmination of several years of work by all involved, often behind the scenes. My predecessor, Michael Noonan, made a point of taking on board the views of industry during this process, and this feedback statement demonstrates that continued constructive engagement between my Department, the Central Bank, and industry representatives.”
Previously, the Central Bank levy to industry has been set at 50 per cent of the Central Bank’s costs, with some variations across specific sectors. The difference between the total cost of regulation and the income from levies (€69.7 million in 2016) is funded by way of subvention from the Bank, which translates into a corresponding reduction in the annual surplus surrender by the Central Bank to the Exchequer. The 2017 levies due to be published later this year will recoup 65 per cent of the Bank’s costs from industry, with certain exceptions.
Thursday 28th September, 2017
Aidan Murphy [Press Officer, Department of Finance] – 085 886 6667
Press Office, Department of Finance – firstname.lastname@example.org – 01 676 0336