The Central Bank Act 1942 (Section 32D) Regulations 2018 came into operation on 26 October 2018.
The Regulations set out the 2018 framework for payment of the annual Industry Funding Levy by regulated financial services providers to the Central Bank and the basis on which the levy will be calculated.
Under the Regulations, the target recovery rate for insurance undertakings will increase from 65% to 80% and the recovery rate for retail intermediaries will increase from 50% to 65% in 2018 with further increases intended in the next levy cycle. Category B2 EEA branches operating in Ireland on a freedom of establishment basis will now need to fund the equivalent of 50% of the levy applicable to medium impact insurance undertakings as compared to 25% in 2017.
Further information and guidance can be found in the Central Bank’s Funding Strategy and Guide to the 2018 Industry Funding Regulation published in mid-November.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.