New Funding Levy Rule
The Board of the ICCL issued a new funding rule today called the Risk Equalisation levy ('RE levy') designed to address a fuding risk that arises where a significant book(s) of business is being acquired by, or transferred to, firms within the scope of the ICS in the absence of matching funding being received by the ICS. The RE levy was issued following consultation with the Central Bank of Ireland to ensure that the new levy fairly meets the ICCL statutory objective of ensuring the ICCL has the necessary level of funding in place. The RE levy will come into effect from 1 March 2020.
The RE levy will only apply in very limited circumstances and Fund A firms should be aware that their exisiting and future annual levies will not be impacted unless they acquire, from another jurisdiction, a signficant book of business that is not currently within the scope of the Irish ICS (e.g. transfer a book of business from a UK authorised entitiy to an Irish authorised entity, or, authorisation of a large new Irish firm with the migration of a signifiacnt book of business).
All Fund A firms were notified of the introduction of the new RE levy through the issuance of a "Dear CEO" letter with a copy of the RE levy on 10 February 2020. Further details on the new RE levy including a copy of the "Dear CEO" letter are available from the Funding Publications section of the ICCL website.
More details here.