5. Operating income
| Note | 2017 €000 |
2016 €000 |
|
|---|---|---|---|
| Recovery of expenses from NAMA | 7.1 | 38,089 | 46,697 |
| Recovery of expenses from ISIF | 7.1 | 12,515 | 10,428 |
| Recovery of expenses from SBCI | 7.1 | 5,169 | 4,213 |
| Asset covered securities income | 224 | 279 | |
| Other income | 2,076 | 675 | |
| 58,073 | 62,292 |
The Agency is required to provide business and support services and systems in addition to assigning staff to a number of functions under prescribed legislation as follows:
- To NAMA under sections 41 and 42 of the National Asset Management Agency Act 2009.
- To the SBCI under section 10 of the Strategic Banking Corporation of Ireland Act 2014.
In addition, under section 48 of the National Treasury Management Agency (Amendment) Act 2014, the expenses of the Agency with regard to the ISIF are defrayed from the ISIF.
Asset covered securities are issued under the Asset Covered Securities Act, 2001 as amended by the Asset Covered Securities (Amendment) Act 2007. The Act (as amended) provides that in the event of a default by a bank registered as a designated mortgage credit institution or as a designated public credit institution under the Act (as amended), the Agency must in the following order, (i) attempt to secure an alternative service provider to manage the relevant asset pools, (ii) secure an appropriate body corporate to become the parent entity of the relevant pools or, (iii) manage the pools itself. In return, the Agency receives asset covered securities income based on the nominal amount of each asset covered bond in issue.
Other income primarily comprises the recovery of professional fees and certain secondment and administrative fees. Under the direction issued to the Agency under Statutory Instrument (S.I.). No. 115 of 2010, the Minister for Finance delegated a number of banking system functions to the Agency. This delegation was revoked with effect from 5 August 2011 under S.I. No. 395 of 2011 and since then Agency staff involved in the provision of banking system functions have been seconded to the Department of Finance Shareholding and Financial Advisory Division. At the direction of the Minister, the related staff and professional advisor costs incurred continue to be met by the Agency. Professional advisor costs of €1.9m were recovered in this regard during 2017 (2016: €0.4m).