Changes to information requirements in the LCCP, regulatory returns, official statistics, and related matters
- Changes to information requirements in the LCCP, regulatory returns, official statistics, and related matters
- Executive Summary
- Part 1: Summary of responses - Changes to information requirements for licensees: Consultation Response
- Part 2: Summary of responses - Changes to information requirements for licensees: Consultation Response
- Annex - Summary of changes to licence conditions and codes of practice
Proposal 18: Changes to personal licence conditions
We proposed to change the time within which personal licence holders must report key events to us and to update the reporting arrangements to reflect the introduction of our new digital service for maintaining personal licenses. One of the outputs of this review was a proposal for us to allow personal licence holders more time to inform us of event occurrences by increasing the period required for submissions from within five working days to within 30 days.
Also, noting the introduction of our new digital service – and that we expect personal licence holders to report key events to us directly, rather than operators doing this for them – we proposed to remove the option for operators to report event occurrences for personal licence holders.
Question 1.18. Do you agree with the proposed changes to the licence conditions?
Overall, the proposal to extend submission period for personal licence key events to up to 30 days. was considered more practical and achievable for licence holders than the existing five working day timeframe. One respondent added that it would improve the quality of reporting as personal licence holders would have more time to prepare their key event report and for more information to be known about the event being reported. However, several respondents disagreed with the extension on the basis that:
- it implied a two-tier system within key events reporting in which issues concerning key decision makers were subordinate to those pertaining to wider business operations
- some of the key events, such as that relating to bankruptcy and sequestration (3h) may lapse the personal licence while others, such as disqualification of company director (3g) potentially puts the operating licence at risk and could impact upon an operator’s overall suitability
- the change would lead to a misalignment of reporting periods for operating licence holder and personal licence holder key events, with the former remaining at up to five working days.
Additionally, there was a suggestion to merge Personal licence conditions 3(a) and 3(b), and (3c) and 3(d). Similarly, it was suggested that that 3(e) and 3(f) could be merged and reworded to require the reporting of the imposition of a disciplinary sanction or a resignation related to a gross misconduct disciplinary proceedings, only when such an event impacted upon the overall suitability of the personal licence holder to continue to hold their licence.
Another respondent commented that a personal licence holder may need to report a matter relating to a key event to other regulator or government bodies and therefore that it might be more efficient for a function within the business to do this for them on their behalf.
Clarification was sought as to whether:
- another individual could report a personal licence key event on the personal licence holder’s behalf (for example a personal assistant or a member of the Compliance function)
- operating licence holders would still be required to report matters to us pertaining to conduct by personal licensees (for example dismissal for gross misconduct) to us as key events, if we also required personal licence holders to report them to us
- disqualification from acting as a company director (3g) should only need to be reported for persons in key positions.
During the design of our new ‘Manage your personal licence’ digital service, we reviewed our requirements for the reporting of key events by personal licence holders. One of the outputs of this process was a proposal for us to allow personal licence holders more time to inform us of event occurrences.
Having considered the mixed responses to this question, we judge that an extension to the period is warranted, but that (up to) 10 working days is a more appropriate timeline for submission. We acknowledge that a 30-day window may have created a misalignment with operating licence key event reporting that could be problematic in some circumstances.
Whilst we welcome ideas that might simplify event reporting for personal licence holders, we do not agree that merging these events as suggested is sensible. This is primarily because the events identified are not the same and they initiate separate responses by us. Moreover, conviction of an offence, for example, could take some considerable time to occur. Knowing about the initiation of an investigation ahead of this conviction allows us to take appropriate action at an earlier stage, if warranted.
We expect personal licence holders to report key events to us directly. Personal licensees should take ownership and responsibility for their own licences and therefore, we will no longer accept personal licence holder key events to be reported to us by another party (for example a personal assistant or a member of the Compliance function). As we have been asked to provide clarity on this, we will add the word 'themselves' to the first sentence of the personal licence condition about key events (that is 'Personal licence holders must themselves notify the Commission…').
Despite these changes, we will still require operators to report to us those key events and other reportable events set out in the operating licence conditions of the Licence Conditions and Codes of Practice (LCCP) (via eServices). We acknowledge that this means some events (for example dismissal of a personal licence holder in a key position for gross misconduct) will be reported to us twice (that is by the operator and by the personal licence holder).
The following changes will take effect from 31 October 2020.
Final amends to personal licence conditions
Personal licence conditions
All personal licence holders
1 - 2 [No change]
3 Personal licence holders must themselves notify the Commission of the occurrence of any of the following key events within ten working days after the licensee becomes aware of the event’s occurrence1:
- a. their subjection to any criminal investigation which is listed under Schedule 7 Relevant Offences of the Gambling Act 2005;
- b. their conviction of any offence listed under Schedule 7 – Relevant Offences of the Gambling Act 2005;
- c. any current or pending investigation by a professional, statutory, regulatory or government body in Great Britain or abroad;
- d. the imposition of any sanction or penalty against them following an investigation by any professional, statutory, regulatory or government body in Great Britain or abroad;
- e. the imposition of a disciplinary sanction against them, including dismissal, for gross misconduct;
- f. their resignation from a position for which a personal licence is required following commencement of disciplinary proceedings in respect of gross misconduct;
- g. their disqualification from acting as a company director;
- h. the presentation of a petition for their bankruptcy or sequestration or their entering into an individual voluntary agreement;
- i. a change in their name or address.
1 These matters can are to be reported to us online via the ‘Manage your licence’ service on our website.
Proposal 17: Changes to ordinary code provision 8.1.1 (information requirements – ordinary code)
Last updated: 6 July 2023
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