Change of corporate control
Under Section 102 of the Gambling Act 2005 (opens in a new tab), a change of corporate control takes place when a person (or other legal entity) either directly or indirectly:
- owns 10% or more of the shares
- is entitled to 10% or more of the rights to profits/dividends
- has 10% or more of the voting power
- is able to exercise significant influence over the management of an existing licensed operator.
See Section 422 of Financial Services and Markets Act 2000 (FSMA) (opens in a new tab) for the full definition of controller.
In summary, it is when there is a new "controller" of the company. For example, if a major investor joins the company or a new significant member joins a partnership. A person is considered a new controller if they hold:
- 10% or more of the shares in a licensed operator or in parent company of a licensed operator
- 10% or more of the voting power in a licensed operator or a parent company of a licensed operator
- shares or voting power in a licensed operator or a parent company of a licensed operator as a result of which the person is able to exercise significant influence over the management of a licensed operator.
The holding of shares or voting power by a person in the licensed operator includes any shares or voting power held by another person if they and the other person are acting together:
- in relation to a licensee with share capital, allotted shares
- in relation to a licensee with capital but no share capital, rights to share in the capital.
In relation to licensee without capital, interests:
- conferring any rights to share in the profits of the licensee; or liability to contribute to the losses of the licensee
- giving rise to an obligation to contribute to the debts or expenses of the licensee in the event of its winding up (in a licensee with neither share capital nor capital).
Voting power is defined by section 422(5) FSMA20000
(a) it includes in relation to a person (H):
i. voting power held by a third party with whom H has concluded an agreement, which obliges H and the third party to adopt, by concerted exercise of the voting power they hold, a lasting common policy towards the management of the undertaking in question.
ii. voting power held by a third party under an agreement concluded with H providing for the temporary transfer for consideration of the voting power in question.
iii. voting power attaching to shares which are lodged as collateral with H, provided that H controls the voting power and declares an intention to exercise it.
iv. voting power attaching to shares in which H has a life interest.
v. voting power which is held, or may be exercised within the meaning of subparagraphs (i) to (iv), by a F2 controlled undertaking of H.
vi. voting power attaching to shares deposited with H which H has discretion to exercise in the absence of specific instructions from the shareholders.
vii. voting power held in the name of a third party on behalf of H.
viii. voting power which H may exercise as a proxy where H has discretion about the exercise of the voting power in the absence of specific instructions from the shareholders.
(b) in relation to an undertaking which does not have general meetings at which matters are decided by the exercise of voting rights, means the right under the constitution of the undertaking to direct the overall policy of the undertaking or alter the terms of its constitution.
If you have any questions as to whether a change of control has taken place, you should seek independent legal advice.
Notify the Commission of a change of corporate control
Changes of control must be reported as a key event as soon as possible and not later than within 5 working days.
Within 5 weeks of the change occurring you must either surrender the licence or apply for the licence to continue to have effect or it will be revoked.
If you want to apply for the licence to continue to have effect, you must complete a Change of Corporate Control form, and pay the appropriate fee. You must email the completed form and supporting documents to firstname.lastname@example.org. Do not post them to us and do not email them to a Licensing team member email address.
Incoming individuals who have or are expected to become controller of the licensed operator, if not already approved by the Commission will be required to submit an Annex A Personal Declaration or personal management licence (PML) application.
Make sure you read the guidance notes on this page before you start to fill out the form.
Change of corporate control applications typically take around 12 weeks to process, providing full information is submitted.
What you need to send us with your application
Make sure you read the guidance notes for the information you must send in with the application. If any information is missing, it will delay the application.
The Commission’s application disclosure requirements for Trusts are the same as those for other entity types/individuals that are part of a licensee’s ownership structure.
However, it is important to note that whilst the disclosure requirements set out below are general principles of the information required to support an application, the Commission retains the right to request further information or documents when this is required.
Where the Trust’s ownership equates to 3% or above interest in the licensee, n your application, you must include:
- a copy of the trust deed
- a copy of the letter of wishes
- a copy of the letter of consent from the trustees (i.e. that they have consented to act as trustees).
We require an Annex A personal declaration from those beneficiaries whose interest in the Trust equates to a 10% or more controlling interest in the applicant/licensee. The Annex A must be submitted online through our Apply for a personal licence service. If any beneficiary is under 18, then we do not require an Annex A from them.
If the beneficiary’s interest in the Trust equates to less than 10% but 3% or more, then we require the name, address, and date of birth of all beneficiaries which should be shown in the trust deed – if not, you must provide this information.
We require an Annex A personal declaration from all Trustees where the Trust’s interest in the applicant/licensee equates to a 10% or more controlling interest in the applicant/licensee. The Annex A must be submitted online through our Apply for a personal licence service.
In the case of the Trustee being a company, we require an Annex A from the person or people in that company who have lead responsibility for matters relating to the Trust.
If the Trust’s interest in the licensee equates to equates to less than 10% but 3% or more, we require the name, address and date of birth of all Trustees which should be shown in the trust deed – if not, you must provide this information.
We will not usually require an Annex A from the Settlor. We require the name, address and date of birth of the Settlor which should be shown in the trust deed – if not, you must provide this information.
We will not usually require an Annex A from the Protector. We require the name, address and date of birth of the Protector which should be shown in the trust deed – if not, you must provide this information.
Applications in advance
Section 103 of the Gambling Act 2005 (opens in a new tab) provides for this. An application can be made in respect of a person or entity who is expected to become a controller of a company.
Fees for a change of corporate control application
When submitting the Change of Corporate Control application, you must pay the correct fee for the application at the same time. This can be paid by BACS or Faster Payments. Find out more about paying fees. The fee must be paid on the same date you email the application to us.
You can find out the application fee for your licence by using our Fee calculator service.
|Due to share fluctuation only (the controller(s) must be known to the Commission, that is, they must hold an operating licence issued by the Commission or be a financial institution that is either regulated by the FCA or which has its registered/head office in an EEA state and is regulated by its home state regulator).||£160|
|Where the new controller already holds an operating licence||25% of standard application fee|
|Where the new controller is a financial institution that is either regulated by the FCA or which has its registered/head office in an EEA state and is regulated by its home state regulator.||25% of standard application fee|
|Where the new controller does not hold an operating licence||75% of standard application fee|
|New controller in family owned
small-scale operator and:
|Regulation 34 (2) gives a provision for a reduced fee if a company is being inserted into the group structure and both the below conditions are met:
Some files may not be accessible for users of assistive technology. If you require a copy of the file in an accessible format contact us with details of what you require. It would help us to know what technology you use and the required format.
PDF Files Some PDF files cannot be displayed in a browser, you will see a message saying "Please wait...". If you see this message, you will need to download the file and open it in Adobe Acrobat Reader (opens in a new tab).
Last updated: 19 July 2022
Show updates to this content
No changes to show.