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Policy

Corporate Governance Framework

Our corporate governance framework sets out the necessary responsibilities and procedures that guarantee we operate properly.

  1. Contents
  2. Annex A: Delegation of functions and powers

Annex A: Delegation of functions and powers

Decisions in relation to the Fourth National Lottery Competition (“4NLC”) Programme which must be taken by the Board of Commissioners

1 During the design stage

Programme

During the design stage, the following programme decisions must be taken by the Board of Commissioners:

  • approval of programme objectives, in consultation with DCMS (opens in new tab) Sponsor
  • approval of changes to programme scope, in consultation with DCMS Sponsor
  • approval of changes to programme milestones where required by the Board-approved change control policy
  • endorsement of changes to programme cost, subject to Accounting Officer assurance, and DCMS approval
  • endorsement of the Committee’s assurance that commercial strategy, plans and processes are robust, and all measures have been taken to conduct a fair, open and transparent competition
  • approval to launch competition, subject to the Committee’s assurance of programme readiness and SRO insight on market’s appetite to apply.

Policy

During the design stage, the following policy decisions must be taken by the Board of Commissioners:

  • endorsement of the Committee’s assurance that Integrated Policy Position (IPP) is in accordance with Commission’s statutory duties
  • endorsement of the Committee’s assurance that regulatory strategy satisfies policy intent to be more outcome focussed and is enforceable.

Licensing

During the design stage, the following licensing decisions must be taken by the Board of Commissioners:

  • approval of policy decision on handling of Section 6 (promoter) licence
  • endorsement of the Committee’s assurance that the Section 5 licence offered to market is in accordance with the Commission’s statutory duties and subject to this, and aligned to LCCP.

2 During the competition stage

Programme

During the competition stage, the following programme decisions must be taken by the Board of Commissioners:

  • approval of changes to programme scope, time and cost where required by the Board-approved change control policy
  • endorsement of Committee and SRO assurance that SQ evaluation was conducted in accordance with agreed process
  • approval of Evaluation Panel recommendation on preferred applicant
  • approval to invoke Third Licence conditions to commence Handover period
  • approval to invoke extension of Third Licence, if deemed necessary
  • approval of the Full Business Case for submission to DCMS and HM Treasury's Treasury Approval Process.

Policy

During the competition stage, the following policy decisions must be taken by the Board of Commissioners:

  • endorsement of the Committee and Evaluation Panel’s assurance that preferred applicant’s proposal satisfies the Commission’s statutory duties.

Licensing

During the competition stage, the following licensing decisions must be taken by the Board of Commissioners:

  • approval of the final terms of the Fourth National Lottery Section 5 licence, after finalisation with preferred applicant.

3 During the implementation stage

Programme

During the implementation stage, the following programme decisions must be taken by the Board of Commissioners:

  • approval of changes to programme scope, time and cost where required by the Board-approved change control policy
  • approve full or partial implementation of the Fourth Licence
  • approve any proposal to invoke a breach or termination of the Enabling Agreement, including the substitution of the Reserve Applicant
  • endorsement of the Committee’s and/or SRO assurance that preferred applicant’s Transition Plan is robust and deliverable
  • approval to invoke extension of Third Licence, if deemed necessary
  • approval of the Committee’s recommendation that the Programme be closed.

Licensing

During the implementation stage, the following licensing decisions must be taken by the Board of Commissioners:

  • grant of Section 5 licence issued under the 1993 Act.

Decisions in relation to the 4NLC Programme which are delegated to the Committee

4 During the design stage

The decisions delegated to the Committee during the design stage, in their corporate oversight capacity (second line of assurance), are as follows:

  • maintenance of strategies that set the direction of the programme, specifically:
    • the Commercial Strategy (how the competition is run)
    • the Regulatory Strategy (how performance of the Licensee is monitored and the approach to enforcement)
    • the Stakeholder Management and Communications Strategy (how stakeholders are engaged effectively)
    • the Risk Management Strategy (how risks and opportunities are identified, managed and mitigated)
    • all Strategies and guidance documents referenced in ITA.
  • approval of the composition of the evaluation panel
  • maintenance of the Communications Plan and handling measures to mitigate Commission reputational risk
  • endorsement of SRO assurance that the principal programme products have been legally reviewed, and are of good quality, specifically:
    • SQ document and process for down-selection
    • ITA document, including tender requirements and evaluation criteria
    • IPP, including all underlying evidence and analysis
    • Fourth National Lottery Section 5 licence, including all referenced schedules.
  • approval to publish draft ITA and draft Licence, subject to SRO assurance that products are ready and fit-for-purpose
  • endorsement of SRO assurance that the programme Outline Business Case is robust and underlying plans are fully costed and risk adjusted.

5 During the competition stage

The decisions delegated to the Committee during the competition stage, in their corporate oversight capacity (second line of assurance), are as follows:

  • approving the recommendation of the Evaluation Panel after SQ stage, as endorsed by the SRO
  • endorsing the ranking of applicants, arising from the Evaluation Panel and validated by the SRO, for presentation to Board for final approval
  • recommend to Board that the programme Full Business Case is ready for submission having received the assurance of the SRO that the case is robust and underlying plans are fully costed and risk adjusted
  • approve the SRO recommendation that the Programme can move from Competition to Implementation Stage.

6 During the implementation stage

The decisions delegated to the Committee during the implementation stage, in their corporate oversight capacity (second line of assurance), are as follows:

  • recommend to the Board a governance process to handover the Competition into business as usual
  • recommend to the Board full or partial implementation of the Fourth Licence
  • recommend to the Board any steps to invoke a breach or termination of the Enabling Agreement, including the substitution of the Reserve Applicant
  • oversight of assurance framework
  • recommend to the Board that the Implementation Stage should end, with the regulation of the licence moving into business as usual, and that the Programme be closed
  • endorse the SRO recommendation that the Programme closure documents are ready for submission.

Decisions in relation to the 4NLC Programme which are the responsibility of the Senior Responsible Owner (SRO)

7 During the design stage

The decisions delegated to the SRO, as the person accountable to Parliament for delivery of the programme (as defined in Osmotherly letter), with the support of the programme team are as follows:

  • overall design of the programme and the temporary organisation needed to deliver it
  • the content of the Outline Business Case, and assurance of ongoing viability of the programme, in consultation with Commission Accounting Officer
  • management of strategic risks in the operating environment
  • the design and operation of appropriate programme governance
  • implementation of change control policy and process within Board-approved tolerance limits
  • the design and operation of appropriate functional and product assurance, including agreeing the level and frequency of assurance reviews with Infrastructure and Projects Authority (IPA) – Annex 1 details the assurance framework that 4NLC operates within
  • delivery of the programme plan to successfully achieve objectives and critical success factors
  • assurance of Financial Models used by the programme, for example: Should Cost Model; Evaluation Model
  • as Information Asset Owner, the content and protection of all electronic portals and Data Rooms used by the programme
  • endorsement of any proposed procurements which require Board approval pursuant to the Commission’s Financial Regulations and Delegations (appendix 7 of the Corporate Governance Framework) prior to submission to the Board.

8 During the competition stage

The general responsibilities of the SRO are unchanged. Specific responsibilities relevant to competition are as follows:

  • receive Evaluation Panel recommendations on SQ assessment, and present to the Committee for approval
  • receive reports from Evaluation Panel for each compliant application at ITA evaluation stage, and present recommended ranking to the Committee for endorsement
  • where, during the SQ assessment or in conducting vetting tests at Evaluation Stage, any recommendation is made that an individual is judged not to meet fit-and-proper or other criteria, the SRO will validate the recommendation with two Commissioners
  • the content of the Full Business Case, and assurance of ongoing viability of the programme, in consultation with Commission Accounting Officer
  • receive assurance the Competition is ready to move to Implementation Stage, and present that recommendation to the Committee.

9 During the implementation stage

During the implementation stage, the decisions delegated to the SRO are as follows:

  • grant of Section 6 licences issued under the 1993 Act in respect of the fourth National Lottery licence
  • identification of any financial profile changes required
  • the content of a governance process to handover the programme into business as usual, in consultation with the Chief Executive
  • the content of Programme closure documents
  • receive assurances that the Programme is ready to close down, and present that to the Committee for endorsement
  • the general responsibilities of the SRO are unchanged, until such time as the programme is closed.
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