Enforcement policy in relation to the National Lottery
5 - Informal procedures and settlement
There may be instances where a more informal procedure is required to address issues with the operator, as opposed to the formal investigation and enforcement approach set out in the previous sections of this policy. This may be where, for example, the operator has admitted licence breaches therefore diminishing the need for an investigation or where there are issues with the operator linked to governance issues that may be better addressed otherwise than by way of the use of enforcement powers.
There may also be other situations where an informal process would assist and a decision will be taken on the facts of the specific case as to whether this approach is appropriate.
In certain circumstances we may seek, where appropriate, to fulfil our statutory obligations and pursue the licensing objectives through means that stop short of formal enforcement action. One means of achieving this will be by way of regulatory settlement, which we may consider appropriate, particularly where the operator has been:
- open and transparent in its dealings with us
- able to make timely disclosures of material facts
- able to demonstrate that they have insight into apparent failings
- able to suggest actions that would prevent the need for us to take formal action
- prepared, where appropriate, to agree to us making a public statement setting out the failings in order to deter future non-compliance and/ or share learning that may be beneficial to other stakeholders including the public
- prepared to divest itself of profits or cost savings which accrued as a result of the failings
- prepared to follow advice and implement procedures to ensure there is no repetition of the failings
- prepared to contribute to our direct costs of investigating the matter in respect of which a regulatory settlement is sought
- prepared to volunteer a payment in lieu of the financial penalty we might otherwise impose for breach of licence condition.
Regulatory settlements can allow us to avoid a protracted investigation or conclude an investigation more swiftly than would often be the case but will only be appropriate where they meet an appropriate regulatory outcome. A decision to settle early should not be seen as a soft option. We will set timetables for settlement discussions and where these are not adhered to we are likely to revert to formal regulatory action.Previous section
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Enforcement policy in relation to the National Lottery - 6 - Appeals
Last updated: 9 May 2022
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