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Our corporate governance framework sets out the necessary responsibilities and procedures that guarantee we operate properly.
Published: 29 October 2021
Last updated: 17 January 2024
This version was printed or saved on: 26 April 2024
Online version: https://www.gamblingcommission.gov.uk/policy/corporate-governance-framework
i. Effective governance underpins the management of well run, sustainable and accountable organisations, whether in the public, private, or voluntary sector.
ii. The Gambling Commission (the Commission) ensures that it maximises the impact of its work while discharging its statutory duties. In doing so, it works to high standards of corporate governance so as to earn the confidence of its stakeholders.
iii. This Corporate Governance Framework lays down the necessary responsibilities and procedures that are the foundations of a well run organisation. It was approved following consideration by the Commission in June 2020. The Corporate Governance Framework is reviewed every three years. Individual components of the Framework may be reviewed more frequently to address issues as they arise and to keep the Framework at the forefront of best practice.
iv. This document is published on the Commission’s website as part of its commitment to openness and accountability.
1.1. The Commission is an executive Non-Departmental Public Body (NDPB) sponsored by the Department for Culture, Media and Sport (opens in new tab) (DCMS).
1.2. The Commission was created by section 20 of the Gambling Act 2005. The Commission took over the National Lottery Commission’s functions on 1 October 2013 as a result of the Public Bodies (Merger of the Gambling Commission and the National Lottery Commission) Order 2013 (opens in new tab) coming into force.
1.3. The Commission consists of a Chair and other Commission members (“Commissioners”) appointed by the Secretary of State in accordance with guidance issued by the Commissioner for Public Appointments.
1.4. The Chair and other Commissioners’ single term of office may not exceed five years, and aggregate terms may not exceed ten years (irrespective of whether these periods of appointment are consecutive).
1.5. A person may hold an appointment both as Chief Executive and as a Commissioner.
1.6. The Chair holds and vacates office in accordance with the terms of his or her appointment. The Chair may resign by giving notice in writing to the Secretary of State and shall cease to be Chair if he/she ceases to be a Commissioner.
1.7. The jurisdiction of the Commission under the Gambling Act 2005 (opens in new tab) (as amended) covers Great Britain – England, Scotland, and Wales1. With regard to its functions under the National Lottery etc. Act 1993 (opens in new tab) (as amended) the Commission’s jurisdiction also includes Northern Ireland. The Commission will establish and maintain appropriate working relationships within each administration, taking account of the differences between them.
1.8. The Commission aims to establish appropriate and effective working relationships with licensing authorities, the operator of the National Lottery, the gambling industry, those working in the industry, the public, and others with an interest in socially responsible gambling and its regulation. In addition, the Commission will work closely with a range of other regulators and government bodies to share information and, where appropriate, to take coordinated regulatory action.
1.9. Under Schedule 4 of the Gambling Act 2005, the Commission is required to establish arrangements for the conduct of its proceedings and to publish them. The arrangements are set out in Appendix 2: Rules for the conduct of business.
1 The following sections of the Gambling Act 2005 (opens in new tab) also apply to Northern Ireland: chain gifting (section 43), advertising foreign gambling (section 331), and the repeal of ss.9-9B of the 1981 Act (section 340).
1.10. The statutory licensing objectives that underpin the exercise of the Commission’s functions under the Gambling Act 2005 (opens in new tab) are:
1.11. When exercising its functions under the Gambling Act 2005, the Commission must aim to pursue the licensing objectives and permit gambling, in so far as it is reasonably consistent with the pursuit of the licensing objectives.
1.12. The Commission’s principal functions under the Gambling Act 2005 are to:
1.13. The Commission will deliver its responsibilities by:
1.14. In relation to the National Lottery, with the Secretary of State, the Commission’s overriding statutory duties are to exercise its functions in a manner it considers will secure that:
1.15. Subject to these two duties, when exercising their functions under the National Lottery etc. Act 1993 (opens in new tab), the Secretary of State and the Commission shall do their best to secure that the net proceeds of the National Lottery are as great as possible.
1.16. The Commission’s principal functions under the National Lottery etc. Act 1993 are:
1.17. The Secretary of State is also subject to the duties described above and these provide the context for her/his functions of making regulations and issuing Directions to the Commission under section 11 of the National Lottery etc. Act 1993. The Commission must comply with those Directions in the exercise of its National Lottery licensing functions.
1.18. Our ways of working lie at the heart of the way the Commission’s employees will conduct all of the work of the Commission.
To be outcome-focussed we:
To reach for ways to improve we:
To be respectful we:
To communicate well we:
To make the Commission a great place to work we:
1.19. The Commission’s policies and practices are reviewed regularly with the aim of ensuring that the regulatory burden imposed by the Commission is at the minimum, but consistent with carrying out its duties.
1.20. The Commission demonstrates its accountability to its stakeholders by:
1.21. The Commission operates management information and accounting systems to enable it to review its financial and non-financial performance against budgets and its Business Plan in line with its planning documents.
1.22. The Commission must keep proper accounts and records in relation to them and retain financial records as appropriate. After the end of each financial year, the Commission will publish an annual report of its activities, together with its audited annual accounts.
1.23. The report and accounts will be in a form specified by the Secretary of State and will outline the Commission’s main activities and performance during the previous financial year. It will also set out in summary form the Commission’s objectives as stated in the Business Plan. The report and accounts are subject to audit by the Comptroller and Auditor General. A copy of the report and accounts will be sent to the Secretary of State.
1.24. The annual report is laid before Parliament by the Comptroller and Auditor General and made available to the public on request and published on the Commission’s website.
1.25. The Commission, at least annually, assesses its performance against the terms of this Corporate Governance Framework, its financial and non-financial performance and delivery of its Business Plan.
1.26. The Commission’s performance against targets will be reported and reviewed by DCMS (opens in new tab) at quarterly liaison meetings. The Secretary of State or Minister will meet with the Chair and Chief Executive formally each year to discuss the Commission’s performance, its current and future activities and any policy developments relevant to those activities.
1.27. The Commission’s effectiveness will be reviewed periodically, in accordance with the business needs of DCMS and the Commission, and in accordance with Cabinet Office guidance. The terms of this Corporate Governance Framework and the Commission’s compliance with it will be reviewed as part of any such review.
2.1. The Chair has a particular responsibility for providing effective strategic leadership on the following matters:
2.2. The Chair will ensure that all Commission members are fully briefed on the terms of his/her appointment and on his/her other duties, rights and responsibilities.
2.3. The Chair will undertake annual evaluations of the performance of individual Commissioners, and ensure an annual review of Board Effectiveness takes place.
2.4. When Commission vacancies arise, the Chair is responsible for advising the Secretary of State of the needs of the Commission with a view to ensuring a proper balance of professional, financial and other expertise.
2.5. The Chair will ensure that a code of conduct for Commissioners is in place, based on the model ‘Code of Practice for Board Members of Public Bodies 2019’ (PDF) (opens in new tab) produced by the Cabinet Office. The code will commit the Chair and other Commission members to the Nolan seven principles of public life, and will include a requirement for a comprehensive and publicly available register of interests. The Code of Conduct for Commissioners is Appendix 8 of this Corporate Governance Framework.
2.6. Communications between the Commission and the Secretary of State will normally be through the Chair.
2.7. The Chair, with the agreement of the Commissioners, will appoint one of their number to act as the Senior Independent Director.
2.8. The role of the Senior Independent Director is to provide a sounding board for the chair, and serve as an intermediary for the other Commissioners. The Senior Independent Director will also undertake the annual appraisal of the Chair, with the input of the other Commissioners.
2.9. The Board of Commissioners (the Board) has corporate responsibility for ensuring that the Commission fulfils the aim and objectives set out in legislation and complies with any statutory or administrative requirements for the use of public funds. Other important responsibilities of Commissioners are:
2.10. Commissioners also have individual responsibilities as members of a public body:
2.11. Although any legal proceedings initiated by a third party are likely to be brought against the Commission, in exceptional cases proceedings (civil, or in certain cases, criminal) may be brought against the Chair or individual Commissioners. For example, a Commissioner may be personally liable if he or she makes a fraudulent or negligent statement which results in loss to a third party. Commissioners who misuse information gained by virtue of his or her position may be liable for breach of confidence under common law or may commit a crime under insider dealing legislation.
2.12. However, the Government has indicated that individual Commissioners, who have acted honestly and in good faith, will not have to meet any personal civil liability which is incurred in the execution, or purported execution, of his or her Commission functions out of his or her own personal resources. The Commission will indemnify any Commissioner so affected.
2.13. The Chief Executive of the Commission is designated as the Commission’s Accounting Officer by the DCMS (opens in new tab) Accounting Officer.
2.14. As the Commission’s Accounting Officer, the Chief Executive is personally responsible for safeguarding public funds, for propriety and regularity in the handling of those public funds and for the day-to-day operations and management of the Commission.
2.15. The Chief Executive should act in accordance with the terms of the Management Agreement with DCMS and with the instructions and guidance in Government Accounting and other instructions and guidance issued from time to time by DCMS, the Treasury and the Cabinet Office. In particular, on the basis of the standards, in terms of governance, decision-making and financial management that are set out in Box 3.1 to the Treasury document ‘Managing Public Money’ (PDF) (opens in new tab) which the Chief Executive receives on appointment as Accounting Officer.
2.16. As the Commission’s Accounting Officer the Chief Executive will, in particular:
2.17. The Chief Executive may delegate the day-to-day administration of the Accounting Officer responsibilities to appropriately qualified employees of the Commission. However, the Chief Executive shall not assign absolutely to any other person any of the responsibilities set out in this document and remains accountable in respect of any delegated responsibilities.
2.18. The Chief Executive is the Principal Officer for the purpose of the handling of cases involving the Parliamentary Commissioner for Administration. The Principal Officer is responsible for informing the Permanent Secretary at DCMS about any complaints accepted by the Parliamentary and Health Service Ombudsman (opens in new tab) for investigation and about the Commission’s proposed response to any subsequent recommendations from the Parliamentary and Health Service Ombudsman.
2.19. Within the arrangements approved by the Secretary of State (paragraph 6, Schedule 4 of the Gambling Act 2005 (opens in new tab)), the Commission has responsibility for the recruitment, retention and motivation of its employees.
2.20. The Commission will ensure that:
2.21. The Commission’s position as the regulator of the gambling industry requires that the Commission and its employees are able, at all times, to demonstrate that their actions and behaviour are beyond reproach. The Commission wants to ensure that employees are protected from any situation where they might be seen as vulnerable to personal compromise of any kind, or situations which might lead to the integrity of the Commission being questioned. To support this, the Code of Conduct for employees reflects the Commission’s values and sets out the standards of behaviour that are expected of everyone who works with the Commission, as employees, contractors or consultants etc and the ways in which the Commission will help such people to avoid any unwarranted criticism or pressure.
2.22. The Commission expects the highest standards of behaviour from employees at work and in personal lives where the Commission’s position might be affected. The general principles set out below and the detailed Code of Conduct for employees applies to everyone who works for the Commission. It is the responsibility of each individual to be aware of the standards of conduct expected of them and to apply the Code of Conduct for employees as a general guideline to behaviour. However, employees may encounter particular personal circumstances that are not covered by the Code of Conduct for employees, or where the strict application of the Code may seem unreasonable. Any such circumstance should be discussed with a manager to arrive at a solution which is fair and reasonable for both employee and the Commission.
2.23. The general principles for employees’ conduct are:
Employees should conduct themselves in a frank and honest manner and maintain the Commission’s high standards of conduct, whether or not at work. Employees should treat all those they encounter, including colleagues, licensees and the public, courteously and follow the guidance in the Code of Conduct for employees.
Employees should conduct their financial and other personal affairs in a frank and honest manner that does not leave them exposed to the risk of corruption or improper pressure. Major financial difficulties or changes of circumstances which might make an employee vulnerable, or appear vulnerable, to allegations of impropriety should be disclosed (in confidence) to the Chief People Officer who will undertake an assessment of exposure and take appropriate action to manage the risk.
Working in the Commission involves access to sensitive and confidential information about individuals, about commercial organisations and their plans and about policy developments. Employees must ensure that such information is not used in any way directly or indirectly for their own benefit or for the benefit of any third party or disclosed to any person (whether Commission employees or otherwise) other than as required by law. This does not prevent employees from exercising any of their other rights under the Public Interest Disclosure Act 1998 (opens in new tab).
While safeguarding information that should be kept confidential, employees must remember that the Commission is committed to being open about the way in which decisions are reached and how our business is conducted. Employees must therefore take care to record and make available material to enable our stakeholders to understand our business.
3.1. The Commission may delegate a function to a Commissioner, a committee of Commissioners and employees or an employee of the Commission. The role of committees is to exercise functions delegated to them, and may include providing a more detailed consideration of specific work areas, advising the Commission and promoting more effective communication between the Commission and particular stakeholders.
3.2. This section describes the functions which have been reserved to the Commission and the functions which have been delegated to committees or to the Chief Executive under the terms of paragraph 8, Schedule 4 of the Gambling Act 2005 (opens in new tab). These arrangements are referred to as the Commission’s Delegated Powers. The Board may choose to delegate to the Chief Executive specific matters which would otherwise be reserved to the Board.
3.3. The following matters are reserved to the Board:
3.4. The Commission has established an Audit and Risk Committee to support the Commission and Chief Executive (as Accounting Officer) to meet their responsibilities for issues of: control and governance; risk; and associated assurance.
3.5. The delegated authority and terms of reference of the Audit and Risk Committee appear in Appendix 9.
3.6. The Commission has established a Remuneration and Nomination Committee.
3.7. The delegated authority and terms of reference and delegation of the Remuneration Committee appear in Appendix 11.
3.8. The Commission has established a National Lottery Committee.
3.9. The terms of reference of the National Lottery Committee and the scheme of delegations appear in Appendix 12.
3.10. The Commission has established a National Lottery Competition Commission.
3.11. The delegated authority and terms of reference of the National Lottery Competition Committee appear in Appendix 13.
3.12. The Commission has established a Regulatory Panel (the Panel). The terms of reference of the Panel and the scheme of delegations appear in Appendix 6.
3.13. The Commission may establish advisory groups to advise the Board on matters where additional insight or assurance is desirable.
3.14. Advisory groups will undertake the following functions:
3.15. The full delegated authority and responsibilities of the advisory groups will be set out in the terms of reference which sets them up.
3.16. The Commission has established a scheme of financial delegations, which appear in Appendix 7.
3.17. The Commission has delegated to the Chief Executive all responsibility for the day-to-day management of the Commission.
3.18. Where a matter has not been specifically reserved to the Commission or delegated to a Committee or employee in this Corporate Governance Framework, the Chief Executive has authority to act.
3.19. In addition, the Commission authorises the Chief Executive to appoint another employee of the Commission to act on their behalf and references in this Corporate Governance Framework to the Chief Executive include any person the Chief Executive has designated to act on his or her behalf.
3.20. The Commission has delegated the handling of complaints to the Chief Executive.
3.21. A copy of the Complaints Policy appears in Appendix 5.
1.1. This framework document (the 'framework document') has been agreed between the Department for Digital, Culture, Media and Sport (DCMS) and the Gambling Commission (“the Commission”) in accordance with HM Treasury’s handbook Managing Public Money1 (MPM) (as updated from time to time) and has been approved by HM Treasury.
1.2. The framework document sets out the broad governance framework within which the Commission and DCMS operate. It sets out the Commission’s core responsibilities, describes the governance and accountability framework that applies between the roles of DCMS and the Commission, and sets out how the day-to-day relationship works in practice, including in relation to governance and financial matters.
1.3. The document does not convey any legal powers or responsibilities but both parties agree to operate within its terms.
1.4. References to the Commission include all its subsidiaries and joint ventures that are classified to the public sector and central government for national accounts purposes. If the Commission establishes a subsidiary or joint venture, there shall be a document setting out the arrangements between it and the Commission agreed with DCMS.
1.5. Copies of the document and any subsequent amendments have been placed in the libraries of both Houses of Parliament and made available to members of the public on the Gambling Commission website and GOV.UK.
1.6. This framework document should be reviewed and updated at least every three years unless there are exceptional reasons that render this inappropriate that have been agreed with HM Treasury and the Principal Accounting Officer of the sponsor department. The latest date for review and updating of this document is 1 September 2025.
2.1. The Gambling Commission’s (the Commission) key statutory duty, as set out in the Gambling Act 2005, is to aim to permit gambling in so far as the Commission thinks it reasonably consistent with pursuit of the licensing objectives. These are:
2.2. In addition, the Commission is responsible for regulation of the National Lottery by virtue of the National Lottery etc. Act 1993. In this, the Commission’s objectives are to manage the lottery provider in a manner most likely to secure:
2.3. To achieve these objectives the Commission and the Department for Digital, Culture, Media and Sport (DCMS) will work together in recognition of each other’s roles and areas of expertise, providing an effective environment for the Commission to achieve its statutory objectives through the promotion of partnership and trust.
3.1. The Gambling Commission has been classified as a central government organisation by the Office for National Statistics (ONS) and HM Treasury Classifications Team.
3.2. It has been administratively classified by the Cabinet Office as a non-departmental public body (NDPB).
4.1. The Gambling Commission (the Commission) was created by section 20 of the Gambling Act 2005 to regulate commercial gambling in Great Britain in partnership with licensing authorities. The Commission took over the National Lottery Commission’s functions on 1 October 2013 with the Public Bodies Order 2013 (Merger of the Commission and the National Lottery Commission) coming into force. As a result, the Commission now regulates commercial gambling and the National Lottery.
5.1. The Gambling Commission’s (the Commission) strategic aims as set out in its corporate strategy are to:
5.2. Nothing under this agreement shall prevent the Commission from carrying out its legal duties under its founding legislation or under any other legislation which impacts on its functions, activities or powers.
6.1. The Gambling Commission (the Commission) shall operate corporate governance arrangements that, so far as practicable and in the light of the other provisions of this framework document or as otherwise may be mutually agreed, accord with good corporate governance practice and applicable regulatory requirements and expectations.
6.2. In particular (but without limitation), the Commission shall:
6.3. In line with MPM Annex 3.1 the Commission shall provide an account of corporate governance in its annual governance statement including the Board’s assessment of its compliance with the Code with explanations of any material departures. To the extent that the Commission does intend to materially depart from the Code, the sponsor department should be notified in advance.
2 https://www.gov.uk/government/publications/corporate-governance-code-for-central-government-departments-2017 3 https://www.gov.uk/government/collections/functional-standards
7.1. The Secretary of State and other members of the Department for Digital, Culture, Media and Sport (DCMS) ministerial team are accountable to Parliament for all matters concerning the Gambling Commission.
7.2. The relationship between Ministers and the Commission is set out in the Gambling Act 2005 and National Lottery etc. Act 1993. Ministers’ rights and powers include (but are not limited to):
Under section 23, the Commission is obliged to prepare a statement setting out the principles to be applied by it in exercising its functions under the Act. Before issuing or revising such a statement the Commission must consult the Secretary of State.
Under section 24, the Commission is obliged to issue one or more codes of practice about the manner in which facilities for gambling are provided (whether by the holder of a licence under this Act or by another person). Before issuing or revising such a code the Commission must consult the Secretary of State.
Under section 25, the Commission is from time to time obliged to issue guidance to local authorities as to the manner in which they should exercise their functions under that Act. Before issuing any such guidance, the Commission must consult the Secretary of State.
The Gambling Commission has a duty to advise the Secretary of State about:
Advice must be given:
The Commission must send a copy of any advice to Scottish Ministers.
Other relevant rights and powers in the 2005 Act feature in sections 32(2), 66(2), 121(8), 123, 156(3), 234, and paragraphs 5, 6, 11, 13 and 14 of Schedule 4.
In exercising its functions under sections 5 to 10A of the National Lottery etc. Act 1993, the Commission must comply with any directions that may be given to it by the Secretary of State.
Such directions may deal in particular:
The Commission must provide the Secretary of State with such information relating to the National Lottery or a lottery forming part of it as the Secretary of State directs.
7.3 Nothing in this document affects the rights, powers and duties conferred and imposed on Ministers and the Commission under the Gambling Act 2005 and the National Lottery etc. Act 1993.
7.4. The Chief Executive of the Gambling Commission (the Commission) is appointed by the Board under Schedule 4 of the Gambling Act 2005 in consultation with the responsible Minister and Principal Accounting Officer, as required. The Board’s appointment of a Chief Executive is subject to the Secretary of State’s consent as to the terms and conditions of employment. This appointment is subject to the Public Appointments Order in Council and as such must comply with the Governance Code on Public Appointments.
7.5. The Ministers shall have the following appointment and approval rights in relation to the Commission’s Board:
The chairperson and an appropriate number of non-executive members are appointed by the Secretary of State under Schedule 4 to the Gambling Act 2005. These appointments are subject to the Public Appointments Order in Council and as such must comply with the Governance Code on Public Appointments.
All such appointments should have regard to the principle that appointments should reflect the diversity of the society in which we live, and appointments should be made taking account of the need to appoint boards which include a balance of skills and backgrounds.
7.6. The Secretary of State is also responsible for:
The Secretary of State may delegate these functions to an appropriate junior Minister.
8.1. The Principal Accounting Officer (PAO) is the Permanent Secretary of the department.
8.2. The PAO of the Department for Digital, Culture, Media and Sport (DCMS) designates the Chief Executive as the Gambling Commission’s (the Commission) Accounting Officer (AO) and ensures that they are fully aware of their responsibilities. The PAO issues a letter appointing the AO, setting out their responsibilities and delegated authorities.
8.3. The respective responsibilities of the PAO and AOs for Arms Length Bodies (ALB) are set out in Chapter 3 of Managing Public Money (MPM).
8.4. The PAO is accountable to Parliament for the issue of any grant-in-aid to the Commission.
8.5. The PAO is also responsible, usually via the sponsorship team, for advising the responsible Minister on:
8.6. The PAO via the sponsorship team is also responsible for ensuring arrangements are in place in order to:
9.1. The Gambling Commission (the Commission) Sponsorship Lead in the department is the primary contact for the Commission.The responsible senior civil servant for this relationship is the Deputy Director for gambling and lotteries. They are the main source of advice to the responsible Minister on the discharge of their responsibilities in respect of the Commission. They also support the Principal Accounting Officer (PAO) on their responsibilities toward the Gambling Commission.
9.2. Officials of the Commission Sponsorship team in the sponsor department will liaise regularly with Commission officials to review performance against plans, achievement against targets and expenditure against its Departmental Expenditure Limits (DEL) and Annually Managed Expenditure (AME) allocations. The Gambling Commission Sponsorship team will also take the opportunity to explain wider policy developments that might have an impact on the Commission.
10.1. Any disputes between the department and the Gambling Commission (the Commission) will be resolved in as timely a manner as possible. The department and the Commission will seek to resolve any disputes through an informal process in the first instance. If this is not possible, then a formal process, overseen by the senior sponsor, will be used to resolve the issue. Failing this, the senior sponsor will ask the relevant policy Director General to oversee the dispute. They may then choose to ask the Permanent Secretary to nominate a non-executive member of the department’s Board to review the dispute, mediate with both sides and reach an outcome, in consultation with the Secretary of State.
11.1. Where a request for information is received by either party under the Freedom of Information Act 2000 (opens in a new tab), or the Data Protection Act 1998 (opens in a new tab) or 2018, the party receiving the request will consult with the other party prior to any disclosure of information that may affect the other party’s responsibilities.
12.1. The Gambling Commission (the Commission) shall provide a quarterly update to the sponsor on the existence of any active litigation and any threatened or reasonably anticipated litigation. The parties acknowledge the importance of ensuring that legal risks are communicated appropriately to the sponsor in a timely manner.
12.2. In respect of each substantial piece of litigation involving the Commission, the parties will agree a litigation protocol which will include specific provisions to ensure appropriate and timely reporting on the status of the litigation and the protection of legally privileged information transmitted to the sponsor to facilitate this. Until such time as a protocol is agreed, the parties will ensure that:
13.1. The Chief Executive as Accounting Officer (AO) is personally responsible for safeguarding the public funds for which they have charge; for ensuring propriety, regularity, value for money and feasibility in the handling of those public funds; and for the day-to-day operations and management of the Gambling Commission (the Commission).
In addition, they should ensure that the Commission as a whole is run on the basis of the standards, in terms of governance, decision-making and financial management, that are set out in Box 3.1 of Managing Public Money (MPM). These responsibilities include the following and those that are set in the AO appointment letter issued by the Principal Accounting Officer (PAO) of the sponsor department.
13.2. Responsibilities to Parliament and the public include:
13.3 Responsibilities to the Department for Digital, Culture, Media and Sport (DCMS) include:
13.4. The Chief Executive is responsible for:
13.5. The Chief Executive should follow the advice and direction of the Board, except in very exceptional circumstances with a clear cut and transparent rationale for not doing so.
13.6. If the Board, or its chairperson, is contemplating a course of action involving a transaction which the Chief Executive considers would infringe the requirements of propriety or regularity or does not represent prudent or economical administration, efficiency or effectiveness, is of questionable feasibility, or is unethical the Chief Executive in their role as AO should reject that course of action and ensure that the Board has a full opportunity to discuss the rationale for that rejection.
13.7. Such conflicts should be brought to the attention of the PAO and the responsible Minister as soon as possible.
13.8. Furthermore, and if agreed with the responsible Minister, the AO must write a letter of justification to the chair of the Board setting out the rationale for not following the advice and recommendation of the board and copy that letter to the Treasury Officer of Accounts.
13.9. If the responsible Minister agrees with the proposed course of action of the Board it may be appropriate for the Minister to then direct the AO in the manner as set out in MPM paragraph 3.6.6 onwards.
14.1. The Gambling Commission (the Commission) will have a board in line with good standards of corporate governance and as set out in in its establishing statute and in guidance as set out in Annex A. The role of the Board shall be to run the Commission, and to deliver the objectives, in accordance with the purposes as set out above, their statutory, regulatory, common law duties and their responsibilities under this framework document. Detailed responsibilities of the board shall be set out in the Board terms of reference. Remuneration of the Board will be disclosed in line with the guidance in the Government Financial Reporting manual (FReM).
14.2. The Board will consist of a chairperson, together with an appropriate number of non-executive Commissioners that have a balance of skills and experience appropriate to overseeing the Gambling Commission’s business. The Board may include a Chief Executive. For the Commission there should be Commissioners who have experience of its business, operational delivery, corporate services such as HR, technology, property asset management, estate management, communications and performance management. There will be an appropriately qualified Finance Director as described in Annex 4.1 of Managing Public Money (MPM) who will attend the Board. Other members of the Executive may attend the Board in a non-voting capacity.
14.3. The Board may set up such committees as necessary for it to fulfil its functions. As a minimum this should include an Audit and Risk Committee chaired by an independent and appropriately qualified non-executive member of the Board as detailed as follows.
14.4. While the Board may make use of committees to assist its consideration of appointments, succession, audit, risk and remuneration it retains responsibility for, and endorses, final decisions in all of these areas. The Chair should ensure that sufficient time is allowed at the board for committees to report on the nature and content of discussion, on recommendations, and on actions to be taken.
14.5. Where there is disagreement between the relevant committee and the Board, adequate time should be made available for discussion of the issue with a view to resolving the disagreement. Where any such disagreement cannot be resolved, the committee concerned should have the right to report the issue to the sponsor team, the Principal Accounting Officer (PAO) and responsible Minister. It may also seek to ensure the disagreement or concern is reflected as part of the report on its activities in the annual report.
14.6. The Chair should ensure board committees are properly structured with appropriate terms of reference. The terms of each committee should set out its responsibilities and the authority delegated to it by the Board. The Chair should ensure that committee membership is periodically refreshed and that individual independent non-executive directors are not over-burdened when deciding the chairs and membership of committees.
14.7. The Board is specifically responsible for:
14.8. The Board should ensure that effective arrangements are in place to provide assurance on risk management, governance and internal control.
14.9. The Board should make a strategic choice about the style, shape and quality of risk management and should lead the assessment and management of opportunity and risk. The Board should ensure that effective arrangements are in place to provide assurance over the design and operation of risk management, governance and internal control in line with the Management of Risk – Principles and Concepts (The Orange Book) (opens in a new tab). The Board must set up an Audit and Risk Assurance Committee chaired by an independent and appropriately qualified non-executive member to provide independent advice and ensure that the department’s Audit and Risk Assurance Committee are provided with routine assurances with escalation of any significant limitations or concerns. The Board is expected to assure itself of the adequacy and effectiveness of the risk management framework and the operation of internal control.
15.1. The Chair is responsible for leading the board in the delivery of its responsibilities. Such responsibility should be exercised in the light of their duties and responsibilities as set out in their contract of employment and appointment letter, the priorities in the chair’s letter issued to them by the sponsor team, the statutory authority governing the Gambling Commission (the Commission), this document and the documents and guidance referred to within this document.
15.2. Communications between the Commission’s Board and the responsible Minister should normally be through the Chair. The Chair’s performance will be reviewed annually, conducted by the Department for Digital, Culture, Media and Sport (DCMS).
15.3. The Chair is bound by the Code of Conduct for Board Members of Public Bodies (opens in a new tab), which covers conduct in the role and includes the Nolan Principles of Public Life (opens in a new tab).
15.4. In addition, the Chair is responsible for:
15.5. The Chair has the following leadership responsibilities:
15.6. The Chair also has an obligation to ensure that:
16.1. Individual board members should:
17.1 The Gambling Commission’s (the Commission) delegated authorities are set out in the delegation letter attached to this framework document. This delegation letter may be updated and superseded by later versions which may be issued by the sponsor department in agreement with HM Treasury.
17.2 In line with Managing Public Money (MPM) Annex 2.2 these delegations must be reviewed on an annual basis.
17.3 The Commission shall obtain the department’s, and where appropriate, HM Treasury’s prior written approval before:
18.1 Once the budget has been approved by the sponsor department and subject to any restrictions imposed by statute, the responsible Minister’s instructions, this document, HM Treasury settlement or delegation letters, the Gambling Commission (the Commission) has authority to incur expenditure approved in the budget without further reference to the sponsor department, on the following conditions:
19.1 The Gambling Commission (the Commission) must maximise the use of publicly procured banking services (accounts with central government commercial banks managed centrally by Government Banking).
19.2 The Commission should only hold money outside Government Banking Service accounts where a good business case can made for doing so and HM Treasury consent is required for each account to be established. Only commercial banks which are members of relevant UK clearing bodies may be considered for this purpose.
19.3 Commercial accounts where approved should be operated in line with the principles as set out in Managing Public Money (MPM).
19.4 The Accounting Officer is responsible for ensuring the Commission has a banking policy as set out in MPM and ensuring that policy is complied with.
20.1 The Gambling Commission (the Commission) shall ensure that its procurement policies are aligned with and comply with any relevant UK or other international procurement rules and in particular the Public Contracts Regulations 2015.
20.2 The Commission shall establish its procurement policies and document these in a Procurement Policy and Procedures Manual.
20.3 In procurement cases where the Commission is likely to exceed its delegated authority limit, procurement strategy approval for the specific planned purchase must be sought from the department’s sponsor team.
20.4 Goods, services, and works should be acquired by competition. Proposals to let single-tender or restricted contracts shall be limited and exceptional and a quarterly report explaining those exceptions should be sent to the department.
20.5 Procurement by the Commission of works, equipment, goods, and services shall be based on a full option appraisal and value for money (VfM), such as the optimum combination and whole life costs and quality (fitness for purpose).
20.6 The Commission shall:
20.7 The Commission shall comply with the requirements set out in Annex A.
21.1 The Gambling Commission (the Commission) requires the Secretary of State’s approval for any disposal of land regardless of value.
21.2 The Commission should seek approval from the Department for Digital, Culture, Media and Sport (DCMS) for the disposal of all other assets (excluding fixtures and fittings) above the maximum value as defined in their annual delegation letter.
21.3 The sale or lease of assets at below market value is regarded as a gift. If the difference between the market value and the amount received (the gift) exceeds £300k, HM Treasury (HMT) approval is required.
21.4 Unless a specific delegation limit is awarded to the Commission, HMT approval is required for all retention of receipts arising from asset disposals regardless of value.
22.1 The Gambling Commission shall ensure that the risks that it faces are dealt with in an appropriate manner, in accordance with relevant aspects of best practice in corporate governance, and develop a risk management strategy, in accordance with the Treasury guidance Management of Risk: Principles and Concepts (opens in a new tab).
23.1 The Gambling Commission (the Commission) must adopt and implement policies and practices to safeguard itself against fraud and theft.
23.2 The Commission must act in line with guidance as issued by the Counter Fraud Function and in compliance with the procedures and considerations as set in Managing Public Money Annex 4.9 and the Counter Fraud Functional Standard (opens in a new tab). It must also take all reasonable steps to appraise the financial standing of any firm or other body with which it intends to enter a contract or to provide grant or grant-in-aid.
23.3 The Commission must keep records of and prepare and forward to the department an annual report on fraud and theft suffered by the Commission and notify the sponsor department of any unusual or major incidents as soon as possible. The Commission must also report detected loss from fraud, bribery, corruption and error, alongside associated recoveries and prevented losses, to the counter fraud centre of expertise in line with the agreed government definitions as set out in Counter Fraud Functional Standard.
24.1 Within the arrangements approved by the responsible Minister and the Treasury the Gambling Commission (the Commission) will have responsibility for the recruitment, retention and motivation of its staff. The broad responsibilities toward its staff are to ensure that:
24.2 Subject to its delegated authorities, the Gambling Commission shall ensure that the creation of any additional posts does not incur forward commitments that will exceed its ability to pay for them.
24.3 The Gambling Commission’s (the Commission) staff are subject to levels of remuneration and terms and conditions of service (including pensions) within the general pay structure approved by the sponsor department and the Treasury. The Commission has no delegated power to amend these terms and conditions.
24.4 If civil service terms and conditions of service apply to the rates of pay and non-pay allowances paid to the staff and to any other party entitled to payment in respect of travel expenses or other allowances, payment shall be made in accordance with the Civil Service Management Code (opens in a new tab) and the annual Civil Service Pay Remit Guidance, except where prior approval has been given by the department and HM Treasury to vary such rates.
24.5 Staff terms and conditions should be set out and provided to the department together with subsequent amendments.
24.6 The Commission shall abide by public sector pay controls, including the relevant approvals process dependent on the organisations classification as detailed in the Senior Pay Guidance (opens in a new tab) and the Public Sector Pay and Terms Guidance (opens in a new tab).
24.7 The Commission shall operate a performance-related pay scheme that shall form part of the annual aggregate pay budget approved by the department, general pay structure approved by the department and the Treasury, where relevant with due regard to the Senior Pay Guidance.
24.8 The travel expenses of board members shall be tied to the rates allowed to senior staff of the Commission. Reasonable actual costs shall be reimbursed.
24.9 Compensation scheme rules and pension scheme rules should reflect legislative and HM Treasury guidance requirements regarding exit payments.
24.10 The Gambling Commission (the Commission) staff shall normally be eligible for a pension provided by the Principal Civil Service Pension Scheme. Staff may opt out of the occupational pension scheme provided by the Commission, but that employers’ contribution to any personal pension arrangement, including stakeholder pension, shall normally be limited to the national insurance rebate level.
24.11 Any proposal by the Commission to move from the existing pension arrangements, or to pay any redundancy or compensation for loss of office, requires the prior approval of the department. Proposals on severance must comply with the rules in chapter 4 of Managing Public Money.
25.1. The Gambling Commission (the Commission) shall submit annually to the sponsor department a draft of the corporate plan covering at least the year ahead. The draft should be submitted in such time as to allow meaningful consideration and feedback before final adoption by the Gambling Commission board. The Commission shall agree with the department the issues to be addressed in the plan and the timetable for its preparation. The plan shall reflect the Commission’s statutory and/or other duties and, within those duties, the priorities set from time to time by the responsible Minister (including decisions taken on policy and resources in the light of wider public expenditure decisions). The plan shall demonstrate how the Commission contributes to the achievement of the department’s medium-term plan and priorities and aligned performance metrics and milestones.
25.2.The first year of the corporate plan, amplified as necessary, shall form the business plan. The business plan shall be updated to include key targets and milestones for the year immediately ahead and shall be linked to budgeting information so that resources allocated to achieve specific objectives can readily be identified by the department. Subject to any commercial considerations, the corporate and business plans should be published by the Commission on its website and separately be made available to staff.
25.3.The following key matters should be included in the plans:
26.1. Each year, in the light of the updated draft corporate plan, the department will send to the Gambling Commission (the Commission) by May or June:
26.2.The approved annual business plan will take account both of approved funding provision and any forecast receipts. It will include a budget of estimated payments and receipts together with a profile of expected expenditure and of draw-down of any departmental funding or other income over the year. These elements form part of the approved business plan for the year in question.
27.1. The Gambling Commission (the Commission) will, for functions undertaken in relation to the Gambling Act 2005, and in accordance with that Act, operate on a net running costs basis under which fee income received by the Commission is used to fund its work directly, rather than surrendered to the Government. Fees to fund these functions will be determined on a full cost recovery basis in accordance with the Treasury’s Fees and Charges guidance. Any funds that are unused by the end of any given financial year require the Department for Digital, Culture, Media and Sport (DCMS) approval to be utilised in any following year. Forecasts should be provided by the Commission that are taut, realistic and consistent, and consistent with Managing Public Money (MPM).
27.2. Subject to periodic review, the Commission may retain non-grant-in-aid income for spending in connection with the achievement of the Commission’s strategic aims. The Commission seeks to establish fees on a full cost recovery basis, taking one year with another where unforeseen surpluses or deficits occur, ensuring that fees remain appropriate and proportionate over the duration of the corporate strategy.
27.3.Review of the Commission’s fees is at the discretion of the Secretary of State, to be exercised in accordance with the principles of MPM. The Commission and DCMS will carry out an annual health check to determine whether fee levels remain appropriate or whether a further comprehensive review is required.
27.4.The annual check will consider any significant changes to legislation or the number and complexity of regulated operators. It will also take into account levels of inflation, efficiency savings made by the Commission and whether changes to industry structures or patterns of risk have significantly altered the focus of its regulatory effort. The outcome of this consideration will be recorded and signed off by the Director of Finance or the Head of Gambling and Lotteries in DCMS and by the Chief Executive or Chief Operating Officer of the Commission. The annual check may be brought forward and a comprehensive review of fees initiated by DCMS if it is clear that this will be required.
27.5.Grant-in-Aid is the amount payable by the DCMS to the Gambling Commission in each year, primarily in relation to National Lottery regulation, and is distinct from the budget.
27.6.Any grant-in-aid provided by the department for the year in question will be voted in the department’s Supply Estimate and be subject to parliamentary control.
27.7. The grant-in-aid will normally be paid in monthly instalments on the basis of written applications showing evidence of need. The Commission will comply with the general principle that there is no payment in advance of need. Cash balances accumulated during the course of the year from grant-in-aid or other Exchequer funds shall be kept to a minimum level consistent with the efficient operation of the Commission. Grant-in-aid not drawn down by the end of the financial year shall lapse. Subject to approval by Parliament of the relevant Estimates provision, where grant-in-aid is delayed to avoid excess cash balances at the year-end, the department will make available in the next financial year any such grant-in-aid that is required to meet any liabilities at the year end, such as creditors.
27.8. In the event that the department provides the Commission separate grants for specific (ring-fenced) purposes, it would issue the grant as and when the Commission needed it on the basis of a written request. The Commission would provide evidence that the grant was used for the purposes authorised by the department. The Commission shall not have uncommitted grant funds in hand, nor carry grant funds over to another financial year.
28.1. The Gambling Commission (the Commission) Board must publish an annual report of its activities together with its audited accounts after the end of each financial year. A draft of the report should be submitted to the department two weeks before the proposed publication date. The Commission shall provide the department its finalised (audited) accounts by May or early June each year in order for the accounts to be consolidated within the Department for Digital, Culture, Media and Sport (DCMS). The accounts should be prepared in accordance with the relevant statutes and specific accounts direction issued by the department as well as the Treasury’s Financial Reporting Manual (FReM).
28.2. The annual report must:
28.3. Information on performance against key financial targets must be included within the annual report and made subject to the auditor’s consistency opinion. The report and accounts shall be laid in Parliament and made available on the Commission website, in accordance with the guidance in the FReM.
29.1. The Gambling Commission (the Commission) shall operate management, information and accounting systems that enable it to review in a timely and effective manner its financial and non-financial performance against the budgets and targets set out in the corporate and business plans.
29.2. The Commission shall inform the sponsor department of any changes that make achievement of objectives more or less difficult. It shall report financial and non-financial performance, including performance in helping to deliver Ministers’ policies, and the achievement of key objectives quarterly.
29.3.The Commission’s performance shall be formally reviewed by the department 4 times a year.
29.4. The responsible Minister will meet the Chair once a year.
29.5. The Principal Accounting Officer (PAO) will meet the Chief Executive at least once a year.
30.1.The Gambling Commission (the Commission) will allow reasonable access by the Department for Digital, Culture, Media and Sport (DCMS) to the Commissions records and personnel where this is necessary for the proper discharge of the Secretary of State’s responsibilities in respect of the Commission – except where they relate to access to specific documents or personnel that could compromise the ability of the Commission to exercise its functions independently of Government influence or interference.
30.2.The Commission shall provide the sponsor department with such information about its operations, performance, individual projects or other expenditure as the sponsor department may reasonably require.
30.3.The department and HM Treasury may request the sharing of data held by the Commission in such a manner as set out in central guidance except insofar as it is prohibited by law. This may include requiring the appointment of a senior official to be responsible for the data sharing relationship.
30.4. As a minimum, the Commission shall provide the department with information monthly that will enable the department satisfactorily to monitor:
31.1. The Gambling Commission (the Commission) shall:
32.1.The Comptroller and Auditor General (C&AG) audits the Gambling Commission’s (the Commission) annual accounts and lays them before Parliament, together with their report on those accounts.
32.2. In the event that the Commission has set up and controls subsidiary companies, the Commission will in the light of the provisions in the Companies Act 2006 ensure that the C&AG has the option to be appointed auditor of those company subsidiaries that it controls or whose accounts are consolidated within its own accounts. The G Commission shall discuss with the sponsor department the procedures for appointing the C&AG as auditor of the companies.
32.3. The C&AG:
32.4.The C&AG may carry out examinations into the economy, efficiency and effectiveness with which the Commission has used its resources in discharging its functions. For the purpose of these examinations the C&AG has statutory access to documents as provided for under section 8 of the National Audit Act 1983. In addition, the Commission shall provide, in conditions to grants and contracts, for the C&AG to exercise such access to documents held by grant recipients and contractors and sub-contractors as may be required for these examinations; and shall use its best endeavours to secure access for the C&AG to any other documents required by the C&AG which are held by other bodies.
33.1 The Gambling Commission will be reviewed as part of the wider Public Bodies Reviews programme, at a time determined by the department’s ministers and their PAO.
34.1 The sponsor department shall put in place arrangements to ensure the orderly winding up of the Gambling Commission (the Commission). In particular it should ensure that the assets and liabilities of the Commission are passed to any successor organisation and accounted for properly. (In the event that there is no successor organisation, the assets and liabilities should revert to the sponsor department.) To this end, the department shall:
34.2 The Commission shall provide the department with full details of all agreements where the Commission or its successors have a right to share in the financial gains of developers. It should also pass to the department details of any other forms of claw-back due to the Commission.
The Gambling Commission (The Commission) shall comply with the following guidance, documents and instructions for issues related to corporate governance:
The Commission shall comply with the following guidance, documents and instructions for issues related to financial management and reporting:
The Commission shall comply with the following guidance, documents and instructions for issues related to the management of risk:
The Commission shall comply with the following guidance, documents and instructions for issues related to commercial management:
The following are relevant where public bodies participate in public appointments processes:
The Commission shall comply with the following guidance, documents and instructions for issues related to staff and remuneration:
The Commission shall comply with the following guidance, documents and instruction for general issues:
1. Under Schedule 4 to the Gambling Act 2005 (opens in new tab) (the Act), the Board of Commissioners (the Board) is required to establish arrangements for the conduct of its proceedings and to publish them. This appendix outlines the rules for the conduct of business the Gambling Commission has implemented to meet this requirement.
2. The principal place of business of the Commission is:
Fourth Floor3. Meetings are normally held in Birmingham, but may be held outside Birmingham if that is considered appropriate.
4. The Board will normally meet six times per year, planned well in advance. The frequency of meetings can be increased, if necessary, when the level of business requires. These meetings are the ‘ordinary’ meetings of the Board.
5. In addition to the ordinary meetings, an ‘extraordinary’ meeting of the Board may be called by the Chair, by the Chief Executive, or if necessary, by a Commissioner.
6. Save for urgent business, the Chief Executive, or a nominated officer acting on his/her behalf, will send to each Commissioner a written notice of the time and place of an ordinary or extraordinary meeting of the Board, and of the business to be transacted, at least five clear working days (a working day excludes Saturday, Sunday, Bank Holidays and other days when the Commission offices are closed) before any such meeting.
7. Notice of meetings will be sent electronically to Commissioners’ email addresses. Notice of the meeting sent electronically shall be deemed to be a written notice.
8. The accidental omission to give notice to, or the non-receipt of notice by, any Commissioner shall not invalidate the proceedings of the meeting, provided that at least five Commissioners are served with notice of the meeting.
9. Meetings of the Board may be conducted at face-to-face meetings, or by telephone or video conference.
10. The Chair is responsible for drawing up the agenda of meetings in consultation with the Board and the Chief Executive.
11. No business other than that specified in the notice of the meeting shall be transacted at that meeting, unless the business is of an urgent nature or required by statute to be transacted and not less than two-thirds of the Commissioners present decide that the business shall be transacted.
12. A Commissioner wishing a matter to be included on an agenda shall make his/her request in writing for the Chair to consider at least ten clear days before a meeting. Requests made less than ten days before a meeting may be considered for inclusion on the agenda at the discretion of the Chair.
13. Agendas for meetings shall include declarations of interest as a standing item.
14. The quorum for a meeting of the Board will be three Commissioners including the Chair or Senior Independent Director. Commissioners participating via telephone or video conferencing shall be deemed to be present at that meeting.
15. If a Commissioner has been disqualified from participating in a discussion or resolution to be taken about any matter by reason of the declaration of a conflict of interest, he/she shall no longer count towards the quorum. If a quorum is then not available for the discussion or resolution to be taken about any matter, that matter may not be subject to a decision. The minutes of the meeting shall record such a situation.
16. The names of all Commissioners present at a meeting of the Board shall be recorded in the minutes of the meeting.
17. If the Chair is not present at a meeting, those Commissioners present will appoint one of their number to chair that meeting.
18. The Chair determines the detailed procedure for the conduct of business at meetings of the Board and the Chair’s decision on questions of order will be observed at the meeting, subject to these provisions and to any decision of the Board to the contrary.
19. Wherever possible, the Board will reach a consensus on a matter under consideration. Where there is a consensus, there is no need for a vote to be carried out.
20. Exceptionally, where there is not a consensus, the matter shall be determined by a majority of the Commissioners present. A Commissioner absent at the time of the vote may not vote by proxy. In the event of an equality of votes, the Chair shall have a second or casting vote.
21. The procedure for voting shall be a matter for the Chair at the meeting, subject to any decision of a majority of the Board to the contrary, including:
22. Any meeting of the Board may be adjourned from time to time and from place to place at the discretion of the Chair. Reasonable notice shall be given where practical of the date and time of the reconvening of the adjourned meeting, save that where a meeting has been adjourned for 30 days or more, notice of the reconvening of the adjourned meeting shall be given as for an ordinary meeting of the Board.
23. Minutes of the meetings of the Board will be published on the Commission’s website, subject to the deletion of material the disclosure of which would be inappropriate. Examples of such material include: market sensitive information; information that is subject to a duty of confidentiality; information which could hinder the performance of the Commission; and information about individuals such as Commissioners, or the employees of the Commission, or individual operating or personal licence holders.
24. Urgent business is deemed to be any matter requiring a decision of the Board before the date when an ordinary or extraordinary meeting of the Board can be convened. In such cases the Chief Executive should take all practicable steps to consult with the Chair and as many other Commissioners as the Chief Executive considers appropriate (and if at all possible no fewer than four Commissioners).
The Chief Executive should seek Commissioners’ views as to:
25. The Chief Executive should decide in the light of Commissioners’ views what action to take, notify as many Commissioners as practicable of the proposed action and allow as much time as he/she considers reasonable in the circumstances for Commissioners to comment on the proposals. He/she should then act as is considered appropriate.
26. The exercise of such powers shall be reported to the next meeting of the Board which will consider whether further action is required.
27. If in the opinion of the Chair and the Chief Executive any matter requiring a decision of the Board is unlikely to be contentious, the Chief Executive, or a nominated officer acting on his/her behalf, may give notice of a proposed resolution, together with any necessary explanation and information, to all Commissioners of the Board by way of email to his/her notified email addresses.
28. A resolution under paragraph 27 shall be valid and effective without a meeting of the Board provided that by the end of the sixth working day following the day on which notice was sent, no Commissioner of the Board who would be entitled to attend and vote on the matter at a meeting has indicated dissent. In the event of such dissent, the matter shall be referred to the next meeting of the Board for decision.
29. Such a resolution shall be reported in the next available minutes of the Board as having been made on the last day of the period referred to in paragraph 27.
30. The Board has appointed four advisory committees:
These committees operate according to agreed terms of reference, which are reviewed annually by the Board.
31. The Board has also established a committee, which will exercise certain regulatory functions under the Gambling Act 2005 (the Regulatory Panel) and the National Lottery etc. Act 1993 (opens in new tab).
32. The Board may from time to time establish other committees and panels.
33. The appointment of Commissioners and employees to committees and advisory groups shall be a matter for the Chair, and effective following the approval of the Board (except where an advisory group is established by the Chair).
34. Dates and venues of committee meetings shall be set in advance and notified to all Commissioners. Such meetings shall be known as ordinary committee meetings. An extraordinary committee meeting may be called at any time by the Chair of the committee. Details of all business to be transacted at committee meetings shall be sent to any Commissioner of the Board who has specifically requested them. Any Board Commissioner shall be entitled to attend any committee meeting of which he/she is not a Commissioner as an observer.
35. The Chair of any committee shall report the minutes of committee meetings to the next appropriate meeting of the Board.
36. Commissioners must declare any involvement in any personal or business interests which may conflict with his/her responsibilities as Commissioners of the Commission and ensure that he/she complies with the Commission’s rules on: links with individuals or organisations with which the Commission conducts business; shareholdings and other private investments; and gaming club membership and gambling.
37. Commissioners must declare any such interests to the Head of Governance (who will maintain the register of interests) as soon as he/she is aware of them (and in any event within 14 days of becoming so aware) and discuss any concerns about potential conflicts with the Chair or Chief Executive.
38. A Commissioner should also disclose any such interests of which he/she is aware of close family members (which includes partners and dependants). He/she should also consider whether there is a need to disclose relevant interests, known to them, of any other persons or organisations which members of the public might reasonably think could influence his/her judgement.
39. Commissioners should not participate in the discussion or determination of any matters in which he/she has a direct significant pecuniary interest. When an interest is not of a direct pecuniary kind, he/she should consider whether his/her participation in the discussion or determination of a matter might reasonably be considered to suggest any risk of bias, in the sense that Commissioners might, unwittingly or otherwise, unfairly regard with favour or disfavour the case of a party to the matter under consideration.
40. In considering whether any danger of bias might be perceived to exist, Commissioners should assess whether he/she, a close family member, a firm, business or organisation with which he/she is connected is likely to be affected more than the generality of those affected by the decision in question. Where a Commissioner declares a possible conflict arising from an indirect interest, it will be for the Commissioners at the meeting to determine whether that conflict is sufficient to require the Commissioner to withdraw from the meeting for that item.
41. Where, in accordance with the above, a Commissioner does not participate in a discussion, he/she will normally withdraw from that part of the meeting. This is because the continued presence of someone who has declared a direct interest, or who was deemed to have an indirect interest, might be thought likely to influence the judgement of the other Commissioners.
1. The Gambling Commission (the Commission) requires all employees to act honestly and with integrity at all times, and to safeguard the resources for which he/she is responsible. The Commission is committed to ensuring that opportunities for fraud and corruption are reduced to the lowest possible level of risk and will not accept any level of fraud, corruption, or other criminal activity. Consequently, any suspected irregularity will be thoroughly investigated and dealt with appropriately.
2. The Commission’s policy is to report all suspected fraud and corruption to the police. The Commission will follow police advice and support police investigations where the police choose to be involved. If the police do not choose to pursue a case, the Commission will take appropriate action on its own account in line with its response plan in Annex A.
3. The Fraud Act 2006 (opens in new tab) introduces a statutory single offence of fraud which can be committed in three different ways:
For practical purposes fraud can be defined as dishonest conduct with the intention to make gain, cause a loss, or cause the risk of a loss to another.
4. Existing offences such as theft, corruption, false accounting, forgery, counterfeiting and blackmail continue to be offences under previous relevant legislation.
5. ‘Corruption’ is defined as the offering, giving, soliciting, or acceptance of an inducement or reward which may influence any person to act inappropriately. Employees should be aware that they may be exposed to corrupt activity in a variety of ways, for example the offer of bribes, coercion, blackmail and false accounting. The nature of the Commission’s work means that employees need to be aware of the risk of allegations of corruption and for this reason the Commission has strict rules for giving and receiving any hospitality and gifts. These are set out in the Code of Conduct for Commissioners in Appendix 8 and the Code of Conduct for Employees.
6. The Bribery Act 2010 (opens in new tab) creates four principal offences:
There is a defence if an organisation can prove it has adequate procedures to prevent bribery. Penalties associated with these offences are severe and include penalties for management who turn a blind eye.
7. The Commission has avenues in place for reporting suspicions of fraud. The detailed response plan is in Annex A. Employees should report any such suspicions in the first instance to their resource manager, or, if that is not appropriate, directly to the Chief Finance Officer, the Chief Executive, to any member of the Commission’s Audit and Risk Committee, a Commissioner or to the Internal Auditors.
8. All matters will be dealt with in confidence and in strict accordance with the terms of the Public Interest Disclosure Act 1998 (opens in new tab), which protects the legitimate personal interests of employees. Vigorous and prompt investigations will be carried out into all cases of actual or suspected fraud discovered or reported. Those reporting suspicions of fraud may be required as witnesses in any criminal proceedings.
9. Guidance to Non-Departmental Public Bodies in relation to fraud are set out in chapter 5 of Government Accounting.
10 The Chief Executive, as Accounting Officer, is responsible for establishing and maintaining a sound system of internal control that supports the achievement of Commission policies, aims and objectives. The system of internal control is designed to respond to and manage the whole range of risks that the Commission faces. The system of internal control is designed to identify the principal risks facing the Commission at organisational and departmental level, to evaluate the nature and extent of those risks and to manage them effectively. Managing fraud risk is seen in the context of the management of this wider range of risks.
11 Overall responsibility for managing the risk of fraud and corruption within the Commission has been delegated to the Chief Finance Officer.
The responsibilities of the Chief Finance Officer role include:
12 Managers are responsible for:
13 Internal Audit is responsible for:
14 Every employee is responsible for:
15. The Commission has a Fraud and corruption response plan that sets out how to report suspicions, and how investigations will be conducted and concluded. This plan forms part of this policy in Annex A.
16. The circumstances of individual frauds and corrupt activities will vary. The Commission takes fraud and corruption very seriously. All cases of actual or suspected fraud will be vigorously and promptly investigated and appropriate action will be taken, including referral to the police.
1. The Gambling Commission (the Commission) has developed this plan to support its Anti-Fraud and Corruption Policy. The plan sets out how employees should report suspicions of fraud, and how investigations will be conducted and concluded.
2. Given the nature of the Commission’s functions, and with consistent application by management and employees of the designated systems of internal control and management practices, the risk of fraud occurring within the Commission is considered to be low. Complacency should be avoided and it is important for all employees to remain vigilant in addressing this risk. However, such vigilance should be kept in perspective, and not lead to the creation of an unproductive climate of suspicion in the workplace.
3. The Commission considers that there is a higher risk of corrupt practices, or the perception of corrupt practices, given the nature of its activities. For this reason, the Commission has strict rules governing the receipt and giving of gifts and hospitality. These rules are set out in the Employee and Commissioner Codes of Conduct. The underlying presumption is that employees should not accept hospitality from operators or potential operators or from significant contractors or potential contractors.
4. This response plan has been tailored to the Commission’s circumstances and reflects the likely nature and scale of losses which may occur through fraud and corruption.
5. More than half of all fraud and corruption is identified through the operation of normal system controls which exist within an organisation and information from third parties typically accounts for another 30 percent of proven cases. Other means of discovery include accident, internal and external audit, confession, employee changes and suspicion.
6. There is a range of warning signs which may lead to an initial suspicion that fraud or corruption may be taking place. Although the following list is not comprehensive, these signs include employees who:
7. In the event that employees discover, or have suspicions that fraud or corruption is occurring within the Commission, they should immediately inform their resource manager in the first instance.
Failing that, Chief Finance Officer, the Chief Executive, a member of the Audit and Risk Committee, a Commissioner, or the Internal Auditors, in accordance with the procedures specified in the Commission’s Public Interest Disclosure Policy should be informed. The Public Interest Disclosure Policy is set out in Appendix 4 of the Corporate Governance Framework.
8. It is important that the employee who has identified the suspected fraud or corruption does not take any action which may forewarn the alleged perpetrator. Instead, efforts should be directed, in conjunction with the appropriate development manager, towards ensuring that any readily available evidential material is secured for the investigation process. Under no circumstances should the employee attempt to investigate the suspected fraud or corruption personally.
9. The Chief Executive, as Accounting Officer will decide how the investigation of the suspected fraud will proceed. The Chief People Officer will normally be informed of any such investigation involving Commission employees.
The investigation process will include:
10. Resource managers should, following information from an employee or other source about suspicious activity, take immediate steps to secure any available evidence which is considered to substantiate the alleged fraud or corruption. Where possible, advice should be taken from the Commission’s legal advisers on procedures to preserve that evidence for any potential legal proceedings. The gathering of any additional evidence should only be undertaken with the advice and agreement of the investigator.
11. In order to secure the evidence in a legally admissible form consideration should first be given to photographing the relevant documents in the location where found. Thereafter they should be preserved in their original state, as they may need to be fingerprinted or otherwise tested, and stored in a secure place. A record should be maintained of precisely where, when and by whom they were found and of anyone handling the evidence.
12. It is important to ensure that any employee(s) under suspicion of committing fraud or corruption are treated fairly. Any action taken by management to suspend or dismiss an employee in this situation will only be taken in conjunction with the Chief People Officer and Director of Legal. If the decision is made to allow the employee(s) under suspicion to remain in the workplace, additional pre-authorised checks may be necessary, including, for example, a search of the work area, filing cabinets and computer files.
13. If the police have decided to pursue an investigation, they must be involved at an early stage in accordance with this policy and they will make any decisions regarding interviews. Otherwise, the decision to interview any employee(s) under suspicion of committing fraud is to be made by a Director or Executive Director.
14. Any such interviews must be conducted under the provisions of Police and Criminal Evidence Act 1984 (opens in new tab) and under properly controlled conditions in order to ensure that any statement taken, which may be subsequently used as evidence in a court case, will not be rejected as inadmissible. The investigator will be responsible for ensuring the appropriate guidelines and codes of conduct are followed in interviewing suspects.
15. The Commission will seek to recover all assets lost or misappropriated as a result of fraud, theft or corruption. The process of recovery will depend upon the nature and circumstances surrounding the loss, and whether the fraud results in criminal charges.
16. Once the size and extent of the loss has been confirmed, action will be taken to trace and freeze the lost assets, where possible, so that the recovery process can be commenced. The recovery process may take several forms:
17. Recovery arrangements agreed with third parties will be handled by the Commission’s legal advisers.
18. The following will be contacted for advice as appropriate.
| Advisor | Name | Contact details |
|---|---|---|
| Head of Legal | Razwana Kausar | rkausar@gamblingcommission.gov.uk |
| Finance Director | Helen Gibson | hgibson@gamblingcommission.gov.uk |
| Police | Head of Economic Crime Unit | 0845 113 5000 |
| Internal audit | Ben Connor (PWC) | benjamin.e.connor@pwc.com |
| National Audit Office | Robert Buysman | robert.buysman@nao.org.uk |
19. All internal and external communications about any event covered by this policy being investigated internally will be handled by the Commission’s Corporate Affairs team. Given the sensitivity surrounding such events and the need to ensure consistency in the release of any information about the event, the Corporate Affairs team will deal directly with the media if necessary, taking advice from Commission’s legal advisers (and the police where they are involved) as to what information can be released, and in what form.
20. The Commission is committed to ensuring that the threat of fraud and corruption is properly managed through the implementation and application of sound systems of internal control and supporting employee management processes.
21. In the event that fraud or corruption is discovered and subsequently acted upon by the police or internally, the Commission will take steps to ensure the lessons learnt from the event are applied to existing policies and practices. This may require:
22. In addition, the dissemination of the lessons learnt from a particular fraud event will provide a valuable learning opportunity for the Commission as a whole.
23. The Agreements between DCMS and the Commission set out the requirements for Fraud and Theft Reporting. All losses resulting from frauds and/or thefts are to be recorded and reported in an annual return to DCMS by 30 April of each year.
24. The details of losses experienced by Non-Departmental Public Bodies through fraud and/or theft are incorporated in DCMS’s annual return to Treasury.
1. The aim of this policy is to provide employees with a procedure for reporting any unlawful conduct at work and to reassure them that they can be confident in exposing wrongdoing without any risk to themselves.
2. All of us at one time or another may have concerns about what is happening at work. Usually, these concerns can be easily resolved. However, when they are about possible unlawful conduct, fraud, risks to the public or the environment, or other malpractice, it can be difficult to know what to do.
3. Many people in this situation worry about reporting their concerns and may feel inclined to keep them to themselves, perhaps because the concern is only a suspicion or because they feel it is ‘none of their business’. They may feel that they are being disloyal to colleagues, management, or to the Commission. They may also have concerns about being branded a trouble maker or about their job security or prospects.
4. The public interest disclosure procedure should be followed if employees wish to make a disclosure internally. It can be used to report a concern which threatens the interests of any person or the Gambling Commission.
5. The procedure to use if you want to raise a concern internally is as follows:
6. The Commission will not tolerate the detrimental treatment of anyone who raises a concern under this policy. Provided you are acting in the reasonable belief that it is in the public interest, it does not matter if it later transpires that you were mistaken; you will not be subject to disciplinary action as a result. This assurance does not extend to someone who maliciously raises a matter they know is untrue. Disciplinary action may be taken against employees who deliberately make false allegations. Detrimental treatment includes dismissal, disciplinary action, threats or other unfavourable treatment connected with raising a concern.
7. The Commission recognises that you may want to raise a concern in confidence under this policy. If you ask us to protect your identity, we will not disclose it without your consent. However, in some circumstances this may make it more difficult to fully investigate the matter. If the situation arises where we are not able to resolve the concern without revealing your identity, we will discuss with you how we can proceed.
8. If you do not tell us who you are, it will be much more difficult for us to look into the matter, protect your position, or give you feedback. Accordingly, while we will consider anonymous reports, this policy is not designed to deal with concerns raised anonymously.
9. Once you have told us of your concern, we will look into it to assess what action should be taken. You may be asked how you think the matter might best be resolved.
10. If you request a written response we will write to you within 10 working days of receipt, summarising your concern and setting out how we propose to handle it. We will tell you who is dealing with the matter, the expected timeline of the process and whether your further assistance may be needed.
11. It may be decided that a formal investigation is necessary. In most cases it will be the responsibility of the Chief People Officer or the Head of Governance to make arrangements for the matter to be investigated. Depending on the nature of the concerns raised, the Commission may appoint an external body to undertake the investigation and report their findings to the Commission. The Commission will remain responsible for receiving the report, deciding on the outcome of the investigation and reporting the decision and outcome.
12. We will give you as much feedback as we properly can, and if requested, we will confirm our response to you in writing. However, we may not be able to tell you the precise action we take, where this would infringe a duty of confidence owed by us to someone else.
13. A register of disclosures will be maintained in confidence by the Head of Governance. The number of new disclosures and a broad indication of any action taken on disclosures will be reported regularly to the Audit and Risk Committee. No identifiable case details will be shared with the Committee.
14. If you are unhappy with our response or with the outcome of the investigation, you may share your concerns in writing to the Chair of the Board (or Senior Independent Director if you are raising concerns about the Chair), within ten working days of receiving notification of the outcome.
The Chair will consider your concerns and will confirm how the matter will be taken forward, and the expected timeline for response. The outcome will be confirmed to you in writing. While we cannot guarantee that we will respond to all concerns in the way that you might wish, we will handle the matter fairly and properly.
15. The Public Interest Disclosure Act 1998 (opens in new tab) (PIDA) enables workers in the public and private sectors who 'blow the whistle' to complain to an employment tribunal if they are dismissed or suffer any other form of detriment for doing so.
16. A disclosure may qualify for protection (a qualifying disclosure) if you reasonably believe that it tends to show one or more of the following has occurred, is occurring, or is likely to occur:
17. The PIDA does not introduce a general protection for those making disclosures in all circumstances. Individuals who make disclosures will not be protected by the PIDA if they commit an offence by making the disclosure (for example breach of the Official Secrets Act).
18. Personal grievances (for example relating to bullying, harassment, discrimination) are not covered by the PIDA unless your particular case is in the public interest. Although not in scope of PIDA, these are serious concerns and should be addressed through the Commission’s grievance policy.
19. If after reading this policy you are still unsure whether to use this procedure, you may obtain independent legal advice through Protect (formerly Public Concern at Work). This is an independent charity and is a leading authority on public interest disclosures. They can be contacted on 020 3117 2520 or via the Protect website (opens in a new tab) .
20. A qualifying disclosure is protected if you make it in the course of obtaining legal advice. You should seek an appointment with a reputable legal adviser.
21. Further information is contained within the Guide to the Public Interest Disclosure Act (opens in new tab) on the website of Protect.
22. If you require any further information about this policy, please contact the Chief People Officer.
23. The Board champion for this policy is the Chair of the Audit and Risk Committee.
The complaints policy is published within the policies and procedures section of our publication scheme.
1. The Gambling Commission hereby establishes a Committee of Commissioners, on which any Commissioner may sit, to be known as the Regulatory Panel.
2. The quorum for conduct of any business by the Regulatory Panel shall be two Commissioners, although normally the Panel will comprise three Commissioners.
3. Meetings of the Regulatory Panel or hearings before an Executive Director may be conducted by telephone or video conference.
4. The Chair of the Commission shall, if present, preside at all meetings of the Regulatory Panel. If the Chair is not to be present, they may designate a Commissioner to chair the meeting. If there has been no such prior designation the Commissioners present at the meeting shall elect a Chair for the duration of the meeting.
5. The Chief Executive may designate such staff as they consider appropriate to attend meetings of the Regulatory Panel or hearings before an Executive Director to assist or advise the decision makers, but those staff may not take part in the decision making process of the Regulatory Panel or Executive Director.
6. Subject to the provisions of the following two paragraphs, the Commission hereby delegates the powers and functions annexed hereto, to the persons respectively. Any other decisions to grant a licence or take regulatory action which are not otherwise specifically delegated under this resolution are hereby delegated to the Chief Executive or an Executive Director (for the purposes of delegated decision making the term ‘Executive Director’ includes the Commission’s General Counsel).
7. Where it is considered appropriate by the Chair, or any Commissioner, or the Chief Executive, or a member of staff nominated in the annexed section, a case may be referred to a more senior member of staff or the Regulatory Panel who will determine that case instead of the persons otherwise delegated to carry out that function.
8. These arrangements shall supersede all previous delegation arrangements hitherto authorised by the Commission.
Determination of applications for operating or personal licences under section 69 of the Gambling 2005 Act (opens in a new tab), including the attachment of any condition under section 77 required to define the category of operating licence but subject to what is said in the following as to licensee specific conditions.
Assistant Regulatory Caseworkers or above may grant applications for personal functional licences, where there are no issues to be resolved about the suitability of the applicant or where the applicant has previously held an operating or personal licence under section 69 of the 2005 Act and there are no issues to be resolved about the suitability of the applicant.
Regulatory Caseworkers or above may grant applications for non-remote operating licences and remote licences, ancillary remote licences and linked licences (remote and non-remote), and personal management and functional licences where no issues have been identified or where any issues have been satisfactorily resolved.
A Regulatory Manager or above may grant an application for an operating licence or a personal licence, except for applications that are reserved to, or referred to the Regulatory Panel for consideration.
Minded to refuse cases: Where the conclusion of staff is that an application should be refused a 'minded to refuse' letter will be sent to the applicant.
Where, in response to such a letter, the applicant for a personal licence requests a hearing, this will be before an Executive Director, who will determine the case, otherwise a Regulatory Manager or above may decide to refuse the application.
Where, in response to such a letter, the applicant for an operating licence requests a hearing, this will be before a Regulatory Panel, the Panel will determine the case, otherwise a Regulatory Manager or above may decide to refuse the application.
Imposition of a condition attached to a licence under section 77 of the Gambling Act 2005 (opens in a new tab) (including that section applied by section 128) specific to the licensee.
A Regulatory Manager or above may decide to attach a condition to a licence.
Where the conclusion of staff is that an application should be granted with a condition, a ‘minded to grant with condition’ letter will be sent to the applicant.
Where, in response to such a letter, the applicant for a personal licence requests a hearing, this will be before an Executive Director who will determine the case, otherwise a Regulatory Manager or above may decide to attach the condition.
Where, in response to such a letter, the applicant for an operating licence requests a hearing, this will be before a Regulatory Panel who will determine the case, otherwise a Regulatory Manager or above may decide to attach the condition.
Determining an application under section 102(2)(b) of the Gambling Act 2005 (opens in a new tab) that the operating licence shall continue to have effect following a change of corporate control; or alternatively that the licence should be revoked.
Continuance:
Regulatory Caseworkers and above where no issues have been identified or where issues have been satisfactorily resolved may grant an application.
A Regulatory Manager or above may consider an application where issues remain unresolved.
Revocations: Where the conclusion of staff is that the licence should be revoked a 'minded to revoke’ letter will be sent to the licence holder.
Where, in response to such a letter, the licence holder requests a hearing before the Regulatory Panel, the Panel will determine the case, otherwise a Regulatory Manager or above may decide to revoke the licence.
Determination of a request that the five-week period under section 102(5) should be extended after it expires under section 102(6)(b).
A Regulatory Manager or above may grant requests.
Revocations: Where the conclusion of staff is that the request should be refused and the licence revokes under section 102(5) a ‘minded to revoke’ letter will be sent to the licence holder.
Where, in response to such a letter, the licence holder requests a hearing, this will be before an Executive Director who will determine the case, otherwise a Senior Manager or above may take the decision.
Determination of an application to vary a licence under section 104 of the Gambling Act 2005 (opens in a new tab) (including personal licence).
Applications made under sub-section (1)(a) (add, amend, remove a licensed activity) may be determined by the person delegated to grant applications for licences as set out previously. In addition, Assistant Regulatory Caseworkers or above may determine applications made under sub-section (1)(b) (amend another detail of the licence).
A Regulatory Manager or above may determine an application falling under sub-section (1)(c) (add, amend, remove a condition attached under section 77).
Minded to refuse cases: Where the conclusion of staff is that an application should be refused a 'minded to refuse' letter will be sent to the applicant.
Where, in response to such a letter, the applicant requests a hearing before the Regulatory Panel, the Panel will determine the case, otherwise a Regulatory Manager or above may decide to refuse the application.
Determination of an application for a single-machine supply and maintenance permit under section 250 of the Gambling Act (opens in a new tab).
Assistant Regulatory Caseworkers or above may grant applications for a single machine permit, where there are no issues to be resolved about the suitability of the applicant or where the applicant has not previously been issued with a single machine permit and there are no issues to be resolved about the applicant.
Regulatory Managers or above may grant applications for a single machine permit where no issues have been identified or where any issues have been satisfactorily resolved or where the applicant has previously been issued with a single machine permit.
Minded to reject cases: Where the conclusion of staff is that an application should be rejected a 'minded to reject' letter will be sent to the applicant. Where, in response to such a letter, the applicant makes representations, if the representations are such that the application can be granted, a Regulatory Manager or above may grant the application. If the representations are such that the application may still be rejected, these will be put before an Executive Director, who will determine the case, otherwise a Regulatory Manager or above may decide to reject the application.
Deciding whether an operating or personal licence should be suspended under section 118(3) of the Gambling Act 2005 (opens in a new tab) on the grounds that: the licensee has failed to comply with a requirement of regulations under section 101 of the Gambling Act 2005 (opens in a new tab) (notification of change of circumstances); or the licensee has failed to submit the licence to the Gambling Commission for amendment in accordance with section 105 (amendment) of the Gambling Act 2005 (opens in a new tab).
A Director and/or Head of Function or above may take the decision.
Deciding whether an operating or personal licence should be revoked under section 119(2) of the Gambling Act 2005 (opens in a new tab) on the grounds that: the licensee has failed to comply with a requirement of regulations under section 101 (notification of change of circumstances); or the licensee has failed to submit the licence to the Commission for amendment in accordance with section 105 (amendment).
Where the conclusion of staff is that a licence should be revoked, a 'minded to revoke’ letter will be sent to the licence holder.
Where, in response to such a letter, the licence holder requests a hearing before the Regulatory Panel, the Panel will determine the case, otherwise a Director and/or Head of Function or above may decide to revoke the licence.
Decision to disapply section 119(3) of the Gambling Act 2005 (opens in a new tab) (otherwise automatic revocation for non-payment of annual licence fee).
A Regulatory Manager or above may take the decision.
Deciding whether an operating licence or personal licence has lapsed on the grounds that the licensee is incapable of carrying on the licensed activities by reason of mental or physical incapacity per section 114(1)(b) of the Gambling Act 2005 (opens in a new tab).
Where staff reach a provisional view that the licensee is incapable of carrying on the licensed activities by reason of mental or physical incapacity a notice to that effect shall be sent to the licensee.
Where, in response to such a notice, the licensee requests a hearing before the Regulatory Panel, the Panel will determine the case, otherwise a Director and/or Head of Function or above may decide that the licence has lapsed.
Institution of licence reviews under section 116(1) or 116(2) of the Gambling Act 2005 (opens in a new tab).
A Senior Manager or above may decide that a licence review should be commenced.
Suspension of licences at the time of deciding to conduct, or during the course of a review, under section 118(2) of the Gambling Act 2005 (opens in a new tab), on the grounds that the Commission suspects that any of the conditions specified in section 120(1) of the Gambling Act 2005 (opens in a new tab) applies.
A Director and/or Head of Function or above may take the decision to suspend a licence.
The Regulatory Panel may review the decision to suspend the licence.
Deciding whether or not to:
Where the conclusion of staff is that the Commission should exercise its powers under section 117 of the Gambling Act 2005, a 'minded to’ letter will be sent to the licence holder to inform them of that preliminary conclusion.
Where, in response to such a letter, the personal licence holder requests a hearing, this will be before an Executive Director who will determine the case, otherwise a Senior Manager or above may take the decision.
Where, in response to such letter, the operating licence holder requests a hearing, this will be before a Regulatory Panel, the Panel will determine the case, otherwise a Director and/or Head of Function or above may take the decision or a Senior Manager or above may take the decision to the issue a warning, attach, remove or amend a condition.
Deciding to revoke a licence following a review requested by the Horserace Betting Levy Board under the Gambling Act 2005 (Horserace Betting Levy) Order 2007 (opens in new tab)
A Senior Manager or above may take the decision.
Imposing a financial penalty under section 121 of the Gambling Act 2005 (opens in a new tab) without a licence review.
A Director and/or Head of Function or above may take the decision.
Deciding to disapply the stay pending appeal under section 145 of the Gambling Act 2005 (opens in a new tab).
A Director and/or Head of Function or above may take the decision to disapply the stay pending appeal.
The Regulatory Panel may review the decision to disapply the stay in respect of operating licences.
A Director and/or Head of Function or above may review the decision to disapply the stay in respect of personal licences.
Agreeing regulatory settlements, including payments in lieu of a financial penalty.
An Executive Director or above may take the decision
Deciding whether to make an order under section 336 of the Gambling Act 2005 (opens in a new tab) to void a bet.
An Executive Director or above may take the decision.
Deciding whether to make an order under section 338 of the Gambling Act 2005 (interim moratorium) (opens in a new tab), to extend the period of moratorium under any such order or to cancel such an order.
An Executive Director or above may take the decision.
Deciding whether to exercise the right under section 161 of the Gambling Act 2005 (opens in a new tab) to make representations on a premises licence application.
A Director and/or Head of Function or above may take the decision.
Deciding whether to exercise the power under section 197 of the Gambling Act 2005 (opens in a new tab) to seek a review of a premises licence.
A Director and/or Head of Function or above may take the decision.
Deciding whether to exercise the power under section 221 of the Gambling Act 2005 (opens in a new tab) to give notice of objection to a temporary use notice.
A Director and/or Head of Function or above may take the decision.
Deciding whether to prosecute or caution a person for an offence under the Gambling Act 2005 (opens in new tab).
An Executive Director or above may take the decision.
1. Subject to the provisions of the following paragraph, the Commission hereby delegates the powers and functions set out in the following table to the persons nominated. In the table the term ‘Executive Director’ includes the Commission’s General Counsel.
2. Where it is considered appropriate by the Chief Executive, or a member of staff nominated in the following table, a case may be referred to a more senior member of staff or the Commission’s Regulatory Panel who will determine the matter instead of the person otherwise delegated to carry out the particular function.
Approval of an Alternative Dispute Resolution (ADR) applicant as an ADR entity under regulation 9 of the Regulations.
A Senior Manager or above.
Review of information provided to the Commission by an ADR entity pursuant to regulation 11(3) of the Regulations.
A Senior Manager or above.
A decision to give an ADR entity notice pursuant to regulation 13(1) of the Regulations.
A Senior Manager or above.
Withdrawal of the approval of an ADR entity pursuant to regulation 13(3) of the Regulations.
An Executive Director or above.
1. To conduct its business efficiently, the Gambling Commission (the Commission) needs to ensure that it has sound financial management policies in place to which the organisation strictly adheres. Part of this process is the establishment of these financial regulations that set out the high level financial policies of the Commission. It is the responsibility of the Accounting Officer (AO) to ensure the organisation has sound financial management policies.
2. The financial regulations have been prepared with reference to the relevant agreements between the Department of Culture, Media and Sport (DCMS) (opens in new tab) and the Commission. It should be noted that, as a public body, the Commission currently has to operate in accordance with government and Treasury guidance on accounting and financial control procedures.
3. These financial regulations are supported by detailed financial procedures which set out the day to day operation of finance activities.
4. The Commission shall ensure the ongoing solvency of the organisation and that sufficient levels of reserves are maintained.
5. The Commission shall set and agree a budget annually before the beginning of the next financial year. This budget will reflect the corporate and business plan objectives and enable their delivery.
6. The annual budget includes estimates of income, revenue expenditure, capital expenditure, reserves, cash flow forecasting and any representations to be made to DCMS in respect of the fee level. Indicative budgets and a financial plan will be projected for the following two financial years to support medium-term planning.
7. The Chief Executive shall ensure there is an effective budget monitoring process in place.
8. The AO delegates budget to Executive budget holders who must operate within this budget subject to the rules on virement. In the event of a change in circumstances the Board and AO will consult with Executive budget holders to ensure the Commission operates within the net original budget or agree any variance with DCMS. Any variations will supersede the original budget.
9. The inclusion of items in approved annual revenue or capital budgets shall constitute authority to incur such expenditure, unless the Commission has placed a reservation on such items. In such circumstances expenditure cannot be incurred until such a reservation is removed. In all cases expenditure must comply with procurement regulations.
10. Amounts provided for specific activities cannot be diverted to other purposes except as agreed under the virement delegations.
11. During the course of a financial year, some original budget estimates will need to be amended to reflect changes in circumstances. Changes must be authorised as set out by the rules on virements within the Budgetary Control policy.
12. The Board shall approve the Annual Financial Statements for signing by the Chief Executive.
13. The Board shall receive regular summary reports on the finances of the organisation.
14. Executive Group shall regularly receive and review the management accounts.
15. Under the Gambling Act 2005 (opens in new tab), the Commission’s accounts are subject to audit by the Comptroller and Auditor General. The Comptroller and Auditor General has arranged for the National Audit Office (NAO) to conduct the Commission’s audit on their behalf.
16. An independent internal audit service shall be secured to carry out an examination of accounting, financial and other operations of the Commission on a regular cycle, in accordance with standards set out in the Government Internal Audit Manual.
17. Internal auditors will be selected and appointed by the Audit and Risk Committee in compliance with the Commission’s procurement procedures. Currently the Commission’s internal audit is supplied by the Government Internal Audit Agency (GIAA). PricewaterhouseCoopers (PWC).
18. The Commission maintains proper accounting records and produces financial statements in accordance with any directions issued by the Secretary of State and Government Accounting guidance (namely the Government Financial Reporting Manual, Managing Public Money, Accounts Directive and Accounting Standards issued or adopted by the Accounting Standards Board, Dear Accounting Officer letters and any other relevant guidance issued by Treasury).
19. As Accounting Officer, the Chief Executive is responsible for ensuring compliance with this, and may delegate the task to other employees as appropriate.
20. Controls, checks and balances will be put in place when designing financial procedures, to reduce the risk of error and fraud consistent with the Commission’s Anti-Fraud and Corruption Policy.
21. The Chief Executive is responsible for determining accounting policies and ensuring that they are applied consistently.
22. The Chief Executive is responsible for determining the accounting procedures and records for the Commission.
23. The Chief Executive is responsible for ensuring that the annual financial statements are prepared in accordance with the Accounts Direction and the requirements of Government Accounting.
24. The Commission will ensure that an appropriate system of risk management is in place and regularly reviewed. The Audit and Risk Committee will be responsible for reviewing the effectiveness of the system.
25. The Commission has a policy in place for preventing fraud and corruption.
26. Commissioners and employees shall comply with this policy.
27. It is an offence under the Prevention of Corruption Acts 1889-1916, for Commissioners or employees to corruptly accept any gifts or consideration as an inducement or reward for doing, or refraining from doing, anything in his or her official capacity, or showing favour or disfavour to any person in his or her official capacity.
In addition, the Bribery Act 2010 (opens in new tab) creates four principal offences:
28. The Commission shall establish and approve a treasury management policy.
29. The Chief Executive has delegated responsibility for implementing and monitoring the policy, and for recommending the treasury management strategy to the Commission.
30. The Chief Executive controls all money in the hands of the Commission and all decisions on borrowing, investment or financing shall be delegated to the Chief Executive, acting in accordance with the treasury management policy statement and the treasury management strategy.
31. The Chief Executive is responsible for ensuring that the Commission’s banking arrangements are in accordance with the requirements of Government Accounting. 32. The opening of all new bank accounts, and nomination of authorised signatories, can only be undertaken following the specific authority of the Board of Commissioners.
33. The Chief Executive has delegated responsibility for opening any bank account in the name of the Commission.
34. The banking arrangements of the Commission shall be reviewed at regular intervals of approximately three years.
35. The Chief Executive must advise the bankers in writing of the conditions under which the accounts are to be operated.
36. All purchases made by the Commission will take into account the need to secure value for money and exercise propriety when expending Commission resources. This will include competitive and transparent tendering procedures at appropriate levels of expenditure.
37. The Commission delegates the establishment of procurement procedures to the Chief Executive who should ensure that such procedures are operated effectively and reviewed periodically.
38. Goods and services procured must be for the purposes and within the financial limits set out in the Annual Budget and Corporate Plan.
39.Commitment of expenditure of £500,000 and above must be approved by the Board, and all deeds must be approved by the Board before they are signed.
40. The responsibility of authorising purchases below £500,000 is delegated by the AO according to the delegated authority policy.
41. All purchases must have sufficient budget provision previously agreed.
42. Contracts or purchase orders should be in place before the supply of the goods or service takes place.
43. Contract value is defined as being over the whole life of the contract, which should not normally be more than five years.
44. Purchase orders are legal contracts and the same levels of approval apply.
45. Budget holders have agreed a list of designated posts for delegated approval. Changes to the listed posts require Chief Executive Officer (CEO) approval.
46. New contracts with a value of £50,000 and above which are outside of the Government framework shall be reviewed by the Commission’s legal advisers.
47. The Commission is responsible for the determination of authorised persons who may sign or execute documentation on behalf of the Commission, and delegates this responsibility to the Chief Executive. The Chief Executive will set out any further delegations in detail within the financial procedures.
48. The Commission ensures that its procurement processes comply with the public procurement regulations, and are updated to comply with the most recent regulations.
49. While value for money and competition will form the basis for procurement procedures, all purchases equal to or greater than £10,000 shall be subject to at least three quotations and all purchases equal to or greater than £25,000 shall be subject to tender or public procurement as applicable.
50. A schedule of financial levels for obtaining quotes and tenders is included within the Procurement Policy.
51. The Commission may receive external funding for specified activities, subject to the following:
52. Acceptance of additional funding is delegated in accordance with the thresholds set out in the budgetary control section, under new activities.
53. All external funding shall be used for the purpose for which it was granted and no other and external terms and conditions must be complied with.
54. Central government organisations should not normally buy commercial insurance to protect against risk. In certain circumstances, the Chief Executive as Accounting Officer may choose to purchase commercial insurance to protect certain parts of the organisation’s portfolio or for items where insurance is legally required. On behalf of the Chief Executive as Accounting Officer, the Senior Manager - Finance shall ensure that appropriate insurance cover is in place, in accordance with the policy determined by the Commission and in accordance with guidance issued by Treasury, contained in Managing Public Money Annex 4.5 Senior Responsible Owner Accountability.
55. The Commission shall not give indemnities or guarantees, except by specific agreement of the Board and by prior agreement of the Secretary of State as required.
56. The Commission will establish a scheme for the payment of expenses to Commissioners, which shall be approved by the Commission and by the Secretary of State.
57. All claims for a financial year are to be submitted within two months of 31 March each year.
58. Commissioners must comply with the requirements of the Code of Conduct for Commissioners.
59. Employees and others working for the Commission must comply with the Employees Code of Conduct.
1. The Gambling Commission (the Commission) must ensure that Commissioners are supported to make good decisions about the probity of their actions and how those actions might be perceived by others. This Code of Conduct is an important part of that support. The Code reflects best practice and the Commission’s ways of working. It sets out the standards of behaviour that are expected of Commissioners. Following the advice and requirements in this Code will help avoid misunderstandings about actions or behaviour.
To be outcome-focussed we:
To reach for ways to improve we:
To be respectful we:
To communicate well we:
To make the Commission a great place to work we:
2. We expect everyone who works with us to behave with utmost integrity. This means avoiding not only actual impropriety but any perception of impropriety. By ‘propriety’ we do not just mean compliance with rules, although that is important. We also mean conduct and behaviour in carrying out actions or engaging with stakeholders. Failure to maintain high standards of behaviour may not be intentional. However, there is always a risk that what we do or how we do it could be – or could be seen as – impropriety.
3. This Code sets out the framework for conduct for Commissioners. If you wish to discuss any matters arising under the Code, you can speak with the Governance Team, or with the Chair, if you prefer.
4. Commissioners are required to confirm that they have understood this Code.
5. The Seven Principles of Public Life (known as the Nolan Principles) apply to anyone who works as a public office-holder. This includes all those who are elected or appointed to public office, nationally and locally, and all people appointed to work in the civil service, local government, the police, courts and probation services, non-departmental public bodies (such as the Commission), and in the health, education, social and care services. All public office holders are both servants of the public and stewards of public resources. The principles also have application to all those in other sectors delivering public services.
Holders of public office should act solely in terms of the public interest.
Holders of public office must avoid placing themselves under any obligation to people or organisations that might try inappropriately to influence them in their work. They should not act or take decisions in order to gain financial or other material benefits for themselves, their family, or their friends. They must declare and resolve any interests and relationships.
Holders of public office must act and take decisions impartially, fairly and on merit, using the best evidence and without discrimination or bias.
Holders of public office are accountable to the public for their decisions and actions and must submit themselves to the scrutiny necessary to ensure this.
Holders of public office should act and take decisions in an open and transparent manner. Information should not be withheld from the public unless there are clear and lawful reasons for so doing.
Holders of public office should be truthful.
Holders of public office should exhibit these principles in their own behaviour. They should actively promote and robustly support the principles and be willing to challenge poor behaviour wherever it occurs.
6. The Chair is responsible to the Secretary of State for ensuring that the Commission fulfils its statutory purpose as set out in our founding legislation, and that the Commission’s affairs are conducted with probity. The Chair also has a number of leadership responsibilities:
7. The Chair should ensure that:
8. The Chair should ensure that the Commissioners meet regularly throughout the year and that the minutes of meetings accurately record the decisions taken.
9. The Chair will ensure that, when new Commissioners take up office, they are fully briefed on their terms of appointment and on their rights, duties and responsibilities as a Commissioner.
10. The Chair will encourage Commissioners to participate in induction and development activities as appropriate.
1 Corporate governance code for central government departments (opens in new tab)
2 Governance Code for Public Appointments (opens in new tab)
11. Commissioners have collective responsibility for ensuring that the Commission fulfils the aim and objectives set out in legislation and complies with any statutory or administrative requirements for the use of public funds.
12. Commissioners should:
13. Commissioners also have individual responsibilities as members of a public body:
14. As a Board member, you should respect the principle of collective decision-making and corporate responsibility. This means that, once the Board has made a decision, you should support that decision.
15. You should treat Commission staff with courtesy and respect at all times. It is expected that staff will show you the same consideration in return.
16. Communications between Commissioners and the responsible Minister will normally be through the Chair, except where the Commissioners have agreed that another Board member should act on the Chair’s behalf.
17. However, as a Commissioner you can approach Ministers on any matter which you believe raises important issues relating to your duties as a Commissioner. In such cases, the agreement of the rest of the Board would usually be sought.
18. The legislation under which Commissioners are appointed (Schedule 4 to the Gambling Act 20054) allows the Secretary of State to remove any Commissioner from office if, in the Secretary of State’s opinion, a Commissioner is unable, unfit or unwilling to perform their functions.
3 Code of conduct for board members of public bodies (opens in new tab)
4 Gambling Act 2005 (opens in new tab)
19. You should not occupy paid party political posts or hold particularly sensitive or high profile unpaid roles in a political party. Subject to these restrictions, you are free to engage in political activities, provided that you are conscious of your general public responsibilities and exercise proper discretion.
20. The Chief Executive, as Accounting Officer for the Commission, is accountable to Parliament and to the DCMS (opens in new tab) Accounting Officer for the resources under the Chief Executive’s control, consistent with the requirements of Managing Public Money5.
21. This role carries with it personal responsibility for the propriety and regularity of the Commission’s finances; for the keeping of proper accounts; for prudent and economical administration; and for the efficient and effective use of resources. The Commission’s Accounting Officer also has responsibility to see that the Commissioners are appropriately advised on these matters.
22. The Chief Executive or another employee who is authorised to act on behalf of the Commission will usually be responsible at strategic level for the relationship between the Commission and DCMS.
23. The Chief Executive must maintain current knowledge of all relevant requirements in relation to leadership of a public body, including the specific duties and responsibilities of an Accounting Officer.
5 Managing public money (opens in new tab)
24. The Board is accountable for everything the organisation does. The Board may delegate responsibility for specified matters to individual Commissioners, a committee consisting of Commissioners or Commissioners and staff, or a member of staff, within a clearly-understood and transparent framework of delegation and control.
25, You have a duty to ensure that funds are properly safeguarded and that, at all times, the Commission conducts its business as economically, efficiently and effectively as possible. To be clear, this applies equally to licence fee funded activities and to any activities funded by other means.
26. So far as reasonably possible, you are responsible for ensuring the Commission does not exceed its powers and functions, whether set out in statute or otherwise, to incur expenditure which should not be incurred.
27. You should ensure that a full statement of resources and their use is included in the Annual Report and Accounts. The Chief Executive as Accounting Officer will advise you on these matters.
28. You must comply with rules about allowances and expenses. Where income tax is deducted directly from your remuneration as part of the payroll process, it is your responsibility to ensure that the correct tax treatment is applied and that you comply with HM Revenue and Customs (opens in new tab) requirements.
29. As part of your work you will have access to sensitive information, including commercial, political and personal information. You must not share or make use of any such information, except for the proper delivery of your duties.
30. Failure to follow this requirement will be regarded as a serious matter and will be notified to the Chair and to the Chief Executive as Accounting Officer.
31. In addition, you should aim to prevent the unauthorised publication or disclosure of such information by another person. If you believe that an unauthorised disclosure has taken place, or might do so, you should discuss your concerns immediately with the Chair and the Chief Executive as Accounting Officer.
32. You must comply with public sector guidance around the classification and handling of information. The majority of information the Commission handles is classified as ‘Official’ which means it should be handled with routine security.
33. Some information, however, is particularly sensitive. This means that loss or insecure handling could lead to damaging consequences for the organisation or for individuals, or might lead to action by third parties if release of this information has impacts on them.
34. To highlight these risks, we use the classification ‘Official Sensitive’ in email headers and on documents. This means that the information should be handled with particular care, such as not forwarding an email inappropriately or reading a document where it can easily be seen by others.
35. In addition, there are restrictions on the use of private email accounts and devices. Where information is stored in private email accounts, it is on servers that are outside of our control. We do not know where or how it is kept, or who has access to it. Commercial cloud storage services and private email accounts are prone to attack by cyber criminals and others. Commission email accounts and equipment have layers of security and active monitoring which may not be present in other services.
36. All documents, email messages, social media posts and texts can be subject to Data Protection and Freedom of Information legislation where they relate to Commission business and fall in scope of a request. Full details of these legislative requirements can be provided by the Information Security Team.
37. You should work in an open and responsive way, ensuring compliance with the Freedom of Information Act 2000 (opens in new tab), consistent with the nature of the Commission’s business and the confidentiality requirements in this Code.
38. Gambling is a legitimate leisure activity, so a total ban on gambling by Commissioners would be unduly restrictive. It could also cut Commissioners off from knowledge and experience of the sector they regulate.
39. However, because we are the industry regulator, we have to place restrictions on the gambling that you can undertake. This is to protect you and the Commission from the risk, actual or perceived, of bias, lack of objectivity, or impropriety. In addition, any large wins or losses could lead to speculation about the integrity of regulatory processes and might place an uncomfortable focus on personal financial information. This might particularly be the case in physical premises where you would have direct contact with an operator’s staff.
40. In remote gambling (which means online, by phone or interactive television), we think the risks of participation by Commissioners are lower. This is because in remote gambling there is a clear audit trail for transactions, which can be used to investigate any allegations. There is also far less potential for contact with operator staff.
41. You should bear in mind that no gambling of any kind is permitted on Commission premises. No gambling of any kind is permitted using Commission equipment.
42. To manage the risk of actual or perceived impropriety, you are required to comply with some common sense restrictions on gambling:
43. You may gamble remotely, (for example by phone, telephone or internet) as we believe that probity and reputational risks can be mitigated more easily where an audit trail for play is readily available. However, given your position as Commissioners there are things you must do to manage any risk of actual or perceived impropriety.
44. You must notify the Commission’s Intelligence lead of any significant wins or losses (for example above £500).
45. You must notify the Commission’s Intelligence lead if any remote gambling account in your name is hacked or otherwise compromised, whether or not that leads to unauthorised gambling on your account.
46. You must provide any additional information about your remote gambling that we may require. Any information you provide will be held in confidence, but will be made available to any relevant investigation. You will be informed if this takes place.
47. If you have financial problems that may make you vulnerable to potential allegations of impropriety, you must inform the Chair as soon as possible and seek appropriate assistance.
48. You must also inform the Chair of any bankruptcy, current police investigation, unspent criminal conviction or disqualification as a company director.
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49. A ban on visiting gambling premises would be counter-productive. It would restrict the ability of Commissioners to gain insight into the sector. However, a considered approach to visits is needed, for the same reason that restrictions are placed on your ability to gamble.
50. You may visit non-remote bingo halls, casinos, or bookmakers premises in Great Britain, however, if you visit in an official capacity, to prevent your presence from being misconstrued you should make your presence known to the operator’s staff. As public appointees and representatives of the regulator, you should be watchful for any perception that you have had an unauthorised interaction with an operator.
51. It is not necessary to make yourself known when visiting in a private capacity.
52. You must notify the Commission’s Intelligence lead if your visit constitutes more than just a brief casual visit. Any official visits are accompanied by a member of staff, preferably the relevant Compliance Manager for that premises or a member of the senior team.
53. When visiting such premises, remember that frontline operator staff may not have detailed knowledge of how the Commission works and may not understand your role as a Commissioner. If asked, you should be prepared to signpost operator staff to sources of information.
54. You must not visit such premises if you are aware of an impending regulatory decision which affects those premises or the operator of those premises. You should make every effort to stay up to date with impending regulatory decisions, to avoid inadvertently visiting somewhere which is subject to ongoing action.
55. You may visit horse and greyhound racetracks. If you visit these premises in an official capacity, then the considerations above apply.
56. If you visit gambling premises in any capacity, whether in Great Britain or abroad, you must ensure that neither you nor anyone with you receives privileges (such as memberships or gifts), preferential treatment (such as the style of service offered), nor any hospitality that is not generally available to other visitors to the premises.
57. We encourage Commissioners to build an understanding of the sector. This includes developing contacts with a range of organisations, for example consumer groups, trade bodies, operators and investors. In doing so, you should maintain high standards of honesty and integrity.
58. Key to this is compliance with rules on the acceptance of gifts and hospitality. As well as complying with the requirements of this Code of Conduct, you should also be aware of the provisions of the Bribery Act 20106 and ensure that your actions do not place you or the Commission at risk of any accusation that the law has been breached. If you are in any doubt about this, you should contact the Governance Team in the first instance.
59. To avoid any suggestion of impropriety, Commissioners must not accept any gifts, however modest, unless there are political (for example, dealing with a foreign government) or cultural reasons where refusal would be regarded as offensive. If you accept a gift for this reason, you should advise the Governance Team. Any such gifts remain the property of the Commission, not of individual Commissioners.
60. These requirements do not apply to low-value, practical items which are given out freely, such as bags, pens or stationery items provided as part of attendance at a conference.
61. A common sense approach should be taken to offers of hospitality. In a number of settings, such as routine meetings, establishing new contacts, or undertaking wider stakeholder engagement, acceptance of hospitality would not be problematic. For example, lunch or light refreshments, where these are incidental to engagement with stakeholders.
62. The questions you should consider are whether acceptance of hospitality creates, or could be perceived to create, an obligation, and whether a reasonable person might think that your acceptance of hospitality could influence your judgement in relation to a regulatory or other decision. It could be unwise, for example, to accept hospitality from prospective contractors or suppliers to the Commission. You are not permitted to accept hospitality that might generally be regarded as unduly lavish, such as preferential access to cultural or sporting events.
63. If you have any doubts about issues around giving or receiving hospitality, you should speak with the Governance Team in the first instance. No gift or hospitality should be accepted if it would place you under any obligation, or compromise you in any way, or if it might appear to do so. To be clear, a subsequent offer to pay for any such gift or hospitality does not put right the situation if you should not have accepted in the first place. Whether or not your actions would be acceptable in another sector is not a material factor.
64. It is your personal responsibility to ensure that a record is paced in the gifts and hospitality register of the Commission to list any gifts or hospitality received, usually by asking a member of the Governance Team to do so.
6 Bribery Act 2010 guidance (opens in new tab)
65. It is likely that whenever you attend a conference or other event, you will subsequently receive invitations from marketing or public relations firms about further events or services.
66. Licensees and trade bodies will often use such companies to handle engagement and promotional activity. You should treat such third party invitations with caution, as they may in fact be for sales events or involve industry-sponsored hospitality, where it would not be appropriate for you to attend.
67. Where the Commission has interest in attending an event, this will be coordinated centrally by the Communications Team. When you receive an invitation and you are unsure whether the Commission should be represented at an event, or whether other Commissioners or staff have been invited, you should not accept the invitation until you have checked the position with the Communications Team. The Governance Team can advise on who to speak with.
68. As well as guarding against accusations of impropriety, this also helps ensure coordinated attendance and effective, good value use of resources.
69. The Commission’s work regularly features in the media and it is important that media enquiries are handled accurately and consistently. You should pass on any media enquiries to the Communications Team. You should not comment to the media, even in a private capacity, without agreement of the Chief Executive. Remember that your position as a Commissioner might lead to perceptions that any private comments reflect official policy.
70. Care should be taken about invitations to speak at conferences or elsewhere. You should consult the Chief Executive about whether to accept such invitations. Where you do accept speaking engagements, you should ensure you are fully briefed on policy decisions and current issues. You must avoid making public statements on matters where policy has not yet been determined.
71. Social media is a public forum and the same considerations, including the provisions of this Code of Conduct, apply as would to speaking in public or writing something for publication, either officially or in a personal capacity. When engaging with social media you should at all times respect confidentiality, financial, legal and personal information.
72. Where any personal social media accounts used by you make reference or link to your public role, you should take care to ensure that it is clear in what capacity you are acting.
73. We recognise that you will have a range of interests outside the Commission. However, you should be aware that how you conduct these interests may give rise to actual or perceived conflicts with your role as a Commissioner.
74. You should ensure that any potential or perceived conflicts of interest are identified at an early stage and appropriate action taken to resolve them. If need be, you should discuss the position with the Chair as soon as possible.
75. The potential or perceived conflicts of interest include those of close family members and persons living in the same households as close family members.
76. You must declare to the Chair existing or new interests and these must be included in a register of interests maintained by the Gambling Commission. You must ensure that your entries are kept up to date. Should a particular matter give rise to a conflict of interest, you must withdraw from discussions or consideration of the matter. Your appointment as a Commissioner of the Gambling Commission may be terminated if any such interests are considered incompatible with your position as a Commissioner of the Gambling Commission.
77. You must inform the Chair, who will inform DCMS (opens in new tab) of the offer of any new public appointments which may impinge on your duties as a Commissioner of the Gambling Commission. Your appointment as a Commissioner of the Gambling Commission may be terminated if any such position is considered to be incompatible and you proceed to accept it.
78. As a public office-holder you must uphold the principles of public life and ensure that your behaviour is above suspicion.
79. You must not use information gained in your work as a Commissioner to advance your private financial or other interests, or to advance the interests of other persons. You are reminded that in some circumstances, using information in this way could be regarded as insider dealing and an offence under the Criminal Justice Act 1993 (opens in new tab). An example of this would be dealing on a regulated market in securities the price of which would be significantly affected if information you have access to were to be made public.
80. You must not participate in the taking of any decision which could affect the value of your private financial or other interests, or the financial or other interests of those to whom you had given investment advice. Such a conflict could result in legal action, against the Commission and against you.
81. You should also consider whether you should disclose the interests of any other persons or organisations (for example, investments by a charity where you are a trustee) where a reasonable person might think that those interests could influence your judgement.
82. You are not permitted to have direct shareholdings or to trade in companies operating in the gambling industry, whether or not those companies are licensed by the Commission. This restriction extends to your close family. The restriction on shareholding does not include investments through funds where the precise composition of holdings in the fund at a given time is not visible to investors or where investors have no direct control on individual investment decisions.
83. Where you hold shares in third party companies which might bid to supply products or services to the gambling industry, you should consider carefully whether any conflict might arise or be perceived to arise, owing to potential influence over business decisions in the industry. As a broad example, influence over business decisions is less likely with a maintenance or payroll contractor, say, but could be more likely with a computer hardware or data services provider.
84. Where you hold shares in other leisure sector businesses, such as pub chains, hotels or theme parks, you should consider the potential for any interaction with the gambling industry and whether any conflicts might arise.
85. You must not engage in activities which might conflict with the interests of the Commission or which are inconsistent with your position as a Commissioner.
86. You should ensure that your other interests or employment allow sufficient time to deliver your agreed commitment to Commission business. When timing conflicts arise, you should inform the Governance Team as soon as you are aware of this.
87. If, in the course of other activities, you become aware of information which could be material to the Commission’s interests, you should inform the Chair or Chief Executive. This should help to mitigate any potential accusations of impropriety at a later time. You should disclose anything which a reasonable person might think could influence your judgement.
88. In your public role you should be, and should be seen to be, politically impartial. You shall not occupy paid party political posts or hold particularly sensitive or high roles in a political party.
89. You must inform the Chair and DCMS (opens in new tab) if you intend to accept a prominent position in any political party and understand that your appointment as a Commissioner of the Gambling Commission may be terminated if such a position is considered to be incompatible and you take up the position.
90. Subject to paragraphs 88 and 89, you are free to engage in political activities provided that you are aware of your general public responsibilities (as described in the Code of Conduct for Board Members of Public Bodies) and exercise proper discretion.
91. This is particularly important where political activity may be generally perceived as controversial. On matters directly affecting Commission work, you should not make political speeches or engage in other political activities.
92. These restrictions do not apply to Commissioners who are elected members of a parliament or assembly in the UK, local councillors, or a Peer in relation to conduct in the House of Lords.
93. If you receive an offer of employment in or related to the gambling industry you should inform the Chair as soon as possible. If you intend to pursue such an offer, then it is likely that you will be asked to resign from the Commission.
94. You should maintain safeguards against conflicts of interest for six months after you leave the Commission. If you intend to take up employment in or related to the gambling industry earlier than that, you should notify the Chair, in case of any upcoming regulatory decision affecting your new employer.
95. On leaving office, you must return all Commission property (including but not limited to documents and software, computer equipment and security passes).
1. In accordance with Paragraph 8 of Schedule 4 of the Gambling Act 2005 (opens in new tab) the Commission has established an Audit and Risk Committee (ARC).
2. These terms of reference set out the purpose, membership and delegated authority of the ARC.
3. Nothing in these terms of reference shall detract from the authority of the Chief Executive as Accounting Officer.
4. The purpose of the ARC is to support the Board of Commissioners and Accounting Officer by:
5. The ARC shall comprise a minimum of two Commissioners.
6. The membership shall also comprise the Independent Member of the ARC if one has been appointed.
7. The Board will appoint a Chair of the ARC.
8. The Chair of the Board will not normally be appointed to Chair the ARC.
9. Investigate any activity within its terms of reference. Any investigation will normally be initiated in consultation with the Accounting Officer.
10. Seek any information it may require from any Commissioner or employee. All members and employees must co-operate with the Committee. (It will be normal practice to channel such requests through the Accounting Officer).
11. Obtain legal or other professional advice, subject to budgetary provision agreed in advance by the Accounting Officer and the Board, and to secure the attendance at committee meetings of anyone it considers has relevant experience, expertise or knowledge.
12. Review the accounts, the accounting policies and other accounting information, the Governance Statement, and the assurances relating to corporate governance and legality contained in the Annual Report, including the process for review of:
13. Recommend the appointment and removal of the internal auditors and provide advice to the Board and Accounting Officer, on the internal audit fee, the terms of engagement and the internal audit strategy and plan.
14. With the National Audit Office, review the terms of engagement of the external auditor and the external audit strategy and plan.
15. In particular, the Audit and Risk Committee is responsible for the following:
15.1.1. Review the Annual Report and Financial Statements before submission to the Board of Commissioners and Accounting Officer for approval, focusing particularly on the wording in the Governance Statement and other disclosures relevant to the Terms of Reference of the Committee including:
15.1.2. Ensure that the systems for financial reporting to the Board of Commissioners, including those of budgetary control, are subject to periodic review by internal audit as to completeness and accuracy of the information provided to the Board of Commissioners.
15.2.1. Review the delegated authorities and governance structure annually, report to the Board of Commissioners on whether they are adequate and make any recommendations to the Board of Commissioners.
15.2.2. Monitor the integrity of the system of internal controls. In particular, review management's and the internal auditors' reports on the effectiveness of the system of internal control, including Health and Safety.
15.2.3. Assess the scope and effectiveness of the systems established by management to identify, assess, manage and monitor significant risks.
15.2.4. Review the comprehensiveness, reliability and integrity of the assurances provided in relation to governance, internal control and risk management.
15.2.5. At the request of the Board of Commissioners, advise it on matters of corporate governance (but without prejudice to the Committee's power to make recommendations to the Board of Commissioners on corporate governance issues arising from the work of the auditors).
15.2.6. Provide assurance to the Board of Commissioners on the adequacy and effectiveness of the risk management processes. This involves reviewing the Corporate Risk Register, obtaining assurance on risk management arrangements from internal auditors, and reviewing the status and trends of all risk in the strategic risk register.
15.2.7. To undertake in-depth reviews of individual risks from the Corporate Risk Register as per an agreed schedule of reviews.
15.2.8. Review the Commission’s policies, controls and assurance frameworks relating to cybersecurity.
15.2.9. Review with the Executive and report to the Board on the continued appropriateness of key performance indicators.
15.3.1. Review the internal audit programme and ensure that the function is adequately resourced and has appropriate standing within the Commission.
15.3.2. Consider and monitor management's responses to all internal audit recommendations.
15.3.3. Meet with the internal auditors at least once a year, without management being present, to discuss their remit and any issues arising from the internal audits carried out. The internal auditors should be given the right of direct access to the Chair of the Commission and the Committee.
15.3.4. Monitor and review the effectiveness and quality of the internal audit function to ensure it provides appropriate independent assurance to the Board of Commissioners and value for money.
15.4.1. Review the findings of the audit with the external auditor considering any material issues which arose during the audit, any accounting and audit judgements and levels of errors identified during the audit.
15.4.2. Meet with the external auditors at least once year, without the management being present, to discuss their remit and any issues arising from the audit.
15.4.3. Monitor and review the effectiveness and quality of the audit, assessing annually their independence and the relationship with the auditor as a whole, including the provision of any non-audit services, and value for money.
15.5.1. Review the Commission’s arrangements for employees, Commissioners and third parties to raise concerns about possible wrongdoing in financial reporting or other matters and ensure that they allow proportionate and independent investigation.
15.5.2. Review the Commission’s policies for both internal and external public interest disclosure.
15.5.3. Review the anti-fraud and bribery policies and arrangements in place for special investigations.
15.6.1 Oversee the Commission’s approach to information security to ensure it meets all relevant requirements of the Information Commissioner’s Office and other agencies.
15.6.2. Review the Commission’s policies and assurance frameworks on information and personal data security management.
15.6.3. Assess the Commission’s response to major information security failures following reports submitted by the Senior Information Risk Officer.
15.7.1. Periodically review its own effectiveness and report the results of that review to the Board of Commissioners.
16. The quorum shall be two members of the Committee, provided one is the Chair, otherwise the quorum shall be three members of the Committee.
17. The Audit and Risk Committee shall meet at least four times in each financial year. The Chair of the Audit and Risk Committee may convene additional meetings when considered necessary.
18. The Chair of the Board, the Board of Commissioners or Accounting Officer may ask the Audit and Risk Committee to convene additional meetings to discuss particular issues on which they want the Committee's advice.
19. Meetings of the Audit and Risk Committee may take place via telephone conference or video-conference.
20. Meetings of the Audit and Risk Committee will normally be attended by:
21. The Audit and Risk Committee may ask any other employees of the Commission to attend meetings to assist with discussions on any particular matter.
22. The Audit and Risk Committee may ask any or all of those who normally attend, but who are not members, to withdraw.
23. The Chair of the Audit and Risk Committee will report on matters considered by the Audit and Risk Committee at the next meeting of the Board.
24. The Board and Accounting Officer shall be provided with minutes of the Audit and Risk Committee's proceedings after each meeting.
25. The Audit and Risk Committee will make a written report at least annually on its activities to the Board. The Audit and Risk Committee's activities will be reported in time to support the final approval of the annual accounts and the Governance Statement and will include a summary of the conclusions drawn from work carried out during the year.
The Finance and Performance Committee closed in October 2022.
1. In accordance with Paragraph 8 of Schedule 4 of the Gambling Act 2005 (opens in new tab) the Board of Commissioners (the Board) has established a Remuneration and Nomination Committee (RNC).
2. These terms of reference set out the purpose, membership and delegated authority of the RNC.
3. Nothing in these terms of reference shall detract from the authority of the Chief Executive as Accounting Officer.
4. The RNC has been established to support the Board and Chief Executive (as appropriate), in their responsibilities for the performance management, bonus and pay of the Executive Team, senior appointments and departures.
5. Membership of the RNC shall comprise a minimum of two non-executive Commissioners, and an independent member, if one has been appointed.
6. The Board will appoint the Chair of the RNC.
7. The Chair of the Board will not be Chair of the RNC.
8. The Board authorises the RNC to investigate any activity within its terms of reference. Any investigation will normally be initiated in consultation with the Chair of the Board and/or the Accounting Officer, as appropriate.
9. Seek any information it may require from any Commissioner or employee. All members and employees must co-operate with the Committee. It will be normal practice to channel such requests through the Accounting Officer.
10. Obtain legal or other professional advice, subject to budgetary provision agreed in advance by the Accounting Officer and/or the Board, and to secure the attendance at committee meetings of anyone it considers has relevant experience, expertise or knowledge.
11. The RNC provides advice to the Board and the Chief Executive.
12. Where the RNC is unable to make a decision regarding any functions that have been delegated to it, the Committee shall be required to refer such matters to the Board for deliberation and direction.
13. Acting with delegated authority from the Board to make decisions on the items listed as follows:
14. Advising the Board, as needed, on:
15. Advising the Board annually on:
16. Oversight of:
17. The RNC shall meet at least twice each financial year.
18. The Chair of the RNC may convene additional meetings as considered necessary.
19. The Chair of the Board or Accounting Officer may ask the RNC to convene additional meetings to discuss particular issues on which they want its advice.
20. The RNC may meet via telephone or video conference.
21. Two members of the RNC will comprise a quorum for decision making.
22. Meetings of the RNC will normally be attended by:
23. The RNC may ask any other employees of the Commission to attend meetings to assist with discussions on any particular matter.
24. The RNC may ask any or all of those who normally attend, but who are not members, to withdraw to facilitate open and frank discussion of particular matters.
25. The RNC will take steps to preserve the confidentiality of discussions, and any related documents, in any matters which involve personal information about individual employees.
26. The Chair of the RNC will formally report back orally or in writing to the Board after each meeting of the Committee.
27. The RNC’s activities will be reported in the Commission’s Annual Report, to the extent that it can without breaching confidentiality.
1. In accordance with Paragraph 8 of Schedule 4 of the Gambling Act 2005 (opens in new tab) the Commission has established a National Lottery Committee (NLC).
2. These terms of reference set out the purpose, membership and delegated authority of the National Lottery Committee and employees under the National Lottery etc. Act 1993 (opens in new tab) (the 1993 Act).
3. The National Lottery Committee has been established to exercise powers in respect of National Lottery matters by way of decisions or advice to the Board of Commissioners (the Board) and the Chief Executive in relation to the exercise of the Commission’s functions under the 1993 Act and provide oversight of National Lottery operator’s stewardship of the National Lottery.
4. Membership of the National Lottery Committee shall comprise a minimum of one Commissioner and one nominated employee. The membership may also comprise an Independent Member of the Committee, if one has been appointed.
5. The Board will appoint the Chair of the National Lottery Committee (the NLC Chair) and the other members of the Committee. The Chair of the Board will not normally be the NLC Chair.
6. Within a reasonable time in advance of each meeting, the NLC Chair and the Director (or above) responsible for the National Lottery should agree the agenda for the meeting.
7. The agenda and meeting papers will be made available to members of the committee and all those attending at least 4 working days prior to a meeting.
8. In accordance with Paragraph 8 of Schedule 4 of the Gambling Act 2005 (as amended) the Commission hereby delegates the functions set out in Delegation of functions to the persons set out in that section.
9. Any other decisions to grant a licence or take regulatory action which are not otherwise specifically delegated under these terms of reference are hereby delegated to the Chief Executive or an Executive Director (for the purposes of delegated decision making the term ‘Executive Director’ includes the Commission’s General Counsel).
10. Where it is considered appropriate by the Chair of the Board, the NLC Chair, a Commissioner, the Chief Executive, or a member of staff nominated in the table, a case may be referred up to the National Lottery Committee or the Board of Commissioners, who will determine that case instead of the persons otherwise delegated to carry out that function.
11. The Board authorises the National Lottery Committee to seek:
12. It will be normal practice to channel such requests through the Chief Executive or another member of the Executive Team.
13. In addition to making decisions under the scheme of delegations, the National Lottery Committee is responsible for the following:
Providing oversight of and challenge to the performance and strategy of the National Lottery operator:
Providing advice to the Board of Commissioners about the licensing and regulation of the National Lottery:
14. The Board authorises the National Lottery Committee to consider the issues relevant to the functions set out in these terms of reference.
15. The National Lottery Committee shall meet a minimum of four times in each financial year.
16. Additional meetings may be convened if considered necessary by the NLC Chair.
17. The Chair of the Board or Chief Executive may convene additional meetings to discuss particular issues on which they want the Committee’s advice.
18. Meetings of the National Lottery Committee may be conducted at face-to-face meetings, or by telephone or video conference.
19. The quorum shall be two members of the Committee, providing one is a Commissioner.
20. Voting for all decisions made will require a simple majority. In instances where there is a tie, then the NLC Chair shall have the deciding vote. In instances where the NLC Chair is not present then the acting Chair for the meeting will have the deciding vote.
21. The Chief Executive may designate such staff as they consider appropriate to attend meetings of the National Lottery Committee to assist or advise the Committee, but those staff may not take part in the decision-making process.
22. Meetings of the National Lottery Committee will normally be attended by a Director (or above) and the Secretary to the Committee. Other employees of the Commission may be requested by the Committee to attend meetings to assist with discussions on any matters. Advisers may also attend if the Chair of the Board, NLC Chair or Chief Executive considers that appropriate.
23. The National Lottery Committee may ask any or all of those who attend, but who are not members, to withdraw.
24. The NLC Chair will report on matters considered by the National Lottery Committee at each of its meetings at the next meeting of the Board.
25. The Board and Chief Executive shall be provided with minutes of the National Lottery Committee’s proceedings after each meeting.
26. The National Lottery Committee will make a written report at least annually on its activities to the Board and will provide an assurance report to Board post every meeting/s to align with the meeting cycle of the Board. The Commission’s regulation of the National Lottery will be reported in the Commission’s Annual Report.
1.1. Licensing
1.2. Enforcement
1.3. Cases referred to the Board
2.1. Licensing
2.2. Vetting
2.3. Enforcement
2.4. Ancillary Activity
2.5. Fit and proper appeals
2.6. Other
3.1. Licensing
3.2. Approvals
3.3. Enforcement
3.4. Ancillary Activity -to give consent for any Ancillary Activity which does not raise new issues of principle or contentious issues, determine any conditions attached to such Ancillary Activity and the amount of any payment to the good causes, under Condition 6
3.5. Other
Vetting decisions other than those specified at 2.2 above which are:
Vetting decisions other than those specified at 2.2 above which are:
1. In accordance with Paragraph 8 of Schedule 4 to the Gambling Act 2005 (opens in new tab), the Commission has established a National Lottery Fourth Licence Competition Committee.
2. These terms of reference set out the purpose, membership and delegated authority of the National Lottery Fourth Licence Competition Committee (the Committee) and employees under the National Lottery etc. Act 1993 (opens in new tab) (as amended) (the 1993 Act) and the Gambling Act 2005.
3. The purpose of the Committee is to act as the Programme Board for the National Lottery Fourth Licence Competition (the Competition) and the Implementation Stage for transition between the third licence and fourth licence (the Implementation Stage).
4. As such, the Committee supports the Board of Commissioners (the Board) and the Chief Executive by overseeing and assuring the progress of the Competition, award of licence and Implementation, recommending decisions to the Board, and by exercising its delegated powers to make decisions in relation to the Competition, award of licence and implementation of the transition between the third licence and fourth licence.
5. Membership of the Committee shall comprise a minimum of two Commissioners and the Senior Responsible Owner (the SRO), and may include other nominated employees of the Commission.
6. The membership shall also comprise an Independent Member of the Committee, if one has been appointed.
7. The Board will appoint the Chair of the Committee and the other members of the Committee.
8. The Chair of the Board and Chief Executive will not be members of the Committee but may attend any meeting of the Committee.
9. The Committee Chair and the SRO should agree the agenda for the meeting in sufficient time for the agenda and papers to be available to members of the Committee and attendees at least 4 working days before the meeting.
10. In accordance with Paragraph 8 of Schedule 4 of the Gambling Act 2005 (as amended) the Board hereby delegates to the Committee the decisions and functions set out as follows.
During the Design stage, the Board delegates to the Committee the following decisions and functions:
During the Competition stage, the Board delegates to the Committee the following decisions and functions:
During the Implementation stage, the Board delegates to the Committee the following decisions and functions:
11. For clarity, matters reserved to the Board in relation to the Competition and Implementation, and those delegated to the role of the SRO are listed in Annex A.
12. Any other decisions relating to the Competition which are not otherwise specifically reserved or delegated under these terms of reference are hereby delegated to the Chief Executive or SRO.
13. The Board authorises the Committee to seek:
14. It will be normal practice to channel such requests through the SRO, Chief Executive or another member of the Executive Team.
15. Where the Committee is unable to make a decision regarding any functions that have been delegated to it, the Committee shall be required to refer such matter to the Board for deliberation and direction.
16. As the Programme Board, the Committee’s function and duty is to provide oversight of the process of the Competition, which includes:
17. The Board authorises the Committee to consider the issues relevant to the functions set out in these terms of reference.
18. These terms of reference shall be reviewed regularly, and at least annually, to ensure that they remain fit for purpose, and where from time to time the Committee deems that amendments are required, they shall request that the Board makes such amendments.
19. The Committee shall meet at least as required by key project milestones and decision points. Additional meetings may be convened if considered necessary by the Chair of the Board, Committee Chair, Chief Executive or SRO.
20. Meetings of the Committee may be conducted in person or by other means including written resolution.
21. The quorum shall be two Commissioners, provided one is the Committee Chair.
22. If the Committee Chair is not present, the quorum shall be three members of the Committee, of which two must be Commissioners and one an employee of the Commission.
23. If the Committee Chair is not present at a meeting, the Committee members will appoint a Chair for that meeting only who must be a Committee member who is a Commissioner.
24. Remote attendance by telephone or video conference will count towards the quorum of the meeting.
25. Voting for all decisions made will require a simple majority. In instances where there is a tie, then the Committee Chair (or the SRO in the absence of the Committee Chair) shall have the deciding vote.
26. If a question arises at a Committee meeting as to the right of a member to participate in the meeting (or part of the meeting) for voting or quorum purposes, the question may be referred to the Committee Chair for decision during the meeting. Their ruling in relation to the member is final and conclusive. If such question arises in respect of the Committee Chair, such decision will be made by the Board.
27. Meetings of the Committee will normally be attended by the Commercial Director responsible for the Competition and the Secretary to the Committee.
28. The Chief Executive or SRO may designate such other employees of the Gambling Commission as they consider appropriate to attend meetings of the Committee to assist or advise the Committee. Those employees may not take part in the decision-making process.
29. Where staff whose work relates to the third National Lottery licence are designated to attend the Committee, this should be treated in accordance with the National Lottery Fourth Licence Competition governance and engagement policies.
30. Advisers who have been appointed by the Commission in respect of specialist issues may also attend so long as the Chair of the Board, Committee Chair, Chief Executive or SRO considers that appropriate. Such advisers may not take part in the decision-making process.
31. The Committee may ask any or all of those who attend, but who are not members, to withdraw at any point during the meeting.
32. During Implementation Stage, representatives from the Incoming Licensee and Outgoing Licensee may be asked to attend. Neither the Incoming Licensee nor the Outgoing Licensee is entitled to attend meetings of the Committee nor have access to papers without specific permission of the Committee Chair.
33. The Committee may ask any or all of those who attend, but who are not members, to withdraw at any point during the meeting.
34. The Committee Chair will report on matters considered by the Committee at the next Board meeting following each meeting of the Committee.
35. The Committee will make a written report frequently (and at least annually) on its activities to the Board.
36. The Committee will be required to report regularly, and at least annually, to the Audit and Risk Committee on all such matters that have been delegated to the Audit and Risk Committee as set out in its terms of reference (Appendix 9 of the Corporate Governance Framework).
37. The Commission’s activities in relation to the Competition will be reported on in the Commission’s Annual Report.
38. Records of the Committee, including papers and minutes, are Official Records of the Gambling Commission, and as such will be retained until at least the end of the fourth National Lottery licence.
39. All members of the Committee who are Commissioners must abide by the provisions of the Code of Conduct for Commissioners (Appendix 8 of the Corporate Governance Framework).
40. All members of the Committee who are nominated employees of the Commission including the SRO shall be required to abide by the Code of Conduct for Commissioners as if it applied to them.
41. Prohibitions and other requirements about shareholding and trading outlined in the Code of Conduct also apply to shares in companies which are or might become involved in the delivery of the National Lottery operation under the fourth licence, either through the operator or the Gambling Commission, for example data or payment services providers.
42. To the extent that any legal advice is shared in the course of a Committee meeting (including within any papers circulated for the purposes of meetings) confidentiality and legal privilege is maintained over that advice and all recipients and attendees are required to keep the privileged advice confidential.
During the design stage, the following programme decisions must be taken by the Board of Commissioners:
During the design stage, the following policy decisions must be taken by the Board of Commissioners:
During the design stage, the following licensing decisions must be taken by the Board of Commissioners:
During the competition stage, the following programme decisions must be taken by the Board of Commissioners:
During the competition stage, the following policy decisions must be taken by the Board of Commissioners:
During the competition stage, the following licensing decisions must be taken by the Board of Commissioners:
During the implementation stage, the following programme decisions must be taken by the Board of Commissioners:
During the implementation stage, the following licensing decisions must be taken by the Board of Commissioners:
The decisions delegated to the Committee during the design stage, in their corporate oversight capacity (second line of assurance), are as follows:
The decisions delegated to the Committee during the competition stage, in their corporate oversight capacity (second line of assurance), are as follows:
The decisions delegated to the Committee during the implementation stage, in their corporate oversight capacity (second line of assurance), are as follows:
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:
The general responsibilities of the SRO are unchanged. Specific responsibilities relevant to competition are as follows:
During the implementation stage, the decisions delegated to the SRO are as follows:
1. The Gambling Commission’s (the Commission) position as the regulator of the gambling industry requires that the Commission and its employees are able, at all times, to demonstrate that their actions and behaviour are beyond reproach. We want to ensure that you are protected from any situation where you might be seen as vulnerable to personal compromise of any kind, or situations which might lead to the integrity of the Commission being questioned. To support this, the Code of Conduct reflects the Commission’s values and sets out the standards of behaviour that are expected of everyone who works with us and the ways in which the Commission will help you to avoid any unwarranted criticism or pressure. Throughout the Code of Conduct for Employees, the term ‘employee’ includes all employees and others working for the Commission.
We will be consistent, proportionate, evidence-based and free from bias, prejudice or discrimination in all that we do.
We will be frank about the way in which we work and reach decisions in the public interest, while safeguarding the personal and confidential data that we hold.
We will ensure that we have the right skills and knowledge base and follow international regulatory best practice.
We will work positively and courteously with our internal and external stakeholders to ensure that their needs and views are taken fully into account in all we do.
2. This Code sets out the framework within which you must conduct yourself and forms a part of the Employee Handbook and your contract of employment. This Code applies to everyone who works for the Commission and you will be required to confirm that you have read this Code as a part of your induction. We will, on occasions, ask you to review the Code and confirm that you have done so.
3. You should normally discuss any matters arising under the Code in the first instance with your Development Manager. If you, or your manager, require further assistance, you should refer the matter to the Head of Human Resources. Certain matters under the Code require declarations to be made to a Director. These requirements are summarised in Annex A.
4. This Code has been developed to reflect the Commission’s values and covers the following areas:
5. The Commission expects the highest standards of behaviour from employees at work and in their personal lives where the Commission’s position might be affected. The general principles set out as follows apply to everyone who works with us. It is the responsibility of each individual to be aware of the standards of conduct expected of them and to apply this Code as a general guideline to their behaviour. However, we recognise that you may encounter particular personal circumstances that are not covered by the Code, or where the strict application of the Code may seem unreasonable. You should discuss any such circumstance with your manager in the first instance (or with the Human Resources team) and we will try to arrive at a solution which is fair and reasonable for you and the Commission.
You should conduct yourself in a frank and honest manner and maintain the Commission’s high standards of conduct, whether or not at work. You should treat all those you encounter, including colleagues, licensees and the public, courteously and follow the guidance in this Code and the Employee Handbook.
You should conduct your financial and other personal affairs in a frank and honest manner that does not leave you exposed to the risk of corruption or improper pressure. Major financial difficulties or changes of circumstances which might make you vulnerable, or appear vulnerable, to allegations of impropriety should be disclosed (in confidence) to the Head of Human Resources. In the event of financial difficulties, the Commission is able to offer access to external advice and support. Employees should not normally take steps to borrow money from, or lend to, other employees.
Working in the Commission involves access to sensitive and confidential information about individuals; about commercial organisations and their plans and about policy developments. You must ensure that such information is not used in any way directly or indirectly for your own benefit or for the benefit of any third party or disclosed to any person (whether Commission employees or otherwise) other than as required by law. This does not prevent an employee from exercising any of his or her other rights under the Public Interest Disclosure Act 1998 (opens in new tab) (see Public interest disclosure policy at Appendix 4).
While safeguarding information that should be kept confidential, you must remember that the Commission is committed to being open about the way in which decisions are reached and how our business is conducted. You must therefore take care to record and make available material to enable our stakeholders to understand our business.
Formatting changes.
6. We recognise that gambling is a legitimate leisure activity and that a total ban on gambling activity by all Commission employees would be unduly restrictive and could be an obstacle to the recruitment and retention of people with direct experience of the sectors they are regulating. However, because of the Commission’s role as the industry regulator, we have to place restrictions on the gambling that you can undertake to protect you and the Commission from the risk, actual or perceived, of bias, lack of objectivity, or impropriety.
7. No gambling of any kind (including spread betting, raffles, lotteries, phone or on line betting) is permitted on Commission premises, or using Commission equipment (including IT equipment whether at work or home and Commission-supplied mobile or BlackBerry type devices), at any time.
8. For gambling off Commission premises or using non Commission equipment, you will fall into one of two categories:
9. If you are unclear as to your status, you should seek guidance from your manager in the first instance or, failing this, the Commission’s internal compliance officer which role is carried out by the Commission’s Intelligence lead.
10. You are prohibited from playing the National Lottery if you are in a position to influence regulatory decisions. You are in position to influence regulatory decisions if you are a Director or Programme Director or employee who has delegated authority to make decisions about the Licensing, Legal, Compliance or Enforcement functions in relation to the National Lottery.
11. Depending on their particular responsibilities, other employees may also fall into this category and, if you do, you will be informed of this by your manager.
12. The prohibition on playing the National Lottery does not extend to family members, but employees are encouraged to notify the Intelligence lead in the event that a member of the family were to win a substantial amount – subject always to the rights to anonymity afforded to winners.
13. You are in a position to influence regulatory decisions if you are a Director or Programme Director or employee in the Intelligence, Licensing, Legal, Compliance and Enforcement functions. Also included are employees working in the ICT department having domain administrator privileges and ICT employees with access to software source code. Depending on their particular responsibilities, other employees may also fall into this category and, if you do, you will be informed of this by your manager.
14. If you are in a position to influence regulatory decisions, or you appear to be in such a position, you are not permitted to gamble in non-remote casinos, bingo halls, bookmakers premises, family entertainment centres, adult entertainment centres or with on-course bookmakers in Great Britain, or accept winnings from lotteries licensed by the Commission. If you are in this category, you are also encouraged to be aware of the potential risks to the Commission and yourself of gambling by members of your close family (which means partners and dependants).
15. If you are in a position to influence regulatory decisions, you may gamble remotely, for example by phone, television or internet, as there is a clear audit trail that would stand up to challenge. In addition, you may gamble whilst abroad. In all instances, however, you:
16. All other employees are permitted to gamble without restriction, but you:
17. If you are in the Intelligence, Compliance or Enforcement functions, you may only visit non-remote casinos, bingo halls or bookmakers’ premises in Great Britain in an official capacity or with prior agreement from a Director (for example for a special family occasion which it would be unreasonable for you to miss).
18. If you are in the other groups (such as Directors and Programme Directors and those in the Licensing, Legal function or applicable ICT role) to which the restrictions on gambling in non-remote casinos, bingo halls or at bookmakers etc apply (see paragraph 13), you may still visit (but not gamble on) such premises on official business or in your private capacity. Such visits may include unannounced visits, but these must be cleared in advance with a Director. Private visits should not take place if you are involved in any impending regulatory decision involving the relevant premises or operator. Any official or private visits must be notified as soon as possible to the Commission’s Intelligence lead.
19. If you are visiting gambling premises in any capacity, whether in Great Britain or abroad, you should ensure that neither you, nor anyone with you, receive preferential treatment nor any form of hospitality not available to other players or visitors.
20. All employees are permitted to visit licensed racecourses or greyhound race tracks (subject to the restrictions on gambling described above). If you work in the Intelligence, Compliance and Enforcement functions, however, you should notify the Commission’s Intelligence lead if you visit bookmakers’ premises within a racetrack.
21. It is the nature of the Commission’s work that you are likely to have access to sensitive information. This may cover, for example, sensitive commercial, political or personal information. You must not (except in the proper course of your duties) either during your employment with the Commission or at any time after its termination (howsoever occurring), divulge sensitive information to any person; or otherwise make use of any confidential information relating to the business, policies, operations, affairs, interests or financial position of the Commission or any person, firm or body with whom the Commission has or has had any dealings. (In addition, you should use your best endeavours to prevent the unauthorised publication or disclosure of any such sensitive information).
22. Failure to adhere to this policy will be regarded as a serious matter and may amount to gross misconduct.
23. We recognise that you may legitimately have interests outside the Commission. However, you should be aware that the conduct of private business might give rise to actual or perceived conflicts of interest between your private position and that of the Commission. You should ensure that any possible conflicts of interest are identified at an early stage and that appropriate action is taken to resolve them (for example, informing your manager, seeking your manager’s advice).
24. As a public servant you have a particular duty to ensure that you do not abuse, or raise any reasonable suspicion that you have abused, your public position in your own personal interest. In particular, you must not:
25. Further guidance is in Annex B and the Employee Handbook.
26. If you are in a position to influence the outcome of regulatory decisions (see paragraphs 10 and 13), or you appear to be in such a position, you are not permitted to hold shares directly in companies operating in the gambling industry which are, or which may be, licensed by the Commission. You should instruct anybody carrying out investments on your behalf of this constraint. This restriction extends to your close family. Other employees may fall into this category and, if so, you will be informed of this by your manager. If you are unclear as to your status, you should seek guidance from your manager in the first instance or, failing this, the Head of Human Resources.
27. If you are not in a position to influence regulatory decisions, you may invest in shareholdings and other securities connected to the gambling industry, unless the nature of your work is such as to require constraints on this, in which case you will be informed. You must not be involved in taking any decision which could affect the value of your private investments, or the value of those on which you give advice to others. In addition, you must not use information acquired in the course of your work to advance your private financial interests or those of others. You should be aware of the strict controls which apply to insider dealing, which is a criminal offence. Further details are in Annex B and the Employee Handbook.
28. You must declare to the Head of Finance any business interests (including directorships) or holdings of shares or other securities that you or members of your close family hold, to the extent which you are aware of them, which you may be able to further as a result of your official position. Such interests are primarily likely to be interests and direct investments in the leisure sector. You must comply with any subsequent instructions from the Commission regarding the retention, disposal or management of such interests.
29. You may only have limited external business interests and occupations, provided that these do not interfere with your work or in any other way compromise the Commission’s position. The starting point is that your principal paid occupation is with the Commission and nothing you do in addition to this should compromise your ability to fulfil your obligations to the Commission. The following general principles must be observed in respect of business interests and outside occupations:
30. If, as a part of your work, you come into contact with matters concerning a business organisation in which you have an interest, then you must declare that interest to the Head of Finance.
31. You should not handle any official business where, because of private interests, your actions could be open to misunderstanding.
32. You should not carry out any private business transaction with an outside organisation with which you have had official dealings on behalf of the Commission unless, exceptionally, specific written approval is first obtained from a Director or Programme Director.
33. Directors, Programme Directors and Senior Managers will be asked to make a formal declaration of interests to the Head of Finance at least annually. This will include nil returns. The Commission will publish such declarations in accordance with its publication scheme.
34. Your duty of confidentiality continues after you have left the Commission’s employment, whatever the reason for you leaving the Commission.
35. Movement between the Commission and the regulated sectors should not be frustrated by unjustified public concern over a particular appointment. However, it is important that when a former Commission employee takes up an outside appointment there should be no cause for any suspicion of impropriety, so as to avoid:
36. For these reasons, if you are an employee who is in a position to influence regulatory decisions (see paragraphs 10 and 13) and are leaving the Commission’s employment, you must not, within six months of leaving, accept any form of full, part time or fee-paid employment with a licensee or applicant for a licence without having obtained the Commission's prior written approval. Any such requests should be made in writing to the Head of Human Resources. Such approval will not be withheld unreasonably.
37. If you are on secondment to other organisations or have been on secondment to the Commission, you are also subject to these rules.
38. If you are approached regarding an offer of employment either directly or indirectly by or on behalf of a person or organisation in or related to the gambling or gaming industry, you are under a duty to disclose the full particulars of that approach. In addition, if you are actively seeking alternative employment so that your CV is likely to be brought to the attention (whether by you or by an agency) of a person or organisation in or related to the gambling or gaming industry, you are under a duty to disclose this.
39. The disclosures referred to in paragraph 35 should be made as follows:
40. If you are working on compliance and enforcement in relation to specific operators, or in areas concerned with procurement or contract work, you should report any approach - where it comes from those specific operators or from an outside employer with whom they or their employees have had, or might have, official dealings; you do this irrespective of whether or not you are considering taking up the offer.
41. If you wish to pursue an approach about employment, you may be asked to reach a decision within a given timeframe and/or may be asked to work in a different area of the Commission’s business to ensure that there is no potential conflict of interest.
42. The Commission will make operators and licence applicants aware of its policy in this area and ask them to inform the Head of Human Resources before making any approach to Commission employees.
43. It is an important part of our work to develop contacts and build good working relations with a range of outside organisations, for example, relevant trade associations and with individual licence holders. You are encouraged to develop such contacts appropriately. In doing so, however, you are expected to observe exceptionally high standards of personal honesty and integrity. Failure to comply with the Commission’s policies on the acceptance of gifts and hospitality will be regarded as a serious matter and may amount to gross misconduct. In particular, you should make yourself aware of the provisions of the Bribery Act 2010 (opens in new tab) and ensure that your actions do not place you and/or the Commission in a position where you and/or the Commission could be accused of being in breach of the provisions of that Act.
44. No gift or hospitality should be accepted if it would, or might, appear to place you under any obligation, or compromise your impartiality, or be otherwise improper. Subsequent payment for, or reciprocity of, any hospitality does not legitimise its unauthorised receipt. Prevailing practice in the private sector is not a justification for a breach of the standards required in the public sector.
45. Employees should not, therefore, accept any gifts however modest, or hospitality from actual or prospective licensees, or from current contractors or those seeking to become contractors. The only exception is light refreshments at a meeting, for example tea or coffee. Care must also be taken over acceptance of hospitality from trade associations and representative bodies.
46. If you have any doubts about the proper course of action to take when giving or receiving hospitality, it is your responsibility to discuss the issue with your manager in the first instance, or the Head of Finance.
47. Generally the offer of any gift, reward or benefit arising out of your duties as an employee of the Commission should be politely refused with the explanation that public servants are not permitted to accept such offers. Where refusal would clearly be impractical, or cause offence to the donor (for example a representative of a foreign government or similar) you should let the donor know that the gift is being accepted on behalf of the Commission for retention in the office. Such gifts must be handed into the Commission for office use or subsequent disposal.
48. Any gifts received should be returned with a polite letter of explanation. Where return of gifts would be expensive or otherwise difficult, the donor should be told that the gift cannot be accepted but will be donated to charity in their name.
49. These principles do not apply to isolated gifts, for example office accessories at a conference, or from a visitor which are worth less than £10, and which may be accepted for use at work.
50. Details of any gift you have accepted (including those with a value of less than £10) must be notified immediately to the Head of Finance on the standard Hospitality declaration form. A public register of gifts and hospitality will be maintained by the Head of Finance showing all notified gifts and hospitality accepted with a value greater than £10. Unsolicited gifts passed on to charity with the donor’s knowledge should also be notified to the Head of Finance.
51. Employees should not accept cash or other form of monetary payment under any circumstances from actual or prospective licensees, or from current contractors, or those seeking to become contractors. The only exception to this is the collection of fees which are received by the Finance team as part of their accounts receivable duties.
52. An element of modest hospitality plays an important part in the maintenance of a wide range of important business contacts and the acceptance of appropriate levels of hospitality is acceptable. It is essential, however, that you exercise careful judgment in deciding whether the acceptance of hospitality in particular circumstances is appropriate. In doing so, you should consider whether the offer and/or its acceptance would be normal and reasonable in the circumstances. If you have any doubt as to appropriateness, you should decline any offer of hospitality.
53. With the exception of modest hospitality invitations (with an estimated value of £10 or less) acceptance of hospitality invitations should first be cleared by a Director or Programme Director. As noted in paragraph 50, hospitality, even if modest, must not be accepted from actual or prospective licensees or from current contractors or those seeking to become contractors. Any working lunches, for example during a corporate inspection must be paid for. To ensure transparency in the Commission’s affairs, all hospitality received must be recorded in the Commission’s hospitality register. Any hospitality you have accepted (including that with a value of less than £10) must be notified immediately to the Head of Finance on the standard form Hospitality declaration form. The only exception is tea/coffee/soft drinks accepted in the course of a working visit.
54. Senior employees at Director/Programme Director level may, occasionally, offer hospitality in line with the specific hospitality limits set out in the Commission’s expenses rules. These limits will only be varied by prior written agreement from a Director or the Chief Executive as appropriate. Without such prior agreement no reimbursement will normally be made.
55. You are entitled to your own privately held political beliefs and opinions. However, you are expected to exercise appropriate discretion in respect of any political activities that you undertake which are liable to give public expression to your private political views and your private political views should not influence, or appear to influence, your official duties.
56. Rules relating to employee political activity, including standing for election, are set out in the Employee Handbook.
57. If you have a close personal relationship with another employee of the Commission, or job applicant, where you are or will be managing the individual or involved in their performance appraisal, that relationship should be disclosed, either to the Head of Human Resources or to the relevant Director.
58. Where one party directly line manages the other party, it may be appropriate to change the management arrangements to avoid allegations of bias, impropriety or misconduct.
59. Where the relationship is between an employee and a job applicant, it will not be appropriate for the employee to take part in any selection process in which the applicant is involved, or to take any role in the decision to appoint.
60. This paragraph applies if you have a close personal relationship with someone within the gambling industry which could give rise to allegations of bias or conflict of interest. In such circumstances the relationship should also be disclosed to your Resource Manager, who will take steps to avoid any potential conflicts of interest. This disclosure should also be copied to the relevant Director and to the Human Resources team. If you are uncertain whether a disclosure needs to be made, you should seek advice from the Head of Human Resources.
61. ‘Close personal relationships’ include relationships with (whether by marriage, civil partnership or blood) another employee, job applicant or someone within the gambling industry.
62. The Commission recognises that incapacity caused by drugs or alcohol may be a symptom of health problems such as alcoholism or drug dependency and, under such circumstances, will manage any necessary action under the terms of the Alcohol and substance misuse policy. It is your personal responsibility to ensure that you do not come to work if you are not fit to do so.
63. Should your actions outside of work affect your ability to undertake your work within the Commission, for example losing your driving licence, you should advise either your manager or the Head of Human Resources.
64. Although the Commission’s offices will normally be alcohol free, alcohol may on appropriate official occasions, be provided by the Commission. In these circumstances, you should exercise personal discretion and ensure that your consumption of alcohol does not affect your ability to work effectively.
65. In no circumstances should employees bring alcohol onto Commission premises for consumption.
66. The Commission is a non-smoking environment; therefore you must refrain from smoking on all Commission premises. Smoking should be confined to any areas where it is legal to do so.
67. As a public body, the Commission is regularly the subject of media reports and it is important that press enquiries are handled consistently and with accuracy. You are therefore required to pass on any media enquiries to the Corporate Affairs team. You should not comment to the media directly on any issue relating to the Commission’s work unless specifically authorised to do so by the Director of Communications.
68. You should take the time to familiarise yourself with the Commission’s policies regarding use of its IT systems and mobile telephones. You are referred in particular to the Commission’s Information Security Management System (ISMS) policy and BlackBerry/Wireless device usage policy, copies of which can be found on the Commission’s intranet site.
69. The Commission relies on you to inform us if you believe that you are being asked or required to act in a way which:
70. You must also draw attention to cases where:
71. You should either raise the matter through your manager or approach, in confidence, the Chief Executive or a Commissioner.
72. If you have reported a matter as above, but believe that the response you have received does not represent a reasonable response to your concern, you may report the matter in writing to a Director at the Department of Culture Media and Sport who will investigate the matter further.
73. In accordance with the Public Interest Disclosure Act 1998 (opens in new tab), the Commission has put in place arrangements which allow you to raise any concerns in confidence and with a guarantee that the matters will be properly investigated, without damage to you. The Commission’s Public interest disclosure policy is set out in Appendix 4.
74. All employees are required to comply with the provisions outlined in this Employee Code of Conduct. Should there be any concern that this is not the case, the circumstances may be investigated in line with the Discipline and Grievance policy and procedure.
75. If you are concerned that any other employee, regardless of their status or level within the organisation, is behaving in ways which do not support this Code, you should outline your concerns to your manager or a member of the Head of Human Resources, who will ensure that your concerns are treated seriously, confidentially and without recrimination.
15, 16
Employees in a position to influence regulatory decisions (see paragraph 13) must notify the Intelligence lead:
All employees are required to notify the Intelligence lead of:
And are encouraged to notify:
Intelligence lead.
17, 20
Employees in Compliance, Enforcement and Intelligence functions can only visit gambling premises (including bookmakers’ premises at race tracks) in their official capacity or with the prior consent of a Director or Programme Director.
A Director or Programme Director.
28
All employees must declare to the Head of Finance any business interests (including directorships) or holdings of shares or other securities held by themselves or members of their close family, to the extent which they are aware of them, which they may be able to further as a result of their official position.
Head of Finance
30
If, as a part of their work, employees come into contact with matters concerning a business organisation in which they have an interest, then they must declare that interest to the Head of Finance.
Head of Finance
36
An employee who is in a position to influence regulatory decisions (see paragraphs 10 and 13) and is leaving the Commission’s employment, must not, within six months of leaving, accept any form of full, part-time or fee-paid employment with a licensee or applicant for a licence without having obtained the Commission's prior written approval. Any such requests should be made in writing to the Head of Human Resources. Such approval will not be withheld unreasonably.
Head of Human Resources
38, 39
Employees considering an approach from an outside employer which is regulated by the Commission, or which is seeking to be regulated by the Commission, are under a duty to disclose, as soon as possible, the full particulars of any such approach received directly or indirectly from or on behalf of a person or an organisation in or related to the Gambling or Gaming industry, other than in the normal course of their employment with the Commission. Such notification should be made as follows:
Chair and/or Chief Executive or Responsible director, as appropriate.
49
Employees must disclose details of all gifts and hospitality received to the Head of Finance.
Head of Finance
69
Employees must refer all media enquiries to the Head of Communications.
Board Advisor - Corporate Affairs
74, 75
Employees should refer any suspicion of improper conduct within the Commission (see paragraphs 72 and 73) to:
Chief Executive and/or Commissioner and DCMS Director, as appropriate.
76
In accordance with the Public Interest Disclosure Act 1998 (opens in new tab), which allows you to raise any concerns in confidence and with a guarantee that the matters will be properly investigated, without damage to you. The Commission’s Public interest disclosure policy is set out in Appendix 4.
See Appendix 4.
1. Insider dealing is a serious criminal offence under the Criminal Justice Act 1993 (opens in new tab). If you come into possession of ‘inside information’ you must be scrupulous in your use of that information. In particular:
2. ‘Inside information’ means information which:
3. A decision by the Commission would be open to legal challenge, and could be set aside, if the private financial interests of any person substantively involved in the decision making process were such as to give rise to a reasonable presumption of bias. (Persons ‘substantively involved’ include not only the decision taker but also others who contribute to the decision, for example through research or advice). Any person who feels adversely affected by such a decision and who alleges bias by an official involved in the decision making process may:
4. In law, the possibility of conflict of interest does not necessarily stop with consideration of financial interests held by you. Bias could be alleged in respect of the interests of anyone with whom you may have a family, domestic or other relationship and over whose decisions on investment matters you may reasonably be thought to exert an influence and where knowledge of such matters can reasonably be imputed to you. In that event a court would examine the facts of the matter to decide whether bias should be presumed.
5. For the purpose of these instructions, you should consider both your own financial interests and those of others to whom you give investment advice. You should consider financial interests such as shares and other forms of investment such as options and other similar products. Nevertheless, you should always bear in mind that a financial interest even though small could, depending on circumstances, give rise to a legal presumption of conflict of interest and therefore of bias.
6. You must then closely observe the following basic rules:
7. It is not possible to set out in these procedures all the requirements which, in order to avoid conflict of interest, apply to different types of work in the Commission. Therefore, Directors may issue from time to time, as a supplement to these rules, local instructions to their employees relevant to the needs of the work. Depending on the circumstances of the work these supplementary rules might include, for example:
8. If you are in any doubt as to your proper course of action in any of these areas, you must consult your Development Manager who will consider whether or not to refer the matter to the Commission’s legal advisers. However, it is your responsibility to ensure that you act within the law and within the Commission’s rules. Even if not a criminal offence under the insider dealing legislation, a breach of these requirements or of any supplementary instructions issued by a Director will make you liable to disciplinary proceedings. Any enquiries about this information should be addressed to the Head of Human Resources.