European Gaming Lawyer magazine EGL_Spring2017_opt - Page 26

( released in January 2017 ) sets out proposals for how the Commission will ‘ sharpen ’ its regulatory toolkit to encourage a faster pace of improvement within the sector . As well as emphasising the Commission ’ s expectations in terms of operators putting consumers first , the proposed changes will affect four of the Commission ’ s guidance documents .
1 . Statement of Principles for Licensing and Regulation The statement of principles for licensing and regulation sets out the principles that the Commission applies when exercising its regulatory functions . Of note , the Commission has revised paragraph 2.7 so , in future , it will only ensure not to impose “ unnecessary regulatory burdens ” in upholding the licensing objectives : a lesser requirement than the current statement , which requires the Commission to impose the minimum burden necessary . Wording in paragraphs 4.5 and 4.6 that previously suggested that , although the Commission would commence investigations in connection with complaints , it would not necessarily conduct licence reviews , has also been removed . Indeed , all references to “ voluntary settlement ” have been replaced with “ regulatory settlement ” ( as the Commission considers that these words more accurately reflect the process and outcome of negotiations in enforcement proceedings ) and the revised statement is clear that , going forward , methods that stop short of formal licence reviews ( such as the newly named regulatory settlements ) will only be considered in “ certain , limited , circumstances ”.
2 . Licensing , Compliance and Enforcement under the Gambling Act 2005 : Policy Statement The policy statement is intended to be read in conjunction with the above statement of principles and sets out the Commission ’ s regulatory policies in relation to assessing risk , licensing operators and key personnel , carrying out compliance activities and regulatory and criminal enforcement . The key changes are concentrated on chapter five ( which has indeed been renamed “ Regulatory enforcement ” instead of “ Dealing with non-compliance ”) and , in essence , communicate the Commission ’ s revised approach - in that it will move away from entering into settlements with non-compliant licensees as a matter of course and move back to a position where it has discretion on how to approach instances of non-compliance , including by way of licence review . There is new guidance on revocation of approval for test houses where there are repeated failings by an approved test house to prevent noncompliant products entering the market and the revised statement also clarifies that , even where a licensee surrenders its licence whilst a licence review is under way , the Commission may nonetheless continue its investigation and publicise the results .
3 . Statement of Principles for determining Financial Penalties The statement of principles for determining financial penalties sets out the principles that the Commission applies when it uses its powers to require licence holders to pay fines . The amendments proposed in the consultation clarify that ( a ) financial penalties can apply to both holders of operating licences and holders of personal licences , and ( b ) the statement of principles will apply both where the Commission exercises its powers to impose a financial penalty and when the Commission accepts a payment in lieu of a financial penalty as part of a regulatory settlement .
The list of matters that the Commission will consider when determining whether to exercise its powers has also been expanded , to include ( i ) whether the breach is an example of repeat behaviour , ( ii ) whether the Commission has previously publicised its investigations in connection with similar cases with the intention that lessons should be learned by the industry , and ( iii ) the timeliness of any admissions being made by the licensee and actions taken to remedy the breach - with the intention being to encourage earlier disclosure of relevant facts , and admissions , during the investigation process by giving more credit ( and reduced fines ) to licensees making such disclosures . Further amendments also seek to ensure that , conversely , heavier penalties will be imposed on repeat offenders who show failures to report breaches , take remedial actions , or learn from their mistakes going forward , and there is new guidance on how monies obtained from regulatory settlements ( which do not need to be paid into the Consolidated Fund – essentially the UK Government ’ s general bank account ) will be deployed .
4 . Indicative Sanctions Guidances The indicative sanctions guidance is a new document introduced by the consultation , which sets out a framework for decisionmaking about regulatory enforcement and
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(released in January 2017) sets out proposals for how the Commission will ‘sharpen’ its regulatory toolkit to encourage a faster pace of improvement within the sector. As well as emphasising the Commission’s expectations in terms of operators putting consumers fi rst, the proposed changes will aff ect four of the Commission’s guidance documents. 1. Statement of Principles for Licensing and Regulation Th e statement of principles for licensing and regulation sets out the principles that the Commission applies when exercising its regulatory functions. Of note, the Commission has revised paragraph 2.7 so, in future, it will only ensure not to impose “unnecessary regulatory burdens” [\[BX[[ؚX]\ΈH\\\]Z\[Y[[H\[][Y[ X\]Z\\H[Z\[ۈ[\HHZ[[][B\[X\\Kܙ[[\Yܘ\ H[ ]][\HY\Y] [YH[Z\[ۈ[[Y[H[\Y][ۜ[ۛX[ۂ]\Z[][X\\[BۙXX[H]Y]\[Y[[[ݙY [YY [Y\[\¸'[\H][Y[8'H]HY[\XY]8'Y[]ܞH][Y[8'B\H[Z\[ۈۜY\]\Bܙ[ܙHX\][HYXH\˜[]YHوYX][ۜš[[ܘ[Y[YY[H[B]\Y][Y[\X\] [™ܝ\ Y]]ܝقܛX[X[H]Y] X\B]HYY[]ܞH][Y[B[ۛHHۜY\Y[8'\Z[[Z]Y \[\[\'K]\X[[Z[]Y\[\YH BX[[\X[H[[ܘ[Y[[\H[X[X NXH][Y[HXH][Y[\[[YBXY[ۚ[[ۈ]HXݙB][Y[و[\\[]]H[Z\[۸&\Y[]ܞHXY\š[[][ۈ\\[\X[[›\]ܜ[^H\ۛ[ \Z[›]\X[HX]]Y\[Y[]ܞB[ܚ[Z[[[ܘ[Y[ H^B[\\Hۘ[]Yۈ\\HH X\[YYY[[[YY'Y[]ܞH[ܘ[Y[8'H[XYق'X[[]ۋX\X[x'JH[ [\[K[][X]HH[Z\[۸&\œ]\Y\X H[]][[ݙB]^HH[\[[][Y[]ۋX\X[X[Y\\HX]\ق\H[[ݙHXH][ۈ\B]\\ܙ][ۈۈ\X[[\وۋX\X[K[Y[˜H^HوX[H]Y]ˈ\H\]™ZY[Hۈ]][ۈو\ݘ[܈\\\\H\H\H\X]YZ[[˜H[\ݙY\\H][ۋB\X[X[\[HX\][H]\Y][Y[[\YH\] ][\HHX[YH\[\]X[B[HX[H]Y]\[\^KB[Z\[ۈX^Hۙ][\۝[YH]š[\Y][ۈ[XX\HH\[˂ˈ][Y[و[\\܂]\Z[[[[X[[[Y\•H][Y[و[\\܈]\Z[[™H[[[Y\]]H[\\]H[Z\[ۈ\Y\[]\\š]\\]Z\HX[H\œ^HH\ˈH[Y[Y[Y[Hۜ[][ۈ\YH] JHH[[[Y\[\H\ق\][X[\[\ق\ۘ[X[\[ HH][Y[و[\\[\H\BH[Z\[ۈ^\\\]\š[\HHH[[[H[[H[Z\[ۈX\H^[Y[[Y]HوHH[[[H\\وBY[]ܞH][Y[ H\وX]\]H[Z\[ۂ[ۜY\[]\Z[[]\^\\H]\\[Y[^[Y [YH JH]\BXX\[^[\Hو\X]Z][\ZJH]\H[Z\[ۈ\œ][\HXX\Y][\Y][ۜš[ۛX[ۈ][Z[\\\]B[[[ۈ]\ۜ[HX\YHH[\K[ ZZJHH[Y[[\ق[HYZ\[ۜZ[XYHHHX[YB[X[ۜZ[[YYHHXXH]H[[[ۈZ[[\YBX\Y\\\Hو[][X[YZ\[ۜ\[H[\Y][ۂ\H][[ܙHܙY] [YXYH\HX[Y\XZ[X\\\˂\\[Y[Y[[YZ[\B] ۝\[KX]Y\[[Y\[B[\Yۈ\X]ٙ[\™Z[\\\ܝXX\ZH[YYX[X[ۜ܈X\HZ\Z\Z\[™ܝ\ [\H\]ZY[Hۂ[ۚY\؝Z[YHY[]ܞB][Y[ XYYHZY[HۜY]Y[8$\[X[BHRݙ\Y[8&\[\[[˜X[ H[H\YY [X]]H[[ۜZY[\•H[X]]H[[ۜZY[H\H]™[[XYHHۜ[][ۋX]]H[Y]ܚ܈X\[ۋBXZ[X]Y[]ܞH[ܘ[Y[[