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Key Functions Services

Key Function Roles Introduction

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The key function roles may only be provided by natural persons (individuals) who are appointed by the licensee in order to be responsible for a particular role and be the main point of contact with the relevant gaming jurisdiction. In Malta (Malta Gaming Authority – MGA) and the UK (UK Gambling Commission – UKGC), such individuals need to be approved and accepted by the regulator to perform such tasks.

For an individual to cover any of the key function roles, physical presence is a must for many of the jurisdictions, and the person appointed must be readily available to communicate with the regulator.

Even though, case in point in Malta, residency is not defined in the regulations and hence does not necessarily mean domiciliation, the MGA interprets this requirement in a way that besides covering the respective role, with the responsibilities, be it legal, regulatory or others, associated to it, the key function holder needs to be readily available in Malta to meet the regulator, when ever such need arises. 

A key function holder can be a company employee or can also be outsourced, in line with MGA requirements and approvals. 

Although it is no longer a requirement, any of the key function roles may assume the responsibility of a director, depending on the way a company is structured. Any director of the company shall promote its well-being and shall be responsible for the general governance, proper administration and management of the company and the general supervision of its affairs.

At Malpep we have qualified and experienced professionals who can provide advisory services on any of the key functions, and can also be appointed to cover any of the roles.  In addition, through our trusted partners we can also take on the responsibilities of a director, should the company decide to outsource.

The following roles and responsibilities performed in connection with the gaming activity of a licensee shall each constitute a key function:

Key Function Roles - B2C

  1. The Chief Executive role, or equivalent
  2. Management of the day-to-day gaming operations of the licensee, including the processes of making payments to, and receiving payments from, players
  3. Compliance with the licensee’s obligations emanating from the licence or licences issued by the Authority
  4. The administrative and financial strategies of the licensee, including but not limited to the payment of tax and fees due to the Authority
  5. Marketing and advertising, including bonus offers and promotions
  6. The legal affairs of the licensee, including but not limited to contractual arrangements and dispute resolution
  7. Player support
  8. Responsible gaming
  9. The prevention of fraud to the detriment of the licensee
  10. The risk management strategies of the licensee
  11. The prevention of money laundering and the financing of terrorism
  12. Adherence to applicable legislation relating to data protection and privacy
  13. The technological affairs of the licensee, including but not limited to the management of the back-end and control system holding essential regulatory data
  14. The network and information security of the licensee
  15. Internal audit

Key Function Roles - B2B

  1. The chief executive role, or equivalent
  2. The day-to-day gaming operations of the licensee
  3. Compliance with the licensee’s obligations emanating from the licence or licences issued by the Authority
  4. The administrative, financial and risk management strategies of the licensee, including but not limited to the payment of fees due to the Authority
  5. The legal affairs of the licensee, including but not limited to contractual arrangements and dispute resolution
  6. Adherence to applicable legislation relating to data protection and privacy, where applicable
  7. The technological affairs of the licensee, including but not limited to the management of the back-end and control system holding essential regulatory data
  8. The network and information security of the licensee
  9. Internal Audit
KEY FUNCTIONS – IMPORTANT INFORMATION

It is important to note that the MGA, in terms of article 9 of the Gaming Authorisations and Compliance Directive, has identified the following conflicts in key functions, and the same person is not allowed cover such responsibilities:

1) Compliance-based roles are considered incompatible with roles where the primary objective is business development, growth or sales.

In particular, the Chief Executive role, the responsibility for the licensee’s finances, and the responsibility for marketing and advertising are considered incompatible with the following roles:

(i) Compliance with the licensee’s obligations;
(ii) Player support;
(iii) Responsible gaming.

2) Without prejudice to the above:

(a) the person responsible for AML/CFT is also expected to refrain from taking on other responsibilities which may conflict with his effectiveness and independence required to cover such role, including but not limited to the Data Protection Officer;

(b) the Data Protection Officer role is considered incompatible with any other role that manages or controls personal data, or which prejudices the person’s effectiveness in such role, including but not limited to the Money Laundering Reporting Officer;

(c) the person responsible for internal audit is expected not to hold any other function.

The above is only for guidance, in line with MGA’s communications. For professional advice get in touch with Malpep.