Regulated Functions and Individuals: A new responsibility under the New Gibraltar Gambling Act

With the Bill to repeal the Gambling Act 2005 and establish the new Gibraltar Gambling Act (the “New Act”) now published, a number of regulatory changes are set to be implemented shortly. In this segment, we outline the concept of regulated functions and regulated individuals. 

What are Regulated Functions?

Part V of the New Act requires licence holders to ensure that their regulated functions are carried out on its behalf by, or under the responsibility of, a regulated individual. 

These functions include specific roles such as Chief Operating Officers and Managing Directors, a Money Laundering Reporting Officer, as well as the function of exercising a significant degree of influence over a licence holder (the “Regulated Functions”). 

Who is a Regulated Individual?

A regulated individual is defined as a person approved by the Commissioner to perform, or to be responsible for the performance of, a Regulated Function ("Regulated Individual"). A licence holder must ensure that it has a Regulated Individual performing each Regulated Function.

Such individuals may only act if the Commissioner has approved that individual to perform specific regulated functions for a specific licence holder. However, the same individual may be authorised to perform or be responsible for, more than one Regulated Function. 

The individuals in question must satisfy the following criteria:

1. be fit and proper to perform, or to be responsible for the performance of, the Regulated Function; and
2. be able to perform, or to be responsible for the performance of, the Regulated Function in the licence holder. 

What is the application process for Regulated Individuals under the New Act?

An application for the approval of a Regulated Individual must be made by the licence holder and not the individual themselves. The application must be in a specific form and include a statement outlining the individual's responsibilities. 

Moreover, before a licence holder submits an application they must vet the individual to ensure that they satisfy the criteria for approval. 

How will the Commissioner determine the applications for Regulated Individuals?

The Commissioner is empowered to approve the application unconditionally, provisionally approve the application subject to applicant satisfying certain conditions or, to reject the application. 

How long do existing Licensee's have to appoint a Regulated Individual?

Existing licensees will have a maximum of 12 months from the date on which the provisions of Part V come into operation to submit an application to the Commissioner for the approval of its Regulated Individuals. 

If, a decision has not been made within this period, the time period will be extended until such time as the application and any appeal of the application decision has been determined. 

Further Information 

If you require assistance with regards to Regulated Individual approvals, feel free to contact our team:

Andrew Montegriffo, Partner
Louise Federico, Partner
Anna Buhler, Associate