INSIGHTS
28 Oct 2021
In October 2021, the Malta Gaming Authority (the “MGA”) amended the Gaming Authorisations and Compliance Directive (Directive 3 of 2018). As a result of such amendments, the number of key function roles required to be appointed by licensed operators has decreased, since certain roles have been merged.
Download the summary of amendments report here.
As a consequence, B2C and B2B licensees operating in the remote business are required to appoint the following key function roles:
B2C licensee |
B2B licensee |
|
1. |
CEO |
CEO |
2. |
Key Gaming Operations = Key Gaming Operations + Key Finance + Key Risk + Key Fraud |
Key Gaming Operations = Key Gaming Operations + Key Finance + Key Risk + Key Fraud |
3. |
Key Compliance = Compliance Officer + Key Responsible Gaming + Key Player Support + Key Marketing |
Compliance Officer |
4. |
Key Legal |
Key Legal |
5. |
Key Data Protection |
Key Data Protection |
6. |
Key AML & CFT |
Key Technology = Key Technology + Key Information Security |
7. |
Key Technology = Key Technology + Key Information Security |
Internal Audit |
8. |
Internal Audit |
Furthermore, clarifications in respect to when certain roles need to be appointed during the lifetime of the license have been made.
Importantly, if no person is approved by the MGA to fulfil a key function either temporarily or otherwise, the responsibility for such key function is vested in the directors of the licensee.
Apart from amending Directive 3 of 2018, the MGA also issued the Policy on the Eligibility and Ongoing Competency Criteria for Key Persons (hereinafter the “Policy”), which sets the eligibility and ongoing competency criteria which the MGA shall consider in terms of persons who apply for the issuance or renewal of a Key Function Certificate.
Fitness and Propriety Considerations
Key persons are obliged to be fit and proper in order to perform their respective key functions on an ongoing basis.
The main criteria, which the MGA considers, consist of the following:
General Competency Criteria and Continuous Professional Development
Persons being key functions officials are obliged to be duly qualified in terms of academic qualifications as well as professional experience as may be applicable for their given roles.
With respect to the continuous professional development (hereinafter “CPD”), when applying for the renewal of the Key Function Certificate, key persons must demonstrate that they have attained a minimum number of CPD hours during each calendar year of the previous certification period, in order for such renewal to be approved.
Evidence of fulfillment of the applicable CPD requirements includes the certification or other proof of attendance.
The Policy provides an exhaustive list of methods applicable to the attainment of CPD requirements, as follows:
It must be noted that 1 CPD hour is earned for each hour of active participation for qualifying professional educational activities unless specified otherwise.
In addition, the table below further demonstrates the minimum experience and/or qualifications requirements as well as minimum annual CPD requirement for each key function role:
Key Role |
Minimum Experience and/or Qualifications |
Minimum Annual CPD Requirement |
CEO |
|
5 CPD Hours |
Key Gaming Operations |
|
10 CPD Hours |
Key Compliance |
|
10 CPD Hours |
Key Legal |
|
10 CPD Hours |
Key Data Protection |
|
10 CPD Hours |
Key AML & CFT |
|
10 CPD Hours |
Key Technology |
|
10 CPD Hours |
Internal Audit |
|
10 CPD Hours |
Compatibility of Roles
For clarity purposes, MGA has also published the table below to clarify which roles are incompatible with each other.
Actions required and applicable timeframes
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For any questions please contact gaming@whpartners.eu
The information above does not and is not intended to constitute legal advice and should not be relied on as such. For any specific matters kindly seek legal assistance.