Key Function Roles

Key Function Roles
Key Function Roles Introduction
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 IGA Group 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 we can also assume 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 - B2B:
  1. The chief executive role, or equivalent;
  2. The management of the day-to-day gaming operations of the licensee, including but not limited to, the management of the financial obligations of the licensee, such as the payment of tax and fees due to the Authority, and the management of the risk strategies for the operation of the licensee;
  3. Compliance with the obligations of the licensee as may be applicable by virtue of the Act and any binding instrument issued thereunder, including but not limited to obligations relating to sports integrity where these are applicable;
  4. The legal affairs of the licensee, including but not limited to, matters relating to contractual arrangements and dispute resolution;
  5. The adherence to applicable legislation relating to data protection and privacy, where applicable;
  6. The technological affairs of the licensee, including but not limited to, the management of the back-end and control system holding essential regulatory data, and the network and information security of the licensee; and
  7. Internal audit.
Key Function Roles - B2C:
  1. The chief executive role, or equivalent;
  2. The management of the day-to-day gaming operations of the licensee, including but not limited to, the management of the financial obligations of the licensee, such as the payment of tax and fees due to the Authority, the processes of making payments to, and receiving payments from, players, the management of the risk strategies for the operation of the licensee, and the prevention of fraud to the detriment of the licensee;
  3. Compliance with the obligations of the licensee as may be applicable by virtue of the Act and any binding instrument issued thereunder, including but not limited to, obligations relating to responsible gaming, obligations relating to player support, obligations relating to the rules relating to marketing, advertising and promotional schemes, and where applicable, obligations relating to sports integrity;
  4. The legal affairs of the licensee, including but not limited to matters relating to contractual arrangements and dispute resolution;
  5. The adherence to applicable legislation relating to data protection and privacy;
  6. The prevention of money laundering and the financing of terrorism;
  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, and the network and information security of the licensee; and
  8. 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 IGA Group.

 
WHY CHOOSE IGA GROUP

At iGamingAdvisors, we are committed to providing the best possible service to our clients, by using our wealth of experience and knowledge to maximise the potential of their business. We have years of experience in the gaming sector, both through previous employment with gaming companies, but also through software companies providing technical solutions and also through various consultancy engagements both at a strategic, operational and regulatory level.

Our expertise covers the whole spectrum of operator activities: legal, finance, operations, online gaming regulation, compliance, AML, technical, licensing, corporate, seo, support, company formation, mergers and acquisitions and more.

Having assisted companies in obtaining gaming licences in Malta, UK, Romania and Curacao, we pride ourselves for being one of Malta’s most experienced igaming service providers.