By Abigail Robson  of Amber Gaming (Isle of Man)

On 20th October 2021, the Malta Gaming Authority (MGA) published a number of amendments to the Gaming Authorisations and Compliance Directive (Directive 3 of 2018) (the “Directive”), this was alongside a new Policy on the Eligibility and Ongoing Competency Criteria for Key Persons (the “Eligibility Policy”). These changes have been made to recognise the fast-changing nature of the industry and ensure Key Persons remain on top of pertinent developments and proficient in their roles.

All proposed Key Function holders must undergo scrutiny from MGA to assess their capability for the role. It is essential that Key Persons have full knowledge, understanding and access to the Authorised Person’s operations where necessary to carry out their individual Key Function(s). Such Key Persons are however now also required to demonstrate their proficiency and eligibility on an ongoing basis.

Following on from this, the Eligibility Policy is designed to present the eligibility and aptitude criteria that should be considered by the MGA when considering the persons who apply for the renewal or issuance of a Key Function Certification, and/or for the inclusion of additional Key Functions under any pre-existing Key Function Certification. The Directive, among other things, streamlines the Key Function requirements applicable to Licensed Operators.

An excerpt from Abigail Robson as she shares her insight on the Malta Key Functions changes

Fitness and Propriety Considerations

In order to carry out their Key Functions, Key Persons must not only be fit and proper at the time of application, but consistently so for the duration of their role and will continuously be assessed by the MGA on this basis.

Principal criteria for a Key Function Certificate taken into consideration by the Authority during and after the application stage include:

• Integrity, Honesty and Reputation: Applicants must demonstrate that they are of good repute, have trustworthy intentions and an honest and trustworthy manner.
• Competence and Capability: Applicants must be able to demonstrate that they satisfy the relevant qualification and/or experience requirements, including making any declarations deemed appropriate concerning their competency.

Minimum experience and/or qualifications for each Key Role differ, for exact requirements please refer to Schedule 2, Policy on the Eligibility and Ongoing Competency Criteria for Key Persons.

Continuous Professional Development

Background

Continuous training and CPD ensures Key Persons are up to date on developments in their respective fields, remaining fully prepared to carry out their role. Key Persons must be able to show they have attained the applicable minimum number of CPD hours during each calendar year when applying for their renewal.

Evidence of Fulfilment

Failure to adhere to CPD requirements with no justifiable reasoning will result in the MGA refusing a renewal application. The Authority reserves the right to request clarification, supplementary documentation, or evidence reasonably necessary to confirm attendance and/or relevance of the activity.

Relevance of Activity

Evidence of fulfilled CPD requirements must also be accompanied by justification of the relevance of each activity to the specific Key Function. Whilst it is up to the Key Person to ensure relevance, it is ultimately at the discretion of the Authority whether it meets the requirements.

If unsure of the relevance of a CPD activity, Key Persons may contact the Authority’s Compliance Department compliance.mga@mga.org.mt for confirmation.

Methods Applicable to attain CPD

The MGA has set out an exhaustive list of methods you may use to attain CPD. In brief these are:

• Professional educational activities
• Presentations
• Teaching / Lecturing / Presenting
• Publication of articles
• Professional examinations

For more information, look to the First Schedule, Policy on the Eligibility and Ongoing Competency Criteria for Key Persons.

The relevant CPD requirements are as follows:

Non-Adherence

Failure to meet any of the criteria covered may result in refusal of an application for a new or renewal of a Key Function Certification, and/or the addition of a Key Function.

In the case of a refusal, the Key Person will not be allowed to reapply to carry out the respective Key Function for at least 6 months from the date of the decision.

Key Function Roles

The following constitute the applicable Key Functions relating to the coming into force of the Amendments. B2C Licensees Key Functions have reduced from 15 to 8, and B2B Licensees Key Functions have reduced from 9 to 7.

B2C Licensees: Key Persons are responsible for carrying out the following Key Functions:

a) Chief executive role or equivalent
b) Day-to-day management
c) Compliance with the licensee’s obligations
d) The legal affairs of the licensee
e) The prevention of money laundering and the financing of terrorism
f) Adherence to applicable legislation relating to data protection and privacy
g) The technological affairs of the licensee
h) Internal audit

B2B Licensees: Key Persons are responsible for carrying out the following Key Functions:

a) The chief executive role, or equivalent
b) The day-to-day management
c) Compliance with the licensee’s obligations
d) The legal affairs of the licensee
e) Data protection and privacy
f) The technological affairs of the licensee
g) Internal audit

Timeframes for Compliance

The following timeframes must be adhered to by both Key Function Certificate holders and Licensed Operators:

i. New applications for Key Function Certification must be made in accordance with the above requirements and the newly designated Key Roles
ii. By the end of May 2022, existing Key Persons must have applied to the Authority to be approved carry out the new Key Roles. A new Key Function Certificate will be issued, provided the Key Person is allowed to carry out the previous Key Role/s until the date in paragraph (iv). If an existing Key Person fails to file such application by the deadline it will result in the Authority revoking the Key Function Certificate previously held
iii. By end of September 2022, the Authority shall either approve or reject the applications
iv. By the end of December 2022, Licensed Operators must notify the Authority of the designation of the new Key Persons
v. Following the above, the Authority shall either approve or reject the designation made by the Authorised Person of the new Key Persons by the end of March 2023
vi. Existing Key Persons are required to fulfil CPD Requirements with respect to each of the Key Roles which they are authorised to fulfil upon their first application for renewal of their Key Function Certification

With respect to those Key Roles that were not changed by means of the Directive, CPD requirements must be adhered to upon the second renewal of their Key Function Certification.

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