Asked by: Clive Lewis (Labour - Norwich South)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what discussions his Department has had with the Gambling Commission on why traders were allowed to continue depositing funds with Football Index until just before trading was suspended on that platform and the notice of administration was released on 11 March 2021.
Answered by John Whittingdale
The Gambling Commission has suspended the licence of BetIndex Ltd, the operators of Football Index, and a live investigation is ongoing. The Secretary of State and I have met the Gambling Commission twice to receive urgent reports and are monitoring the situation very closely. Further information, including an update on the status of customer funds, can be found on the Commission’s website: https://www.gamblingcommission.gov.uk/news-action-and-statistics/news/2021/BetIndex-update.aspx
It is a condition of a gambling operating licence that customers should be able to withdraw funds from their accounts. The Commission acted to suspend BetIndex’s licence on learning that the operator planned to freeze access to funds. Operators who hold customer funds must tell customers whether funds are protected in event of insolvency and the level of the protection offered. Football Index provides a medium level of customer funds protection, which means customer funds are kept in accounts separate from business accounts, and arrangements are made to ensure assets in the customer accounts are distributed to customers in the event of insolvency.
The government has launched a Review of the Gambling Act 2005 and has called for evidence on a range of issues across the sector, including the powers and resources of the Gambling Commission. The call for evidence closes on 31 March, and we will be led by the evidence received.
Asked by: Clive Lewis (Labour - Norwich South)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what discussions his Department has had with the Gambling Commission in response to the suspension of Football Index’s licence.
Answered by John Whittingdale
The Gambling Commission has suspended the licence of BetIndex Ltd, the operators of Football Index, and a live investigation is ongoing. The Secretary of State and I have met the Gambling Commission twice to receive urgent reports and are monitoring the situation very closely. Further information, including an update on the status of customer funds, can be found on the Commission’s website: https://www.gamblingcommission.gov.uk/news-action-and-statistics/news/2021/BetIndex-update.aspx
It is a condition of a gambling operating licence that customers should be able to withdraw funds from their accounts. The Commission acted to suspend BetIndex’s licence on learning that the operator planned to freeze access to funds. Operators who hold customer funds must tell customers whether funds are protected in event of insolvency and the level of the protection offered. Football Index provides a medium level of customer funds protection, which means customer funds are kept in accounts separate from business accounts, and arrangements are made to ensure assets in the customer accounts are distributed to customers in the event of insolvency.
The government has launched a Review of the Gambling Act 2005 and has called for evidence on a range of issues across the sector, including the powers and resources of the Gambling Commission. The call for evidence closes on 31 March, and we will be led by the evidence received.
Asked by: Clive Lewis (Labour - Norwich South)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, what steps his Department is taking to respond to the collapse of Football Index.
Answered by John Whittingdale
The Gambling Commission has suspended the licence of BetIndex Ltd, the operators of Football Index, and a live investigation is ongoing. The Secretary of State and I have met the Gambling Commission twice to receive urgent reports and are monitoring the situation very closely. Further information, including an update on the status of customer funds, can be found on the Commission’s website: https://www.gamblingcommission.gov.uk/news-action-and-statistics/news/2021/BetIndex-update.aspx
It is a condition of a gambling operating licence that customers should be able to withdraw funds from their accounts. The Commission acted to suspend BetIndex’s licence on learning that the operator planned to freeze access to funds. Operators who hold customer funds must tell customers whether funds are protected in event of insolvency and the level of the protection offered. Football Index provides a medium level of customer funds protection, which means customer funds are kept in accounts separate from business accounts, and arrangements are made to ensure assets in the customer accounts are distributed to customers in the event of insolvency.
The government has launched a Review of the Gambling Act 2005 and has called for evidence on a range of issues across the sector, including the powers and resources of the Gambling Commission. The call for evidence closes on 31 March, and we will be led by the evidence received.
Asked by: Clive Lewis (Labour - Norwich South)
Question to the Department for Digital, Culture, Media & Sport:
To ask the Secretary of State for Digital, Culture, Media and Sport, if he will support a public inquiry into Football Index.
Answered by John Whittingdale
The Gambling Commission has suspended the licence of BetIndex Ltd, the operators of Football Index, and a live investigation is ongoing. The Secretary of State and I have met the Gambling Commission twice to receive urgent reports and are monitoring the situation very closely. Further information, including an update on the status of customer funds, can be found on the Commission’s website: https://www.gamblingcommission.gov.uk/news-action-and-statistics/news/2021/BetIndex-update.aspx
It is a condition of a gambling operating licence that customers should be able to withdraw funds from their accounts. The Commission acted to suspend BetIndex’s licence on learning that the operator planned to freeze access to funds. Operators who hold customer funds must tell customers whether funds are protected in event of insolvency and the level of the protection offered. Football Index provides a medium level of customer funds protection, which means customer funds are kept in accounts separate from business accounts, and arrangements are made to ensure assets in the customer accounts are distributed to customers in the event of insolvency.
The government has launched a Review of the Gambling Act 2005 and has called for evidence on a range of issues across the sector, including the powers and resources of the Gambling Commission. The call for evidence closes on 31 March, and we will be led by the evidence received.
Asked by: Lord Bishop of St Albans (Bishops - Bishops)
Question to the Department for Digital, Culture, Media & Sport:
To ask Her Majesty's Government what assessment they have made of the Insolvency Service's figures which show gambling to be a feature in 373 bankruptcies last year, an increase from 158 in 2015–16.
Answered by Baroness Barran - Parliamentary Under-Secretary (Department for Education)
Gambling and Other Rash Speculation was recorded as the main cause of insolvency in 2% of the total bankruptcy orders made in 2018/19, or 373 cases. The numbers of bankruptcies with this listed as the primary cause have varied in the last ten years, falling to their lowest point of 158 in 2015/16 and then rising in subsequent years (see Table 1 below). Rises or falls in annual bankruptcy numbers can be complex and will relate to a number of factors such as interest rates and creditor attitudes. Over the same period problem gambling rates in Great Britain have remained stable at under 1% of the adult population.
Table 1: Bankruptcy orders where the primary cause was recorded as “Gambling and other rash speculation”, England & Wales, 2008/09 to 2018/191
Year | Total Bankruptcy Orders [2] | Number of Bankruptcy Orders with Gambling and Other Rash Speculation Listed as the Cause [3,4,5] | Percentage of Bankruptcy Orders with Gambling and Other Rash Speculation Listed as the Cause |
2008/09 [5] | 72,383 | 728 | 1% |
2009/10 [5] | 72,863 | 543 | 1% |
2010/11 [5] | 53,326 | 363 | 1% |
2011/12 | 38,460 | 201 | 1% |
2012/13 | 29,325 | 185 | 1% |
2013/14 | 23,575 | 168 | 1% |
2014/15 | 19,065 | 163 | 1% |
2015/16 | 15,219 | 158 | 1% |
2016/17 | 15,352 | 238 | 2% |
2017/18 | 15,408 | 300 | 2% |
2018/19 | 16,725 | 373 | 2% |
Notes:
1. Source: The Insolvency Service.
2. Total bankruptcy statistics are consistent with National Statistics published by the Insolvency Service at https://www.gov.uk/government/collections/insolvency-service-official-statistics.
3. The cause of bankruptcy is recorded on the Insolvency Service’s case administration system. These data are management information and have not undergone the same level of quality assurance as the Insolvency Service’s National Statistics outputs.
4. The data provided as cause of bankruptcy is reliant on the Insolvency Service’s examiner listing Gambling and Other Rash Speculation as the primary cause of bankruptcy, so it cannot be guaranteed that this figure covers all bankrupts that had gambling debts. The Gambling and Rash Speculation category covers causes other than gambling, but it is not possible to break this down further.
5. Data on cause of bankruptcy prior to 2011/12 is from The Insolvency Service’s legacy system, so they cannot assure its accuracy. Following data migration they became aware that some legacy data was not compatible with the new case management system and can therefore be unreliable.
Asked by: Kelvin Hopkins (Independent - Luton North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what organisations are responsible for monitoring and enforcing anti-money laundering laws.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
There are 25 Anti-Money Laundering (AML) supervisors in the UK. These include the Financial Conduct Authority (FCA), HM Revenue and Customs, the Gambling Commission and the 22 accountancy and legal professional bodies listed below:
These supervisors monitor and enforce compliance with AML legislation. This complements the work of law enforcement agencies, including the National Crime Agency, the Serious Fraud Office and local police forces.
The government has reviewed the supervisory regime and is implementing reforms to strengthen it. These include creating a new team – the Office for Professional Body AML Supervision (OPBAS) – within the FCA to help, and ensure, professional bodies provide consistently high standards of supervision. OPBAS will also work across the regime, to facilitate high standards amongst statutory supervisors and strengthen supervisors’ collaboration with law enforcement.
Law enforcement agencies, the FCA, HM Revenue and Customs and the Gambling Commission are subject to the Freedom of Information Act whilst the 22 professional bodies named above are not. The government supports greater transparency to help build public confidence in our regime, and the 2017 Money Laundering Regulations require that all AML supervisors, including the 22 professional bodies, provide information to inform the Treasury’s Annual Supervision Report.
Asked by: Kelvin Hopkins (Independent - Luton North)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, which organisations responsible for monitoring and enforcing anti-money laundering laws are not subject to the Freedom of Information Act 2000.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
There are 25 Anti-Money Laundering (AML) supervisors in the UK. These include the Financial Conduct Authority (FCA), HM Revenue and Customs, the Gambling Commission and the 22 accountancy and legal professional bodies listed below:
These supervisors monitor and enforce compliance with AML legislation. This complements the work of law enforcement agencies, including the National Crime Agency, the Serious Fraud Office and local police forces.
The government has reviewed the supervisory regime and is implementing reforms to strengthen it. These include creating a new team – the Office for Professional Body AML Supervision (OPBAS) – within the FCA to help, and ensure, professional bodies provide consistently high standards of supervision. OPBAS will also work across the regime, to facilitate high standards amongst statutory supervisors and strengthen supervisors’ collaboration with law enforcement.
Law enforcement agencies, the FCA, HM Revenue and Customs and the Gambling Commission are subject to the Freedom of Information Act whilst the 22 professional bodies named above are not. The government supports greater transparency to help build public confidence in our regime, and the 2017 Money Laundering Regulations require that all AML supervisors, including the 22 professional bodies, provide information to inform the Treasury’s Annual Supervision Report.
Asked by: Lord Garnier (Conservative - Life peer)
Question to the Attorney General:
To ask the Attorney General, who the non-police prosecuting agencies are in England and Wales; and what each body's status and powers in law are as a prosecutor.
Answered by Robert Buckland
Where an offence does not specify a particular prosecutor, any person has the right to institute criminal proceedings and conduct a prosecution. This applies whether the person is acting in a purely personal capacity or in the course of his duties for a local authority, government department, business enterprise or other organisation. However, the vast majority of non-police prosecutions are conducted by the following public authorities. Due to the right of any legal person to institute criminal proceedings, this is not an exhaustive list:
Crown Prosecution Service (“CPS): Established by the Prosecution of Offences Act 1985, the CPS is a non-ministerial government department, operating under the superintendence of the Attorney General. In addition to prosecuting cases investigated by the police, the CPS prosecutes cases referred to it by Defra, Home Office immigration officials, HMRC, the National Crime Agency, the DWP, the Medicines and Healthcare Products Regulatory Agency, the Department for Health, the Food Standards Agency and the Child Maintenance Group.
Serious Fraud Office (“SFO”): The SFO and its powers were created by the Criminal Justice Act 1987 (as amended). It is an independent government department, operating under the superintendence of the Attorney General. Its purpose is to investigate and, if appropriate, prosecute those who commit serious or complex fraud, bribery and corruption and pursuing them and others for the proceeds of their crime.
Service Prosecuting Authority (“SPA”): The SPA was formed by the Armed Forces Act 2006 on the 1st January 2009. The role of the SPA is to review cases referred to it by the Service Police or Chain of Command and to prosecute appropriate cases at Courts Martial or the Service Civilian Court.
Department for Business Innovation and Skills (“BIS”) – the functions of the Secretary of State for Business, Enterprise and Regulatory Reform were transferred to the Secretary of State for Business, Innovation and Skills by Order in 2009. BIS is the lead criminal enforcement agency for insolvency related fraud and associated corporate misconduct. It is responsible for the investigation and prosecution of offences on behalf of the Secretary of State under the Insolvency and Companies regimes, including bankruptcy offences and fraudulent trading.
Competition and Markets Authority (“CMA”) - The CMA is an independent non-ministerial department. It was established by the Enterprise and Regulatory Reform Act 2013 and took over many of the functions of the Office of Fair Trading (OFT) together with those of the Competition Commission. In particular, under the Enterprise Act 2002, the CMA has the power to investigate and prosecute individuals for the cartel offence contrary to section 188 of that Act. The CMA also investigates and prosecutes offences under The Consumer Protection from Unfair Trading Regulations 2008 and The Business Protection from Misleading Marketing Regulations 2008.
Companies House (“CA”) – CA is an executive agency of BIS and has responsibility for prosecuting offences of failing to file annual accounts and annual returns under the Companies Act 1985 (as amended).
Gambling Commission (“GC”) – The GC was set up under the Gambling Act 2005 to regulate commercial gambling in Great Britain. It is an independent non-departmental public body sponsored by the Department for Culture, Media and Sport. GC has the power to investigate and prosecute offences under the Gambling Act 2005.
Environment Agency (“EA”) – EA is an executive non-departmental public body sponsored by Defra. Established in 1996 by the Environment Act 1995, it investigates and prosecutes environmental offences contained in both primary and secondary legislation.
Food Standards Agency (“FSA”) – Established by the Food Standards Act 1999, the FSA is a non-ministerial government department with the objective of protecting public health in relation to food. It investigates and prosecutes food safety and food hygiene offences that are contained in both primary and secondary legislation. Offences relating to animal welfare in abattoirs are prosecuted by the CPS.
Health and Safety Executive (“HSE”) – established by the Health and Safety at Work Act 1974 (“HSWA”), the HSE aims to protect the health, safety and welfare of people at work, and to safeguard others, mainly members of the public, who may be exposed to risks from the way work is carried out. This includes investigating and prosecuting offences under the HSWA and associated regulations.
Office of the Rail Regulator (“ORR”) - ORR is a non-ministerial government department. Established on 5 July 2004 by the Railways and Transport Safety Act 2003, ORR enforces health and safety law in relation to railways and prosecutes under the Health and Safety at Work etc. Act 1974 (HSWA), the Railways (Interoperability) Regulations 2011, the Rail Vehicle Accessibility (Non-Interoperable Rail System) Regulations 2010 and the Train Driving Licences and Certificates Regulations 2010.
Driver and Vehicle Licensing Agency (“DVLA”) – DVLA is an executive agency sponsored by the Department for Transport and prosecutes offences contained in the Vehicle Excise and Registration Act 1994 and associated regulations on behalf of the Secretary of State for Transport.
Driver Vehicle Standards Agency (“DVSA”) – DVSA is an executive agency sponsored by the Department for Transport and aims to improve road safety in the U.K. It prosecutes under a range of primary and secondary legislation in relation to vehicle standards.
The Maritime and Coastguard Agency (“MCA”) – MCA is a UK executive agency sponsored by the Department for Transport. Its objectives are to prevent the loss of lives at sea implement British and International maritime law and safety policy. It investigates and prosecutes health and safety offences and offences contained in the Merchant Shipping Act 1995 and associated regulations.
Local Authorities (“LA’s”) – LA’s prosecute a broad range of offences from housing benefit fraud to trading standards and food hygiene offences.