Gambling Commission “fully engaging” with government review into Football Index failings
Regulator reveals focus on finding “forward-looking solutions” to feed into public inquiry and subsequent gambling act review
The Gambling Commission (UKGC) has said it is “fully engaging” with the UK government public inquiry into the demise of the Football Index business earlier this month.
Publishing an update on the wider scrutiny of Football Index parent company BetIndex, the UKGC said it would provide any support required to the government-led inquiry.
“We have welcomed the government’s independent review and the focus it will bring to the way that complex products, which to consumers can have the appearance of both gambling and financial characteristics, are currently regulated,” the UKGC said.
“We are fully engaging with the review, which is being led by Malcolm Sheehan QC, to find forward-looking solutions that can also be fed into the gambling act review,” it added.
The UKGC was heavily criticised following the demise of Football Index, with questions being asked about its conduct in the run up to the firm entering administration, questions which ultimately led to the formation of the public inquiry.
The regulator has repeatedly defended its position and revealed details of a year-long regulatory investigation into the firm just weeks after its collapse in March.
Updating the sector on its own investigation into BetIndex, the UK regulator said it had received “understandable and ongoing” interest from consumers about its scrutiny of the business but suggested its remit would be limited by the scope of its regulatory powers.
“The Gambling Commission has certain powers as a regulator and sometimes it is assumed we can do things which we cannot,” the UKGC said.
“This does not mean we do not recognise the distress and clear upset that many Football Index customers will be feeling,” the regulator added.
The UKGC said that its priority is to ensure that BetIndex focuses on treating its customers fairly and keeping them fully informed of any developments which impact them, staying in “close contact” with the firm.
It also pointed to the regular updates issued by the firm’s administrators to stricken shareholders.
“Ultimately, alongside the courts, it is for the administrators to resolve the return of funds to affected consumers from the financial resources still held by the company,” the regulator explained.
“This is not something that can be directed by the Gambling Commission, but we are in contact to make sure any legal obligations covered by our remit are met,” the UKGC added.
At present, so-called ‘trust deed monies” totalling £4.5m are being held by the Viscount of Jersey pending full repayment to customer wallets, in line with a High Court order issued earlier this month.
The UKGC has revealed BetIndex customers will be notified by email when the monies are released. At that point customers will be able to log into their Football Index account and make a withdrawal request.
The UKGC outlined customer concerns about the ‘share portfolio’ part of the Football Index product, revealing that no valuation of these portfolios had been made by BetIndex administrator Begbies Traynor.
“The Gambling Commission is not involved in this valuation and it is unconnected to our powers as a regulator,” the UKGC concluded.