The UK's new General Trade Licence for the provision of legal advisory services
On 11 August 2022, the UK government issued a General Trade Licence (the General Licence) permitting UK individuals and businesses to provide legal advice that would otherwise be restricted. This General Licence is related to the provision of legal advisory services in the context of Russia sanctions, as governed by the Russia (Sanctions) (EU Exit) Regulations 2019 (the Russia Sanctions Regulations). This development comes with specific exclusions, conditions, and requirements to ensure responsible usage.
In essence, the General Licence provides the authorisation needed for legal advisory services that are typically restricted under the legal advice prohibition with reference to Regulation 54D (Legal Advisory Services).
Below are some of the key features of the General Trade Licence:
Addressing sanctions and punitive measures:
The General Licence offers the freedom to provide legal advisory services, even in cases where these services would generally be prohibited. This includes situations, including the following;
- advising as to whether an act or a proposed act complies with, or could trigger punitive measures (which includes administrative penalties) in relation to, restrictive measures, including sanctions, export and import controls on or concerning Russia or the non-government controlled Ukrainian territory, imposed by any jurisdiction; and/or
- in relation to, or in connection with advice on compliance with, or addressing the risk of punitive measures (which includes administrative penalties) in relation to:
- restrictive measures, including sanctions, export and import controls on or concerning Russia or the non-government controlled Ukrainian territory, imposed by any jurisdiction;
- any laws of Russia that have as their object or effect the frustration of any laws specified at (i), including sanctions, export and import controls or other restrictive measures imposed by Russia;
- or any criminal law imposed by any jurisdiction; and/or
- where the legal advisory services are provided in relation to the discharge of or compliance with UK statutory or regulatory obligations.
The above represents a further clarification of exceptions already found in regulation 60DB of the Russia Sanctions Regulations.
Compliance with statutory and regulatory obligations:
The General Licence requires compliance with the following administrative measures:
- the Provider must provide details to the Secretary of State about the records' location within 30 days of first using the licence through registration of such details on SPIRE, the Export Control Organisation’s online export licensing system, here.
- the provisions of Regulation 76 (General trade licences: records) of the Regulations apply to any act under the authority of this licence.
- in accordance with the applicable legislation, the records must be maintained for four years beyond the record's creation and be accessible for inspection and copying by authorised individuals.
- failure to comply with any condition may result in the Provider's use of this licence being revoked or suspended. The Provider will be notified in writing of any such suspension or revocation.
To provide further guidance, the UK’s Department for Business and Trade has issued a Notice to Exporters. This notice offers detailed insights into the SPIRE registration process, providing stakeholders with valuable information.
The General Licence is in force as of 11 August 2023.
No equivalent licence has been issued by the authorities in the UK Overseas Territories as of the date of this blog, however the operation of regulation 60DB should mitigate the risk of material mismatch between the UK and UKOT position on this.
The General Trade Licence can be found here.
The Notice to Exporters NT2023/16 can be accessed here.
The Russia (Sanctions) (EU Exit) Regulations 2019 can be found here.
The SPIRE webpage can be accessed here.
