Cannabis Licensing & Proceeds

The UK’s medicinal cannabis and psychedelics industry presents exciting possibilities for patients in need of new treatments, and innovators keen to contribute to their development. However, the legal complexities involved in realising the potential of these medicines can be significant, straddling the controlled drugs regime, proceeds of crime laws, and an ever-growing ecosystem of regulatory frameworks.

The UK’s legal regime regarding the licensing of controlled drugs, controlled by the Misuse of Drugs Act 1971 and involving the Misuse of Drugs Regulations 2001, is in a state of flux. The highly publicised and reported medicinal benefits of certain controlled drugs, notably cannabis and psychedelics such as psylocibin, have attracted particular attention in the media owing to their reported potential to treat a wide range of medical indications.

In particular, the medicinal cannabis industry is growing, both worldwide and in the UK, alongside a parallel industry in cannabidiol (CBD) ‘wellness’ products. But there are significant legal hurdles to the development and marketing of many of these products, in the UK and elsewhere. Of particular relevance to businesses in the UK is the risk of involvement in sales of products overseas that would be unlawful if sold here (e.g. in Canada, following the Cannabis Act), which can raise issues under the Proceeds of Crime Act 2002 (POCA).

Our clients in this exciting and fast-moving field include global corporations, heritage brands, and cutting-edge start-ups. We offer bespoke advice and assistance to companies and institutions, whether starting from scratch, or with a desire to explore how to harness existing market position to expand into this important space.

They have a reputation for legal excellence which is richly deserved

Chambers UK

Our expertise

Our strength is our deep understanding of regulatory law and criminal law, and how to work closely with other professionals to achieve our clients’ goals. This skillset, coupled with decades of experience dealing with government agencies and regulators, uniquely positions us to assist our clients with:

  • preparing applications to the UK Home Office for controlled drug licences, including for cultivation of cannabis and the production of other Schedule 1 drugs;
  • assembling teams of experts and coordinating specialists in design, security, transport and the destruction of controlled drugs;
  • assisting clients during Home Office site compliance visits and liaising directly with members of the Drugs and Firearms Licensing Unit;
  • advising corporates in relation to anti-money laundering (AML) and POCA considerations, including in relation to international trade, mergers and acquisitions;
  • advising retail brands considering branching out into the wellness sector, including in relation to CBD and novel foods regulation by the Food Standards Agency;
  • representing individuals and corporates facing allegations brought under the Misuse of Drugs Act 1971 in interviews under caution and dawn raids;
  • challenging product seizures and forfeiture proceedings brought by UK Border Force, the National Crime Agency (NCA), police forces, and other agencies; and
  • conducting due diligence and preparing reports on all aspects of controlled drug licensing, AML, and POCA for use in support of initial public offerings (IPOs).

Our experience

Examples of our instructions include:

  • Advising and assisting a medicinal cannabis research start-up, and now LSE-listed company, in applying to the Home Office for a Schedule 1 controlled drug licence. Our client is now a leader in medicinal cannabis research and drug development.
  • Advising and assisting an AQUIS-listed company in applying to the Home Office for a Schedule 1 controlled drug licence to cultivate cannabis in connection with agricultural research, with a view to ultimately supplying high quality cannabis for use in the development of medicines.
  • Advising an exciting new CBD lifestyle brand on proposals to introduce CBD products for sale at a major UK heritage retailer. This instruction required a detailed analysis of the laws and regulations controlling the possession and supply of CBD products which may contain trace elements of controlled cannabinoids.
  • Forming part of a team of advisors assisting a medicinal cannabis start-up in preparing for an IPO to list on one of the major UK stock exchanges. A part of this instruction we were responsible for advising on and preparing due diligence reports in connection with controlled drug licensing, AML, and POCA considerations.
  • Helping UK companies navigate their way through the POCA implications of investing in cannabis, including applications to the NCA and obtaining consent.
  • Challenging seizures of CBD products and assisting with interviews under caution of company directors where criminal allegations were made under the 1971 Act (discontinued following our representations).

John Binns and David Hardstaff are contributing authors on liability and criminal law, with a particular focus on cannabis, in The Law and Regulation of Medicines and Medical Devices, published by Oxford University Press. 

 

Also of note is [their] work on the POCA issues relating to the legal sale of cannabis in the US

Chambers UK

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