1. On Tuesday 20 December 2022, the Minister for External Relations (the "Minister") issued General Licence RUSSIA/JSY/2022/1 (the "Previous General Licence"). The Assistant Minister for External Relations (the "Assistant Minister") subsequently issued an amended version of the Previous General Licence which was aligned to the UK's corresponding General Licence.
2. On 28 June 2023, the Assistant Minister issued a new Jersey General Licence RUSSIA/JSY/2023/2 (the "Jersey General Licence (Legal Services)") to permit the payment of legal fees owed by individuals and entities designated under either of the Russia or Belarus sanctions regimes.
3. In practice, the Jersey General Licence (Legal Services), as with the Previous General Licence means that a Jersey law firm or Jersey legal counsel that has provided legal advice to a person designated under either the Russia or Belarus sanctions regime, will be able to receive payment from, or on behalf of, that Designated Person ("DP"), without a specific licence from the Minister or Assistant Minister, provided that the terms of the Jersey General Licence (Legal Services) are met.
4. The new Jersey General Licence (Legal Services) revokes and replaces the Previous General Licence.
5. The new Jersey General Licence (Legal Services) will continue to have effect in Jersey independently of the corresponding UK General Licence – INT/2023/2954852 - remaining in force.
6. Anyone wishing to use the new Jersey General Licence (Legal Services) should carefully consider its terms before doing so as it is not an extension or duplicate of Previous General Licence. The key changes made to the Jersey General Licence (Legal Services) are detailed below.
Changes to caps
7. The professional legal fees caps and expenses caps of the Jersey General Licence (Legal Services) have been reset. Users will be able to make use of the legal fees caps (£500,000 inc. GST) and the expenses caps (5% of legal fees, up to £25,000) under Jersey General Licence (Legal Services). Legal fees and expenses paid under the Previous General Licence will not count towards these caps.
8. The Jersey General Licence (Legal Fees) may be used to start paying/receiving fees and/or expenses in cases where the total fees and/or expenses exceed the legal fees and/or expenses caps. Where fees and/or expenses exceed the relevant cap(s), then applicants will have to submit a specific licence application for the balance of fees and/or expenses.
9. Under the Jersey General Licence (Legal Services), two legal fees caps can be combined, subject to the terms of the licence being met. This means if work is undertaken for a DP that involves fees for legal work carried out in satisfaction of a prior obligation (£500,000 limit) and work undertaken post-designation (£500,000 limit), up to £1 million (inc. GST) could be paid. Similarly, if expenses are required for work carried out in satisfaction of a prior obligation (£25,000 limit) and for work undertaken post-designation (£25,000 limit), up to £50,000 (inc. GST) in expenses could be paid. The 'pre-designation' derogation may still only be used for work which was commenced pre-designation. For example, a law firm commences work for a DP relating to a divorce pre-designation, where legal fees eventually amount to £400,000. The same law firm later starts work post-designation on various property matters for the same DP, in relation to which legal fees eventually amount to £650,000. The full fees for the divorce proceedings may be claimed under the 'pre-designation' derogation. In addition, the firm may claim the first £500,000 for the property work under the 'post-designation' derogation but must (because the cap has been reached) apply for a specific licence for the final £150,000 in relation to the property work. The remaining part of the unused cap under Part A cannot be put towards the property work as the property work was started post-designation.
10. The caps apply to a DP and all the entities owned and controlled by that DP unless those entities are designated in their own right.
Changes to definition of Legal Services
11. Professional legal fees and expenses for cases involving defamation or malicious falsehood are not permitted to be paid under the new Jersey General Licence (Legal Services).
12. Decisions on specific licence applications submitted for this category of cases will be considered on a case-by-case basis (for both appropriateness and compliance with the right to a fair hearing), but it is the Minister's starting position that payment of legal fees in such cases would not be appropriate.
Reporting Requirements
13. Those who use the Jersey General Licence (Legal Services) must provide a report (see below for links) to the Minister.
14. Reporting is due within 7 days, at the earliest point of either the services being completed, or the licence coming to an end. Those using the Jersey General Licence (Legal Services) must keep records of its use for 6 years.
15. All reported use of the Previous General Licence should be sent to the Minister by 14 July 2023.
Further Details
16. Hourly rate caps for legal advisers are set out in the Jersey General Licence (Legal Services).
17. Hourly rates to be charged by Counsel must not exceed £1,500 per hour.
18. Fee rates cap under the 'pre-designation' derogation of £500,000 (inc. GST).
19. Fee rates cap under the 'post-designation' derogation of £500,000 (inc. GST).
20. The Jersey General Licence (Legal Services) is due to expire on 28 October 2023.
21. The Minister or Assistant Minister can vary, suspend, or revoke the Jersey General Licence (Legal Services) at any time.
22. If you breach the terms of the Jersey General Licence (Legal Services) you may be committing a criminal offence.
23. Reporting forms for the Jersey General Licence (Legal Services) can be found by clicking on the following link: Reporting forms.
Further Information
24. Please see guidance on licences and exceptions for more detailed guidance on general licences.
Enquiries
25. Any questions about this notice should be addressed to:
Financial Sanctions Implementation Unit
sanctions@gov.je
gov.je