OFSI blog sets out updated approach to assessing reasonableness in sanctions licensing applications
The Office of Financial Sanctions Implementation (OFSI) has published a blog outlining its updated approach to assessing reasonableness in licence applications across all UK financial sanctions regimes. The update introduces mandatory independent Costs Draftsperson’s Reports (CDPRs) for high-value legal fees applications, requiring a report where, within any six-month period, a UK law firm’s total legal and Counsel fees exceed £2m inclusive of VAT, or directly instructed Counsel’s fees exceed £1m inclusive of VAT. The thresholds apply per firm or per Counsel, per designated person, and cumulatively across related applications, with pro rata application for longer periods. CDPRs must be prepared by independent practising Costs Lawyers regulated by the Costs Lawyer Standards Board and not involved in the underlying matter. OFSI states that a CDPR will form part of the evidential package but will not be determinative, and it retains discretion to reduce or refuse the amounts sought. The costs of obtaining a CDPR may themselves be licensed, subject to the usual reasonableness test.