Will the FCA's new plan mean cannabis companies can come in from the cold?Posted by On

How does the UK’s legal and financial establishment feel about the cannabis industry?

The answer to that has changed significantly over the last few years, to the point that the Financial Conduct Authority (FCA) now contemplates their listing on the London Stock Exchange. But the legal rules around how to do that are far from simple.

First, cannabis remains a controlled drug, as does its main psychoactive ingredient, THC. That means dealings with products containing the cannabis flower, THC or both are generally banned. The Home Office can and does grant licences, however, mostly for medical research, and for growing cannabis (“hemp”) with a low THC content of less than 0.2 per cent. 

Second, under the Proceeds of Crime Act (POCA), overseas sales of cannabis products can be classed as “criminal conduct”, if they would be illegal in the UK. This means that dealing with their proceeds can be classed as money laundering (though there is also a system for seeking consent from…

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