Want to find out more? Read the full version of this update on our free global Foreign Investment and National Security blog at https://foreigninvestment.bakermckenzie.com Mandatory, CFIUS-style screening system in place for transactions in 17 industry sectors On 11 November 2020, the UK Government introduced the long-anticipated National Security & Investment Bill before Parliament. The new law will significantly expand the Government’s existing powers to review the national security implications of transactions and has been timed…
With global foreign investment scrutiny on the rise, not least in the current COVID-19 environment, staying fully informed and ahead of the curve has never been more important. For the latest developments and updates, please visit our new Foreign Investment and National Security blog (see here). This blog will keep users up-to-date in respect of global foreign investment review and national security trends and issues, informing you about the legal and business risks impacting your next…
On September 17, 2019, the Department of Treasury (“Treasury”) released for public comment two proposed rules (the “Proposed Rules”) implementing the Foreign Investment Risk Review Modernization Act (“FIRRMA”) enacted in August 2018. FIRRMA expanded the jurisdiction of the Committee on Foreign Investment in the United States (“CFIUS”) and granted CFIUS new tools to regulate foreign investments raising national security concerns. Our previous analysis of FIRRMA is available here, and our analysis of the “critical technologies” pilot program under FIRRMA implemented by interim regulations issued by Treasury on October 10, 2018, (the “Pilot Program”) is available here.
Treasury will accept comments on the Proposed Rules until October 17, 2019, and the final regulations are to become effective no later than February 13, 2020. Companies that may be affected by the Proposed Rules are encouraged to comment. The full text of the Proposed Rules on investments by foreign persons in US businesses can be found here and on real estate transactions here. We would be pleased to assist our clients with the submission of comments.
Key Changes
The Trump Administration and Congress are tightening investment restrictions and export controls to address technology transfer concerns. These measures initially focus on China, but will have broader effects on investments in the United States and transfers of emerging technologies.