New laws to strengthen national security come into force
National security and investment (INS) Act – the biggest upheaval in the UK’s national security regime in 20 years – fully started today (January 4, 2022).
Starting today, the government will be able to review and intervene in certain acquisitions made by anyone, including businesses and investors, that could harm UK national security, better reflecting the threats we face today. ‘hui.
The government will also be able to impose certain conditions on an acquisition or, if necessary, unwind or block it – although this happens rarely and the vast majority of transactions will not require intervention and can proceed without delay. .
the INS The Act will give investors additional certainty and clarity and solidify the UK’s leading global reputation as a global champion of free trade and investment, as well as an attractive place to invest, with more transparency and simpler and more efficient authorization processes for relevant acquisitions.
Business Secretary Kwasi Kwarteng said:
The UK is globally recognized as an attractive place to invest, but we have always been clear that we will not hesitate to step in if necessary to protect our national security.
The new investment screening process in place from today is quick and simple, giving investors and businesses the certainty they need to do business, and giving everyone in the UK the peace of mind of mind that their safety remains our number one priority.
The vast majority of acquisitions will require no intervention and can proceed quickly and with certainty in the knowledge that the government will not reconsider a transaction once authorized unless false or misleading information has been provided.
The new regime is even more transparent about the types of deals the government could review and requires companies and investors to notify the government of certain acquisitions in 17 sensitive areas of the economy, including artificial intelligence and civilian nuclear power. .
The government has issued comprehensive guidelines to help businesses and investors understand their obligations under the new rules, including how to assess whether the government should be notified of an acquisition and what to expect upon completion. INS notification and assessment process.
Notes to Editors
- On November 2, 2021, the Business Secretary released a statement outlining the risk factors he will take into account when making a decision regarding the call for an acquisition, and the areas of the economy where a call is more. likely to take place. Businesses and investors can use the statement to assess the likelihood that their acquisition will be called in.
- the law applies to acquisitions made from November 12, 2020, i.e. the day after the legislation is presented to Parliament. The government will not review any acquisitions that have already been reviewed under the Enterprise Act 2002 and ongoing investigations under the Enterprise Act 2002 will continue under the Enterprise Act 2002
- the government has 30 working days to review acquisitions after accepting a notification as complete (not after the government has been notified). Learn more about the exam period