New National Security and Investment Act
The government has announced the National Security and Investment Act 2021 which became effective on the 4th January 2022. It includes new powers that allow the government to investigate and intervene in investments and other acquisitions of entities and assets in the UK if there is a risk to National Security.
As part of the announcement, Lord Callanan, Minister for Business, Energy and Corporate Responsibility, said ‘This is the biggest shake up of the UK’s national security investment screening powers for 20 years.’
He explained that the government want to make investment in the UK appealing, but to protect us against the few who wish to ‘do us harm’.
So, what do you have to be aware of?
The following steps are laid out within the publication:
- Check if the rules will apply to your acquisition. This will depend on what you are acquiring and how much control you have over it.
- Check if you will need to tell the government about your acquisition. You will be legally required to inform the government about certain acquisitions of entities if your acquisition is in a sensitive area of the UK economy from 4th January 2022.
- Tell the government about your acquisition. You can do this online by submitting a notification from 4th January 2022.
- The government will review your acquisition. It can either clear your acquisition, impose certain conditions, or block or unwind it.
You can find further guidance here.
Further, updated guidance will be published six months after the new Act commences.
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