On 13 November
the Cabinet Office issued a call for evidence in relation to the National
Security and Investment Act 2021 (NSIA) to collect views on how the national
security and investment regime can be more business friendly. It also sought views on how the provisions
could be refined while protecting national security.
Specifically,
the call for evidence is designed to identify views on:1) the impact of the NSI
regime on businesses and investors, 2) whether the scope and requirements of
the NSI regime are proportionate and effective, and 3) how stakeholders
understand the NSI regime.
The NSIA
replaced the Enterprise Act in January 2022.
It allows the government to scrutinise and intervene in acquisitions in
17 sensitive industries that could harm the UK’s national security. The government has cleared around 93% of
transactions it has reviewed within 30 working days, while it has remedied or
prohibited 17 deals.
There are
concerns that the NSI regime may be cast too widely; not least since the rules
can even require companies with no UK operations to notify investments.
The call for evidence
may be regarded as a natural evolution of a maturing regime. The rules require a
review within three years of implementation so the timing of the consultation is not surprising.
Responses to
the call for evidence should be submitted by 15 January 2024.
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