Law360 has published the article "8 Takeaways From CFIUS' Proposed Risk Review Rules," written by Akin Gump international trade partner Christian Davis and associate Thor Petersen. In the article, the two review long-awaited draft regulations from the Committee on Foreign Investment in the United States (CFIUS) pertaining to the implementation of the Foreign Investment Risk Review Modernization Act (FIRRMA) of 2018—last year's law designed "to modernize the CFIUS review process to ensure that it was capturing a broad range of transactions viewed as potentially harmful to U.S. national security."
Davis and Petersen write that the proposed regulations appear to focus on "specific national security concerns, as opposed to taking a broader approach that some feared." As a result, they write, "the proposed regulations are significantly more complex than the pre-FIRRMA regime."
Among their takeaways from the regulations, Davis and Petersen cite the following:
- A diverse (yet targeted) array of infrastructure investments will be subject to CFIUS review.
- New rules define sensitive personal data with more certainty and, as a result, capture investments involving a variety of companies.
- Mandatory reporting will apply for certain foreign government investments in technology, infrastructure and data U.S. businesses.
To read the article in its entirety, please click here.