Updates guidance on the investment screening regime and clarifies its application to outward FDI
21 May 2024
On 21 May 2024, the Government of the United Kingdom published updated guidance on the investment screening procedure under the National Security and Investment Act (NSIA) to clarify its approach and reduce uncertainty for businesses and investors.
The new guidance provides details on the approach for assessing risk posed by certain trigger events, acquisition targets, acquirers, and the nature of control acquired. It highlights that the formation of new entities can be called in if it involves transferring intellectual property or changing control. For investments in higher education and research-intensive sectors, the updated guidance clarifies that qualifying acquisitions may include research contracts, IP licensing, and control over assets generated by funded research.
Finally, the new guidance also clarifies that the NSIA applies to outward direct investment where national entities acquire control over foreign entities or assets if they engage in activities or supply goods/services to the United Kingdom. This means that a screening procedure might be initiated if sensitive intellectual property or United Kingdom defence connections are involved.
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Type:
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Promotion and facilitation (Investment facilitation , Other)
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Industry:
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Not industry specific
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Services (Scientific research and development)
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