A new dedicated framework for direct foreign investments here in the UK has been announced.
Dubbed the National Security and Investment Act, the new law is expected to come into effect towards the end of 2021, but it is believed that the government may look back over deals initiated since November 2020.
The new legislation is accepted as being a system with one of the largest reaches in the world. The Act will carry both criminal and civil penalties for any failure to make appropriate notifications.
An acquisition deemed notifiable that is completed without the express approval and permission of the Secretary of State will be void with no legal effect. A statement from the UK government has confirmed that it will work closely alongside international investors to assist in easing the market as it adapts to the investment rules of the newly planned framework.
UK consumers seeking investment advice in Shropshire, Chester and other locations around the UK can count on assistance from professional wealth management services for guidance and well-balanced portfolios.
In the wider context of international governments examining foreign direct investments, the new law has been designed to reform the UK’s national framework for reviewing transactions. It will give the government greater authority to investigate and tighten its control on foreign direct investments that could potentially present a risk to national security.
The UK Secretary for Business, Energy and Industrial Strategy will administer and execute the new controls, and an “Investment Security Unit” will be established to receive notifications.