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10 May 2024

National Security and Investment Act 2021: Call for Evidence response

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We are pleased to share with you our briefing following the Government's response to a Call for Evidence on the National Security and Investment Act 2021 (the "NSIA").

The NSIA, which came into force in January 2022, increases the scope of the UK Government to intervene in business transactions that may threaten national security. In seeking to maintain a balance between protecting national security, and encouraging business and investment opportunity within UK markets, the Government sought evidence on the impact of the NSIA in recent transactions. The responses, published April 2024, highlighted five key areas for reform including the need for updated market guidance and specific exemptions to streamline notifications.

In line with the Government launching a formal public consultation of the NSIA later this year, and their own legal obligation to review relevant definitions every three years (approaching in January 2025), the Government has set out their intention to clarify the five areas raised in the Call for Evidence. It is hoped that fine tuning definitions, including specific factors the Government relies on when intervening in transactions and the scope of mandatory notifications, will reduce unnecessary filings and the burden on smaller companies. Support was also raised for targeted exemptions to protect businesses in financial distress.

It is hoped that addressing these five areas will ensure the balance between protection and opportunity is maintained.

Click here to read more.
 

Authors

Marta Isabel Garcia
Bryony Roy
Will Spens
Octavia Banks

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