The Treasury Department proposed regulations (here and here) to implement last year's Foreign Investment Risk Review Modernization Act of 2018 ("FIRRMA"). The rules would broaden the authority of the Committee on Foreign Investment in the United States ("CFIUS") to scrutinize transactions involving foreign investments.
As previously covered, FIRRMA expanded CFIUS's review of transactions beyond "covered transactions" concerning mergers, acquisitions or takeovers that could result in foreign "control" of a U.S. business. The proposed regulations include several types of noncontrolling transactions for so-called TID ("Technology, Infrastructure and Data") businesses involving (i) critical technologies subject to export controls, (ii) critical infrastructure, such as telecommunications and public utilities, or (iii) the "sensitive personal data" of U.S. citizens, such as financial or health information. In addition, the proposed rules would apply to review of certain real estate transactions. FIRRMA also introduced mandatory declaration requirements for certain types of covered transactions, including where a foreign government has a "substantial interest."
Comments on the proposed regulations must be submitted by October 17, 2019. Under FIRRMA, the new regulations must be finalized no later than February 13, 2020.
President Donald J. Trump signed into law the Foreign Investment Risk Review Modernization Act as part of the wide-reaching John S. McCain National Defense Authorization Act for fiscal year 2019.
By a vote of 400 to 2, the House of Representatives passed a bill that would expand the powers of the Committee on Foreign Investment in the United States and reform the export control regime.
Members of the House Subcommittee on Monetary Policy and Trade considered testimony on proposed legislation to expand the jurisdiction, and update the operations, of the Committee on Foreign Investment in the United States.
The U.S. House Financial Services Subcommittee on Monetary Policy and Trade held a hearing to examine the operations and challenges of the Committee on Foreign Investment in the United States.
The House Financial Services Subcommittee on Monetary Policy and Trade considered expert testimony on reforming the Committee on Foreign Investment in the United States.
A House Subcommittee reviewed the operations of the Committee on Foreign Investment in the United States. Newly introduced legislation would broaden the range of transactions that are subject to review, blocking, or unwinding by CFIUS.
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