April 24, 2008
CFIUS Proposes New Regulations on Foreign Investments
On Monday, the Department of the Treasury’s Committee on Foreign Investment in the United States (“CFIUS”) issued proposed regulations governing national security reviews of foreign investments in US companies. The proposed regulations – issued to implement amendments adopted by the Foreign Investment and National Security Act of 2007 – are the most significant changes to the CFIUS rules since their adoption in ’91. Some say they do not go as far as had been feared in tightening review of foreign acquisitions, but that they do expand the scope and nature of such reviews in limited but important ways. We have posted memos analyzing the proposed changes in our “Sovereign Wealth/National Security Considerations” Practice Area.