• UK CMA issued consultation on proposed guidance setting out powers and procedures used in cooperation mechanisms under EU foreign direct investments (FDI) regulation.

FDI Regulation

• Creates a cooperation mechanism within the EU for exchange of information on an FDI.
• In relation to an FDI likely to affect security or public order, of the EU member States.
• Share data on FDI planned/completed in UK, with EU member States and/or EU CMSN.
• Temporary modifications have also been made to the Enterprise Act 2002 (the EA02), which will allow UK CMA to use its powers under the EA02 for purpose of sharing data.
• Temporary requirements will fall away at end of transition period, from 31 December 2020.

Proposed Guidance

• UK CMA seeks views on draft guidance in respect of its powers to gather/share data in response to requests that may be received, between 11 October 2020 - end of transition.
• Requests may come from EU member States and/or EU CMSN under FDI reg, art 7(5).
• Also seeks views on guidance regarding UK CMA powers to enforce information notices issued under section 109 of EA02.
• Following consultation, final guidance once adopted will remain in force until the end of the transition period, after which time, the majority of the guidance will fall away.
• Post-transition, UK CMA will no longer gather and/or share information under FDI reg.

Effectiveness

• Responses to the consultation are requested by 18 September 2020