• UK GVT issued National Security and Investment act 2021 (commencement no. 2 and transitional and saving provision) regulations 2021, commenced act from 4 January 2022.
• Follows UKP April 2021 issued act about National Security and Investment.
• Also follows UK GVT July 2021 commenced certain sections 1 July 2021.

Summary

• From 4 January 2022, UK GVT can scrutinize, intervene in certain acquisitions that could harm the UK’s national security, better reflecting the threats faced today.
• UK GVT will also be able to impose certain conditions on an acquisition or, if necessary, unwind or block it, although it is expected that this will happen rarely.
• Majority of deals will require no intervention and be able to proceed without delay.
• NSI act will give investors additional certainty, clarity and cement UK’s reputation as a global champion of free trade and investment as well as an attractive place to invest.
• More transparency and simpler, efficient clearance processes for relevant acquisitions.

Supporting Guidance

• UK GVT published guidance to help businesses, investors understand their obligations under the new rules, including how to assess if UK GVT must be notified of an acquisition, what to expect when going through NSI notification, assessment process.
• Also issued a privacy notice, for anyone who has dealings with the Department for Business, Energy and Industrial Strategy (BEIS) in connection with NSI act 2021.
• Terms, conditions notice for using national security and investment notification service.
• And issued guidance on acquisitions that can be classed as notifiable acquisitions.

4 January 2022 UK IPO Guidance Updated

• On 4 January 2022, UK IPO updated its guidance on IP for businesses: tools and training and its guidance on IP basics, to inform users of the commencement of the new Act.
• Advises guidance explains what types of acquisitions/takeovers are covered by the new rules.