National Security and FDI Screening in the UK

Abstract

Abstract The chapter scrutinizes the UK’s foreign investment screening framework, introduced by an account of the evolution of the national security assessment in merger control from the Monopolies and Mergers Act 1965 to the Enterprise Act 2002. It analyses recent amendments to the Enterprise Act regime and sector-specific regulations, finding that while some have improved the regime at the margin, several weaknesses remain from a substantial and institutional perspective. The chapter examines FDI screening under the newly established National Security Investment Act and delves into the Act’s provisions, objectives, application, and implications for investors. It dissects the Act’s core elements, highlighting its expansive scope. This examination extends from the substantial prerequisites to the procedural aspects, exploring the review process timeline, notification requirements, call-in powers, interim orders, and remedies and sanctions. The analysis highlights that the Act represents a transformative shift in UK investment screening, necessitating careful consideration by businesses and investors.