Bass, Berry & Sims attorney Thad McBride provided insight for a Bloomberg Law article on the new interim rules implementing the Foreign Investment Risk Review Modernization Act (FIRRMA). The interim rules, which went into effect on November 10, broaden the authority of the Committee of Foreign Investment of the United States (CFIUS) – an interagency committee that reviews foreign investments in U.S. companies that could impact national security.
To implement the new interim rules, CFIUS is establishing a pilot program to carry out new requirements for foreign parties making investments, including non-controlling investments, in U.S. businesses involved in 27 explicitly designated industries that develop “critical technology.”
The Treasury Department imposed “pretty stringent, broad rules,” explained Thad. “The potential penalties are substantial, and the breadth of [covered] industries is pretty significant too. They could have limited it to a smaller subsection of industries.”
The full article, “CFIUS Review Law Sends ‘Critical’ Tech Companies Scrambling,” was published by Bloomberg Law on November 12, 2018, and is available online. Click here to read a post on the firm’s Government Contracts & International Trade blog further detailing the CFIUS pilot program.