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International Regulatory Enforcement

CFIUS's New Pilot Program Signals an Expansive Approach to Its Jurisdiction Under FIRRMA
CFIUS has launched a pilot program mandating, on pain of civil penalty, that parties to all foreign investments in a defined group of industry sectors must submit their transactions for review, when specific triggers are met. This action signals CFIUS's intent to aggressively exercise its expanded authorities under FIRRMA, a recent statutory overhaul to the CFIUS process.

Equally notable is what CFIUS's approach to the design of the pilot program augers for its full implementation of FIRRMA authorities in the future. CFIUS appears poised to assume all powers conferred by Congress to review foreign investment transactions, including possibly mandating filings in circumstances beyond just those involving foreign government actors.
The “Transformative” CFIUS Bill: Not So Fast.
The Foreign Investment Risk Review Modernization Act (“FIRRMA”), a package of amendments to the national security review process overseen by the Committee on Foreign Investment in the United States (“CFIUS”), has just been signed into law. An overhaul of the CFIUS process was certainly much-anticipated and, many think, long overdue. But did the legislation truly transform CFIUS’s authority and procedure to the degree and in the ways expected by the investment community? In some ways, yes. But a closer reading of the lengthy amendments (totaling nearly 100 pages) yields less than meets the eye.