The US Department of the Treasury’s Committee on Foreign Investment in the United States (CFIUS) published proposed rule changes on May 21 addressing when parties must notify the Committee of proposed transactions. The current regulations require parties to file a notice when the target US business is classified by one of 27 North American Industry Classification System (NAICS) Codes. The proposed regulations would rely on the US export control regulations and regimes – and not on NAICS codes – to determine when parties must notify CFIUS. In short, although the proposed changes represent an expansion of the potential industries affected by the mandatory declaration requirements through the elimination of the 27 NAICS codes, they narrow the focus for the nuclear industry to those foreign persons (and the countries where they are located) that are subject to export licensing requirements.
The US Department of the Treasury’s Committee on Foreign Investment in the United States (CFIUS) has published the final rules implementing the Foreign Investment Risk Review Modernization Act (FIRRMA). FIRRMA piloted noticeable changes and higher awareness of CFIUS and its impact on foreign investment in the United States. Our firm's CFIUS working group is closely monitoring CFIUS’s January 13 release of the final regulations under FIRRMA and will provide an analysis on the regulations and the anticipated impact on cross-border investments. For more information, read CFIUS Issues Final Regulations Under FIRRMA.