The US Department of the Treasury has issued interim regulations for the Committee on Foreign Investment in the United States (CFIUS) to conduct a pilot program, as authorized by the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA).
The pilot program is intended to regulate the conduct of foreign persons seeking to acquire certain interests in US businesses involved in critical technologies related to specific industries. The pilot program covers critical technologies in 27 industries (including aviation, defense, semiconductors, telecommunications and biotechnology) that the US government identified because certain strategically motivated foreign investment in those industries could pose a threat to US technological superiority and national security.
The pilot program will become effective on November 10, 2018 – 30 days following publication of the regulations in the Federal Register.
In this concise alert, we examine the reach of the pilot program and review its key requirements for affected industries and sectors.