- Report shows operational success of new system for screening
investments for national security concerns
- New system has been providing certainty for businesses, with
all assessments completed within their legal deadlines
- Businesses and investors encouraged to explore the guidance
available to ensure they fulfil their legal obligations
The first report on the UK’s new national security and investment
system has been published by Business Secretary today (Thursday 16 June). It
covers the period from 4 January, when the system came into
place, to 31 March 2022.
The government’s new powers under the National Security and
Investment (NSI) Act provide it with the ability to intervene in
qualifying acquisitions across the economy that could harm the
UK’s national security.
It also requires businesses and investors to notify the
government of certain acquisitions across 17 sensitive areas of
the economy.
The new system is providing businesses with clarity and speed,
with all assessments completed within deadlines and many
completed sooner.
Modern threats are being tackled, with deals involving
cutting-edge technology such as artificial intelligence and the
space sector being closely scrutinised. The conflict in Ukraine
is an example of the instability that the government is guarding
against.
Business Secretary said:
“The Government is laser-focussed on growing our economy and
levelling up every part of the UK, but this will not come at the
cost of our national security.
“This report shows our new investment screening process is
working. It’s simple and quick, giving firms speed and certainty
to do business in a way that protects the security of the
UK.”
The new system is more efficient as government has to call-in a
deal for further assessment within 30 working days of accepting a
notification, while under the previous system the government had
had up to four months to intervene following the completion of a
deal.
Key findings of the report include:
· The average time to inform
parties that a notification has been accepted as complete is 3
working days. This is line with international partners, such as
the USA’s system taking 5 days;
· Where the government has
called-in a deal, on average this has been decided in 24 working
days. The shortest time the Government took was 11 working days
and all have been decided within the deadline of 30 days;
· The government has received
222 deal notifications in the three-month period;
· Of these deals, 17 were
called-in by the government for further assessment; and
· Of the 17 called-in, three
were cleared with the other 14 cases still being assessed at the
end of the reporting period.
Acquisitions called-in for further assessment included businesses
from areas of the economy such as artificial intelligence,
advanced materials, and satellite and space technologies.
The Government has published extensive guidance which includes the
process for submitting notifications. The Government encourages
businesses to explore this platform to ensure they are fulfilling
their legal obligations.
