Firms warned over national security investment screening powers

A British American Business Council executive director has highlighted that US businesses need to be wary of the introduction of major UK national security investment screening powers.

The powers are contained in the UK 's National Security and Investment (NSI) Act 2021 and allow the government to investigate and intervene in investments and other acquisitions that might pose national security risks to the UK.

Jane Rosenberg (pictured), executive director of the British American Business Council (BABC) of Greater Philadelphia shared some valuable information about the act, described as 'the most significant development of the UK 's national security investment screening powers in the past two decades '.

On behalf of the UK Government, Jane said that the NSI Act was an 'important part of ensuring investment in the UK can continue with predictability and transparency, while protecting national security '.

She explained said: “It provides businesses and investors with predictable, legally-defined timelines and processes for decisions on acquisitions.

“The Act will also align the UK 's investment screening regime with allies - including the US, as it includes many similarities to CFIUS (Committee on Foreign Investment in the US). ”

Investors should not only be aware of the new Act, but be prepared to notify the UK government of anything that it covers.

The Act covers 17 'sensitive ' areas, including advanced robotics, artificial intelligence, defence, energy, quantum technologies, data infrastructure and satellite and space technology.

Chamber international director Mandy Haque, who is also a British American Business Council vice-president, said: “We welcome the changes that have been introduced from 4 January as it provides further protection for investing into our region and brings us in line with many other countries ' protocols including the USA.

“Please contact us at the Chamber if you have any questions or concerns relating to the NSI Act, and we will direct you to the appropriate person for more information. ”