United Kingdom: UK National Security and Investment Bill enters into force

On 4 January 2022, the National Security and Investment Act (NSI) enters into force after its adoption on 29 April 2021. The NSI aims to expand the state’s powers to oversee transactions that could have the potential of threatening national security. Such transactions also include foreign investments. The bill introduces mandatory notification obligations for foreign investments in 17 areas, including data infrastructure and Artificial Intelligence. Transactions subject to mandatory filing obligations and completed without clearance will be deemed void, representing the first suspensory review regime in the UK for qualifying transactions. Acquisitions will be subject to mandatory notification in circumstances where an investor acquires control in an entity (technically 25%, 50% or 75% of shares or voting rights but "material influence" is also considered) or can stop or pass any form of resolution in an entity. The reception and management of notifications are under the control of the new Investment Security Unit while the Department of Business, Energy & Industrial Strategy is responsible for oversight of the process, which has different stages: an initial review period of 30 days, the calling-in for substantive review by the Secretary of State giving the ISU further 30 days fo a detailed assessment, which can be extended to (45 days).