Client Advisory: CFIUS Publishes Final Rules Implementing FIRRMA: What Changed and What it Means for Industry

Click here to read the full Client Advisory by Steptoe. On February 13, 2020, the final rules implementing changes to the Committee on Foreign Investment in the United States’ (CFIUS) jurisdiction and review process, as required under the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), take effect. CFIUS, the inter-agency body responsible for reviewing foreign investment into the United States for national security risks, has traditionally been limited to reviewing transactions in which a foreign person acquires "control" of a US business. CFIUS's regulations at Part 800 now cover both "controlling" and certain "non-controlling" investments in US businesses. The final rules track fairly closely with the proposed rules released in September 2019, although CFIUS made a number of changes in response to comments from industry. The Client Advisory summarizes the final regulations in their entirety and also highlights where the final regulations differ from the proposed rules. For more information about the new CFIUS rules and their impact, click here to read Steptoe’s Client Advisory.