The U.S. Committee on Foreign Investment in the United States (CFIUS) has recently published its Annual Report for calendar year 2022. This important update highlights a range of trends and developments that have unfolded in the last year.
Most notably, the report has exhibited a slight elevation in the number of filings for 2022 setting a new record for notice filings. This indicates an uptick in foreign investment activity requiring the committee’s review, a trend that legal professionals working with international corporations should take into account when advising on deal strategies and potential regulatory hurdles.
The Annual Report also pointed out an important trend in CFIUS’s enforcement approach. There has been a noticeable decrease in the number of declarations that the committee has ‘cleared’ within its customary 30-day assessment period. Consequently, this could imply longer wait times for clearance and potential delays in getting investment deals over the line.
Furthermore, an increased number of CFIUS filings have concluded in mitigation in 2022. This points towards a heightened focus on addressing national security risks associated with foreign investments. It is pivotal for corporations to be prepared for such mitigation measures and to factor them into their planning and risk assessments.
The report also emphasises on recent initiatives under President Joe Biden’s administration. Though the specific details are currently unknown, these policy updates could potentially impact the foreign investment landscape in the United States and demand close attention in years to come.
In conclusion, the CFIUS Annual Report for 2022 has cast light on several emerging trends in foreign investment regulation. Legal professionals should leverage this report to adapt their counsel to meet these changing dynamics and mitigate any associated risks for their clients.