On July 11, 2023, the United Kingdom enacted the Foreign Influence Registration Scheme (‘FIRS’). Embedded as part of the National Security Act of 2023, FIRS is a compliance obligation that bears strong parallels to the United States’ Foreign Agents Registration Act (‘FARA’). Although the UK and US policy frameworks have distinct intricacies, the core objective remains twofold: transparency and national security.
In its most basic structure, FIRS requires registration of arrangements designed to sway UK politics guided by non-UK governments or political parties. This implies various organisations – from lobby groups and consulting firms to media outlets and non-profits – may be compelled to disclose their affiliations and activities, provided they are undertaking such activity at the instruction of foreign powers. Strikingly, the remit is not just limited to those based in the UK, but also includes entities acting in a UK political context from overseas.
A compelling feature of FIRS lies in its broad empowering of the British Secretary of State. Notably, the Secretary of State can require persons working for prescribed foreign powers or foreign power-influenced bodies to register for engaging in almost any activity according to Morrison & Foerster LLP.
While it shares similarities with the US’s FARA, the potential for FIRS to cast a wider net given its international scope has drawn attention. The impact on corporate lobbying efforts, global NGOs, and multinational organisations, for one, might be substantial. The law could potentially affect any sphere where external influences could play a part in shaping UK policy matters, whether that influence comes in the form of financial contributions, advice, strategic input, or media manipulation.
As FIRS is the UK’s initial foray into this particular realm of regulation, it will inevitably experience teething issues that will need exploration and, possibly, refinement. For legal professionals involved in corporate spheres, understanding the ramifications becomes increasingly urgent. Given the potential breadth of FIRS’s application, it’s prudent for corporations and law firms alike to closely study the new law and its implications. Legal departments, in particular, will need to be diligent in identifying and managing potential regulatory risks that FIRS might pose for their organisations.