Dechert LLP’s Post

Orrick assessment of proposed CFIUS rules. A leap in the progression of CFIUS from merely a transaction-screening body to a more conventional regulatory and enforcement body. https://lnkd.in/dARuwJVr

CFIUS recently released "extensive details on penalties and enforcement actions," a move that many in the industry have cited as "unprecedented." What does this mean for organizations and their investors? David Holley, J.D. spoke with Foreign Investment Watch to share his insights, read his interview at the link below. https://lnkd.in/ePcxeVCb #cfius #nationalsecurity #riskmitigation #fdi #foreigninvestment

Robert Kidwell and I read the CFIUS Annual Report so you don't have to. Here are the three trends to watch.

CFIUS's latest Annual Report to Congress highlights an uptick in penalties and an increased use of enforcement tools relating to national security-focused transaction reviews. Through this report, public remarks by senior officials, private sector outreach, and significant recent uses of and proposed enhancements to its penalty authorities, CFIUS has signaled an enhanced focus on monitoring and enforcement efforts. Parties should consider these trends, and CFIUS's augmented statutory authorities and policy role, in connection with transaction risk assessments and deal planning. Read Jones Day's Alert, which provides a summary of the CFIUS annual report. https://ow.ly/YxGj50T1rZR #CFIUS #nationalsecurity #fdi

CFIUS's latest Annual Report to Congress highlights an uptick in penalties and an increased use of enforcement tools relating to national security-focused transaction reviews. Through this report, public remarks by senior officials, private sector outreach, and significant recent uses of and proposed enhancements to its penalty authorities, CFIUS has signaled an enhanced focus on monitoring and enforcement efforts. Parties should consider these trends, and CFIUS's augmented statutory authorities and policy role, in connection with transaction risk assessments and deal planning. Read Jones Day's Alert, which provides a summary of the CFIUS annual report. https://ow.ly/pwGP50T1ze6 #CFIUS #nationalsecurity #fdi

The Treasury Department recently published a proposed rule that would amend the CFIUS regulations to expand CFIUS’s enforcement authorities. Specifically, the proposal would: ➡️ Broaden the types of information that CFIUS can request from parties to “non-notified transactions.” ➡️ Implement a three-business-day deadline for transaction parties to respond to proposed mitigation terms. ➡️ Expand CFIUS’s authority to subpoena information from not only transaction parties but “other persons” more generally. ➡️ Raise the maximum monetary penalty for violating the regulations from $250,000 to $5 million. Comments on the proposed rule are due by May 15, 2024. Learn more: https://bit.ly/3W75lsV By: Christian Davis, Laura Black, Katherine Penberthy Padgett, Alison Trimble #ForeignInvestment #CFIUS

CFIUS has recently proposed new regulations to enhance efficiency and effectiveness, including expanded authority for non-notified transactions and shorter response times for mitigation terms. In our latest Tech Insights article, the Head of our U.S. Foreign Investment practice Jonathan Gafni breaks down the new draft rules and the following issues that the Notice of Proposed Rulemaking addresses. Click below to read more. #nationalsecurity #foreigninvestment #CFIUS

𝐒𝐄𝐁𝐈 𝐏𝐫𝐨𝐩𝐨𝐬𝐞𝐬 𝐋𝐢𝐠𝐡𝐭𝐞𝐫 𝐑𝐞𝐠𝐮𝐥𝐚𝐭𝐢𝐨𝐧𝐬 𝐟𝐨𝐫 𝐏𝐚𝐬𝐬𝐢𝐯𝐞 𝐌𝐅𝐬 A recently released consultation paper proposes lower net worth and net profit requirements for sponsors and AMCs. SEBI https://lnkd.in/g3cp9MWX

CFIUS's latest Annual Report to Congress highlights an uptick in penalties and an increased use of enforcement tools relating to national security-focused transaction reviews. Through this report, public remarks by senior officials, private sector outreach, and significant recent uses of and proposed enhancements to its penalty authorities, CFIUS has signaled an enhanced focus on monitoring and enforcement efforts. Parties should consider these trends, and CFIUS's augmented statutory authorities and policy role, in connection with transaction risk assessments and deal planning. Click below to download our Alert, which provides a summary of the CFIUS annual report. Randi Lesnick Don McGahn Lindsey Nelson Grayson Yeargin #CFIUS #nationalsecurity #fdi

Foreign Direct Investment (FDI) regimes are taking center stage in more and more cross-border M&A deals, as countries take steps to either amend their existing, or establish new, more stringent FDI rules. Parties to transactions involving multinational companies must consider, as possible in the planning stages, if and how FDI regimes may impact a deal. CFIUS (the U.S. FDI vehicle), in its latest Annual Report to Congress, highlights an uptick in penalties and an increased use of enforcement tools relating to national security-focused transaction reviews. Parties should consider these trends, and CFIUS's augmented statutory authorities and policy role, in connection with transaction risk assessments and deal planning. Randi Lesnick Don McGahn Lindsey Nelson Grayson Yeargin #CFIUS #nationalsecurity #fdi