The UK’s National Security and Investment Act 2021 (the “Act”) entered into force on 4 January 2022, introducing a new investment control regime for acquisitions in the UK, with the aim of protecting the UK’s national security. These new legislative powers follow a global trend of greater scrutiny over foreign direct investment, particularly in sectors that are seen as critical from a national security perspective.
The Act replaces the UK’s previous foreign investment regime under the Enterprise Act 2002 and establishes a more thorough system for screening, and blocking, investments in certain parts of the UK’s economy.
