In the Headlines
February 12, 2023

The UK and New Zealand to Remain Excepted Foreign States. Big Whoop?

Foreign Investment Watch

CFIUS and Industrial Security attorney Antonia Tzinova was quoted in a Foreign Investment Watch article about the Committee on Foreign Investment in the United States' (CFIUS) decision to keep the United Kingdom (U.K.) and New Zealand as "excepted foreign states." This designation means that for businesses based in those jurisdictions - provided investors qualify as excepted investors from those states - CFIUS will not have jurisdiction over covered transactions. Although the excepted foreign state status applies narrowly, investors that do obtain it can enjoy a variety of benefits. Ms. Tzinova commented on the requirements for becoming a foreign excepted state, saying the hurdle to "join the club" is significant. For example, countries need to implement a foreign investment screening mechanism that aligns with CFIUS' review process. 

"Some EU countries have revamped their investment regimes in response, like Germany or the Netherlands, but it would take some time for the U.S. to evaluate the effect," she explained. 

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