In the article, “New foreign investment powers will create 'considerable uncertainty' for business,” City A.M. highlights that the newly published National Security and Investment Bill has been labelled the “most significant” change to the United Kingdom’s investment regime in decades.
City A.M. reports that the new bill increases the scope for government ministers to scrutinize and ultimately void deals deemed a threat to national security, which could make the U.K. a less attractive destination for business. The new regulations bring the U.K.’s investment environment in line with allies such as the United States and Australia, which have both introduced stringent measures in recent years.
The publication spoke with London corporate associate Jonathon Gunn for insight on the new legislation. Gunn noted it was key that the law was focused on national security rather than national interest.
“This is crucial given the openness of the UK economy and the importance of foreign direct investment. With the end of the transition period for Brexit on the horizon, it is important for overseas investors to know the UK remains an open, welcoming and reliable destination for business,” said Gunn.